Arabs buying up Fannie Mae Debt and Freddie Mac CNBC

[lovuian]

Announced today... Wonder why???

[imenja]

1. Haven't you heard? Deficits don't matter.

Mortgage our future to the Chinese and the Arabs. No worries there.

[EVDebs]

9. And don't forget, those outsourced mortgage loan files oversea are

the 'holy grail' of personal financial information, just what identity thieves would want.

This story from Computerworld
www.computerworld.com/securitytopics/ security/hacking/story/0,10801,76721,00.html

includes this gem:

"...Alan Paller, director of research at the Bethesda, Md.-based SANS Institute, said the California law is probably necessary because of the kinds of crime that are occurring. A group in Russia and Ukraine has been acquiring customer data, extorting money to prevent its release and then selling it anyway. Paller believes some companies are paying off the extortionists in an attempt to contain the damage. "

So, overseas they are already covering up extortion of our data...what's next, our own intelligence personnel will be having their information hacked probably. Oh, wait, it IS happening. Check into the hacking of SAIC in San Diego. The media is intentionally downplaying that one. I wonder why ? Could be since most employees are intell professionals whose data was hacked.

[The Backlash Cometh]

13. And the nutcases in Congress just made it a safer investment by

approving the bankrupty bill. The only job that Americans will have available in the future is as repo men. And they'll be hired by the Chinese and Arabs.

[whistle]

2. Because with the new bankruptcy bill passing in the senate...

...home foreclosures will be pandemic throughout the country and Islamic neighborhoods will be springing up everywhere for fifty cents on the dollar because parents will be responsible for their under-aged sons and daughters credit card debts from 15 to 20 credit cards maxed out to the limit.

[lovuian]

3. Bingo talk about Bush being in league with the Saudis

OIL is $55 bucks

and now the bankruptcy law changes

and Arabs buying Fannie Mae

the real estate market is in trouble they are licking their chops!!!

[TwentyFive]

4. Bush and the Saudi connection

Remember F9/11?

I'd say it's got something to do with Bush's relationship to the Saudi rulers. I don't know who is doing who the favor here....but I'm sure it's got something to do with enriching them....and driving the rest of us into indentured servent/slave status.

[Inland]

5. They have tons of dollars, nothing to do with them.

Basic finance. As oil exporters, they sell for dollars. They then have to do something with them. Buy US goods and services, in part. Buy US assets, in the other part.

[whistle]

8. For one thing, I don't believe that the Muslim religion allows....

....lending money with interest in their Islamic countries. I might be wrong about that, but I thought that was strictly forbidden among Moslems.

<snip>

Islamic economics:

The act of lending money at an exorbitant rate of interest usury in the context of early Muslim society, it generally entails trying to remove or redefine interest rates from financial institutions. In doing so, Islamic economists hope to produce a more 'Islamic society'. However, liberal movements within Islam may deny the need for this field, since they generally see Islam as compatible with modern secular institutions and law.

<more>
<link> http://www.absoluteastronomy.com/encyclopedia/I/Is/Islamic_economics.htm

[htuttle]

6. Cause they're tired of buying meaningless T-bills?

Since Bush says Treasury instruments are just 'IOUs that don't mean anything', anyone with money to invest is probably looking for something more tangible to hold onto, like our land and our houses.

[crikkett]

10. When did he say that?

...And where?
I'm shocked. Well, maybe I'm not.

[htuttle]

12. It's part of his Social Security privatization sales pitch

Here's an article discussing what he said, and what his minions said to reinforce what he said:

http://mediamatters.org/items/200502040009

Here's a New York Times editorial about the line Bush has been talking on this:
http://www.nytimes.com/2005/01/10/opinion/10mon1.html?ex=1263099600&en=24a380642da9ba1b&ei=5090&partner=rssuserland

At a recent press conference, Mr. Bush exaggerated the timing of the system's shortfall by saying that Social Security would cross the "line into red" in 2018. According to Congress's budget agency, the system comes up short in 2052; according to the system's trustees, the date is 2042. The year 2018 is when the system's trustees expect they will have to begin dipping into the Social Security trust fund to pay full benefits. If you had a trust fund to pay your bills when your income fell short, would you consider yourself insolvent?

In suggesting that 2018 is doomsyear, the president is reinforcing a false impression that the trust fund is a worthless pile of I.O.U.'s - as detractors of Social Security so often claim. The facts are different: since 1983, payroll taxes have exceeded benefits, with the excess tax revenue invested in interest-bearing Treasury securities. (An alternative would be to, say, put the money in a mattress.) That accumulating interest and the securities themselves make up the Social Security trust fund. If the trust fund's Treasury securities are worthless, someone better tell investors throughout the world, who currently hold $4.3 trillion in Treasury debt that carries the exact same government obligation to pay as the trust fund securities. The president is irresponsible to even imply that the United States might not honor its debt obligations.

As with many other topics, Bush talks around what he wants to say, then has a minion like David Frum (playing the role that Perle used to play regarding Iraq) come out and say what he'd like to say, but can't as President.

[LiberalEsto]

7. Fannie stock is cheap now

but the price will eventually go up again. I think they're just making a good investment.

My husband works at Fannie Mae, btw.

[MissMarple]

11. What happens if the housing "bubble" collapses?

What would happen to the stock? I'm asking because I'm pretty clueless about this stuff. Would there be a chain effect, foreclosures, homes standing empty, more renters, especially if the economy takes another hit and folks are put out of work, can't pay their bills...? How does that play out?

Sorry, maybe I need to go to the economist group and ask them. :-)

[FloridaPat]

14. What is this debt their buying? Actual mortgages? think about it.

You are a foreigner and have tons of dollars that are getting more worthless every day. What better way to do something with them and buy mortgages. If the dollar collapsees and the people that have the home go bankrupt, you get the property. A lot of people overseas would like to get rid of their dollars. A lot of our country is mortgaged to foreigners. Things could get real ugly someday soon.