This blog recently reported on the tremendous up-tick in investment in housing by foreigners; however, at the same time that increased investment is happening, foreign governments are cutting back. Now, foreign governments typically own very little property; however, their central banks invest heavily in mortgage-backed securities, as well as agency-backed securities (i.e., Fannie, Freddie, and FHLBS securities). It’s unclear if the current cut-backs are just a reaction to the slowing of growth in China, or represent something deeper.