Daily Kos Fannie and Freddie: Our Foreign Masters Have Spoken
by Anonymous
Update: Market Watch
Consider the description of the bailout from the: New York Times:
Investors who own the companies’ common and preferred stock will suffer. Holders of debt, including many foreign central banks, are expected to receive government backing. Top executives of both companies will be pushed out, according to those briefed on the plan. [italics mine]
Now consider the following from MarketWatch,
The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury's most recent "Report on Foreign Portfolio Holdings of U.S. Securities."
China alone holds $376 billion in bond holdings.
Unless I am misreading something, foreign central banks will be protected, including China's...and the America taxpayer will foot that bill.