4. It was a confident, high-powered investment firm with credit lines at top financial institutions. It made big bets using borrowed money to buy assets and generate higher returns. But when the market for those assets went south, lenders demanded more collateral until the firm suddenly collapsed. Many frightened lenders clamped down on all borrowers, setting off an overall credit crunch.
In the US, New York, California and Texas received the most investment. Chinese firms invested $5.4bn in New York, the top beneficiary, with most of the money spent on three big financial services and real estate deals.