Reply #32: Karl Denninger was in front of this. His language is full of fury. And rightfully so!

[ozymandius]

$800 billion dollars. The precise amount that Paulson asked for, and got, in debt ceiling addition so he could buy $800 billion, potentially, worth of Fannie and Freddie's debt.

And there, in the underlined portion of the quote, is your threat. Either backstop that which the black letter printing in the prospectus (and yes, it really is there) says has no backstop and can lose value or we will not only refuse to buy more but will sell what we have.

Don't you think the American People deserved to know BEFORE our government signed over $800 billion of taxpayer money to CHINA that FOREIGN INVESTORS AND CENTRAL BANKS - THAT IS, FOREIGN GOVERNMENTS - had effectively BLACKMAILED our government?