Us Begging China To Buy Its Mortage Debt

[Eddie Hitler]

This story would have been unbelievable 20 years ago, 10 years ago, or even 5 years ago.

The US economy is screwed and they are now pleading for a hand-out from China. The Fed ought to be on one of those "Spend Spend Spend" programmes. If anybody has any US investments sell them now or you will lose a lot of money.

In case anybody thinks I'm anti-American I'm very pro-US and spend most of my holidays there. And they will be a lot cheaper in future. This is just an astounding story and shows what a bad state their economy is really in, Dow rises notwithstanding.

Bloomberg

U.S. Urges China to Buy Mortgage Securities Amid Subprime Woes

July 13 (Bloomberg) --The U.S. is urging China's central bank to buy more mortgage-backed securities after a surge in defaults by risky borrowers in the world's largest economy eroded demand for such instruments.

The U.S. housing regulator is seeking to tap China's $1.33 trillion of foreign-currency reserves after surging defaults on subprime mortgages caused the near-collapse last month of two hedge funds run by Bear Stearns Cos. Almost $12 billion of U.S. mortgage securities have been downgraded by ratings companies.

Jackson is in Beijing to persuade the Chinese central bank to buy more mortgage securities from Ginnie Mae, a mortgage association under the Housing Department. Its securities are guaranteed by the U.S. Government National Mortgage Association.