[Ghost of Philip Marlowe]

If the economy is in "recovery" mode and if the banks and especially our mortgage industry are improving, why is China decreasing its purchase of US debt through the Treasury and instead buying real estate at the residential level?

[1rudeboy]

Simplest answer? China sees real estate as the better investment.

[babble-on]

I think your question is undermining your point. It would be precisely BECAUSE they think the economy is recovering that they would buy a riskier asset. Whether they are correct or not is another question.

[TCats]

Don’t know but I do recall the Japanese getting their fingers burned by buying US Real Estate. At the time they were viewed as ‘Inevitable’ and the sharpest minds on the Planet. Subsequent events proved this impression totally false.

It’s possible this is a replay.

[NewLand]

I just love the 'toxic loans' comment...those loans were EXACTLY what the Frank-en-Dems wanted so badly under Clinton! When GWB made a comment about how home ownership was at it's highest level ever, the Frank-en-Dems screamed how ridiculous that was...now they call it toxic and wholesale their losses to China.

These people can't run a lemonade stand, let alone the world's largest economy.

[dennisw]

Is the plan to move Chinese into these houses sometime in the future? I’m sure California houses and Oregon Washington State look great too. Establish a Chinese beachhead on the West Coast of the United State

Nothing the Chinese do is innocent or naive