Entering April, Bear Stearns, the fifth-largest investment bank in Eagle Sauce, announced that two of its funds investing in subordinated bonds had incurred huge losses. (5) ∨ eight (5) ∨ eight (5) ∨ read (5) ∨ books, .●.●o

As if a fuse had been lit, Eagle Sauce's stock market fell sharply, and a financial storm suddenly swept Wall Street and quickly spread throughout the Western world.

Subsequently, banks announced that they would write off non-performing assets, including Citigroup by $15 billion, Merrill Lynch by $7.9 billion, and Bank of America by $3.3 billion.

In the office of the headquarters, Yang Jie also listened to the financial experts of the headquarters estimate of the subprime mortgage crisis, and the losses caused by the subprime mortgage crisis were between 100 billion and 200 billion US dollars.

The situation in Asia is also not optimistic, with Neon Nation's Mizuho Financial Group, Shinsei Bank and Seozora Bank all claiming to have suffered a sharp decline due to subprime mortgages.

The crisis has also caught many financial institutions off guard, and domestic financial institutions are expected to lose billions of dollars due to their holdings of tens of billions of subordinated bonds.

The Western economy is completely built on financial credit, and the huge shocks in the financial industry inevitably involve the real economy, the first of which is the housing market, where housing prices have fallen sharply, the default rate of housing credit has soared, and the number of new housing starts has plummeted.

The manufacturing sector has also been affected by the credit collapse, with banks losing money and making it difficult to disburse loans, and corporate investment has shrunk sharply, leading to a contraction in the investment market.

A large number of enterprises that have fallen into operational difficulties have begun to lay off employees or cut wages, and people's incomes have decreased, which has further exacerbated the market downturn.

In particular, most of the people in China do not have any family savings, and their daily consumption is based on credit cards, which has the typical characteristics of eating grain.

Now that incomes are declining and banks are tightening consumer credit, the lives of people in countless Western countries are suddenly in dire straits. ∈ 8∈8∈ read ∈ books, .≦≧

When this storm hit, the domestic export industry was suddenly greatly affected, and the number of orders of a large number of enterprises engaged in foreign trade exports also decreased sharply, and everyone felt the chill to the bone.

However, Huaxing Group has also made full preparations for this, except for a small number of customer funds can not be recovered, most of the funds have been withdrawn, it can be said that there is no loss.

In the next few years, although the export of products and equipment of Huaxing Group Company will decline by a large margin, it is not that Huaxing Group Company is having a hard time, and some companies are more uncomfortable than Huaxing Group Company.

It's nothing more than that everyone can work hard to develop the market and survive the difficult days in the past few years.

A few days later, Yang Jie also appeared in the large conference room of an office building in Yanjing City, at which time Song Xinyang and others also urgently convened a discussion meeting on dealing with the impact of the subprime mortgage crisis.

"According to the analysis report submitted by the Macroeconomic Research Institute, the subprime mortgage crisis has begun to spread to the real economy, and countries in Europe and the United States have lowered their GDP growth rates by 0.5 to 1 percentage points this year, and last month's manufacturing activity index of Eagle Sauce has fallen below 50 and entered a recession. Survey data from the Neon Central Bank showed that the confidence index of large manufacturers was negative, and they were all pessimistic about the market outlook. We predict that the impact of the subprime mortgage crisis will further expand in the latter months of this year, with the possibility of evolving into a full-blown economic crisis. ”

At this time, Liu Zhenhan of the Financial Secretary briefed the officials attending the meeting.

"Director Liu, I also saw in the newspaper that some experts believe that the subprime mortgage crisis has bottomed out, and the eagle sauce economy is expected to pick up at the end of the year, which is different from your prediction. ”

"yes, I've seen that too. ”

Another official chimed in, "The financial experts on the hawk sauce side also said that the Fed has rich experience and can quickly adopt policies to turn the situation around, and the subprime mortgage crisis will last for another two or three months at most, and it will definitely be over.

"That's just a phrase they use to calm the mood of the people in the country," Zeng Jiabao, who chaired the meeting, said at this time: "What we have learned is the opposite, Fed officials have privately said that they can take all the measures they can take, but the market confidence is seriously low, and the slightest wind and grass may set off a new round of storm, and the financial institutions will be affected by far more than now, and they are already preparing various aftermath measures." ”

"Yes, none of the country's top economists are optimistic about the prospects of the subprime mortgage crisis, and they believe that the probability of a further crisis in the second half of the year is more than 70%. ”

Professor Chen Yun of the National Development Research Center, who is now one of the world's top scholars, is often invited to attend such important conferences.

"The economics community is now reflecting on why the subprime mortgage crisis was not foreseen in advance, and everyone has combed through the many signs of the past few years, and found that the crisis was already showing signs five years ago, but it was masked by blindly optimistic market expectations. If Eagle Sauce takes action to rectify the situation a few years in advance, it can still be controlled, but now the outbreak is already difficult to return, and it is estimated that the global economy will be dragged down by it, and it will be difficult to recover in the next three to five years. ”

Regarding Professor Chen Yun's opinion, Yang Jie, who was sitting there, quite agreed.

The outbreak of the subprime mortgage crisis was not a one-day cold, and the fundamental reason for this was that the economy of the entire Western world turned from real to virtual, and everyone was keen to make quick money in the financial market, and no one was willing to do business in a down-to-earth manner. In order to be able to make more profits, Wall Street financial experts have invented a variety of financial derivatives, which have been hyped up in turn to create a false prosperity.

In fact, this situation started as early as the 90s, but the Wall Street financial predators have a great influence on the Eagle Sauce government, and the White House and Congress are also sitting idly by and ignoring the potential risks behind this false prosperity, and the subprime mortgage crisis is also their own bitter fruit.

"Eagle sauce is now that house prices have fallen sharply, many homeowners are insolvent, and the number of abandoned houses is increasing. Although the bank was able to take away the houses of these people under contract, the auction price of these houses was not enough to compensate the bank for the loans previously issued, and the bad debts continued to increase. ”

Professor Chen Yun glanced at Yang Jie: "According to insiders, the two most important housing loan institutions in Eagle Sauce, Freddie Mac and Fannie Mae, are now facing the threat of bankruptcy. If these two institutions go bankrupt, the impact on Eagle Sauce's economy will be no less than an eight-magnitude earthquake. ”

Before that, he had also read the report submitted by the Huaxing Group to the central government, and the financial experts within the Huaxing Group had used mathematical models to deduce the subprime mortgage crisis, and the report also reported on the situation of the two real estate giants in Eagle Sauce, and the information was even more accurate than the information obtained by domestic research institutes.

"A few years ago, we only heard about the South American debt crisis and the Asian financial crisis, who knew that Eagle Sauce would also be like this, this is really a turn of feng shui. ”

This should be called retribution. Wasn't it the Eagle Sauce people who were behind the Asian financial crisis? Now it is their turn to eat their own bitter fruits. ”

Song Xinyang coughed, "Don't take these words out and say them here, let's discuss the specific countermeasures." ”

At this time, he glanced at Yang Jie and said, "Yang Jie, your Huaxing Group Company is a big exporter, you can tell me what you think." ”11