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GSEs too Socialistic for Red China


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2006 Mar 23, 2:46pm   10,699 views  127 comments

by HARM   ➕follow (0)   💰tip   ignore  

China does not plan to emulate U.S. GSEs

VENICE, Italy, March 23 (Reuters) -

China has no desire to create Freddie Mac (FRE.N: Quote, Profile, Research) or Fannie Mae (FNM.N: Quote, Profile, Research) style government sponsored enterprises (GSEs) to help develop its mortgage market, a former regulator of the two U.S. home funding companies said on Thursday.

"...The Chinese are adamant about having private sector mortgage lenders that are not reliant on government subsidies," the former regulator of the two U.S. government sponsored enterprises (GSE) told a bond conference in Italy.

Falcon said Freddie and Fannie were created during the Depression in the 1930s, and Americans are still living with their unintended consequences. "The unintended consequences are their portfolios create systemic risk to the financial system," Falcon told Reuters on the sidelines of the conference.

Freddie and Fannie hold a combined $1.4 trillion in mortgage portfolios. Senator Richard Shelby, a Republican from Alabama, along with the Federal Reserve and the White House argue that the portfolios pose a risk to the financial system of the world's largest economy by aggregating interest rate risk, and requiring the two listed companies to engage in extensive and complicated hedging."

Interesting... The Communist central government of China finds the GSEs too socialistic for its taste. The mortgage securities market of what is arguably the most advanced and successful capitalist nation in human history being indirectly critiqued by Communist apparatchiks for not being free market enough.

Wow... what to make of that?

What's next: Sudan criticizing our record on human rights? Saudi Arabia lecturing us on religious tolerance? Should I feel amused or embarrassed? Has Hell truly frozen over?*

Discuss, enjoy...
HARM

*Disclaimer: THOUGH I DISLIKE THE GSEs, IN NO WAY DO I FEEL THAT RED CHINA WITH ALL ITS ANTI-COMPETITIVE, ANTI-FREE MARKET CORRUPTION, GOVERNMENT MONOPOLIES, PROTECTIONISM, LACK OF RESPECT FOR HUMAN AND PROPERTY RIGHTS, ETC., ETC. IS IN ANY POSITION TO BE CRITICIZING THE U.S. NOR AM I ADVOCATING MODELING OUR HOUSING OR FINANCIAL MARKETS AFTER CHINA’S. I FOUND THEIR IMPLICIT CRITICISM TO BE HUGELY IRONIC, AND THEREFORE FUNNY AND WORTHY OF NOTICE.

#housing

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122   Different Sean   2006 Mar 28, 9:03pm  

A memorandum submitted to Manmohan by Muslim leaders stated: "in the post cold-war era the American imperialism has posed a serious threat to the world order based on mutual respect for the sovereignty of every country. Unprovoked aggression against Afghanistan and Iraq and a threatening posture against Iran has proved beyond doubt that the new security doctrine of pre-emptive strikes to destroy all foci of potential resistance to American dictates of world order has blurred and finally erased the distinction between peace and war."

Indeed, India’s stand against Iran has been a sticking factor with the Muslims in India. New Delhi has been unhappy with Tehran repeatedly dragging India into its problems with Washington. On Sunday Iran trashed the US for its "double standards" in signing the nuclear deal with India. Iran's foreign ministry spokesman Hamid Reza Asefi said Washington was systematically trying to show Teheran in a bad light. "The United States' approach is a form of double standards. It signed a contract with a country that was not a member of the non-proliferation treaty. That is objectionable. On the other hand, it approaches Iran in such a (bad) way." India has not signed the NPT, which it says is discriminatory. Iran has voluntarily signed the agreement.

New Delhi has been trying to broker on behalf of Iran and has been instrumental in buying more time for Tehran at the International Atomic Energy Agency (IAEA) meet in September despite the anti-Iran vote. The November meet of the IAEA postponed action due to active behind the scene lobbying by New Delhi officials. Matters were relatively quiet on this front, until in January this year when Tehran removed UN seals from three nuclear facilities, ending a two-year suspension of uranium enrichment-related activities.

123   Different Sean   2006 Mar 28, 9:44pm  

i know a few indians who say the whole place is mired in corruption, and no-one can do meaningful business as a result. to call places 'democracies', and see them all as strategic allies when in fact they have their own self-interested agendas would be a grave geopolitical mistake. for instance, india needs oil to industrialise, and guess where the nearest source is?

i haveen't even got wordpress working... is that the secret? should just get good quality forum software : (

124   Different Sean   2006 Mar 28, 10:19pm  

i wouldn't fight 'em... they feud to the death, even the ones who've emigrated to australia... and there's lots of them... iran is 4 times the population of iraq and 4 times the area - and indonesia has 250 million muslims....

if they have depleting oil, then i guess international interest in those regions will go down, and there will be less tension and conflict between east and west... borders mean that populations cannot shift far, so if they cannot support the populations after peak oil, i don't know what happens...

i don't know about pax americana, i think that's an overstatement - the view here is that the US has corruptly meddled in too many other countries in the last 50 or 60 years, and causes a lot of the world's strife and mischief by appropriating an unfair share of resources through economic imperialism, covert activity and gunboat diplomacy...

125   Different Sean   2006 Mar 28, 10:32pm  

funnily enough, the romans were always looking for pretexts to invade. they used to trigger wars of conquest by saying that the people in a new territory had offended one of their 'friends' in a neighbouring territory and that they therefore had to intercede. sometimes they even fabricated allies in neighbouring territories to do it. but they had a big 'discourse' about how they were civilising the world, etc, as they expanded, but they were ultimately warlike and unpopular, causing the germanic tribes to turn back on them eventually.... the equivalent militarisation may well be the truman doctrine...

126   Different Sean   2006 Mar 28, 10:34pm  

hmm, maybe there is a perfect storm of peace, economic co-operation and sustainable development, on the other hand...

just hum the words to Imagine...

127   HARM   2006 Mar 29, 4:32am  

I think it's a shame that this thread peaked at only 299 comments. If only someone would come by and make it an even 300. Oh, well... :-(

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