This is big news, but I doubt anyone will hear it on mainstream news.
China has told the USA publicly, if Freddie Mac and Fannie Mae fail, "it will be end of the international finance system". Translation "if China takes the hit for the failure of US institutions, its financial WAR!". China has over 1 trillion us dollars and can collapse USA system.
In previous email rants, I have warned that the USA debt is bad, unlike some people I know who think the USA is beyond blackmail.
It's a showdown, Bananna republic printing of USA dollars to cover 1 trillion dollar failure or fiscally responsible action, let capitalism behave as it has since the birth of the USA. In an open market system, the investor that takes the risk takes the profit or hit. Once USA starts paying for stock market values, bond, etc of private institutions to protect investors, well, we are socialists/communists.
Update: 9/5/08 Now we know what the noise is truely about. Main Bank of China Is in Need of Capital.