Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Square_Dealings who wrote (33991)	6/6/2005 10:53:00 AM
From: t4texas	Read Replies (1) \| Respond to of 110194

i thought you were joking when you asked about fnm. fnm, fre, aig, wm, and krb (mbna) look like pillars of capitalism compared to chinese state owned enterprises (soe). unless you consider the fed controlling short term interest rates and fre/fnm getting favorable borrowing rates from congress (which we do in the final analysis vote for), there is really no comparison to the soe's. i mean a chinese soe like a state owned small/large motor manufacturer that is way behind in the technology, and loses money (cash flow negative too) all the time for years. to keep the people employed, that soe just goes to one of the big four chinese banks for yet another loan to make payroll, etc. the chinese banks are used constantly as a source of funds rather than what we normally think of in a bank. so no matter what you think of fnm, fre, aig, wm, and krb, they just don't get continual loans (at least not yet :-) from banks when they have cash flow problems.