Posted on 07/12/2008 5:43:39 AM PDT by Need4Truth
$376 Billion in Chinese Agency Bond Holdings Subject to Taxpayer Bailout Proposals According to FreedomWorks Analysts
WASHINGTON, Jul 11, 2008 (BUSINESS WIRE) -- As politicians call for taxpayer bailouts and a government takeover of troubled mortgage lenders Freddie Mac and Fannie Mae, FreedomWorks would like to point out that a bailout is a transfer of possibly hundreds of billions of U.S. tax dollars to sophisticated investors and governments overseas.
The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury's most recent "Report on Foreign Portfolio Holdings of U.S. Securities."
(Excerpt) Read more at marketwatch.com ...
What a mess we're getting ourselves into.
Who manages the financial services regulatory agencies and answer to the President? Barney Frank and Ron Paul. The “Dream Team.” Maybe Frank was to busy boarding prostitutes to pay attention to the Fed, SEC, and Fannie Mae and the Banking industry.
Barney Frank is a text book definition for being grossly incompetence and negligent. He heads up the United States House Committee on Financial Services which oversees the entire financial services industry, including the securities, insurance, banking, and housing industries. He is directly responsible for the collapse of the banking industry. But you will never see a hearing with him on the hot seat.
Risky home loans were a product peddled by lending companies that inflated housing demand because everyone qualified. These risky loans were not Gov’t back loans, they were non-conforming loans and lending institutions set the underwriting guide lines and sold them off as MBS pools to hedge funds and investment companies. The idiots that were dumb enough to create products that allowed those with the worst credit history to do stated loan programs are the culprit. They loaned money to people that never paid for anything or had no credit at all. You just had to prove you had a job. I can’t imagine what other outcome they were anticipating.
The short of it is….many that are loosing their home, never technically qualified in the first place.
It’s just another “Katrina/levy” story fed to ignorant viewers by a biased media. Do you think Obama can manage this mess? Look at the Chicago slums he created….that was just one city.
This really concerns me.
Congress are full of a bunch of morons if they cannot see that China is investing heavily in our financial institutions for one primary purpose.....economic sabotage.
Since I have been an adult I’ve noticed America has a love affair with:
— Gimmicks
— The short term
— Get Rick Quick
— Spin (over substance)
— Appearances (vs. Reality)
I think we got to be a great country by keeping our nose to the grindstone, worshiping achievement, and not fooling ourselves. We’ve gotten away from most of that—big time. We have pissed away a lot of our assets and must rely on foreigners to maintain our lifestyle. We start burning them and they will not be amused.
There is an article in today’s (Monday July 14th) edition Investors Business Daily on page A19 entitled
“Are Terrorists Manipulating our Markets? by Frank Ryan. Sorry I can’t post it as I don’t have the electronic edition, just the print edition.
But it needs to be posted on Free Republic. You can at least buy the print edition of IBD at the stores this weekend.
I can’t imagine what other outcome they were anticipating.
I knew something was crooked when I refinanced back in 2004 and the mortgage broker was trying to sell me on a loan package that was 125% of equity. I said no thanks, but I’m sure others were all to happy to take him up on it.
I wonder who the top 5 United States holders are?
we???? if these two countries hold the bonds, and they go belly up, who loses? not us.........
Fire up the money presses!
No way they’ll stiff China.
Pucker up, fellow taxpayers.
This way they take us down one small step at a time.
Of course this was all done with the help of the Democrat Congress and now with Schumer's statement it is complete. Stupid is a stupid does or was this the plan all along?
Perhaps you have it wrong. As with the japanese in the 80’s, the American financial system have left the Chinese holding a bag that is inflated to empty.
I'm reminded of the line Nicky Santoro delivered in the movie Casino:
I think in all fairness, I should explain to you exactly what it is that I do. For instance tomorrow morning ill get up nice and early, take a walk down over to the bank and... walk in and see and uh... if you don't have my money for me, I'll... crack your ------' head wide-open in front of everybody in the bank. And just about the time that I'm comin' out of jail, hopefully, you'll be coming out of your coma. And guess what? I'll split your -----' head open again.
No....what a mess the Chinese and Japanese have got themselves into.
They can’t afford to have the U.S. go belly up over debt.
Fannie and Freddi are probably too big for our government to let them both fail. We taxpayers will be forced to bail one or both of them out.
Exactly. I never understood people who think it awful when other countries sink their money in American real estate or entities like FNM or FRE.
China or Japan cannot transfer that property to themselves, and they are basically stuck holding the paper... hoping America doesn't default on its loans.
It's like that old proverb:
'Borrow $10 from the bank, and you are beholden to the bank. Borrow $10 BILLION, and the bank is beholden to you.'
Or something like that. China and Japan's worst nightmare would be for America to go into default.
At best they can start a slow withdrawal of funds denominated in dollars.
And possibly join a movement to change the global funding medium on oil from ‘petro-dollars’ to ‘petro-euros’.
But that assumes that Europe will be spared the worst effects of a global recession.
>>”What a mess we’re getting ourselves into.”<<
I couldn’t agree with you more!!
But, don’t you mean what a mess the we have allowed the dimwitted greedy Washington politians to get us in? Our apathy and blind trust have gotten us into this mess.
If we cannot do it at the ballot box then it will be time for every PATRIOT, every person that holds the dream of a FRee America, every person that has fought for these freedoms to drive, walk or crawl their way to Washington D.C. and fire 99.2% of the SOB’s that we hired to abide by their Constitutional Oath. They have deceived and lied to us for their own personal gains. So many forget that THEY WORK FOR US.
Note: This is not a call for an overthrow of the U.S. government. It is a call for America to wake up and stand our ground.
Panax
Perhaps they weren't so sophisticated if they bought that garbage paper. Suckers - welcome to the capitalist world.
wonder if this country will ever move from a
consumer-debt society
to a savings society?
or, will manufacturing countries continue to fund our debt for the opportunities of sales?
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