Fannie/Freddie Default: Who Loses?

I didn't know this either.

The top five foreign holders of Freddie and Fannie long-term debt are China, Japan, the Cayman Islands, Luxembourg, and Belgium. In total foreign investors hold over $1.3 trillion in these agency bonds, according to the U.S. Treasury’s most recent “Report on Foreign Portfolio Holdings of U.S. Securities.”

OK. Let 'em crash. Who's going to miss Luxembourg?

(Wanna bet that the "Cayman Islands" are merely tax-dodgers' accounts in street name?)