Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds
- Thread starter 14damoney
- Start date
Which is why the U.S. Government is running desperately to bail them out. If they fail, the bonds become worthless.
Talk about harrassing phone calls from creditors!! Man, if those bonds become worthless, this gov't would come up with all kinds of crazy shit to try to square it with the Chinese.
Yeah, but my question is: How do they go about bailing them out?
We're not talking about a couple of G's here. Between the two of them this is a 5 TRILLION dollar hole!
I'm definitely no economist, but right now I can only see three options:
1) Get the cash from other government programs/ resources. Which would mean other government programs/ resources will suffer.
From what I understand (which may be wrong) the banks only have to have one-tenth of actually cash available to cover the loans issued. Provided the debt doesn't already include that amount, maybe it can be mustered up.
2) Go on a biltzkrieg of raising taxes.
3) Either the Fed prints more money to cover the loss, or just types "5 trillion" into the banks accounts, virtually creating money out of thin air.
Which in turn will increase inflation, and lower the already beaten-down dollar's value. Which means gas prices rise again, food prices rise again, cats start sleeping with dogs, etc...
That's just my take, how can they possibly bail them out without drastic repercussions?
I've been stressing those points since I came into the knowledge of Fannie and Freddie's situation. There really isn't a good route to take, the best one wouldve been to let them fail and let the U.S. take a punch in the gut BUT again, you have the Chinese who may be prompted to instantly dump their dollar holdings. Damn. There really isn't a way around it. Raising taxes doesnt work when taxes are already insanely high and people are losing jobs. The Fed and Treasury can go to the Printer but that is opening Pandora's Box to further devaluation of the Dollar. You're right, there is no way around it.
Either way, the U.S. is in for a whole lot of pain.
The american dream is the biggest scam, it's not as bad as religion but some of it is close to it.
the whole soverign fund thing is a joke. these countries are forced to invest in something that is going to fail.
word em on up, this whole fiasco is a scam and is planned, someone is continuing to make big dough, fuck all the shyt about china this and that..
just follow the fuckin money, see who made big after 9/11, see whose cleaning up now with oil going through the roof...
its a simple path to follow if you dont get caught up in the mind tricks..
we need to follow the fucking money and ask questions later!!!!!
Once we find out where it is, audit the living shyt out of em.
holla exxon, blackwater, haliburton, gilead sciences and all skull and bone member affiliated businesses.
just follow the fuckin money, see who made big after 9/11, see whose cleaning up now with oil going through the roof...
its a simple path to follow if you dont get caught up in the mind tricks..
we need to follow the fucking money and ask questions later!!!!!
Once we find out where it is, audit the living shyt out of em.
holla exxon, blackwater, haliburton, gilead sciences and all skull and bone member affiliated businesses.
More than 13 trillion was lost (banked) over the last month.
Please post a link, of your source of information, that figure seems somewhat inflated...
How long before it all crumbles...?
Japan actually holds more Treasuries than China but not by much..China has the power to cripple the U.S. buy just selling off a portion of the debt they have.
I've been checking out different elements of the financial shennanigans lately if only to gain a better understanding of what's going on. So with that being said:
Que, I know you meant well by posting that article earlier in this thread... But the guy who wrote it is full'o'shit! Dude is doing nothing other than spewing verbal-damage control. The ironic part about it, is that even if I believed everything he said, it still sounds bad.
He's trying to prevent an investor reaction such as this:
Dude is either not-well informed, or he is LYING (I presume the latter). For example, check out this quote from the article:
"...Q: Why are investors suddenly sour on Fannie and Freddie?
A: It's less a sudden change of heart than a long, steady erosion of confidence that parallels the nationwide housing crisis. These two financial institutions package mortgages belonging to the healthiest borrowers and sell them as securities, long considered the safest of bets.
OUT. RIGHT. LIE.
It's true that Fannie & Freddy were supposed to accept mortgages from the healthiest borrowers, but they got greedy. They were supposed to back mortgages on the "sound" 80/20 rule (20% down, bank finances 80%). But they shifted from actually reviewing potential borrowers risk-assessments, to just accepting mortgages based on credit scores.
As a result, the lenders who were selling them mortgages (many who were shady in their own right like CountryWide), basically started putting lipstick and fingernail polish on just about everything they submitted. Knowing d@m well that some potential home-owners just might be getting in over their heads.
Fanny & Freddy HAD to know that this was going on. But they were more concerned about quantity instead of quality. How many subpar "0% down" loans did they approve just because it had make-up on? And I'm not knocking any home-owner who was able to get a house under those conditions, but Fannie & Freddy as government-sponsored enterprises were supposed to be more frugal. They weren't, so that statement in the article is a hidden LIE.
"...Q: Is there evidence that Fannie and Freddie are taking the kind of losses suffered by commercial mortgage lenders?
A: No, their losses are within historical norms..."
5 TRILLION dollars? If it's so historically normal, than why do they now need to be bailed out? Fact is, they've been accepting risky loans which is now coming back to bite them in the butt now that financial pressure is on the economy (a good portion of which F&F helped produce).
These banking institutions might as well rename themselves Betty Crocker because they seem to have a shitload of cooked books. Then you have these guys:
Citigroup's $1.1 Trillion of Mysterious Assets Shadows Earnings
This appears to be typical behavior in the banking world. Citigroup was already sweating bullets over the $2.2 Trillion they have to come up with to balance out. That is, until the cat got out of the bag and now everyone knows that they're hiding another $1.1 Trillion of debt under their mattress.
Apparently, Hedge Funds are not regulated. So when it's time for them to report their earnings each quarter, they break out their aprons and wooden spoons and start making Hedge Fund Soup. But now that there is an economy crunch, somebody is giving away all the secret ingredients... Let's see what they report on July 18 for the 2nd quarter.
Then there's these guys again:
*We know IndyMac basically folded leaving everyone of their members and investors forming lines trying to recoup their money.
*We know that the FDIC guarantees most member's money up to 100 G's.
*It looks like the FDIC currently has a list of at least 76 banks that may be in trouble.
*But it appears the FDIC may have to absorb $6-7 Billion
of IndyMac's woes in order to reimburse members. Which is more than 10% of the FDIC's available funds ($53 billion).
Which brings us to the real pink elephant in the room that I haven't heard anyone in the media talk about:
*IndyMac wasn't even on the FDIC's list of troubled banks!
So in these shaky times, what happens if two or three banks go down at the same time?
This crap is a lot more serious than I first thought...
Que, I know you meant well by posting that article earlier in this thread... But the guy who wrote it is full'o'shit! Dude is doing nothing other than spewing verbal-damage control. The ironic part about it, is that even if I believed everything he said, it still sounds bad.
He's trying to prevent an investor reaction such as this:
Dude is either not-well informed, or he is LYING (I presume the latter). For example, check out this quote from the article:
"...Q: Why are investors suddenly sour on Fannie and Freddie?
A: It's less a sudden change of heart than a long, steady erosion of confidence that parallels the nationwide housing crisis. These two financial institutions package mortgages belonging to the healthiest borrowers and sell them as securities, long considered the safest of bets.
OUT. RIGHT. LIE.
It's true that Fannie & Freddy were supposed to accept mortgages from the healthiest borrowers, but they got greedy. They were supposed to back mortgages on the "sound" 80/20 rule (20% down, bank finances 80%). But they shifted from actually reviewing potential borrowers risk-assessments, to just accepting mortgages based on credit scores.
As a result, the lenders who were selling them mortgages (many who were shady in their own right like CountryWide), basically started putting lipstick and fingernail polish on just about everything they submitted. Knowing d@m well that some potential home-owners just might be getting in over their heads.
Fanny & Freddy HAD to know that this was going on. But they were more concerned about quantity instead of quality. How many subpar "0% down" loans did they approve just because it had make-up on? And I'm not knocking any home-owner who was able to get a house under those conditions, but Fannie & Freddy as government-sponsored enterprises were supposed to be more frugal. They weren't, so that statement in the article is a hidden LIE.
"...Q: Is there evidence that Fannie and Freddie are taking the kind of losses suffered by commercial mortgage lenders?
A: No, their losses are within historical norms..."
5 TRILLION dollars? If it's so historically normal, than why do they now need to be bailed out? Fact is, they've been accepting risky loans which is now coming back to bite them in the butt now that financial pressure is on the economy (a good portion of which F&F helped produce).
These banking institutions might as well rename themselves Betty Crocker because they seem to have a shitload of cooked books. Then you have these guys:
Citigroup's $1.1 Trillion of Mysterious Assets Shadows Earnings
This appears to be typical behavior in the banking world. Citigroup was already sweating bullets over the $2.2 Trillion they have to come up with to balance out. That is, until the cat got out of the bag and now everyone knows that they're hiding another $1.1 Trillion of debt under their mattress.
Apparently, Hedge Funds are not regulated. So when it's time for them to report their earnings each quarter, they break out their aprons and wooden spoons and start making Hedge Fund Soup. But now that there is an economy crunch, somebody is giving away all the secret ingredients... Let's see what they report on July 18 for the 2nd quarter.
Then there's these guys again:
*We know IndyMac basically folded leaving everyone of their members and investors forming lines trying to recoup their money.
*We know that the FDIC guarantees most member's money up to 100 G's.
*It looks like the FDIC currently has a list of at least 76 banks that may be in trouble.
*But it appears the FDIC may have to absorb $6-7 Billion
of IndyMac's woes in order to reimburse members. Which is more than 10% of the FDIC's available funds ($53 billion).
Which brings us to the real pink elephant in the room that I haven't heard anyone in the media talk about:
*IndyMac wasn't even on the FDIC's list of troubled banks!
So in these shaky times, what happens if two or three banks go down at the same time?
This crap is a lot more serious than I first thought...
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For real...
Figures are comparable to last year's. There is not much change. It will take a significant event for any change, to come about...
Election, oil price crisis, "terrorist attack", war...
We are being led, by the nose into war with Iran, the rest is inevitable.
http://www.census.gov/foreign-trade/balance/c5700.html#2008
Election, oil price crisis, "terrorist attack", war...
We are being led, by the nose into war with Iran, the rest is inevitable.
http://www.census.gov/foreign-trade/balance/c5700.html#2008
Figures are comparable to last year's. There is not much change. It will take a significant event for any change, to come about...
Election, oil price crisis, "terrorist attack", war...
We are being led, by the nose into war with Iran, the rest is inevitable.
http://www.census.gov/foreign-trade/balance/c5700.html#2008
Mmmm I dunno. According to that chart you posted, there's a big difference between May of 07 and May OF 08. Speaking of which, why did you post a Trade Balance chart anyway?
Exactly!!! We already are, in trade alone, we are importing, from China huge numbers of mostly cheaply made, tainted and otherwise worthless junk, meanwhile exports are low, low...
@ 14themoney's question>>Look at the trend from previous years...
Like Denzel said In The Inside Man.. Follow the Ring.. And You'll find a lying Mayonnaise muthafucka...!!