They are all reborn, and the grandson is still a spare tire

After Uncle Qiu finished explaining the situation, Yao Yuan gave his answer without hesitation.

"Uncle Qiu, I don't think we can accept Moscow's proposal and join forces with the Russian side to short the two housing agencies. That would backfire!"

"The current housing prices in the United States have evolved from a partial decline to a nationwide plunge, and the huge losses of the two housing agencies are a well-known fact."

"According to my calculations, Freddie Mac's paper losses are likely to be around $700 billion to $1000 billion, and Fannie Mae's losses are likely to be much greater."

"And this is just a paper loss. The total size of the two housing bonds is as high as several trillion US dollars. They are almost becoming garbage. This is the real amount of loss!"

"This huge thunder will not be concealed for long. At most two or three months, it will explode completely, and then it will blow up the entire international financial market and trigger a new round of plunges."

Hearing this, Uncle Qiu suddenly chuckled.

"Okay! Your calculation is quite accurate. Freddie Mac's book loss has indeed exceeded 800 billion US dollars."

"They should find a way to erase some of the losses, and the final loss amount is estimated to be around $700 billion."

"As for Fannie Mae, we haven't found out more information yet, but compared with Freddie Mac's situation, Fannie Mae's losses are likely to be even more frightening."

Yao Yuan smiled silently and continued:

"These are two huge thunderbolts that are enough to push the financial market of the United States and even the entire international financial market into the abyss. Once the two housing agencies burst, a global financial crisis will come!"

"But I still say what I said before, the U.S. government and the Federal Reserve will never let the two housing agencies go bankrupt. They cannot bear such a result and will definitely take over the two housing agencies."

"In this way, they can use the dollar hegemony to pass on the huge losses caused by the two housing agencies to investors around the world and resolve the crisis."

"Foreign investors alone currently hold more than $1 trillion in Fannie and Freddie bonds, with the top three countries holding them being China, Japan, and Russia."

"We used to hold the largest amount of Fannie and Freddie bonds, amounting to more than $100 billion. Over this period of time, we have been secretly reducing our holdings, while Japan has been forced to buy a large amount of Fannie and Freddie bonds."

"A few months have passed, and now Japan has become the largest holder of Fannie and Freddie bonds, probably holding more than $1500 billion. We are second, and Russia is still third."

As soon as he said this, Uncle Qiu interrupted again.

"That's right. After several months of persistence, we now hold only about $60 billion in Fannie and Freddie bonds, less than $10 billion more than Russia."

"According to the strategy we formulated previously, we have stopped reducing our holdings of Fannie Mae and Freddie Mac bonds to avoid being detected by the US. However, we did not expect the Russian side to propose a joint short-selling of the two housing agencies, which was a bit unexpected."

Yao Yuan shook his head slightly and said disdainfully:

"At this stage, what we need most is to keep a low profile and focus on development. There is no need to directly break off relations with the US over $60 billion in Fannie and Freddie bonds. Now is not the time to do so."

"If we do that and it leads to the bankruptcy of Fannie and Freddie, the U.S. government and the Federal Reserve will prioritize us, which will hinder our development and will inevitably affect our development speed."

"The Russian side's proposal to join forces with us to short the two housing agencies is a manifestation of a lack of foresight. They cannot see that the U.S. government and the Federal Reserve will definitely take over the two housing agencies, so they are desperate to try any possible means."

"They were thinking of short selling because they were worried that the $50 billion in Fannie and Freddie bonds they held would become worthless. Little did they know that if the U.S. government took over the two housing agencies, those bonds might still be redeemed."

"Good, what a good phrase to keep a low profile."

Uncle Qiu suddenly said "hello" and interrupted Yao Yuan's words.

Then he smiled and said:

"That's right. The most important thing for us at this stage is to keep a low profile and take advantage of the opportunities that keep appearing to develop and strengthen ourselves."

"It's just $60 billion worth of Fannie and Freddie bonds. Even if they all become worthless, we can't let this small loss stop us from developing rapidly."

"Besides, the investment profits we made in the international financial market this year are more than 160 billion US dollars. This loss is nothing."

"If the U.S. government really took over the two housing agencies, these losses would not have occurred. From this point of view, we can directly reject Moscow's request."

Hearing Uncle Qiu say this, Yao Yuan couldn't help but laugh triumphantly.

The next moment, he smiled and said:

"Uncle Qiu, I don't think we need to rush to reject Moscow. Instead, we can use this as a bargaining chip to negotiate with Paulson."

"If I'm not mistaken, Paulson is in such a hurry to visit because of the issue of Fannie and Freddie bonds. They must ensure the safety of Fannie and Freddie."

"If the U.S. wants to achieve this, it must come to us and ask us to cooperate. Do not sell off the bonds of Fannie and Freddie. We can make good use of this."

Uncle Qiu appreciated his suggestion very much and laughed.

"Hahaha, that's right. We can indeed take advantage of Moscow's request and start negotiations with Paulson to see what we can get."

"But we must pay attention to the methods and means, and we must not offend Moscow. In the future, we will have to cooperate with Moscow in many areas to jointly deal with the United States!"

"Tell me more about why Paulson specifically asked to see you and what his purpose was. Also, do you plan to meet with Paulson to hear what he wants?"

After pretending to think about it, Yao Yuan gave his response.

"In my opinion, Paulson's visit to Beijing this time was not only to deal with the issue of Fannie and Freddie bonds, but also to extend the life of Lehman Brothers and even find a suitable buyer!"

"We have been paying close attention to the situation of Lehman Brothers Bank. Lehman Brothers' current asset size is still around US$7000 billion, but this is just a figure on the books."

"In fact, Lehman Brothers Bank is very likely to be insolvent and just a shell. It will collapse and declare bankruptcy in two or three months at most."

"The Federal Reserve and the U.S. government will take over the two housing agencies and guarantee the trillions of dollars of bonds of the two housing agencies, but they will never guarantee the bottom line of Lehman Brothers. The only way is to find a buyer."

"Given the size of Lehman Brothers' capital, once it declared bankruptcy and liquidation, it would directly trigger a global financial crisis. The United States certainly does not want such a situation to happen."

"In the current international financial market, there are only a handful of financial institutions that are capable of acquiring Lehman Brothers Bank, and our Jiuye Investment Group is one of them."

"That's why Paulson wanted to meet me and wanted us to buy a lot of Fannie and Freddie bonds and acquire Lehman Brothers. I don't know what he was thinking. Am I being taken advantage of?"

"Hahaha"

Uncle Qiu burst into laughter, extremely happy.

When the laughter died down, Yao Yuan said with a smile:

"Uncle Qiu, I can meet Paulson, but only in Hong Kong Island. It would be best if the State Council Office sent someone to bring the US delegation over and witness my meeting with Paulson on the spot."

"Just like the acquisition of Bear Stearns, I am still very interested in the high-quality assets currently held by Lehman Brothers Bank. I want to see if I can acquire them at a low price."

"If this goal can be achieved, I don't mind buying more U.S. debt, or even some Fannie and Freddie bonds. We can also cooperate with the U.S. in the international foreign exchange market..."

Hearing this, Uncle Qiu couldn't help but laugh.

"Haha, you are trying to take advantage of someone's illness to kill him. You have an amazing appetite!"