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China SAFE Denies It Faces Half A Trillion In GSE Losses

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Fri, 02/11/2011 - 10:27 | 952498 Sudden Debt
Fri, 02/11/2011 - 11:24 | 952640 Michael
Michael's picture


Fri, 02/11/2011 - 10:29 | 952502 eigenvalue
eigenvalue's picture


Fri, 02/11/2011 - 10:30 | 952503 Sudden Debt
Sudden Debt's picture

I'll take four shots. How much is it?

Fri, 02/11/2011 - 10:36 | 952519 jus_lite_reading
jus_lite_reading's picture

For the first time in my life I feel an all out global war is about to occur.

Fri, 02/11/2011 - 10:40 | 952530 Sudden Debt
Sudden Debt's picture

On which channel?


Fri, 02/11/2011 - 11:46 | 952736 tmosley
tmosley's picture

$700 billion each.  Buy now, prices are rising quickly!

Fri, 02/11/2011 - 10:38 | 952522 BRAVO 7
BRAVO 7's picture

TIIIIMBER!!!  watch out below, 70 trillion in falling frn's can do a lotta damage.

Fri, 02/11/2011 - 10:30 | 952505 umop episdn
umop episdn's picture

July 16, 2008: Fannie Mae and Freddie Mac are “adequately capitalized” and “in no danger of failing.” So sayeth the Gen Ben. As good as gold-plated tungsten!

Fri, 02/11/2011 - 10:35 | 952511 jus_lite_reading
jus_lite_reading's picture

As I said, it takes a PhD to F$%^& things up this bad. Hip hip horray BEnron! Save you banker friends!

Fri, 02/11/2011 - 10:38 | 952526 Sudden Debt
Sudden Debt's picture

Last week I bought  "the Code of Ethics", a internal document from former Enron on Ebay.

I just crossed it while surfing and just had to have it :)

350$ but I think it'll be worth 20 times that much in 10 years :)


Fri, 02/11/2011 - 10:50 | 952566 Going Loco
Going Loco's picture

Nobody will know what or who Enron was by then. A re-writing of history usually follows comprehensive systemic collapse. And the thought of trading 5oz AU for a piece of paper sounds unlikely to me.

Fri, 02/11/2011 - 10:56 | 952581 Sudden Debt
Sudden Debt's picture

So what if I told YOU that I will give YOU 6 X 1oz GOLD COINS for this little piece of paper? :




I'd frame it and hang it in my toilet.

Fri, 02/11/2011 - 11:15 | 952624 snowball777
snowball777's picture


Fri, 02/11/2011 - 11:29 | 952670 Matt
Matt's picture

I'll accept that trade if you'll accept a duplicate from the gift shop. depending where you are, i may even agree to hand-deliver it.

Fri, 02/11/2011 - 10:35 | 952513 Sudden Debt
Sudden Debt's picture

Yeah... and the Pope isn't a pedophile and was never in the Hitler jugend!


Fri, 02/11/2011 - 11:08 | 952612 crosey
crosey's picture

I gotta put the brakes on you about the Pope-pedophile cheap shot.  Not appreciated.

Fri, 02/11/2011 - 11:16 | 952629 snowball777
snowball777's picture

He only covers for pedophiles?  The swasti-costume was for Halloween?

Fri, 02/11/2011 - 12:13 | 952846 zaknick
zaknick's picture

Baaaaahhhhh. Baaaaahhhhh

Sheep alert!

The poopoo and his gay gang are scum.

Fri, 02/11/2011 - 14:18 | 953470 MachoMan
MachoMan's picture

How the hell is that a cheap shot?  That's like saying go figure about John Candy dying of a heart attack...  spade is a spade...

Fri, 02/11/2011 - 13:02 | 953110 pyite
pyite's picture

plan from the Obama Administration to gradually phase out the two government-controlled companies

What part of "gradually" don't they understand?  It will take decades and in the mean time they will print enough money to pay off everybody.

Fri, 02/11/2011 - 15:04 | 953524 cranky-old-geezer
cranky-old-geezer's picture

Just bansters actually.

Fri, 02/11/2011 - 10:31 | 952508 LawsofPhysics
LawsofPhysics's picture

The American taxpayer is the backstop for the balance sheet of the Federal reserve.  Talk about taxation without representation.  Didn't we already fight one revolution over this?

Fri, 02/11/2011 - 10:33 | 952509 jus_lite_reading
jus_lite_reading's picture

Couple that with Kraft foods saying more price increases on the way, coupled with empty shelves in the US and you've got an Egypt in the US


Whoops. The EU will disintegrate first. Do you hear that sound? The sound of cracking Portuguese tiles and Italian marble...

Fri, 02/11/2011 - 10:35 | 952514 Stuck on Zero
Stuck on Zero's picture

Translation: The Chinese can sell all their holdings and Ben will buy them with paper money still hot from the press.  The Chinese will then buy commodities with the paper hot money and we'll see more riots in the low latitude countries.

Fri, 02/11/2011 - 10:41 | 952533 uhb
uhb's picture


Fri, 02/11/2011 - 10:47 | 952546 serotonindumptruck
serotonindumptruck's picture

That appears to be a sound economic model.

For some odd reason, I'm reminded of the analogy WRT "the dog always returns to its own vomit."

It seems somehow appropriate. 

Fri, 02/11/2011 - 10:55 | 952579 Bastiat
Bastiat's picture


Fri, 02/11/2011 - 10:36 | 952516 bankrupt JPM bu...
bankrupt JPM buy silver's picture

Whats up with Geithner's hair. What a fucktard.



Fri, 02/11/2011 - 10:54 | 952575 Bastiat
Bastiat's picture

B. Master's doll!!  Love it!

Fri, 02/11/2011 - 10:38 | 952524 johnnymustardseed
johnnymustardseed's picture

Capitalism bailed out by communism. Haha FAIL!

Fri, 02/11/2011 - 10:39 | 952529 uhb
uhb's picture

Serves them right! They should have thought about buying that sh1t in the first place ;)

Fri, 02/11/2011 - 10:42 | 952536 SheepDog-One
SheepDog-One's picture

Whole lotta denial goin on!!

Fri, 02/11/2011 - 10:43 | 952537 overmedicatedun...
overmedicatedundersexed's picture

It's not a loss if you don't book it..hell it's an asset!!!

china knows how to play..did they buy JPM yet?

"all your banks and homes belong to us" is the motto in the new little red book.

sale of california coming soon.


Fri, 02/11/2011 - 10:45 | 952541 SheepDog-One
SheepDog-One's picture

Already China planning 500 Chinese cities here in america, signed over on Hu's visit. 

Fri, 02/11/2011 - 11:22 | 952648 In Fed We Trust
In Fed We Trust's picture

That would why explain why Hank Paulson made 60 trips to China, buying Chiense banks, during his realm at Goldman,

that was why de didn't seeing the real estate thing in the US, ha ha

Fri, 02/11/2011 - 11:14 | 952622 johnnymustardseed
johnnymustardseed's picture

FASB say mark to market does not exisit, so there is no loss

Fri, 02/11/2011 - 10:48 | 952545 Pure Evil
Pure Evil's picture

Well, actually we know who will be the buyer of last resort, exactly the same guy that is the printer of last resort.

Once Uncle Ben has purchased every last GSE note the price of toilet paper should nose dive immediately.

Fri, 02/11/2011 - 11:25 | 952663 In Fed We Trust
In Fed We Trust's picture


They might be many levels of wall st bs between those houses and those GSE notes.


But way at the bottom, are physical homes, the ones we live in.


Fri, 02/11/2011 - 11:28 | 952668 In Fed We Trust
In Fed We Trust's picture

And with the help of hyperinflation the prices of these homes shall rise.

And did you ever think that maybe the fED wants to hold onto theses homes for 10 years or so. Give them a chance to thin out the population.

Every hear of Operation All Clear set for 2020?

Fri, 02/11/2011 - 10:51 | 952549 reading
reading's picture

4 years in an this is the best we can do.  The white elephants are dead, really, you just noticed?  And housing, already in terrible shape, only still has a pulse because the GSE's are doing the paper.  We couldn't survive in the mortgage market when the economy was good (or a lot better than now) without the GSE's -- save for a couple of years of the bubble top -- so it surely isn't going to happen now.  Less mortgage availability = less homes sold = economy continuing to suck for the forseeable future.  When in the hell will they finally figure this out?


That isn't to say I think the GSEs are a good thing...just wondering when the rest of the world is going to figure out that the US economy still sucks serious wind.

Fri, 02/11/2011 - 10:51 | 952570 Bob
Bob's picture

Trump is showing every sign that he will be running for Prez in 2012 and is sounding the warpath against China.  This could get real interesting. 

Fri, 02/11/2011 - 12:27 | 952937 zaknick
zaknick's picture

Saw that. Wouldn't trust any rich bastard as far as I could throw him. Isn't he the one who declared bankruptcy like 5 times?

Still though, insightful. These scumbags bankrupt the country and now want to send us off to die in order for their ilk to dodge the bullet.

Fri, 02/11/2011 - 12:28 | 952943 zaknick
zaknick's picture

Saw that. Wouldn't trust any rich bastard as far as I could throw him. Isn't he the one who declared bankruptcy like 5 times?

Still though, insightful. These scumbags bankrupt the country and now want to send us off to die in order for their ilk to dodge the bullet.

Fri, 02/11/2011 - 15:39 | 953774 Bob
Bob's picture

Isn't a Bankruptcy President just what we need, though?  Way over due. 

Fri, 02/11/2011 - 10:55 | 952580 Buzz Wired
Buzz Wired's picture

The Chinese are shrewed & patient. They will dump their GSEs as fast as they can without collapsing the price to minimize their losses, same as their US T-Bills, though I'm sure those losses are mounting.

Fri, 02/11/2011 - 10:58 | 952587 Bastiat
Bastiat's picture

Right.  Force feed the Fed like a foie gras goose.

Fri, 02/11/2011 - 11:24 | 952654 Caviar Emptor
Caviar Emptor's picture

The Chinese are shrewed & patient

Right! So they won't dump GSE and T paper, they'll keep the implicit threat alive and use that to extract deals from WH and CONgress:  favorable deals in ag, no veto on buying up oil and nat gas assets, no compete agreements for exports, and soon buy Michigan and Illinois

Fri, 02/11/2011 - 11:26 | 952665 serotonindumptruck
serotonindumptruck's picture

How do most wars begin? Trade embargoes, economic sanctions, official boycotts, naval blockades, etc...

Definitely something financial/economic. In the case of the USA, unsustainable debt/currency collapse.

Now China will begin firing the first real salvos by refusing to finance USA debt. And dumping their US dollar holdings.

This may be interpreted as a turning point in the economic war being waged between the USA and China (and the rest of the world).

The USA desperately needs a pretext for additional military action.

Fri, 02/11/2011 - 11:31 | 952684 Bob
Bob's picture

Pretext is right.  So much for good sportsmanship.  Apparently, for America, the Game is sacred . . .  until you lose. 

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