[lbo-talk] Discussing the Crisis/Bailout

[shag]

At 10:20 AM 10/9/2008, Dmytri Kleiner wrote:
>  Could it be the
>government is stepping in with public funds not so much to stop banks from
>"failing," but rather to prevent acquisition by foreign banks, especially
>by those of the "semi-periphery?"

http://www.time.com/time/printout/0,8816,1842123,00.html

Now, though, we're seeing the downside of this financial 
internationalization. Many of the mortgages and mortgage securities owned 
or guaranteed by 
<http://www.time.com/time/magazine/article/0,9171,1840584,00.html>Fannie 
Mae and Freddie Mac were bought by foreign central banks, which wanted to 
own dollar-based securities that carried slightly higher interest rates 
than boring old U.S. Treasury securities. A big reason the Fed and Treasury 
felt compelled to bail out Fannie and Freddie was the fear that if they 
didn't, foreigners wouldn't continue funding our trade and federal-budget 
deficits.

shag

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okayokay: *snicker*