[Fangfan and Freddie Group were on the verge of bankruptcy and were taken over by the US government]
Just such a piece of news stole the headlines from the closing ceremony of the Olympic Games, because this piece of news represents the economic direction of the United States.
The U.S. economy has a decisive impact on the global economy. From the end of last year to the beginning of this year, too many companies in the United States went bankrupt.
However, due to the deception of the US government, many countries in Europe, Asia and other countries have provided money to help. It seems that the crisis has been suppressed.
As long as you manage patiently, you will be able to recover in two years.
However, once a problem arises for a giant like Fannie and Freddie, it cannot be easily solved. The US$5 trillion bond will certainly not be fully convertible, but the liabilities of Fannie and Freddie Group must be resolved.
With more than 600 billion US dollars in debt, the annual, no, daily interest payments are not a small amount. If the debt cannot be resolved, Fannie and Freddie will definitely not be able to recover.
Therefore, it was simply wrong for the United States to hand over the problems of Fannie and Freddie Group to the Bank of the United States in the first place. The Bank of the United States simply cannot come up with so much money. Even if it comes out in batches, it will take 400 to 500 billion US dollars within three to four years.
Enterprises have a certain proportion of debt, which is no problem. Many companies have a debt ratio of more than 50%, and they are still doing very well. But if the debt is several times the market value of the company, this is a big problem.
But with the current capabilities of the Bank of the United States, it is difficult to come up with US$40-50 billion, let alone US$400-500 billion. Therefore, Bank of America no longer thinks about swallowing up the high-quality assets of Fannie and Freddie Group, but throws away the burden again.
Let Fannie and Freddie Group fend for themselves? This definitely won't work.
At this time, the US government has to step forward to take over this mess.
Xiaobu Shi felt very depressed. He thought it could be postponed until next year. Then it would be better to leave the headache to his successor. It can even be said that the successor's lack of ability is what caused Fannie and Freddie to go bankrupt. If it were him, he would never go bankrupt or anything like that.
But American financial institutions are running out of money and cannot fill this big hole. If you want to fill it in, there is no other way, that is to issue additional shares to raise funds, or to attract other investments.
However, the U.S. stock market is slowly falling at this time. How much money can be raised through IPOs? It will also dilute the equity of shareholders like them. Of course, shareholders are not willing to do so. What's more, the purpose of IPO investment is to make more money, and this is for others. Wipe your ass.
It is possible to attract investment, and there are consortiums willing to invest in them, but they also need to pay for shares. How can those shareholders watch their power slip
There are also American companies that have the ability to save Fannie and Freddie, such as Rockefeller, Walton, etc. Even if they suffered losses during this period, they will not be hurt and their ability to raise funds is still there. of.
But why should they pay for this mistake? The bankruptcy of Fannie and Freddie Group will not have much impact on them. They can even take advantage of this opportunity to make a fortune.
The real estate downturn will devalue the real estate properties in their hands, but so what? They themselves don't make money by investing in these things. They can just take advantage of the falling prices to buy the bottom.
Moreover, if the economic situation worsens, many people in the United States will definitely be unemployed, and the wages of employees can be reduced, which is also beneficial to them.
Fannie and Freddie Group has just become a company that my grandma doesn't care about and my uncle doesn't love. More than a year ago, it was still very prosperous. Unexpectedly, the world has changed so fast, and now it is on the verge of bankruptcy.
In fact, according to Feng Yu's analysis, Fannie and Freddie Group should have filed for bankruptcy protection long ago. Because when filing for bankruptcy protection, some debts will not need to be repaid temporarily, and some interest will not continue to grow. They can have sufficient time to reorganize their assets.
During the bankruptcy protection period, many companies will arouse the interest of some companies after restructuring, thereby getting rid of the risk of complete bankruptcy.
The fact that Fannie and Freddie Group can issue so many bonds is enough to prove that they still have many high-quality assets.
Unfortunately, because of the need to cover the lid, many shareholders at that time chose to hide the true situation of the company, and then borrowed heavily to tide over the difficulties. As a result, I failed to overcome the difficulty and fell into a deeper pit.
The current Fannie and Freddie Group is giving it to everyone for free and no one wants it. If it is insolvent, whoever takes over will lose.
The default rate of housing loans in the United States is still rising, and the pitfalls of Fannie and Freddie Group will get deeper.
It seemed that the U.S. government could not get rid of it, so it had no choice but to take over on its own. Fannie and Freddie cannot go bankrupt, otherwise the U.S. economy will be ruined and the financial market will definitely collapse. There are too many financial companies related to Fannie and Freddie, which will cause a chain reaction.
However, when the government took over, it was also very controversial. Because many people say that American taxpayers’ money should not be used to fill the pitfalls in business operations. Those shareholders should be allowed to come up with more money to rescue this company.
There are so many foreign investors holding shares in Fannie and Freddie Group, many of which are state investment institutions. Let them take out the money. They still hold so many bonds from Fannie and Freddie Group, do they just want to watch the bonds turn into waste paper
Although debt is higher than equity, if the company goes bankrupt, what can you get back from your bonds
Aren’t the European Union and island countries very rich? Let them take out the money.
What worries these people most is that once the Fannie and Freddie Group goes bankrupt, will the government that takes over at this time be responsible for repaying the debt
Other countries that had invested in the bonds and stocks of Fannie and Freddie breathed a sigh of relief after receiving the news. The US government has finally taken over Fannie and Freddie Group. This should not be so dangerous, right
Fannie and Freddie's S&P credit rating has dropped all the way, from the highest-quality AAA credit rating to the current CCC+ credit rating. In other words, S&P believes that Fannie and Freddie are very likely to default. Without good business, financial or economic conditions, the default rate will definitely be very high.
It is also because of these that it is difficult for the shares of Fannie and Freddie Group to rise back.
S&P said that the credit ratings of these two companies are so low and they do not have sufficient repayment capabilities. Is there any need to invest in them
However, after the US government took over, these things were different. The U.S. government has a AAA credit rating and a strong repayment ability, so it is basically impossible to default.
Many people even say that the bonds issued by Fannie and Freddie Group may be equal to U.S. Treasury bonds again, and the yields will be higher than those of Treasury bonds.
At this time, the value of the bonds of Fannie and Freddie Group began to rebound, and the stocks of Fannie and Freddie Group also began to rebound. It seemed that Fannie and Freddie Group were coming back to life.
But is this actually the case? Feng Yu is going to expose this illusion!
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