Bank of China may hold huge US debt
Bank of China Ltd may own about $20 billion of debt issued by Fannie Mae and Freddie Mac, representing two-thirds of total holdings among the six largest Chinese banks, according to CLSA Ltd.
Feds can't fix Fannie and Freddie
Fannie, Freddie spent $200M to buy influenceIf you want to know how Fannie Mae and Freddie Mac have survived scandal and crisis, consider this: Over the past decade, they have spent nearly $200 million on lobbying and campaign contributions.
But the political tentacles of the mortgage giants extend far beyond their checkbooks.
The two government-chartered companies run a highly sophisticated lobbying operation, with deep-pocketed lobbyists in Washington and scores of local Fannie- and Freddie-sponsored homeowner groups ready to pressure lawmakers back home.
They’ve stacked their payrolls with top Washington power brokers of all political stripes, including Republican John McCain’s presidential campaign manager, Rick Davis; Democrat Barack Obama’s original vice presidential vetter, Jim Johnson; and scores of others now working for the two rivals for the White House.
Global economy won't bail out the USThis nation is the world's biggest consumer, so a slowdown here means a slowdown everywhere. And there is no safe harbor -- not in tech nor in the media's market misconceptions.Commercial bankruptcies soar, reflecting widening economic woes
Driven by a sour economy and skittish consumers, U.S. business bankruptcies saw their sharpest quarterly rise in two years, jumping 17 percent in the second quarter of 2008, according to an analysis by McClatchy.
Commercial filings for the first half of 2008 are up 45 percent from last year, as the national climate for commerce continues to deteriorate amid rising energy and food costs, mounting job losses, tighter credit and a reticence among consumers to part with discretionary income.
Wachovia, WaMu still in big troubleThink we've seen the worst of the credit crisis? Not so fast: America's mortgage problems won't be over anytime soon, analysts say, and that means more bad news for these big lenders.
Those ill-fated twins of the mortgage calamity, Washington Mutual (WM, news, msgs) and Wachovia (WB, news, msgs), are getting clobbered again, after some dramatic housecleaning at the top.
Could your bank be the next to fail?
Surprisingly, about 37% of the nation's $7.07 trillion worth of deposits at the end of the first quarter was uninsured, according to a Wall Street Journal report. One reason may be that a lot of people have several accounts at a single bank and don't realize that it's the sum of all their deposits at a bank that counts -- not how much they have in any single account.
Many businesses and local governments also probably exceed the $100,000 limit.
Credit fallout is just beginningA shrewd observer of the US credit mess says the problems are 'considerably worse' than reported. He's betting on financial-system upheaval, failing companies and an even-slower economy.
2 comments:
There's something that really sticks in my craw about police keeping people from their bank deposits (IndyMac). What kind of free market is that? Of course, when you have some of the banks' money (mortgaged real property), it's the cops who come around to take it from you so the bank can have it. Man, I'm so monumentally naive. Phil
Isn't it interesting that public law enforcement is protecting a private corporation against the citizens who pay their salaries...citizens who are simply trying to withdraw money that rightfully belongs to them? It shows how twisted our system has become, the free market has been gone for a long time now. Open your own branch of the Sealy Savings Bank....the only secure place for deposits. Better yet, convert that cash into something that will still be worth a damn after the crash.
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