China bought around $600bn of the agency bonds issued
Freddie Mac and Fannie Mae own or guarantee almost half of all American mortgages, which were financed via $5 trillion in "agency" bonds—of which $1 trillion were taken up by foreign governments, with China taking around $600bn.
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The Global Financial Crisis »The Global Financial Crisis
Long-term causes of the financial crisis? »Long-term causes of the financial crisis?
Unintended consequences of earlier public policy choices »Unintended consequences of earlier public policy choices
Investment banks incentivised to move into riskier activities »Investment banks incentivised to move into riskier activities
Originating and distributing complex derivative securities »Originating and distributing complex derivative securities
Asian investment in Fannie Mae and Freddie Mac »Asian investment in Fannie Mae and Freddie Mac
China bought around $600bn of the agency bonds issued
70% of China's foreign assets in form of loans to US »70% of China's foreign assets in form of loans to US
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