I am a multinational investor.
Please tell me how foreigners buying GSE debt increases the price of homes in Malaga and Dublin. Thanks.
Have you heard of how the bad debts were bundled and repackaged and sold as viable loans? Yes Foreign investors bought a lot of these bad loans
You don't understand.
There was a GLOBAL housing bubble. It is still going on in some places. How did Fannie and Freddie facilitate the flows of excess capital into housing markets of OTHER countries? How did Freddie and Fannie loans cause home prices to rise in Vancouver and Sydney?
When you have lost your money in bad investing ventures that will increase the demand for more money causing prices to sky rocket. Thats the best way I can explain iut.