Rebirth: Dominate The World, Starting From The School Network

Future Group CEO Office.

"I recently took the time to sort out the data on the North American mortgage bond market. There are already a lot of mortgage defaults, exceeding 66.7% in the same period last year, and the default rate has increased significantly."

After the meeting, Lin Qingya followed Lu Yi to the office, where they were sitting on the sofa.

"Moreover, default cases are still rising. If this trend continues, once the subprime mortgage market collapses, a large number of subprime mortgage lenders will go bankrupt and investment funds will be forced to close. It seems that you made the right bet before."

Last year, Lu Yi and she cashed out 6 billion yuan in gold, and then handed it over to John Paulson's hedge fund to manage, betting on the collapse of the North American subprime mortgage market.

Although risks in the subprime mortgage market in North America had been exposed at that time, to be honest, she was still a little unsure.

But now, the situation is getting worse and worse, and it feels like a flood.

no doubt.

Lu Yi made the right bet this time!

Lu Yi smiled and said: "Betting? Am I betting? I have foreseen all this happening in advance."

"The North American property market has already begun to turn around in 2006, housing prices have begun to fall, and it is difficult for home buyers to sell their homes or obtain financing through mortgages." 22

"Under such circumstances, the Federal Reserve not only did not lower the federal funds rate, but instead raised it again by 0.25 percentage points on June 29 last year, to 5.25%,"

"With such high interest rates, but housing prices continue to fall, what do you ask home buyers to do?"

“And as far as I know, the default rate of loans issued in North America after six months last year was as high as 5.5%, which is almost double.

"Obviously, this market can no longer survive."

"The vampires on Wall Street are not kind people. Can't they see the risks? They have seen it for a long time, but the profits are too high.

"Lao Ma once said that if capital has 50% profit, it will take desperate risks; if it has 100% profit, it will dare to trample all laws in the world; if it has 300% profit, it will dare to Commit any crime and risk being hanged."

"It can even be said unceremoniously that this upcoming financial crisis is caused by the vampires on Wall Street. It's just that they didn't expect that they would get away with it in the end."

Lin Qingya nodded and said: "Yes. Since the North American government has relaxed supervision, many banks have adopted 20 to 30 times leverage operations in order to make huge profits.

“Assuming Bank A’s own assets are 3 billion, 30 times leverage is 90 billion.

“In other words, Bank A uses 3 billion assets as collateral to borrow 90 billion in funds for investment.

"If the investment profit is 5%, then Bank A can obtain a profit of 4.5 billion, which is a huge profit of 150% relative to Bank A's own assets.

"For such huge profits, those guys on Wall Street who only have green coins in their eyes really don't care how deep the water is.

Lu Yi nodded and said, "It's normal. Those guys on Wall Street have the gene of greed engraved in their bones. If they weren't greedy, it would be impossible to survive on Wall Street."

"According to what you said, conversely, if the investment loses 5%, then Bank A will not only lose all its assets, but also owe 1.5 billion."

"But all the financial capital in the North American market is trying their best to increase leverage and lend. How can we release these 90 billion?"

"It can only be aimed at providing mortgage services to the lower class people."

"Originally, people at the bottom of the class do not have fixed jobs, and lending to them is very risky. But as housing prices keep rising, everyone thinks that buying a house is a guaranteed profit. North American mortgage loans can be made at 90%, which means that only 10% of the down payment is required. You can buy a house, and in many cases you can even buy a house with zero down payment. Since banks have relaxed the review of borrowers’ qualifications and income, this loan business is very popular.”

"But this was a few years ago. Now the house prices have begun to drop and the houses cannot be sold, but the loan repayment is very difficult. What should I do if I can't pay back? I can only default."

"The bank took back the mortgaged houses of defaulting customers and used auctions or sales to recover the loans. However, due to the decline in housing prices, it turned out that the auction or sale of the houses could not make up for the loan + interest at that time, or even the loan amount. In itself, banks that lend money will suffer losses."

"As housing prices continue to fall, there are more and more default cases. Even banks cannot survive such losses, and the final result is bankruptcy.

"In order to make huge profits, those people on Wall Street did everything they could to drain every drop of blood from the people of North America. In the end, they found that they had failed and even killed themselves."

"Let's see, once the subprime mortgage crisis breaks out, big things will definitely happen on Wall Street in North America. I wouldn't be surprised if one or two of the top investment banks go bankrupt."

Lin Qingya asked: "Then how much money will we get if we put the 6 billion meter gold subprime loan on it?"

Lu Yi thought for a while and said: "The guaranteed mortgage bond market is about 24 times the actual size. We have invested 6 billion meters of gold in it. In theory, it can reach 144 billion meters of gold."

Hiss~

When Lin Qingya heard this number, she immediately took a breath of air and her beautiful eyes widened.

"Oh my god, 144 billion meters of gold is so terrifying! During the financial crisis, I'm afraid the group's market value will plummet, but it's not necessarily that much." Lin Qingya exclaimed.

144 billion meters of gold. According to the current exchange rate of 7.8, that is 1,123.2 billion yuan.

"So, in this subprime mortgage crisis, you will become a billionaire!" Lin Qingya looked at Lu Yi and said.

"No way! Among the 6 billion meters of gold, don't you still have 2 billion meters of gold of yours? By then you will be the richest woman in the country, and even the richest woman in the world.

"Moreover, 144 billion meters of gold is only theoretical. It would be great to have 100 billion meters of gold."

Lu Yi said.

Lin Qingya rolled her eyes and said, "Listen to what you mean, it's a pity that we can't reach the theoretical value of 880."

"Of course, the more money, the better." Lu Yi said.

"The more you do, the better. But there's a river of blood over there in North America."

"If mortgage bonds were matches, those collateralized debt obligations would be like a sponge filled with kerosene. Once it breaks out, it will not only be an economic disaster in North America, but the world economy will also collapse. Countless companies around the world will go bankrupt and thousands of people will go bankrupt." Thousands of people will be unemployed, displaced, and lose their pensions, pensions, and pensions.

"Every profit we make is stained with blood..."

Lin Qingya sighed, not feeling any happiness that her net worth was about to skyrocket.

Lu Yi said seriously: "The world is like this. It has not changed before, it has not changed now, and it will not change in the future. No one can change it."

"In fact, compared to the vampires on Wall Street, our moral bottom line is countless times higher than theirs.

"The subprime mortgage crisis should have broken out last month, but why is it still suppressed now?"

"Because they were the ones who created those collateralized debt obligations and made a lot of money. Now they are out of luck and are eager to sell them to unsuspecting consumers. Even the major investment banks on Wall Street are betting against themselves. Only then It’s true greed.”

"I just follow the trend and make a fortune from it, and with the money I earn, I can also change the world, promote the development of human science and technology, and create more jobs for the world."

Lin Qingya rolled her eyes when she heard this. .