NEW YORK, July 10: Millions of dollars are spent on the US presidential race. Beginning from primaries to election day on Nov 7, it is flow of ceaseless fund that is what is of pivotal interest to the candidates. Fund raising is a teneous job. It is also an indicator of the popularity of the candidate. More fund you raise, more popular you are.
Real Estate business, which has helped bankroll so many campaigns will not be in a position to do so this time. Corporate America has always been helpful. Giant American auto-makers are struggling to fend for themselves. The same is true of banks and airline industry.
The Middle-East money has come to play a very crucial role in boosting a sinking economy. This region has one thing in abundance. It is petrol. The galloping price of oil is one of major reasons for the economic downturn the world is facing. It is fattening the kitty of the Arab nations.
Merryl Lynch, a bank of immense reputation, finds itself with a shrinking capital base. It is planning to sell its shares in Bloomberg business. Wachovia is another reputed bank which is facing trouble and has already issued warning of new losses. Wachovia has estimated a second quarter loss of $2.8 billion. Doubts have been expressed over Wachovia's ability to survive as an independent company, an analyst said.
Earlier, the Middle-East money came into the rescue of the Citigroup. That was of course long before the US economy had slipped into a recession. Large government sponsored funds in the Middle-East is growing. Abu Dhabi which owns 4.9 per cent stake at the Citigroup has 'expanded its portfolio of choice of American assets'. It has bought 75 per cent share of Chrysler building in Manhattan at a price of $800 million. Chrysler building is a landmark in New York. America has become increasingly reliant on foreign capital.
Abu Dhabi, Kuwait, Qatar, Saudi Arabia and other Arab nations flushed with petrodollar are taking advantage of falling prices and investing lavishly around the world. Investors from the Middle-East have invested over $1.8 billion this year.
With oil price soaring, experts expect the Arab nations to generate annually cash surplus of $300 billion. This is expected to reach $15 trillion by 2020.
Against such a depressing background, fund raising in the rest of the period of the presidential election will be hard. Hillary Rodham Clinton has left a debt of $23 million. Barak Obama has pledged to pay $12 million Hillary owes to vendors and consultants. Obama urged his 1000 donors who had gathered at the Hyatt hotel to help Hillary meet her debts. There was no immediate response. Obama implored his supporters ' please take this responsibility seriously'. Hillary was not present there.
But Obama and Hillary were present at a private dinner at the Regency hotel. Each guest bought his plate at a cost of $33,100. Some money at this critical time.
