Hearing this news, Bush is no longer in the mood to be interviewed. He hurriedly asked his men to send the reporters away and immediately called his think tank.
The people from the think tank also heard the news, and they were also shocked. In fact, they do not know about the fake accounts.
They had analyzed that from a technical point of view, Fannie and Freddie are on the verge of bankruptcy, but it is not impossible to save them. After all, Fannie and Freddie had gone bankrupt before and rose again.
Some banking institutions even think that Fannie and Freddie will not go bankrupt because the US cannot afford it, and other countries cannot afford it.
Once Fannie and Freddie go bankrupt, the bonds guaranteed by them will depreciate significantly, and many of them will become junk bonds. The investors and financial institutions holding these bonds will be hit hard.
This includes many financial institutions in the European Union, many Asian countries, and many commercial banks. They cannot watch Fannie and Freddie go bankrupt.
Also, once Fannie and Freddie go bankrupt, mortgage interest rates will soar again, and the subprime mortgage crisis that had just been suppressed will erupt violently again and cause a serious financial crisis.
These two companies are too influential, and the US government must not let them go bankrupt. Those financial institutions must not let them go bankrupt, or they will also suffer heavy losses.
For example, the US has issued 1.5 trillion USD of national debt, but Fannie and Freddie have issued more than 5 trillion USD of bonds!
The foreign exchange reserves of many countries will be seriously affected. That's why those countries must not let Fannie and Freddie go bankrupt.
If Fannie and Freddie go bankrupt, not only will these bonds have a big problem, but the US financial crisis will also be inevitable. Those countries that buy US bonds will also suffer losses.
For example, although Hua Xia bought Fannie and Freddie's bonds, he still holds some US bonds. Although Hua Xia is no longer the biggest creditor of the US, he is still one of the top countries.
The main reason is to invest in foreign reserves, which is the investment method that all countries choose. Many countries have invested in Hua Xia's bonds.
Now, the country that holds the most US bonds and Fannie and Freddie's bonds is Japan, followed by the European Union, Canada, Australia, etc.
The US suddenly realized why Hua Xia is so stubborn and refuses to help the US. It turns out that they only hold tens of billions of USD of US bonds.
Tens of billions of USD of US bonds will certainly not become waste paper. Even if there are some losses, it will not be big. After all, bonds also have interest.
George W. Bush had once asked his men to analyze the situation. These two groups would be able to tide over the difficulties as long as the European Union and Asian banks provide assistance, and they indeed had to provide a large sum of cash.
But unexpectedly, Fannie and Freddie falsified their financial statements, causing their analysis to be seriously biased!
Fannie and Freddie have been raising funds for more than a year, hoping to turn the situation around. Fannie and Freddie, and Freddie, American companies.
Therefore, Fannie and Freddie continued to raise the yield, that is, to issue bonds at a higher interest rate for financing, thus making them more and more indebted.
To, Freddie, Freddie, and Freddie. to say. The Freddie and and, and Will Freddie out to to to the interest. to to them. The rising interest also put.
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. "Fannie and Freddie also think that the government will intervene after they have withdrawn more than 77 billion USD. Just like how the government helped to sell Bear Stearns, the government must be worried that after Fannie and Freddie go bankrupt, it will drag down the entire US financial market.
Bear Stearns, Lehman Brothers, Merrill Lynch, etc., went bankrupt, and many shareholders lost everything. They were cheated.
But the real people behind the scenes had successfully escaped. Through entrusted investment and other methods, it was these behind-the-scenes bosses who took the lead in withdrawing. This ensured that their assets did not suffer any losses.
Many people were saying that the US government's coercive measures were clearly a shareholder trap, tricking investors like them.
But these people who were cheated have no influence, and those with influence have successfully escaped. This is the investment environment of the US.
When Bush saw the current situation, he also felt that it was impossible not to help the two groups. He must give them enough funds and stabilize their stock prices so that they would not fall wildly.
So, Bush contacted the Federal Reserve and the US Securities and Exchange Commission and asked them to take effective measures to save Fannie and Freddie.
Feng Yu originally planned to borrow some Fannie and Freddie's shares and make a lot of money when the share prices plummet to make up for his losses in the USD trading market. But he found out that no financial companies were willing to lend Fannie and Freddie's shares.
To put it bluntly, all financial companies are not optimistic that Fannie and Freddie's share prices can recover. The more they borrow, the more they will lose.
Although they cannot short Fannie and Freddie's shares, the US stock index will definitely fall. Short stock index futures will allow Feng Yu and the rest to make up for their losses and even make a small profit.
The next day, when the stock market started, Fannie and Freddie's shares were sold off. During the mass selling, many shares could not be traded, but the share prices were still falling wildly.
Fannie and Freddie's share prices quickly fell below the one dollar line and became a high-risk junk stock.
At this time, the Federal Reserve and the US Securities and Exchange Commission took action. They waived some interest for Fannie and Freddie and provided interest-free loans to allow Fannie and Freddie to have enough cash flow. At the same time, they restricted the trading of Fannie and Freddie's shares.
Even so, Fannie and Freddie's shares still fell by more than 20%.
Affected by the scandal of Fannie and Freddie, investors no longer trust many US companies. If giants like Fannie and Freddie can falsify their financial reports, why can't other companies?
If other companies also falsify their financial reports, won't they be in danger and may collapse at any time?
So on this day, the entire US stock market fell. The NYSE and NASDAQ indices both fell by more than 5%. It can be said to be another plunge.
Feng Yu looked at the earnings on the stock index futures and thought to himself, This is not over yet!
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