Representatives of Treasury Department, SEC and Fed told Congress that it was crucial to the economic health of the United States to all sovereign wealth funds to have free reign to purchase US companies.

Congress is concerned after Abu Dhabi bought a significant portion of Citi, and other sovereign wealth funds have done so with other financial institutions, as a result of fall out from the credit implosion.

The regulators basically said, without foreigners buying this stuff, we’d be flat broke.

What they neglected to say is that we are flat broke anyway, from years of budget and trade deficits.