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Thread: Fannie Mae Rescue Hindered as Asians Seek Guarantee

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    Fannie Mae Rescue Hindered as Asians Seek Guarantee

    Concerned about Fannie Mae's and Freddie Mac's prospects, Asian investors suggest that they will not purchase Fannie Mae or Freddie Mac securities without an explicit U.S. Government guarantee that those securities would be paid. This development is one indication that the proverbial rules of the global financial game are changing. In the post-U.S. housing bubble world, U.S. securities will likely be viewed as riskier than they were in the past. That could have long-term implications for financing from abroad for U.S. companies and the U.S. government.

    Asian investors wonít buy debt and mortgage-backed securities from Fannie Mae and Freddie Mac until they carry explicit U.S. guarantees, similar to those given on bonds issued by Bank of America Corp. or Citigroup Inc.

    The risks are too great without a pledge that the U.S. will repay the debt no matter what, according to Hideo Shimomura, chief fund investor in Tokyo for Mitsubishi UFJ Asset Management Co., and other bondholders and analysts in Japan, China and South Korea interviewed by Bloomberg. Overseas resistance may hamper U.S. efforts to hold down home-loan rates and rebuild the nationís largest mortgage-finance companies.
    Bloomberg.com: Exclusive

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    Re: Fannie Mae Rescue Hindered as Asians Seek Guarantee

    And this is a surprise? Why?

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    Re: Fannie Mae Rescue Hindered as Asians Seek Guarantee

    Those asians better not cause me to have to move my silo trigger finger to provide that guarantee.
    "He who does not think himself worth saving from poverty and ignorance by his own efforts, will hardly be thought worth the efforts of anybody else." -- Frederick Douglass, Self-Made Men (1872)
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    Re: Fannie Mae Rescue Hindered as Asians Seek Guarantee

    guaranteed to be paid
    with what ?
    the monopoly money we are printing at breakneck speeed

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    Quote Originally Posted by jallman View Post
    How the hell did you just tie in a retroactive reparative measure with a proactive preventative measure. Not even close to being the same thing.

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