One out of every 10 U.S. mortgages is now owned by a foreign government.
We credit The New York Times for wrangling up the global tally of foreign-owned “agency debt” -- the bonds issued by government-sponsored enterprises Fannie Mae, Freddie Mac and Sallie Mae. Might want to sit down for this one…
Of the $10-11 trillion U.S. mortgage market, Fannie and Freddie control over half. Since they have the actual capital to back up about 1% of those mortgages, they’ve issued bonds a few trillion times over to keep the money flowing in (to buy more mortgages, of course).
Foreign hands have snatched up over $1.5 trillion of agency debt… enough Fannie and Freddie paper to give them ipso facto ownership of about 10% of all U.S. mortgages.
We credit The New York Times for wrangling up the global tally of foreign-owned “agency debt” -- the bonds issued by government-sponsored enterprises Fannie Mae, Freddie Mac and Sallie Mae. Might want to sit down for this one…
Of the $10-11 trillion U.S. mortgage market, Fannie and Freddie control over half. Since they have the actual capital to back up about 1% of those mortgages, they’ve issued bonds a few trillion times over to keep the money flowing in (to buy more mortgages, of course).
Foreign hands have snatched up over $1.5 trillion of agency debt… enough Fannie and Freddie paper to give them ipso facto ownership of about 10% of all U.S. mortgages.
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