A Silver Lining to High Oil Prices

      Amidst continuous news reports of recession and credit crisis, “Good Morning America” focused instead on an “unusual source” of relief for Wall Street and the U.S. economy.

 

      What prompted this economic relief?

 

      “You can thank high oil prices” said Chris Cuomo on the November 28 broadcast.

      Amidst continuous news reports of recession and credit crisis, “Good Morning America” focused instead on an “unusual source” of relief for Wall Street and the U.S. economy.

 

      What prompted this economic relief?

 

      “You can thank high oil prices” said Chris Cuomo on the November 28 broadcast.

 

       ABC News correspondent Bianna Golodryga then explained: “This time, Chris, however, help did not come by way of the Federal Reserve, it came by way of the Middle East.” Golodryga was referring to Abu Dhabi’s $7.5 billion investment in Citigroup.

 

      United States businesses have indirectly benefited from high oil prices, according to Gologdryga, because “oil-rich Arab nations have been searching for ways to invest their petro-dollars.”

 

     “Arab-petro dollars have been on a spending spree as of late, pumping nearly $4 trillion into businesses around the world, including other U.S. companies, names which are very familiar to all of us. Back in September, Dubai bought a 20 percent stake in the NASDAQ stock market, that’s the trading home of Google and Microsoft,” said Golodryga.

     However, back on November 14, GMA asked the president of Shell Oil if he could “cut back” on profits to “help out a lot of people” struggling to survive the gas and oil prices.

 

     Despite GMA’s assertion that people could barely survive the gas and oil prices, on November 12, National Public Radio was one of few media outlets that pointed out that roughly $100 oil isn’t having the expected negative effect on the economy “at least not yet.”

 

     While Gologdryga reported that “investors embraced the news” of foreign investment in Citigroup, GMA still found the need to question it.

      “The moves have raised questions about regulatory issues. Namely, how much should foreign countries be allowed to invest in U.S firms?” said Golodryga, reminding anchor Chris Cuomo that “Dubai’s attempt to buy several U.S. ports last year was rejected.”