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Comment (A HIGH-RANKING Chinese economist has put his nation's cards on the table in the global financial poker game by effectively telling the US to fix Freddie and Fannie … or else.
"A failure of US mortgage finance companies Fannie Mae and Freddie Mac could be a catastrophe for the global financial system", Yu Yongding, a former adviser to China's central bank, says.
"If the US government allows Fannie and Freddie to fail and international investors are not compensated adequately, the consequences will be catastrophic," Yu said in e-mailed answers to Bloomberg. "If it is not the end of the world, it is the end of the current international financial system."
It is well within the bounds of imagination. People have been thinking the unthinkable for some time.
Yu Yongding, whose statement seems to have been lost to most of the world as the Olympics came to a merciful end, is described as "a former adviser to China's Central Bank". He is possibly the most highly ...
