Foreign Central Banks bought a world record $17.5 billion of Fannie and Freddie paper this week. The 3 1/2 year bailout of the US mortgage markets by foreign benefactors continues. Meanwhile, the Fed remains stingy, and the Treasury continues to blast the market with supply. Without the efforts of the FCBs, things would be much worse than they are. Click here to download complete report in pdf format (Professional Edition Subscribers). Try the Professional Edition risk free for thirty days. If, within that time you don’t find the information useful, I will give you a full refund. It’s that simple. Click here for more information.
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One has to believe that FCBs are propping up the dollar to save their own currencies and that this would continue indefinitely.
They are keeping Fannie and Freddie on extended life support because they think it’s in their best interests. They own 58% of their debt.
Damn fools.
What happens when the bankruptcy comes? Will the Bank of China and OPEC become majority stockholders Fannie and Freddie? That should go over big in Congress.
I can see the headlines now.
People’s Bank of China Forecloses on Sacramento
We are headed for an untold financial, economic, and geopolitical morass the likes of which the world has never ever seen. It’s just so big, I can’t begin to get my little brain around it.
You have plenty of company. Great podcast today btw.
I hope the China OPEC bagholder thing happens. It would give the China and Japan, US$ pegs a test of courage.
I wonder if it could be big enough to bankrupt China’s and Japan’s treasury. Probably not, since a large percent of those bonds would be repaid. A little more domestic inflation would cover over the losses.