Thursday, September 29, 2016

Saudi Arabia Reacts To Sept. 11 Bill Veto Override

Officially. Unofficially the NYT reported on April 15 that Saudi Arabia had told the Obama administration and members of Congress that it will sell off hundreds of billions of dollars’ worth of American assets held by the kingdom if Congress passes the JASTA bill.

For now, however, there is no official statement, and no official reaction from Saudi Arabia after the votes, and in the short-term, few expect little more than a curt statement of disapproval from Riyadh. However, unofficial channels have been more forthcoming.

Meanwhile, as we reported this morning, the Saudi currency and assets are crashing: long-term forward points (a proxy for borrowing costs and The Kingdom's stability) have exploded ....