Hello friends, I'm journalist Jenfoni, and I'm on the doorstep of the Federal Bankruptcy Court in Fenway.

Yesterday was probably the busiest day for the Federal Bankruptcy Court behind me since its inception, as it received more than 2,000 bankruptcy petitions in one day. We know that the time it takes for the court to actually accept a case is only seven hours, which means that almost every minute someone comes to the court and files a bankruptcy petition.

So we have to ask, what is it that makes so many people file bankruptcy petitions in court at the same time? The answer is their loans.

What I have in my hand is the statistics of bankruptcy filings released by the courts, according to the data, more than 99 percent of yesterday's bankruptcy filings were personal bankruptcies, and these bankrupt individuals are all minorities with very low credit ratings, or people who do not have formal jobs. These people are unable to obtain formal preferential loans from banks because of their low credit ratings, and they can only find loan companies to handle subprime loans whether they buy a car or a house.

Undoubtedly, the interest rate of this subprime loan business is much higher than that of the concessional loans of the regular banks, and eventually these people who cannot repay the loans are crushed by the high loan interest rates, so they have no choice but to file for bankruptcy with the bank.

If it is just one person or a few people who go bankrupt, it may be blamed as an accident, but because so many people have gone bankrupt collectively, we cannot but ask the current credit system and the subprime loan market: Why is this happening? Is there something hidden in this, and what kind of impact will it have on society as a whole?

Okay, let's turn back to the studio and thank Jenfany for her reporting at the courthousehouse.

It must be said that 2,000 bankruptcy filings a day is indeed shocking, but as Jenfany said, this does not seem to be an isolated incident, will it have an impact on the whole society? For this reason, we contacted Dronk, a professor of financial studies at Harvard University, and I believe that this expert will give us a relatively fair explanation.

Hello everyone, I'm Dronk, and I personally think it's extremely serious about getting 2,000 bankruptcy filings a day, because this is only Fenway, so how many people will file for bankruptcy in South Brighton or elsewhere? I haven't calculated that, so I can't give an answer, but it's certainly an immeasurable number.

And then these bankrupt individuals, they are all because they can't bear the burden of subprime loans, so they have no choice but to go bankrupt, and their bankruptcy is not only personal bankruptcy, but also the bankruptcy of the subordinated credit system, and their bankruptcy will directly affect those subprime lending institutions.

Due to the bankruptcy of the borrower, the court will freeze all the assets of the bankrupt individual, which means that until the court is fully liquidated, all the subprime lenders will no longer be able to get even a cent from these borrowers, which is undoubtedly a very serious blow to them, and I believe that many small subprime lenders will go bankrupt as a result, which in turn will lead to a series of more serious credit default swap problems.

Once there is a credit default swap problem of this kind of debt, then the credit crisis of the original sub-prime loan market will evolve into a subprime loan crisis, and eventually into a large-scale economic crisis.

It is foreseeable that in this crisis, many companies will go bankrupt, thousands of people will lose their jobs, and New England will enter winter early.

Okay, thank you very much Professor DeRonk for accepting our connection, according to the latest news received by our station, the largest credit rating agency in New England will downgrade the credit rating of all subprime loans in the face of this personal bankruptcy turmoil, and the reduction will be more than 40%, which means that all subprime loan contracts will lose credit protection and become a high-risk investment area, affecting the current very hot CDS market.

......

This is a program broadcast on the Northeast Finance Channel, and Zhou Ming is lying on the bed in the room watching TV at this time.

For Zhou Ming, the broadcast of this program obviously represents the smooth implementation of his plan, not only the minorities in the Vinda community made good use of their own experiences to publicize, saying that their relatives and friends started personal bankruptcy, but also his speech to so many gang brothers that day was also very effective, and they all took the initiative to go to the court to file for bankruptcy.

Judging from a special program made by the TV station, this may also have caused a great repercussion, after all, it is not only these minorities and gang brothers who do not have enough credit ratings to lend subprime loans, but also many property speculators, because they are engaged in real estate speculation business, and their credit ratings are also insufficient, so they can only find lending institutions for loans.

Now seeing so many people filing for personal bankruptcy, people with a little bit of intelligence understand that in the next period of time, because their properties will be liquidated and auctioned, and a large number of properties will be in the real estate market, which will make the house prices fall rapidly, they can no longer speculate on real estate, and at the same time have to pay high interest to the loan company, and the final result will only be the same as these minorities, choose to go bankrupt.

Suddenly, Zhou Ming's mobile phone at the bedside rang, Zhou Ming picked it up and connected it, it was Lin Muqing calling.

"It's really good, I've seen the news, there are many people who are filing for personal bankruptcy, Zhou Ming, you have really succeeded! Because of these people's bankruptcy applications, it will definitely lead to a subprime mortgage crisis, and Brighton Bank and the Adams family are about to be finished! Zhou Ming, you have created another miracle!" Lin Muqing said excitedly.

Zhou Ming smiled at this and said: "Miracle may be a little, after all, the minorities who can talk about the Vida community, as well as the motel owner who runs this underground world, all have a lot of luck in it." However, it is a little too early for Brighton Bank and the Addams family to be finished because of this, I don't think they will be so weak yet, in fact, there are many things that will depend on the performance of the three major families. ”

After Zhou Ming's words, Lin Muqing also calmed down: "I read in the news that the credit rating agency has significantly downgraded the credit rating of all subordinated loans, and I think there must be three major families in this." ”

Zhou Ming thought for a while and said: "It's hard to say, but now that I've raised the corner of the subprime mortgage crisis, it would be stupid for them not to do something, so Sister Mu Qing, I believe that you can leave Rhode Island and return to Brighton soon, and I can also leave this damn motel, and we can be together again." ”

Lin Muqing spat Zhou Ming with a red face and said, "Shameless, who wants to be with you." ”

Regarding Sister Mu Qing's arrogance and shyness, Zhou Ming pretended to be disappointed and said: "In this way, it turns out that Sister Mu Qing doesn't have this idea, it seems that I am self-inflicted, which is really sad......"

Before Zhou Ming's words were finished, Lin Muqing immediately said again: "No, I want to be with you!"

However, Lin Muqing heard Zhou Ming's laughter before she changed her words, and she immediately realized something: "Zhou Ming, you dare to lie to me, I will ignore you!"

Zhou Ming laughed, and then Zhou Ming hung up the phone after a few words with Lin Muqing, but then received another call, which was from Governor Edward.

"I didn't expect Mr. Governor to take the initiative to call me personally, which really flattered me!" Zhou Ming said.

Edward ignored Zhou Ming's irony, and still said with emotion: "You have already raised a corner of the subprime mortgage crisis, whether it is as an ally friend or as a governor, I should call you." It's hard to imagine that you can actually do it!"

"It's not surprising that even a few casual flaps of the wings of a butterfly in the Brazilian rainforest can cause a tornado in the United States, so it's no surprise that I triggered a subprime mortgage crisis, and my efforts were made for him. Zhou Ming said, "It's just that the subprime mortgage crisis is easy to trigger, how to control his follow-up development is the key, I am only going to Brooke Investment Company now, but how to develop in the future depends on you big consortium families." ”

Zhou Ming's words are not said casually, because as long as there is a loophole in the market that can be exploited, and he works hard against this loophole, plus a little luck, it is indeed easy to cause a crisis. However, how to control the scale and direction of the crisis after the outbreak of the crisis is not something that can be achieved by effort, and it requires huge financial and socio-political resources.

To put it simply, Zhou Ming doesn't care about killing or burying it, I've already started anyway, and you can do the rest.

"You're such an arrogant boy, but you do have the ability to be arrogant. Edward smiled and said, "Don't worry, we're all ready, you're doing a good job, I'm sure in a week at most, the Addams family won't be able to take care of you anymore, maybe they'll have to negotiate with you." ”

"That's really good news, so I'll wait for you, Mr. Governor, to bring me good news. ”

Zhou Ming hung up the phone after speaking, and then he shifted his gaze back to the TV, only to see that the picture turned back to the door of the bankruptcy court again, from the picture, Zhou Ming could see that many people who filed for bankruptcy lined up at the door, and there seemed to be a few people in suits who kept walking next to the line, constantly saying something to those people, with a pleading face.

The pleading man was James of Brooke Investments, and he kept walking in the line, saying to the clients he knew, "Why are you filing for bankruptcy? That's what people who are too poor to get anything out of it, and you know that you're going to make your credit rating even lower, even though your income is enough to repay the loan, do you know that you're only going to lower your credit rating......

Before James could finish speaking, someone asked him rhetorically: "If we don't file for bankruptcy, won't our credit rating be low?"

James couldn't answer, but these people didn't give up: "And whether we still pay your loan or not, the house will be auctioned off, just like what happened in the Vida community, so we might as well file for personal bankruptcy first." ”

"Vida Community, that's just an accident, don't listen to any rumors!"

James tried his best to explain to them, but no one listened to him, and everyone was still determined to go to the court to apply for personal bankruptcy, even if personal bankruptcy was not of much benefit to him, but at least he could liquidate all his debts.

In the end, James's persuasion was fruitless, and he sat down on the steps of the courthouse in despair, and the expression on his face was written with the word loser.

Suddenly James thought of something, he took out his mobile phone, dialed a phone and asked, "Cindy, did you tell your relatives to ask them to file for personal bankruptcy?"

On the other side of the phone was the black woman Cindy, she admitted very happily, James immediately said: "Cindy, why are you doing this? I know that last time I had a bad attitude, I can apologize to you, including your house, I can also help you find a way, I will ask you to invite all your relatives and friends home, so that they don't file for personal bankruptcy, okay, I beg you!"

"This can't be!" said Cindy categorically, "James, I told you I would make you regret it, and I would let you and your company to hell!"

After saying that, Cindy hung up the phone, leaving only James on the other end of the phone with a desperate face.