Russia on Thursday banned investment
of its $220 billion sovereign wealth funds
in bonds of agencies such as Fannie Mae and Freddie Mac
saying it needed more liquid assets to meet the needs of its own budget
Russia had about $100 billion of its foreign currency reserves
invested in U.S. government agencies at the start of 2008
as it sought to broaden its portfolio and chased higher yields
It has now cut its holdings to zero while the foreign currency reserves
the world's third largest, fell by a third to $384 billion
as a result of heavy forex interventions
to support the rouble in the recent months
MOSCOW, March 5 (Reuters)
If investment returns are dependent on rising financial markets
and liquidity supplied by new and existing investors
what should happen if incoming investment slows
and lack of liquidity creates a confidence crisis?
Foreigners' net ownership of our national wealth...
will leave us paying ever-increasing dividends and interest to the world
rather than being a net receiver of them as in the past
We have entered the world of negative compounding
goodbye pleasure, hello pain
Warren Buffett
If the US Constitution says
All bills for raising Revenue shall originate in the House of Representatives
and the Federal Reserve announces
Purchases will be financed through the creation of additional bank reserves
to buy Mortgages from Government Sponsored Agencies
is creating bank reserves out of nothingness raising revenue
and are some foreign investors more reluctant to purchase Agency securities
because the Federal Reserve is
by fiat?
No comments:
Post a Comment