News: Foreign Banks Get Cold Feet Over FNM, FRE Bonds (debt, sell)

[Nor'Eastah]

FT.com / Home UK / UK - Steps taken to calm investor fears over agency debt

Soveriegn wealth funds and Central Banks from Kuwait, Russia, China, and Japan have awakened to the danger of their big investments in FMN and FRE debt.

Good thing we just decided to bail out Fannie and Freddie! Now we know who they really did that for!

[jimhcom]

Originally Posted by Nor'Eastah

FT.com / Home UK / UK - Steps taken to calm investor fears over agency debt

Soveriegn wealth funds and Central Banks from Kuwait, Russia, China, and Japan have awakened to the danger of their big investments in FMN and FRE debt.

Good thing we just decided to bail out Fannie and Freddie! Now we know who they really did that for!

Right you are, now there is a market for foreign investors to sell their junk investments into, financed by the American tax payer. But don't worry your government is looking out for your interests...... well maybe not.

[BankREO]

Originally Posted by jimhcom

Right you are, now there is a market for foreign investors to sell their junk investments into, financed by the American tax payer. But don't worry your government is looking out for your interests...... well maybe not.

Correct, the system is setup to privatize the profits but socialize the risk which just makes us pay for it through inflation because of the more dollars placed into the system budding on the same finite basket of goods. If we are going to have GSEs or not we should either nationalize them entirely so the U.S. government and take the profits and throw them into the general fund or we need to fully privatize them and let them fail if they do.