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If you wondered who the Fannie bail out was for, wonder no longer…
Published b yMorgan
at August 5, 2008 in Economy, Mortgage Musings and Mortgage News/Insight. Tags: No Tags.
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I’ve said numerous times that the main reason for bailing out the mortgage giants Fannie Mae and Freddie Mac was not for the US homeowner but for the Chinese who have bought a huge portion of our mortgage backed debt. By letting the GSEs go under the US government would have defaulted on a huge promise to its number one pimp partner who has helped fuel this massive expansion in credit and debt.
Bloomberg now has an article confirming that there were high-level talks between the US Treasury Secretary Hank Paulson, Fannie Mae CEO Mudd and Asian investors who hold a bulk of this debt. When you think of the homeowner bail out, remember, $300 billion was earmarked for American citizens. The rest of the near $2 trillion will go to securing our partners cash flow in to our country.