According to one article I've read. The Chinese government owns $376 billion worth of Fannie Mae bonds. Other top foreign investors are Japan, the Cayman Islands, Luxembourg, and Belgium.
http://globaleconomicanalysis.blogspot.com/2008/07/us-taxpayer-bailout-of-china-over.html
There have been a lot of business articles recently saying that Fannie Mae and Freddie Mac are too big to fail. And US taxpayers will surely bail them out.
But there is no legal obligation for US taxpayers to bail them out.
A lot of Fannie and Freddie bonds are held by US investors too. And I wonder if US taxpayers would be more happy to bail them out. And how would the foreign investors feel if US taxpayers bail out only US investors?
Also, how would US taxpayers feel about being made responsible for trillions of dollars worth of other people's debt?
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