Paulson: Russia tried to exacerbate US financial crisis

[babsbunny]

http://rawstory.com/2010/01/paulson-russia-exacerbate-financial-crisis/

By Stephen C. Webster
Saturday, January 30th, 2010 -- 1:55 pm

Russian interests attempted to force the U.S. government bailout of Fannie Mae and Freddie Mac by selling off its holdings in the two entities in 2008, then urging China to do the same, according to former U.S. Treasury Secretary Henry Paulson.

Paulson's claim is carried by his forthcoming memoir, “On The Brink.” An early copy was obtained by Bloomberg News.

"The Russians made a 'top-level approach' to the Chinese 'that together they might sell big chunks of their GSE holdings to force the U.S. to use its emergency authorities to prop up these companies,' Paulson said, referring to the acronym for government sponsored entities," Bloomberg reported. "The Chinese declined, he said."

[MisterP]

1. well, we blamed the Russians for everything for 44 years, why should it be any different after 63?

[depakid]

4. Maybe they were simply trying to get some value out

before things went belly up.

[rurallib]

2. Hey, Hank, how'd we get in this situation to begin with?

O, yeah, "It's morning in America again"

[Vinnie From Indy]

3. It would seem an excellent reason NOT to let Wall Street run wild

[unkachuck]

5. "...force the U.S. government bailout of Fannie Mae and Freddie Mac..."

....so now it's the Russians fault instead of the stewardship of you and your corporate criminal repug buddies....

"On The Brink."

....wow, when and where can I get my copy?

[amandabeech]

6. This was while the Shrub was still in office.

Shrub did not play well with others and our relationships with other countries, like Russia, suffered as a result.

I'm not saying that I believe Paulson, but I'd like to hear more about this from other parties.

I've been concerned that nearly complete globalisation poses risks that no one in a decision making position in the U.S. has ever thought of. The sale of government instruments to folks who really bear us animosity for something we did recently or in the past leaves us very vulnerable, whether is Fannie Mae securities to Russia or Treasuries to the Chinese.