Although the US government has started to take care of Fannie and Freddie, the overall US economy is declining, and Fannie and Freddie are too big.
But Fannie and Freddie are too important, and the US government must help them. Otherwise, the damage will be even more serious.
The US government thinks that only Hua Xia, who has enough foreign reserves, can help Fannie and Freddie. The US government knows that Hua Xia has invested a lot of European Union bonds and some Asian bonds with her foreign reserves. She has also invested a large amount of gold.
Treasury bonds are not easy to convert, but gold futures are not a problem. If Hua Xia is willing to help, the problem will be solved easily.
The US government even plans to discuss with Hua Xia and sign some documents in private to open up some of Hua Xia's technologies in exchange for Hua Xia's cash support.
From the US government's point of view, this is a win-win situation.
If the US crisis is resolved, Hua Xia will also benefit from it. Although Fannie and Freddie might be affected, the impact will not be big.
But the US government did not expect Hua Xia to reject them.
Fannie and Freddie are a big trap, and everyone can see it clearly. Although the company can be saved with enough funds, the profits are too low, and it is difficult to even break even.
Although Hua Xia needs some advanced technologies, she can get them from other countries without going through the US. For example, South Korea has been throwing an olive branch to Hua Xia, hoping to further cooperate with Hua Xia.
Simply put, South Korea will give Hua Xia some technologies that are blocked by Western countries, and Hua Xia will open up to South Korea's trade and culture.
In Feng Yu's previous life, South Korea used some technologies in exchange for Hua Xia's market, and Hua Xia's market is flooded with South Korean culture and products.
It's okay to like other countries' celebrities, but it's scary to be obsessed with them and lose your mind. After Hua Xia's contract expired, she did not renew it and started to restrict the development of South Korean celebrities to reverse the situation.
Being invaded has a serious impact on a country's culture.
In this life, Hua Xia has a better relationship with Russia, and many technologies can be obtained from Russia. After that, they can conduct deeper trade activities with Russia, and they do not have to worry about Russia invading Hua Xia's culture. This is the best cooperation.
That's why the conditions in the US are not attractive to Hua Xia. Also, after Hong Kong returned to China, of Hong Kong, Macau, and other countries, Hua Xia, of Europe, Europe, and Europe, Europe, Europe, Europe, and Hua Xia of Europe, of Europe of technologies.
Also, China has some technologies that the Western countries want. For example, electronics, IT, etc. China can exchange technologies to get what it wants.
The conditions of Hua of Hua Xia. Hua of of of of of America.
Europe Of United States of of of of of of George and Mae. and Mac. Bush of of of America.
So, the US starts to question China. Why did China dump Fannie and Freddie Mac's shares, bonds, and even the US stock market and Treasury bonds since last year?
What he was trying to say was, was China behind the crisis of Fannie and Freddie?
Hua Xia had expected this situation and had consulted Feng Yu on how to respond from a business point of view. Feng Yu gave a good suggestion, which is to push the blame to the Americans.
Hua Xia gave the answer immediately. They had learned from Warren Buffett's investment model, and it seems that Warren Buffett's theory is correct.
Before Hua Xia bought the bonds and shares of Fannie and Free, Warren Buffett used to own a lot of these two companies' shares and bonds. His shareholding ratio is more than 8%, and it is considered very high.
During the dot-com bubble, Warren Buffett and his company sold the shares and bonds of Fannie and Free together, and the average profit is more than 10 times!
After that, Warren Buffett invested in Hua Xia Petroleum.
Warren Buffett's investments are usually to become a shareholder and enter the board of directors and other management departments. His investment philosophy is very interesting. It is to measure the difference between a company's share price and its intrinsic value.
When the share price is higher than the intrinsic value, then Warren Buffett believes that the company's stock may fall. When the share price is lower than the intrinsic value, it is worth buying and will definitely make a profit.
When Warren Buffett sold the shares and bonds of Fannie and Free, it was not at the highest point. When Warren Buffett sold the shares, the management of Fannie and Free was still arranging for a buyback. At that time, Fannie and Free were indeed operating very well.
It was also at that time that the Hua Xia government bought the shares and bonds of Fannie and Free as a foreign exchange investment.
Warren Buffett invested in Hua Xia Petroleum, but he did not enter the management. Hua Xia would never allow outsiders to enter the management. However, Warren Buffett also had a meeting with the senior management of Hua Xia Petroleum and looked forward to the future development.
It was not until Warren Buffett sold the shares of Hua Xia Petroleum that people saw that Warren Buffett made a profit of nearly seven times. When it comes to long-term investment, Warren Buffett is worthy of the title of God of Stocks.
However, the timing was so coincidental. When Buffett sold the shares of Fannie and Free, Hua Xia bought the foreign exchange reserve investment. At the same time, Warren Buffett bought Hua Xia Petroleum.
When Warren Buffett sold Hua Xia Petroleum, Hua Xia also began to sell the shares and bonds of Fannie and Free. Hua Xia said that they were learning from Warren Buffett. Some people even said that Hua Xia may have received Warren Buffett's guidance. Otherwise, why would Warren Buffett buy a lot of shares of Hua Xia Petroleum?
These statements really made people a little uncertain whether they were true or not.
Hua Xia said that they learned Warren Buffett's theory to measure the intrinsic value and the stock price. Then when Warren Buffett sold Hua Xia Petroleum and had no other new investments, they felt that Warren Buffett wanted to tighten his cash, so they followed suit.
Now it seems that they have learned well. Warren Buffett also said last year that financial derivatives trading is too risky and can even be said to be a weapon of mass destruction in the financial market. The United States allows unrealized earnings to be recorded on the income statement, which will lead to inflated stock prices.
Hua Xia thought that Warren Buffett's words were very reasonable. Warren Buffett also said that the monopoly position of Fannie and Free would not last long. Sooner or later, the hidden dangers would erupt. Now it seems that Mr. Warren Buffett's words are really reasonable!
Hua Xia tightened her investment in order to hold the Olympic Games smoothly. She did not expect her luck to be so good. She almost lost a lot.
Hua Xia simply threw all the blame on Warren Buffett, but Warren Buffett could not refute it. Those quoted theories and words were indeed said by him, but he did it for his own investment. He did not expect that it would affect Hua Xia's investment.
Even if it affected, you can't say that it was all because of me. Moreover, I invested in Hua Xia Petroleum just to talk about the development of oil. What does it have to do with Fannie and Free?
Those people who said that I asked Hua Xia to sell the shares and bonds of Fannie and Free, what are your intentions? How am I supposed to explain this when I'm the scapegoat?!
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