The Fannie and Freddie Group was taken over by the US government. When everyone thought that the Fannie and Freddie Group had survived, Feng Yu released a series of data to the media.
The data included the US government's revenue and expenditure for the first half of this year, the Fannie and Freddie Group's debt and debt ratio, the losses of the major US banks, the default rate of real estate loans, etc.
Once these data were released, it caused an uproar.
Ordinary people might not pay much attention to these. They only looked at the surface and thought that the US was the richest country in the world, and the US government must be the richest.
But when they saw the deficit, they were surprised to find that the US government had no money.
Also, the amount of government bonds issued by the US government was much more than other countries. 1.5 trillion USD was bought by many countries in Europe and Asia.
The interest of government bonds was higher than bank interest. This meant that even if the US had good taxes, it had to pay the maturing government bonds held by other countries first before the government could operate normally.
The US taxes could not support the normal operation of the government, and they could only continue to issue government bonds and operate in debt.
Although the US economy seemed to be developing very well in recent years, when George W. Bush was in office, he started a war. The money spent on the war was also an astronomical figure.
Not only the purchase of weapons and equipment, but also the payment of soldiers' salaries, pensions, etc. This was a very large expenditure.
The infrastructure, welfare, etc. cannot be stopped. Since last year, the number of unemployed in many industries in the US increased, which increased the number of people receiving government benefits and increased the government's expenditure.
Also, to stabilize the market economy last year and the first half of this year, rescuing those financial institutions was also a large expenditure. The current US government had a high debt ratio and could not make ends meet.
How could the US government save the Fannie and Freddie Group?
If they had money, everything would be fine. It was difficult to earn 10,000 RMB quickly, but with 1 million RMB, there were many ways to earn 10,000 RMB quickly.
The problem was that the US government did not have money at all!
The hole in the Fannie and Freddie Group was difficult to save. Some consortiums had money, but they would never use it to fill this hole.
Generally, when the government did not have money, there were two ways. One was to issue government bonds, and the other was to get loans from the banks. The next year, they could find ways to increase their income to repay the loans. They could raise tax rates or stimulate the economy.
But at this time, the US government bonds could not be issued normally. With the US economy in such a state, who would buy US government bonds?
Bush talked to Hua Xia and realized that Hua Xia was the one who could take out a lot of cash. Unknowingly, Hua Xia's economy had developed so quickly. Moreover, Hua Xia's state-owned enterprises were also developing very well. Their income had been increasing year after year. Hua Xia's government was definitely rich.
Bush had wanted to sell a large amount of national debt to Hua Xia so that the US would have enough money to function normally. He was willing to pay a high interest rate for this.
Unfortunately, this was rejected by Hua Xia. The answer given by Hua Xia was that Hua Xia was also short of money now. In order to prepare for the Olympic Games, she had issued a lot of government bonds, and it was time to repay them.
Also, the Olympic Games had allocated a lot of funds to Beijing, and other provinces were complaining. That's why Hua Xia decided to increase the funds to other provinces to invest in infrastructure, transportation, etc. She had no money to buy US government bonds.
Although Hua Xia had a lot of foreign reserves, most of it was used to buy European government bonds. She had very little cash. If she bought a large amount of US government bonds, Hua Xia's foreign reserves would not be enough.
But since Bush had spoken, Hua Xia had to show her friendly attitude. In that case, let's buy 500 million US Treasury bonds.
When Bush heard this, he was so angry that he almost died!
500 million US dollars? Do we need to issue government bonds for such a small amount? It should be at least 10 billion US dollars.
Hua Xia is not helping us. This is mocking us! The US is a big country, and we need to spend a lot of money. 500 million US dollars? Are you trying to bribe those small countries in Africa?!
Bush had not reached an agreement with Hua Xia. He was still negotiating with the European Union, Japan, South Korea, Singapore, and other countries. But these countries do not have much money now.
Also, many US banks are short of funds, and they had given out a large sum of money. Where can they find more money? If it is a few hundred million US dollars, they can afford it. But they cannot afford 10 billion US dollars.
Bush knew these are all excuses. All the countries he had asked for help can afford 10 billion US dollars. Especially the European Union, a strategic alliance formed by so many countries, how could they not have 10 billion USD?
These are all excuses, but Bush could not do anything about it. Why should other people's money be used to help the US?
The US can still get loans from banks, but many banks in the US had gone bankrupt, and the remaining banks are short of money.
Although the banks seem to have a lot of assets, they do not have much money. Most of the money is used for loans or investments.
With the current economic situation, they had to have more cash than usual to deal with the possibility of a centralized cashout. They couldn't possibly take out bonds and give them to their clients, right?
The banks want to lend as the US government's credit rating is still very high. But they really do not have money. Small loans are fine, but US banks cannot afford to borrow 10 billion US dollars from the US government.
Don't forget that the highest number of layoffs this year is from banks and other financial institutions. The number of layoffs is higher than the US automobile industry, which is on the verge of bankruptcy.
Clearly, in order to save money, the commercial banks in the United States also used various means. Furthermore, these banks still have a lot of mortgages, car loans, etc. that may default.
The US used to encourage financial innovation, and the US has the most financial derivatives. But when the economic situation deteriorates, the financial institutions will suffer the most losses.
Their short-term transactions cannot solve the current situation, and a large number of US financial institutions went bankrupt. Many financial institutions in Europe, Asia, and other regions were affected.
Everyone was shocked when they saw the data and situation analysis.
It turned out that the US government, which they had always been full of confidence in, had also reached the end of its rope?
Then, after the US government takes over the two groups, will it be dragged down by them?
Can the two groups be saved?
After the market opened, the two groups' shares fell by more than 40%!
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