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Paulson: Crazy Putin Pushed China To Dump Fannie Bonds And Crush The U.S. Financial System
Business Insider ^ | 01/29/10 | Vincent Fernando

Posted on 01/29/2010 3:22:36 PM PST by TigerLikesRooster

Paulson: Crazy Putin Pushed China To Dump Fannie Bonds And Crush The U.S. Financial System

Vincent Fernando | Jan. 29, 2010, 9:59 AM | 3,478 | comment 32

Tags: Economy, Markets, China, Credit Crisis, Politics

Some scary details have emerged from Hank Paulson's memoirs.

Allegedly, it appears Russia may have tried to conspire with China in a bid to collapse the U.S. financial system. They were hoping to sell Fannie and Freddie bonds during a time when the U.S. economy was on the ropes.

This happened back around the Beijing Olympics, when the U.S. was supporting Georgia against Russia in the conflict over Ossetia

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Foreign Affairs; Front Page News; News/Current Events
KEYWORDS: beijing; china; economiccollapse; economicwarfare; fanniemae; freddiemac; paulson; paulsonputin; putin; putinpaulson; russia; tarp

1 posted on 01/29/2010 3:22:37 PM PST by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...
Is this allegation Paula son’ fig leaf or real deal? Or it could be both.
2 posted on 01/29/2010 3:24:19 PM PST by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster
Oops Typo:

Paula son --> Paulson

3 posted on 01/29/2010 3:30:12 PM PST by TigerLikesRooster (LUV DIC -- L,U,V-shaped recession, Depression, Inflation, Collapse)
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To: TigerLikesRooster

If Paulson is saying it, it’s a lie.

What’s he saying anyway...ah it’s something that would get him off the hook. Imagine that.


4 posted on 01/29/2010 3:30:27 PM PST by jiggyboy (Ten per cent of poll respondents are either lying or insane)
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To: TigerLikesRooster

Why is he crazy? Who in their right mind would do anything to help prop up the United States house of cards these days? Propping up this idiocy is crazy.


5 posted on 01/29/2010 3:33:45 PM PST by stevem
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To: jiggyboy

I believe every word makes sense to me...


6 posted on 01/29/2010 3:39:05 PM PST by Three if by government
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To: jiggyboy; TigerLikesRooster
"Putin Pushed China To Dump Fannie Bonds "

There needs to be a buyer.

A dump means a seller, soon it will be apparent that it is the ChiComs. The Reds will lose a bundle to par, interest rates may rise for a short while then reverse.

In the scheme of things, the Communists don't own enough to cause a worldwide event.

yitbos

7 posted on 01/29/2010 3:41:30 PM PST by bruinbirdman ("Those who control language control minds.")
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To: bruinbirdman

Isn’t it George Soros who is trying to maneuver the collapse of the U.S. dollar?


8 posted on 01/29/2010 3:51:52 PM PST by abclily
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To: bruinbirdman
Greenspan did not understand these credit default swap. No one else did. I heard a former fed chairman say he did not really know what they where talking about. So yes one has to be careful at allegation. One has to keep digging to get to facts and math.
9 posted on 01/29/2010 3:55:16 PM PST by wmposh
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To: TigerLikesRooster
The bonds should have some real value, independent of instant market conditions (there should be some underlying assets). If that real value is above the market price, any entity which tries to dump the bonds will lose money. If the real value is above the market price, dumping the bonds will cause the market to acknowledge reality.

I see no benefit to the public at large from having people pretend that financial assets are worth more than they are. If anything, keeping the market propped up serves to conceal any wrongdoing (and there's certainly been a fair amount of that) until crooks have a chance to get away with their ill-gotten gains.

10 posted on 01/29/2010 4:02:06 PM PST by supercat (Barry Soetoro == Bravo Sierra)
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To: abclily

In Davos he is tell those people that Obama has the right plan, he is going in the right direction. That plays into global governance which will never work here. They want to control the system. When Obama talks about regulation we say yes some are needed but where and why. He does not understand as you prevent profits from happening Banks from other countries have to take up the slack. profits go overseas. By our actions to put the blame it is BIG government will collapse the US dollar. when people have the right information they will do the right thing. Yes Soro could make a profit if the US dollar collapse, but that would bring down the EU. Why would he do that? That would be a good direct question about his profits and ours


11 posted on 01/29/2010 4:05:20 PM PST by wmposh
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To: jiggyboy
I think you miss the point.

"Russians made a “top-level approach” to the Chinese “that together they might sell big chunks of their GSE holdings to force the U.S. to use its emergency authorities to prop up these companies".

It never happened - it didn't need to because Fanny and Freddie [GSE's] were insolvent and had to be bailed out without pressure from Russia, China or anyone else.

The reason that they were insolvent is that the Democrats, Frank, Waters, Schumer et al resisted Bush administration attempts reign in their sale of sub-primes with regulation.

There is a YouTube tape of a 2005 hearing where the Demos were saying that the GSE's were just fine, not in any trouble at all, that they should even up the pace of sub-prime sales. Probably scrubbed by now but it made the rounds around election time.

The secondary effect of this was the Banks had to find a way to unload all of this politically inspired crap debt. That Goldman Sachs was good at that is only a small part of the story.

12 posted on 01/29/2010 4:15:00 PM PST by HardStarboard ("The urge to save humanity is almost always a false front for the urge to rule - Mencken knew Obama)
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To: jiggyboy

I agree Paulson’s a liar and not to be trusted, but even Satan used scripture to lie.

No, this makes perfect sense. The bastard kept this information until he thought he could leverage some personal gain. Sell books, rebuild his image.


13 posted on 01/29/2010 4:15:13 PM PST by Eroteme
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To: TigerLikesRooster

Thanks to Obama and Pelosi, the Russian-Chinese alliance will have even more leverage if they want to go for it in 2011 or 2012.


14 posted on 01/29/2010 4:15:23 PM PST by Pollster1 (Natural born citizen of the USA, with the birth certificate to prove it)
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To: abclily

The Russians goal for 100 years has been to destroy our economy makes perfect sense that they wanted to destabilize our economy and look who we have as president now.


15 posted on 01/29/2010 4:20:24 PM PST by Three if by government
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To: TigerLikesRooster

If it happened, I’m sure that Paulson privately alerted Goldman Sachs so they could increase their shorts.


16 posted on 01/29/2010 4:34:16 PM PST by Cicero (Marcus Tullius)
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To: jiggyboy
Were his lips moving? Was the tongue forked?

Maybe Bernie Madoff could come up with a better story....

17 posted on 01/29/2010 5:04:34 PM PST by pointsal
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To: TigerLikesRooster
They shouldn't have needed prodding to dump those worthless bonds!
18 posted on 01/29/2010 5:08:21 PM PST by dalereed
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To: TigerLikesRooster

Invest now. Obama does not control the market


19 posted on 01/29/2010 5:31:44 PM PST by eyedigress ( now.)
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To: TigerLikesRooster
OMG! What if they had dumped the agency bonds? That would have made spreads blow out and could have even bankrupted the GSE’s Then the Government and Fed would have had to step in and...oh wait...
20 posted on 01/29/2010 5:37:38 PM PST by hedgie
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To: Three if by government

Me three. Bin Laden is a hologram used by Russia and our enemies in the ME to give them cover to do whatever the hell they want to do to us without fear of reprisal.


21 posted on 01/29/2010 5:45:38 PM PST by kinghorse (Inspired by the dogged determination of Monty Python's Black Knight, Obama vows to never quit.)
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They, along with the fascist leftovers from Eastern Europe and the leadership in the ME absolutely hate us with a red hot passion. They hate us for WW2, supporting Afghanistan against Russia, missile shields, supporting Israel, you name it. They created Bin Laden and Al Qaeda as the throw down whipping boy when they want to hit us hard.


22 posted on 01/29/2010 5:48:01 PM PST by kinghorse (Inspired by the dogged determination of Monty Python's Black Knight, Obama vows to never quit.)
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To: TigerLikesRooster

The Russian selloff may have been a trial balloon. Had it been felt that the US economy would have had a chance to completly collapse, the Chinese would have followed suit.

BTW the Russians hold about 200 billion of our national debt.


23 posted on 01/29/2010 5:50:08 PM PST by Thunder90 (Fighting for truth and the American way... http://citizensfortruthandtheamericanway.blogspot.com/)
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To: wmposh

Remember what team Soros is really working for...

It is not America, not any “Orange Revolution”, not Europe. He is working for the SVR (KGB) and the GRU.


24 posted on 01/29/2010 5:51:39 PM PST by Thunder90 (Fighting for truth and the American way... http://citizensfortruthandtheamericanway.blogspot.com/)
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We will get even when we develop the stealth UAV. They can get a taste of what terrorism can be with a little technology thrown into the mix.


25 posted on 01/29/2010 5:54:11 PM PST by kinghorse (Inspired by the dogged determination of Monty Python's Black Knight, Obama vows to never quit.)
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To: TigerLikesRooster

bttt


26 posted on 01/29/2010 6:02:07 PM PST by neverdem (Xin loi minh oi)
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To: AdmSmith; Berosus; bigheadfred; Convert from ECUSA; dervish; Ernest_at_the_Beach; Fred Nerks; ...

Thanks TigerLikesRooster. Yeah, it wasn’t Barney Freak, it was the damned Russians, of course.

http://www.freerepublic.com/focus/news/2440456/posts


27 posted on 01/29/2010 6:02:58 PM PST by SunkenCiv (Happy New Year! Freedom is Priceless.)
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To: SunkenCiv

Well they had motivation...that is for sure.


28 posted on 01/29/2010 6:35:59 PM PST by Ernest_at_the_Beach ( Support Geert Wilders)
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To: abclily

The infamous Sept 15 2008 550 billion dollar bank run?


29 posted on 01/30/2010 2:07:19 AM PST by momincombatboots (Ambition: climbing over others to make it; Passion: arriving while everyone enjoyed the climb)
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To: wmposh

Didn’t he already try to break the Bank of England by his dealings in silver?


30 posted on 01/30/2010 4:52:30 AM PST by abclily
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To: Three if by government

We have a president who owes his soul to Soros. Our president is a puppet on Soros’ strings.


31 posted on 01/30/2010 4:56:14 AM PST by abclily
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To: TigerLikesRooster
"Is this allegation Paula son’ fig leaf or real deal? Or it could be both.

Make like a financial fig tree and leaf with lots of figures.

32 posted on 01/30/2010 4:59:48 AM PST by Earthdweller (Harvard won the election again...so what's the problem.......?)
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To: momincombatboots

That, too.


33 posted on 01/30/2010 5:01:41 AM PST by abclily
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To: abclily
Isn’t it George Soros who is trying to maneuver the collapse of the U.S. dollar?

Ben Bernanke. Soros is just a businessman trying to make a profit from it.

34 posted on 01/30/2010 5:41:00 AM PST by palmer (Cooperating with Obama = helping him extend the depression and implement socialism.)
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To: TigerLikesRooster

bttt


35 posted on 01/30/2010 2:58:39 PM PST by Tailgunner Joe
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To: HardStarboard

Goldman Sachs was selling its own subprime paper. Investment banks were cranking out more subprime paper than the GSEs.


36 posted on 01/30/2010 10:29:34 PM PST by Pelham (ObamaCare, it comes with a toe tag)
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