"Let everyone have a chicken in the pot and a big house to live in. Pen Fun Pavilion www.biquge.info" - Roosevelt

The American Dream planted by Roosevelt made Americans have an irresistible obsession with housing and real estate.

For more than 50 years after the Great Depression, the United States followed a cautious economic path until around 1990, when Washington decided to restore economic prosperity.

The deregulation of various savings and lending companies has ushered in a second CHUN in the U.S. financial industry, and at that time, Wall Street investment banks can go public.

And the government began to encourage people to buy more houses, stimulate domestic demand, stimulate economic growth, banks tried to reduce or eliminate down payment requirements, such as adjusting interest rates, installment repayments, etc.

Many fledgling speculators suddenly poured into the real estate industry, and the real estate boom began to rise.

In order to promote the development of the real estate market, the Lao US government even exempted the sale of houses from capital gains tax, up to $500,000. This move has given a big boost to the price of real estate, and at the same time, the real estate market has a bright future in the American concept. Real estate developers began to make a big splash on TV shows, trying to convince people that investing in real estate was the only way to get rich.

At that time, whether it was Wall Street Jingying, or businessmen looking for tax havens, or upper-class ladies, ordinary white-collar workers, they all poured into the real estate industry, and everyone wanted to reach the peak of life by flipping up their houses.

(Huh, does it feel familiar?)

Even so, the government felt that the stimulus for housing purchases was still insufficient, and the government introduced many laws, and even stipulated that bank loans would not reach the amount specified by the government, and the bank would be fined.

In order to complete the loan quota explained above, banks began to provide loans like some marginal home buyers with credit problems, that is, the legendary subprime loans, bank lending loan standards, do not confirm the borrower's income certificate, and also invented loans without property certificates, loans without proportional restrictions, loans without documents and paperwork, and so on.

Stimulated by various bank policies, housing prices began to rise in a straight line again, and neither the government nor the people at that time expected that they were on a path of no return.

How smart the bankers on Wall Street are, in order to make more money in the middle, they invented a lot of highly toxic financial instruments, such as debt collateral or something, well, in simple terms, leverage.

Anyway, the more money the bank borrows, the higher the leverage, Andy used to be basically in a novice state of finance, but through a few months of self-study, a lot of reading books on related majors, he also has his own understanding, for leverage, his most recognized sentence is: leverage can sometimes make people go to heaven, but it is easier to make people go to hell!

In this way, the first big bubble in the history of American real estate officially began, and it has been gone for more than 10 years, until now in 2007.

In 2000, the Internet bubble in the U.S. stock market burst, and in 911, the U.S. economy began to enter a low ebb, and the Federal Reserve lowered interest rates many times in order to reduce unemployment and revitalize the economy.

After the interest rate was lowered, the yield of traditional fixed-income products such as bonds was very low, and the stock market was also in a downturn.

Housing prices have started to rise again, and there is no intention of stopping at all, Hollywood stars, Stallone, bad movie King Cage, etc., well, Andy's three women are also part of this tide, Theron, Lima, Johnson. have joined this real estate speculation feast, at the same time, in the news reports, various economic investment experts, have raised their cards to show their views, telling everyone that housing prices will not fall.

Since the media has been hyping that housing prices will not fall, and the government has not taken any measures, then most people with herd psychology will believe that housing prices will not fall.

The number of small lenders is increasing rapidly, the market is good, real estate has become the main theme of Americans, although the price of housing is scary, but the hot money of buyers is still high.

The real estate bubble is getting bigger and bigger, and the Fed is aware of the seriousness of the problem, but it is not afraid to act lightly, knowing that the truth is a beautiful and terrible thing!

From '04 to '06, the Fed cautiously raised interest rates in small steps, but to no avail, although the increase in interest rates suppressed inflation, but long-term mortgage rates are still falling.

Andy put down the coffee cup in his hand and gently rubbed his eyebrows.

A collapse that can't be concealed is finally about to begin.

Since July last year, the pace of house price growth has slowed down, and has even begun to decline in many parts of the United States. Although there are very few homeowners who notice the warning signs in the early days, there is no shortage of discerning people in the market.

In the next few days, a lot of active speculators will quickly start cashing out and exiting the market, and the curtain of horror that Andy has been waiting for will be opened.

The decline in housing prices will lead to the rupture of the whole chain, the burden of repayment of the loan of the people who once bought the house with a subprime mortgage will continue to increase, the credit default rate will rise sharply, the house price will fall again and again, and the people who buy houses with subprime mortgages can no longer exchange money by selling or mortgaging their homes, so more and more subprime buyers have no money to repay the loan, and the loan will become a bad debt.

Now, the market situation has begun to deteriorate, and there are already many people who are homeless, because they are burdened by the economy, they are poor, unemployed, have no money to pay the mortgage and no money to build a house, so they can only live in tents.

In the not-too-distant future, a large number of banks will fail, companies will go bankrupt, and the stock market will fluctuate violently, and all walks of life will not be spared.

The subprime mortgage crisis, triggered by real estate, will eventually spread out of control across the globe.

(Although the national conditions are different, and there are great differences in all aspects, it is still necessary to prevent problems before they happen.) ）

History always has striking similarities, and if you look at the history of the world, you will find that human beings are accustomed to repeatedly stumble over and over again in things that have already been learned, why?

Human greed is at work, so it is difficult to say anything to make a difference, good scars and forgetting pain is a common habit of human beings, when the crisis comes, why don't Andy not do his best to make an early warning? Or in his own purpose, after holding a large number of CDS, stand up and sing the real estate market, let people be vigilant, and can also achieve an early crash, why not do it?

Hehe, even the Federal Reserve doesn't dare to come hard, how old is he Andy Smith? The power of advocating a real estate bubble is not something that one person or a certain institution can contend with, and even a few can't do it, the combination of the whole people plus the government and banks, Wall Street and other forces, who dares to stand up and be that "hero"?

Andy will not be so idiotic, he has been laying out from the beginning, hoping to take a low-key bite in this feast, and not make a bird, the whole world will know if he is stupid 13.

The subprime mortgage crisis under the real estate crash, the wave of bank failures under the subprime mortgage crisis, the gold surge under the depreciation of the dollar...

This kind of chain reaction that affects the whole body is what Andy is waiting for, he just feels that time is a little difficult, why not hurry up, savior, ahh

Under the gray sky, Andy wore a dark blue coat, strolling down 500 meters of Wall Street, standing in front of the bronze bull sculpture representing wealth, exhaling a breath of heat, the corners of his mouth turned up, revealing a cold smile, looking at the people who kept walking by.

"Click. ”

"Boss, it's already done. Tori walked quickly over to Andy, handed him the digital camera, and whispered.

Andy took the camera, looked at it and said: "Let people deal with it, increase the depth of field, except for me and this cow, the other scenes are blurred, and then zoom in, March 1st, today is a memorable day!"

"Okay, boss, where are you going next?" the little assistant took the camera button, put it in his bag, looked at the tall figure of the big demon king, and asked softly.

"I'm hungry, find a restaurant, I'm going to eat beef, bloody... ”

Andy looked back with a charming sunny smile.