[quote=patientrenter]
Right now, the world is awash in savings. We can borrow like drunken sailors, and default at phenomenal rates, and it’s OK, we can still borrow more. But that’s not going to last forever. Down the road, world savings will return to normal. When that happens, do you think that people will want to lend to US homeowners? Or to a nation that thinks that it’s up to the lenders to make sure the loan is repaid?[/quote]
Real estate lending to owner-occupants is a very easy, safe business when realistic appraisal values are used and appropriate loan-to-value ratios are maintained. There will never be any NEED for foreign money to fund owner-occupied real estate lending in the United States, if the financial institutions are appropriately regulated, and cease being glorified gambling halls and/or instruments of social policy.
Foreign money found its way into the real estate bubble Ponzi scheme because while one set of con artists were working the borrower community, another set of con artists was working the investor community with fictional descriptions of high return with low risk.
