Two-room retreat to hold creditor China holds total or over 340 billion USD

"Two rooms" hold the Chinese creditor Bernanke on Capitol Hill testimony, said the "two houses" back to the root cause of the city, they worry about two times the bottom of the economy.　　The Chinese who hold a large number of "two-room" bonds will see more of the book assets in the future, and it is difficult to set up a case now.　　"Securities Market Weekly reporter Liao Zongkui" June 16, "Two rooms" announced the return of the city. In the face of the U.S. employment situation is not optimistic, the fiscal deficit is more and more serious, the Obama administration in the fragile property market, has no money to save the "two rooms", U.S. lawmakers even proposed to the "two rooms" into a liquidated financial entity.　　"Two rooms" want to turn over the opportunity of salted fish has not. After the exit of the "two rooms" will enter the OTC trading platform, liquidity greatly reduced.　　The value of the 5.2 trillion-dollar bond issued before the two houses has shrunk further, and bond investment is now facing two blows after the 2008-year financial crisis. Chinese financial institutions have been holding "two-room" derivative bonds for nearly 500 billion dollars, and after the "two houses" retreat, it has become increasingly difficult for Chinese financial institutions to sell "two-room" bonds.　　While the government has called on the US government to secure the "two-room" bond, the US administration has been powerless and Chinese lenders have been caught in a "two-room" bond.　　"Two rooms" that are difficult to salvage?　　On June 16, Fannie Mae and Freddie Mac, the two biggest mortgage giants in the United States, received orders from the Federal Housing Finance Authority (FHFA) to Freddie from the New York Stock Exchange (Fannie).　　After the exit, "two rooms" will still be quarterly to the U.S. Securities and Futures Commission (SEC) to submit financial reports, the stock will be over-the-counter market transactions, but their shares will not be held by large institutional investors.　　The reason given by the Federal Housing Finance Authority is simple, with the two-room share price falling below $1 for one months, below the New York Stock Exchange's minimum requirements for listed companies. Fannie Mae's share price has been below $1 trillion since May 17, while Freddie Mac's share price has been above $1 trillion.　　After the news of the exit, the "two rooms" share price plummeted nearly 40%. The market to "two rooms" return to the city lukewarm, to the market almost did not have a negative impact. Before the subprime crisis, the shares of the two houses fell from a 65-dollar high, and remained at around $1 a long time.　　So the June 16, the two house share price plunge is also to the point of no fall, nothing to make a fuss. "Two rooms" stock price for a long time worth a few cents, why no one copy bottom?　　Since the subprime crisis, the U.S. federal government has been accumulated as "two rooms" to pay 145 billion U.S. dollars, to maintain the share price of 1 U.S. dollars, the government does not spend too much money, after all, now "two rooms" total market capitalisation is less than 1 billion U.S. dollars. It is clear that the US government has realised that even if the "two rooms" share price is barely maintained, they will be dead. Relative to the "two rooms" of the stock, its bond is the main, "two rooms" with nearly 5.2 trillion U.S. dollars of bonds, "abandon car, handsome" is also to reduce losses。 At present, "two rooms" are still at a loss, the hole to be filled will be enlarged. The White House has estimated that the cost of bailing out "two houses" is at least 160 billion dollars, while the U.S. Budget Office (CBO) estimates a cost of $389 billion.　　But these two estimates are based on a normal U.S. economic recovery and a better housing market. From the "Two rooms" back to the city, can also be seen in the U.S. housing market is still depressed.　　U.S. house prices rose 2% per cent in the first quarter of this year, s&p the/Case-Shiller Housing price Index, which was the initial annual rally in recent years, but was still down 3.2% in the first quarter from the fourth quarter of 2009, as the tax incentives ended and foreclosures continued to rise. Prakash Loungani, an IMF economist, points out that U.S. house prices are likely to continue to fall sharply and that the decline will last longer, according to experience in the U.S. history of house-price cycles. Housing prices rose by an average of 39% per cent during the U.S. economic cycle, while housing prices rose by 113% per cent, while house prices fell by an average of 22% in the economic downturn, which fell only 15%.　　In other words, before the subprime crisis in the United States housing prices exceeded a lot, still far from falling enough.　　Based on pessimistic assumptions, some institutional experts say the cost of the US bailout of the two houses could reach $1 trillion trillion.　　"Two rooms" the return of the city root? In the first quarter of this year, US GDP grew by 3%, the recovery was good, and consumer spending soared unexpectedly. But U.S. officials remain wary of the recovery, Federal Reserve Chairman Ben Bernanke said in testimony to Congress June 9, "the U.S. economy will continue to grow this year and next, but it cannot quickly reduce unemployment."　　Bernanke knew that if employment did not improve in nature, consumption would be short-lived. The U.S. unemployment rate in May was 9.7%, and non-farm employment increased by 431,000. The increase in the number of government temporary recruitment resulting from the census of the United States has added to the growth of non-farm employment.　　In fact, private sector employment increased by only 41,000 in May, compared with 218,000 in April. The United States will conduct a census every 10 years, 2010 is a census year, according to the past rules, May is the government's temporary recruitment of the high point of census, the next will gradually decline. In addition, the depth of unemployment in the United States is increasing, with 46% of the unemployed currently unemployed for more than half a year.　　We know that the longer we are unemployed, the harder it is to find a job. American companies are still wary of spending money. By the end of March, cash and other liquid assets of non-financial companies had risen 26% per cent from the same period last year.　　7% of the company's assets, including factories and financial investment, were cash, the highest level since 1963. The European debt crisis has left markets staring at the pockets of the US government and its fiscal deficit is growing.　　The 2009 U.S. fiscal deficit as a share of GDP as high as 11.3%, and the European pig is not much worse. Obama wants to spendLots of money. The health-care reform bill, which has just passed, is estimated to cost 900 billion of billions of dollars, and the recovery hole in BP's oil spill is also robbing the U.S. Treasury.　　While Mr Obama has pressured BP to bear all the costs, closing offshore deepwater drilling could increase U.S. oil competition in the Middle East. Huge military spending followed, and the 2010 U.S. military budget was almost the sum of the rest of the world. The U.S. defense budget for fiscal year 2010 is 686.1 billion U.S. dollars, of which the conventional military budget is $533.8 billion, an increase of 20.5 billion U.S. dollars and an increase of about 4% over the 2009 fiscal year.　　By the end of the year, Mr Bush's tax cuts will expire, and Obama will be expected to postpone the effectiveness of the policy. The key to the fate of "two rooms" is the housing market, and Mr Obama has repeatedly responded to calls for reform of the "two houses" on the basis of "the real estate markets are still fragile". In his testimony to Congress, Mr Bernanke made clear that the US fiscal position was "unsustainable over the long term".　　Therefore, the cost of "two rooms" can save the province.　　Hold a Chinese creditor? If the cost of bailing out the two houses is bottomless, China's large holdings of "two-room" bonds are more dangerous.　　In the end, we hold a lot of "two-room" debt, whether the United States or Chinese officials have not disclosed, after all, too sensitive. In his autobiography, former Treasury Secretary Henry Paulson made clear that "foreign investors hold more than 1 trillion dollars in bonds issued or guaranteed by the ' two houses ', which are mainly Japan, China and Russia."　　According to foreign media reports, it is widely believed that the United States has 80% of "two-room" bonds, according to the current "two-room" debt size, foreign investors hold the amount should be around 1.2 trillion U.S. dollars. In the subprime crisis, Mr Paulson revealed that Russia and China had sold heavily on U.S. government-guaranteed bonds, including "two-room" debt.　　Russia sold almost all of its U.S. government-guaranteed bonds, about $170 billion trillion, while China sold 50 billion. Assuming that the original sale was "two-room" debt, Japan and China will roughly share the remaining nearly 1 trillion U.S. dollar "two-room" debt, China is expected to hold 500 billion of the U.S. dollar. S & P has said in its report that Chinese financial institutions hold "two-room" bonds totaling $340 billion trillion.　　S & P Assessment data should be more reliable, we actually hold a "two-room" debt will be more than this. Will the return of the two houses affect the value of the "two-room" bonds held by China? Generally optimistic, the root cause is the U.S. government to do collateral.　　In the second round of the Sino-US strategic talks concluded at the end of May, the US side also pledged to continue to strengthen the regulation of "government-backed enterprises" to ensure that they have sufficient capital and capacity to meet their financial obligations. Stocks are stocks, bonds are bonds.　　But the disappearance of the two-room stock on the New York Stock Exchange will undoubtedly significantly reduce the liquidity of the two-room bond, and it will become increasingly difficult for China to sell in the future, with more value likely to remain on the books. The U.S. government will reallyPay for "two bedrooms"? Not really, at least the US is already thinking about the worst. The United States House of Representatives agreed June 17 to include "two rooms" in financial entities that could be liquidated.　　The proposal was proposed by Hensarling, a Republican member of the Texas State, Jeb Hensarling, pending a Senate vote.　　We have to admire Americans for their preparedness, and they are always thinking about the worst. Once the economy really shows up two times, if prices continue to fall, the holes in the two houses will naturally grow larger. The inclusion of "liquidated financial entities" means that if the future of the "two houses" poses a serious threat to the overall economy of the United States, it can also be considered for bankruptcy. The likelihood is that no one knows, but Americans are really thinking about it.　　Once that comes, China's nearly 500 billion trillion dollars in "two-room" debt will be wiped out. Bankrupt, or too radical. The future of "two bedrooms" will go down whatever path the Americans are trying to avoid.　　The financial reform bill, which has been passed in both chambers, is the biggest financial change since the Great Depression, but has not made any clear plans for the future of the two houses. "Two rooms" exit the dangerous Signal "room" financial deterioration, the U.S. government is powerless. Lawmakers, in the name of taxpayers, have pressured the Obama administration to include "two rooms" on the liquidation list.　　"Two-room" bonds are not bonds, China's wishful thinking has exposed the danger signal, politics is politics, economy is economy, this is the American trap.　　"The Securities market weekly" author Robert "U.S. Federal Housing Finance Bureau (FHFA) local time 16th issued a statement, Fannie Mae and Freddie Mac, two of America's biggest mortgage giants, were asked to withdraw their shares from the New York Stock Exchange on the grounds that the shares of two companies had been underperforming for a long time.　　"Two rooms" in the city before the total market capitalisation of 1 billion U.S. dollars, but two companies have lost 93.6 billion U.S. dollars, the two companies also issued 5.2 trillion derivative bonds.　　In fact, "two rooms" had been planned, and in the Financial Regulation reform bill passed by the Obama administration, the behemoth "two houses" was not on the agenda, instead stressing the need to protect taxpayers ' interests in the process of dealing with the collapse of large financial institutions. Worse still, the government-sponsored "two rooms" have not secured government guarantees while issuing bonds, while U.S. lawmakers have called on the government to stop paying taxpayers ' money for greedy "two-room" bond investors.　　This is a very dangerous sign for Chinese lenders holding a large number of "two-room" bonds.　　"Two rooms" back to the city premeditated?　　The "Two Rooms" retreat is a rule limit for the New York Stock Exchange. According to the New York Stock Exchange, if the stock price for 30 consecutive trading days below 1 U.S. dollars, its shares will be delisted. Since September 2008, the price of Fannie Mae and Freddie Mac shares has hovered around $1 trillion for more than 30 trading days, with Fannie's shares falling below the recent 30-day trading session.1 dollars, Freddie Mac is hovering between 1.0 and 1.5 dollars. In the aftermath of the 2008 financial crisis, the US government bailed out "Fannie and Freddie", and the US Treasury claimed that the upper limit of support money from the Treasury was $200 billion trillion.　　The US Government is concerned about the 200 billion dollar bailout fund, and deliberately stressed that the cap could be raised when necessary to compensate for the net losses that the two companies suffered over the next three years. So far, the U.S. government has 145 billion of dollars to rescue the "two rooms", but the effect is very little. The "two rooms" financial statements show that, as of the end of 2009, "two rooms" owned or guaranteed housing loans total value of 5.5 trillion U.S. dollars, of which 5 million loans have been in default.　　The 2009 "Two rooms" total losses as much as $93.6 billion trillion, equivalent to the loss of 67% of the government bailout funds. The U.S. government has long foreseen the "Fannie and Freddie" financial deterioration and, in order not to allow the government bailout money to be wasted, the US Treasury announced on December 24, 2009 that it would remove the cap on propping up funds for Fannie Mae, the two big mortgage finance giants, for three years,　　The aim is to allay fears about the potential consequences of restrictive government aid measures. The US Treasury has lifted the cap on bailout funds, shows that the U.S. government does not abandon the "two rooms" not to give up, but the U.S. local time May 25, the end of the Chinese-American Strategic and Economic Dialogue held in Beijing, the next day, FHFA in the annual report to the U.S. Congress, said the "two rooms" will continue to lose money in the future　　and will further seek financial assistance from U.S. taxpayers.　　FHFA, acting Secretary DeMarco, testified on the issue of "two rooms" in Congress, saying that "two rooms" are vital to support the operation of the US housing financial system, but they will not be able to exercise this function without further financial support. The Congressional Budget Office expects the "two rooms" to operate in the current manner, with a total cost of $389 billion trillion for "two rooms" in the 10 years of 2009-2019. In other words, if the United States wants to completely solve the "two-room" problem, in addition to the previous investment of 145 billion U.S. dollars, the U.S. government will need to invest 250 billion of dollars.　　The U.S. opinion polls on the "two rooms," the problem is rather pessimistic, that "two rooms," the more blocked hole, is simply two "bottomless pit." "Taxpayers are losing a lot of money in the mortgage sector," Peter Wallison, a former US Treasury attorney. "Wallison, who worked for MGIC Investment Corp., the largest mortgage insurer in the United States, was very pessimistic about the two-room bailout," and no one knows how much money is needed to keep the two companies solvent. "The Obama administration has been pushing for financial reform in the US, but there is a clear signal in the financial Regulatory Reform bill passed by the House and Senate that theTo protect the interests of taxpayers in the course of the collapse of large financial institutions.　　Congressman John McCain and others are proposing that Congress give up the "two-room" rescue. Adding "Two rooms" is a bit disappointing, and the stock price has long been lower than the New York Stock Exchange's lowest level, with a total market capitalisation of around 1 billion dollars.　　Not only "two rooms" investors are driving in the BMW, the bare feet out, the United States government faces the same fate.　　Dangerous politician signal? The "two rooms" core assets are only more than 70 billion dollars, but the value of derivative bonds is as high as 5.2 trillion dollars.　　"Two rooms" retreated, the security of its bonds sparked concern in the market. "Two rooms" is the United States government sponsored enterprises, so the government sponsored the "Two rooms," the brand, in the "Two rooms," the financing lever reached 70 times times, with Moody's, standard and poor, led by the world's leading rating agencies still give "two rooms" AAA rating, they gave the reason is, " The greater the Government's commitment to governance and monitoring by government sponsors, the greater the moral obligation to guarantee and provide financial support when necessary, and the special relationship between ' two houses ' and the government, the government will certainly give the ' two houses ' special supports. The Congressional Budget Office said in a report to Congress that "the special treatment of government sponsored corporate securities in federal law signals to investors that the securities they issue are absolutely safe." Investors may deduce that if the securities are risky, the government will not grant exemptions to the laws that do not apply to federal protection investors.　　"There is no clear response from Congress to such a report.　　"Two-room" bonds have been enjoying the treatment of national debt, but is the government sponsor is the government guarantee it?　　The issue has made it hard for the U.S. government to give investors around the world a clear statement that, in the "China-US strategic and economic" dialogue held in Beijing on May 24, U.S. Secretary of State Hillary Clinton did not make clear whether the "two-room" Bond had been guaranteed by the U.S. government. Sadly, as early as March 22, 2000, Ginther, the US Treasury Secretary, GenSLer in Congress that the federal government does not guarantee securities issued by government-sponsored companies.　　On April 3 this year, U.S. Treasury Secretary Timothy Geithner made clear that the bonds issued by Fannie Mae and Freddie Mac should not be considered sovereign bonds.　　"Two rooms" returned to the city, now some members proposed to the "two rooms" on the list of clearing entities, then China's "two-room" bonds will go? Data show that China's holdings of U.S. bonds have been growing at a high rate since 2004, with an astonishing three times-fold rise from 2004 to 2007, up to $922 billion trillion.　　Between 2006 and 2007 alone, China's holdings of US bonds grew by 66%. In 2008, the US Treasury's annual report on "Foreign holdings of U.S. securities" showed that foreign holdings of US long-term institutional bonds were $1.5 trillion trillion as at June 30, 2008, with China holding 527 billion U.S. dollars (accounting for 36%).　　The Bank of China, ICBC, CCB and the Bank of communications hold a total of $23.28 billion worth of Fannie Mae and Freddie Mac to issue or provide security bonds. The former Treasury secretary, Snow, visited China in April, stressing that "the United States is a responsible country, and I am sure that those who buy US government bonds will find that the US will take that responsibility." But in the face of how the U.S. government has ensured the security of China's "two-room" bonds, snow faltered and said, "I don't know." You have to wait and see what the government's policy is. However, the government has not emptied the ' two-room ' debt. I don't think the U.S. government should and will not allow those who buy ' two-room ' bonds to bear the losses. "Republicans, led by Sen. McCain, argue that the risks of subsidizing foreign investment should not be based on U.S. taxpayers ' money.　　America even has a think-tank that says if China makes unwise investments, it should bear the consequences, not the American taxpayer, since the "two-room" bond, which is a "non-government-guaranteed bond", has received higher interest than the government debt, and should not benefit from the bailout policy. It's a terrible signal, American politicians and private institutions believe that the Chinese government and other governments covet "two-room" bonds to yield higher yields than U.S. government bonds, to buy "two-room" bonds, to seek a little more return and profit, and to bear a higher risk.　　The U.S. government has no reason to subsidize the losses of the Chinese government and other governments ' investment mistakes with American taxpayers ' money. Politics is politics, economy is economy, the U.S. government has never explicitly admitted to preserving China's "two-room" bonds, but the Chinese are wishful thinking that Americans will use economic pressure to play games with Chinese politics.　　On the contrary, Americans have the "Dollar asset security" chip, in the face of trade frictions and the renminbi exchange rate, there can be more room for pressure on China.　　The paradox of real estate investment? The suspension of "two bedrooms" has made it clear that the government can only be the rule-makers and the role of fair referee in economic development, but not the role of the "speculative interests" of the whole society.　　"Two bedrooms" these two stand behind the Sam Uncle's organization, is causes the 2008 global economic crisis "the subprime crisis" the pushing hand. The immediate cause of the housing bubble is the expansion of speculative demand, which has made it possible for financial institutions to lend excessively. The price inflation in previous years of global real estate was caused by the swelling of speculative demand and the excessive lending of financial institutions. America's Mortgage finance service is the root of the housing bubble and crisis. Speculative demand coupled with speculative financial services, the two major elements of real estate formation.　　The creation and bursting of the American housing bubble, "two rooms" can not escape the blame. As China's financial services industry is underdeveloped, the real "bubble era" of China's real estate will come as soon as lending standards are relaxed, especially the lending and interest restrictions on investment homes. From China2008 years later, the rapid expansion of the housing bubble, state-owned capital through the real estate "blowing machine" to the Chinese economy has blown a huge "irrational prosperity" bubble.　　China's state-owned capital directly involved in real estate, like the United States "two rooms" for the U.S. real estate economic endorsement. There have been several real estate bubbles in the world in the last century. The 1923-1926 Florida real estate bubble sparked a collapse of Wall Street equities, leading to the the 1930s depression, led by the United States. In the 70-90 years of 20th century, there was a real estate bubble in Japan. Since the 1991 price bubble burst, Japan's economy has not been out of the shadow of recession.　　Next, the 1997-2007-year U.S. housing bubble and the subprime mortgage crisis again brought the global financial and economic crisis. From the historical experience, we have seen "real estate investment-driven economy" the great destructive power. First, it is the economic motivity of the excessive demand and greed of wealth in the human heart. The economic development of any society should be built on the basis of satisfying the material and cultural needs of people's reasonable growth, but not on the basis of psychological needs.　　The demand of "investment" is a kind of psychological demand that is divorced from human's realistic needs. When the real estate this satisfies the human basic living demand the economic form, with "invests" the psychological demand unifies, becomes an economy the magic curse. Financial services and innovative financial inventions, for the real estate economy to deviate from the economic development of the normal track, adding to the amplification effect of leverage. The false wealth of society is magnified by multiples. And real Estate "false wealth" brought about the real wealth effect, must lead to a society of excessive consumption and wealth illusion.