Quote:
Originally Posted by RummyBoy
Yep but its not liquid. Im sure it's possible but I seriously doubt they would stoop to such levels in the USA even in an extreme situation. Everthing seems to be chugging along nicely though - do you think a dollar collapse is going to happen soon?
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I think it was more of a safety net for them more than anything. If they lost their contract with the US government they all of a sudden become the largest home lender in the US. What happened this time around is similar to the gold seizure. Here they crashed the market and bought up all of this so called bad debt. Then they drop interest rates to an all time low which in turn reinflates the bubble increasing their portfolio's value. Either way you look at it they control the future of the US even more so now because they literally own it. When the contract was up all they had to say was you can't do anything to us now or we will call all of these loans. Nearly everyone in the US would have had to refinance or lose their home. Doubting the government would do this is irrelevant because they aren't the government. Once again this pales in comparison to one other move they made in the 30s.