Interesting thought popped into my head today – indeed it’d be an unrealized self destruction.

One topic frequently, although on the back burner lately, is illegal immigration.  People coming through our borders, it’s a hot topic.  Especially with last year the development of the underbanked sector, where banks allow a way for the customer to obtain a tax ID number in order for them to open an account, get a mortgage, credit cards, etc. 

But what about foreign investment?  Direct or other…  I go into work each day thankful that I just bought into my 401k when everything is dirt cheap.  Yet it’s not just me that can see an opportunity.

With penny stocks in great supply now, it may seem like it’s a good idea to buy a lot for a great return later.  But it really only works in a developing idea.  Not so much when businesses have been publicly traded for years that have seen stock plummet.  Yet sovereigns and private wealth abroad, what will happen when they see an opportunity in established companies? 

If I remember correctly, it was reported that Saudi Arabia bought up stock in Citigroup.  Saudi Arabia’s FDI has increased steadily over the past 10 years, with last year being the largest foreign investor in the US.  Who’s to say that more investment won’t come?  In the form of buying up stock in undervalued companies?  Especially financial firms. 

Really, if bin Ladin wanted destruction of America, the financial markets would be the way to go.  Buy up firms to at least the point of majority vote, and reep the benefits!  Do what you want.  I begin to wonder why the stock crash in 2001 following 9/11 wasn’t fully taken advantage of by American-hating groups.

Illegal immigration may strain taxes, hospital care, etc.  But I can not possibly believe that it’s on the same level as a bailout plan for struggling banks, making it ideal for foreign investment to jump in now.

Am I correctly portraying this?  Is this an opportunity not realized by foreign investment?