Heli's Heaven and Hell Radio

Monday, September 8, 2008

FANNIE MAE IS IN MY EARS AND IN MY EYES

TheAge: "A high-ranking Chinese economist has put his nation's cards on the table in the global financial poker game by effectively telling the US to fix Freddie and Fannie ... or else.
'A failure of US mortgage finance companies Fannie Mae and Freddie Mac could be a catastrophe for the global financial system,' Yu Yongding, a former adviser to China's central bank, says.
'If the US government allows Fannie and Freddie to fail and international investors are not compensated adequately, the consequences will be catastrophic,' Yu said in e-mailed answers to Bloomberg. 'If it is not the end of the world, it is the end of the current international financial system.'
It is well within the bounds of imagination. People have been thinking the unthinkable for some time."

And America listened to the Chinese:
SFGate: "The federal government took control of Fannie Mae and Freddie Mac on Sunday in a bid to keep the two mortgage giants from failing, catastrophes that would have made home loans harder to get and taken the nation's housing collapse to a new level of crisis.
The government agreed to pump billions of dollars into Fannie Mae and Freddie Mac and assume responsibility for trillions of dollars of their debt, while handing control of the companies to federal regulators."
11:37:17 AM