Although the U.S. government has begun to take care of Fannie and Freddie Group, they are really powerless because the overall economy of the United States is declining, and the pitfalls of Fannie and Freddie Group are too big. Fastest update
But Fannie and Freddie are too important, and they have to help, otherwise the harm will be even more serious.
They have chosen and chosen, and they feel that the only one that can help Fannie and Freddie Group now is China, which has sufficient foreign exchange reserves. Everyone in the United States also knows that China's foreign exchange reserves have been invested in a lot of EU treasury bonds and some Asian treasury bonds, but they have also invested in a huge amount of gold.
Treasury bonds are not easy to liquidate, but gold futures are certainly no problem. If China is willing to lend a helping hand, then the matter will be easily solved.
They even plan to discuss with China that the two countries will privately sign some documents to open up some of China's technical blockades in exchange for cash support from China.
From the perspective of the United States, this is already a great sign of sincerity and a win-win situation.
The United States has lifted the crisis, and China can also get tangible benefits. Although foreign exchange may be affected to some extent, the impact will not be significant.
But they didn't expect that China would reject it outright.
Fannie and Freddie Group is a big pit, and everyone can see it clearly. Although it can be saved with enough funds, the profits that can be obtained are too low, and even capital preservation is difficult.
Although China needs some advanced technologies, it can be obtained through other countries instead of the United States. For example, South Korea has been extending an olive branch to China and hopes to further cooperate with China.
To put it simply, South Korea gives China some technologies that are blocked by Western countries, but China must be open to South Korea's trade and culture.
This was the case in the previous life. South Korea used some technologies in exchange for the Chinese market, thus filling the Chinese market with many South Korean culture and commodities.
It doesn't matter if you like celebrities from other countries, but being too obsessed with them or even losing your mind is very scary. Later, after the agreement expired, China did not renew the contract with South Korea, and then began to restrict the development of South Korean artists to reverse this distorted situation.
The invasion of culture has a serious impact on a country.
In this generation, China has a better relationship with Russia. Many technologies can be obtained through Russia, and then they can carry out deeper trade activities with Russia without worrying about Russia's cultural invasion of China. This is the best cooperation.
Therefore, the conditions that appear to be very favorable in the United States are not very attractive in China. What's more, since the return of Xiangjiang, some technology licenses can be obtained from Europe through Xiangjiang, Lisboa, etc., and it is difficult for China to be blocked at this time.
Moreover, China also has some technologies that Western countries want very much, such as electronics, IT and other technologies. It can completely obtain what it wants through some technology exchanges.
The conditions in the United States are very good, but they cannot impress China.
Xiaobu Shi was unhappy. After some research, he decided to play rough.
So the United States began to question China, why has China sold off the stocks and bonds of Fannie and Freddie Group since last year, and even sold stocks in the U.S. stock market and sold U.S. treasury bonds
The subtext is, is the crisis of the two real estate groups in the United States controlled by China behind the scenes
China had already anticipated this situation, and had consulted Feng Yu about how to respond from a business perspective. Feng Yu also gave a very good suggestion, which was to blame the Americans.
China also happily gave the answer at this time. They have learned Buffett's investment model. Now it seems that Mr. Buffett's classic theory is indeed correct.
Before China's aggressive purchase of bonds and stocks from Fannie and Freddie, Buffett once held a large amount of stocks and bonds in these two companies. The shareholding ratio exceeds 8%, which can be said to be very high.
Then during the Internet bubble, Buffett personally and his company sold off the stocks and bonds of Fannie and Freddie Group, making an average profit of more than ten times!
What did Buffett invest in after that? China Petroleum.
Buffett's investment generally involves becoming a shareholder, joining the board of directors and other management, and directly participating in the company's operations. His investment philosophy is very interesting, that is, measuring the difference between a company's stock price and its intrinsic value.
When the stock price is higher than the intrinsic value, Buffett believes that the company's stock may fall. When the stock price is lower than the intrinsic value, it is an investment worth buying and will definitely make a profit.
When Buffett sold Fannie and Freddie shares and bonds, they were not at their highest point. Moreover, when Buffett sold Fannie and Freddie shares, the management of Fannie and Freddie were still arranging buybacks. At that time, Fannie and Freddie were indeed operating Very good company.
It was also at that time that China Central Government purchased the shares of Fannie and Freddie Group and the bonds issued by Fannie and Freddie Group as foreign exchange investments.
Buffett bought a stake in China Petroleum Corporation, but failed to enter the management. China Petroleum will never allow outsiders to enter the management. But Buffett also held talks with China Petroleum's top executives and looked forward to future development.
It wasn't until Buffett sold China Petroleum's shares some time ago that people saw that Buffett had made nearly seven times the profit. When it comes to long-term investment, Buffett is worthy of the title of stock god.
But the timing was so coincidental. Buffett sold the shares of Fannie and Freddie Group and bought them from China Foreign Exchange Reserve Investment. Then at the same time, Buffett bought China Petroleum.
When Buffett sold China Petroleum, China also happened to start selling the stocks and bonds of Fannie and Freddie Group. China says it is learning from Buffett, and some even say that China may have received guidance from Buffett. Otherwise, why would Buffett buy a large amount of China Petroleum shares
These statements really make people a little unsure whether they are true or not.
China has said that they have learned Buffett's theory and measure intrinsic value and stock price. Then when Buffett sold China Petroleum and there were no other new investments, they felt that Buffett was trying to tighten cash, so they followed suit.
Now it seems that they are studying well. Buffett also said last year that financial derivatives trading is too risky and can even be said to be a large-scale weapon of destruction in the financial market. The United States allows unrealized gains to be recorded on the income statement, which will lead to The stock price is artificially high.
China believes that what Buffett said makes sense, and Buffett also said that the monopoly of Fannie and Freddie Group will not last long, and sooner or later the hidden dangers that have been covered up will explode. Now it seems that what Mr. Buffett said really makes sense!
In order to successfully hold the Olympic Games, China tightened its investment. Unexpectedly, it was so lucky that it almost suffered a huge loss.
China simply threw all the blame on Buffett, but Buffett couldn't refute it. Those quoted theories and words were indeed said by him, but he was doing it for his own investment and did not expect it to affect China's investment.
Even if it affects you, you can't say that you did it all because of me. Moreover, when I invested in China Petroleum, I just talked about the development of oil. What does it have to do with Fannie and Freddie Group
Those who say that I asked Huaxia to sell the stocks and bonds of Fannie and Freddie, what do you think about it? This blame is placed on my head. How can I explain this? !
… (To be continued...)