[JackFr]

The same question was said about Japan in the 1980's. There was much hand-wringing over our trade deficit with Japan. (Though I had an econ professor back then who I thought put it best: "We're getting cars and they're getting pieces of paper, and somehow we're the ones getting screwed?")

[_dps]

The professor's quip is cute but myopic. The pieces of paper are claims on future production so the true cost is seen later.

The end result was

  - American Boomers got cars

  - Japanese boomers got USD
  
  - Japanese investors then spent much of the USD on things like US real estate investment vehicles (hardly Japan only, any country that collected large amounts of USD due to trade deficit)

  - American Boomers in prime markets saw tremendous returns on real estate
  
  - and American millennials 30 years later got priced out of houses

Yes I know foreign investment is not the only cause of rapid price growth in real estate. But it is a significant contributor.