The way I see it, lots of overseas banks bought tens (hundreds?) of billions of dodgy CDO products from US investment banks - which apparently are now of dubious value. Considering the money effectively ended up in the hands of US property owners (e.g. the lucky ones that sold their homes before the crunch), then this represents a net transfer of lots of money to the US.
- Am I right?
- How much are we talking about?
- Is it a significant amount in terms of the US balance of trade and debt?