U.S. Taxpayer Bailout of China Over Fannie Mae

爱逛胡同

http://globaleconomicanalysis.blogspot.com/2008/07/us-taxpayer-bailout-of-china-over.html

If the US bails out Fannie Mae bonds as suggested in We're All Homeowners Now, Nationalization of Fannie, Freddie Unavoidable, inquiring mind just might be wondering "Who is the biggest beneficiary?".

It's a good question too. Please consider Chinese Government is Top Foreign Holder of Fannie Mae, Freddie Mac Bonds.

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."

FreedomWorks President Matt Kibbe commented, "The prospectus for every GSE bond clearly states that it is not backed by the United States government. That's why investors holding agency bonds already receive a significant risk premium over Treasuries."

"A bailout at this stage would be the worst possible outcome for American taxpayers and mortgage holders, who have been paying a risk premium to these foreign investors. It would change the rules of the game retroactively and would directly subsidize the risks taken by sophisticated foreign investors."

"A bailout of GSE bondholders would be perhaps the greatest taxpayer rip-off in American history. It is bad economics and you can be sure it is terrible politics."

There is $376 Billion in Chinese Agency Bond Holdings Subject to Taxpayer Bailout Proposals According to FreedomWorks Analysts.

If China and Japan were dumb enough to invest in US agencies (and they were), then China and Japan should suffer the consequences, not US taxpayers.

ybgx

xiaobailong

想要杀敌800，宁愿自损3000？

polopolo

中国买了什么，大家就应该空什么。中国卖了什么，大家就应该持有什么。

ybgx

大泡泡

我靠， 这文章有水平。 搞死中国。 搞到中国，日本直接把美元丢马桶里为止。

华夏悠长

这场游戏，中国输定了。不BAILOUT FRE FNM，中国买的BOND巨亏，且美元暴贬(因美 国的投资信用度太低)。BAILOUT FRE FNM，美国政府要承担大约1万多亿美元的烂债， 美元也贬(美国政府总债务一下子增加了>10%)。因此，中国的2万多亿美元横竖贬值。

ybgx

老大看好油金铜铁粮？

华夏悠长

若FRE FNM真倒而美国不BAILOUT，那么S&P降20%没问题。

ybgx

不会不管的，但不是为了中国日本:(13):

xiaobailong

美国干脆把国家解散算了，中国的那些美元外汇储备全变废纸。:lol :lol

华夏悠长

油金铜铁粮，现在看来油铜铁粮类股空方势力很强。所以就剩金银、油(USO、OIL)还安全一些。

revolver

How come I didn't find this today?

Ponzi

原帖由 revolver 于 2008-7-13 12:39 发表 How come I didn't find this today?

Revolver LD, how do you think about Mish's blog? I used to read it every day but feel Mish is too pessimistic recently.

爱逛胡同

原帖由 revolver 于 2008-7-13 12:39 发表 How come I didn't find this today?

Yes, the 4th item on the left....

爱逛胡同

原帖由 Ponzi 于 2008-7-13 12:54 发表 Revolver LD, how do you think about Mish's blog? I used to read it every day but feel Mish is too pessimistic recently.

Agree..I started to read his blog around early march...and bought quite a lot put and short right afterwards, really got burned during march-may rally.....

I agree with him on a long run...but learned to be careful for short term rebounce......nothing goes straight down....plus full economic damage takes long time to surface. that's why some laoda here predicted that the largest bear market may come around 2009.....

[ 本帖最后由 爱逛胡同 于 2008-7-13 14:29 编辑 ]