Verse 196: Malice
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The general trend is by no means driven by one person or a few people, but all industries have reached a very dangerous position.
First of all, the financial crisis definitely needs a bubble. There are many reasons for the bubble, including the real estate bubble, the Internet bubble, the stock market bubble, and so on. The United States is also very capable of property speculation, first look at Hawaii, some financial institutions and professional speculators seized an opportunity to double the overall real estate value in Hawaii in less than two months.
Hawaii real estate is also driving the enthusiasm of investors in other places, and for a time ushered in a golden age for the U.S. real estate industry. In fact, before the real estate boom in Hawaii, the U.S. home price market had risen for two consecutive years and had begun to see a crisis.
There is also the current President of the United States, Trump, who is a real estate businessman himself, and the profits he has made are unimaginably huge when the US housing prices are hot.
Trump is a particularly bragging man, and every US presidential election has had a period of economic weakness after it. Previously, Trump just announced that the period of economic weakness in the United States has passed, and a new period of rapid development will be ushered in.
According to past experience, the beginning and end of the housing bubble can be as short as a few years or as long as more than five or six years. It's the second year of Trump's presidency, with quadrennial elections...... Trump has a lot of luck in becoming president, and it is still unknown whether he will be able to continue as president in the election two years later. And he really can't do anything......
The financial crisis is inevitable, and the ultimate reason is that the whole system is insatiable in all aspects.
Moreover, the macroeconomic control of the United States is different from that of China, and the United States completely uses the rise and fall of interest rates to regulate the entire macroeconomy, including the additional issuance of currency, the adjustment of the exchange rate, and the corresponding adjustment of oil prices.
As soon as you see market volatility, the first thing you need to do is adjust your monetary policy. This time it's the same old way, real estate is overheated, and the first thing is to raise the profit of savings. But your profit can't be compared to the profit from investing in real estate. The housing market is hot, people with money are trying to throw money into real estate, and people with no money are thinking about taking out loans. Of course, if the interest rate on savings increases, the corresponding bank will also increase the interest rate on mortgage loans. But that hasn't stopped enthusiasm for real estate, with average home prices more than tripling in less than two months and now nearly tripling two months ago.
Now that the real estate market is hot and housing prices are high, it is easy to get a loan. As for what to do if you can't repay the loan, you can sell the house and make a profit by relying on the price difference.
Now there are signs of an annual subprime mortgage crisis. A big stock market crash once in a decade, which is very American......
In the video conference, several people talked about the general direction, and then slowly negotiated some details.
Ye Mu didn't know much about the stock market, but in terms of how to plan, Ye Mu put forward a lot of opinions and shouted slogans to beat the Japanese economy back to 20 years ago.
Zhao Jiyang was cute, and looked at Ye Mu motionlessly. I knew that Ye Mu and they had a big plan, but they didn't expect it to collapse a country's economy, although it was said to be taking advantage of the general trend of the economic crisis in the United States, but Little Japan is not a vegetarian. Especially their economic structure, the **** and the new six major consortia that control the lifeblood of Japan, the capital in their hands is not too easy to deal with the 60 billion funds that want to short the Japanese stock market, and they are even willing to see opponents appear.
Zhao Jiyang is similar to Ye Mu, he doesn't know much about the stock market, but he still understands the basic mechanism of shorting. Unless the situation is unturnable, the side with more money will have an absolute advantage.
"In the face of the general trend, any consortium is a paper tiger." Gelby smiled and called up the Dow Jones index atlas and said: "Yesterday, the industrial average rose and reported points. It's been seven days of continuous gains...... Successive all-time highs. The S&P 500 rose 7.12 points, three days in a row, and it was also a very scary number. NASDAQ ......"
"At such a terrifying height, once several major institutions led by the Soros Quantum Fund are launched, the economic and financial crisis caused by it will definitely be a disaster. Not only the United States, but also Japan, but also China's real estate has reached a critical point. Not to mention the EU, three days of terror at both ends ......"
"Soros is old, and this may be his last madness. Start with the US and short the world. We launched it in advance and disrupted their plans, which can be regarded as playing the role of a savior. ”
Gelby's smile feels gloomy and murderous no matter how you look at it.
End of meeting.
Ye Mu and Gelby discussed the matter of Montana again.
The main listed companies in Montana are the resource and mineral companies and the wood company, and the resource and mineral company is weak, and the wood company is not bad. In addition to this, there are bank ......
There are mainly two banks registered in Montana, one in Helena, Lockros Bank, with operations in the west. One is in Billington, the Eastern Bank of Montana, with operations in the East. The two banks are in good asset shape as they stand, but if the financial crisis breaks out. Of course, they still have to do something in advance. For example, buy some bank rolls and deposit a little money into two banks......
The real estate market in the states is booming, and the real estate business in Montana is also improving. This can be seen from the performance of Baihua Investment Real Estate, and since April this year, Montana real estate has improved. In particular, in June, Baihua Real Estate sold 31 ranches, 19 farms and a number of urban real estate, recovering 230 million US dollars.
With Ye Mu's plan, Ye Mu and Carl borrowed a large amount of money from the Chase Montana branch respectively, and there was not much money to lend to others. The money they borrowed was also used to roll home and land prices in Montana, and the apparent picture was a great prospect.
Judging from the fact that both Roqueros Bank and Eastern Montana Bank are less than three billion, under the premise that the market is good, the funds they can lend should be quite limited, and now in the hot market, they should have borrowed a large amount of money.
Tens of millions of dollars were deposited into these two banks, and the main means was to subscribe to large sums of bank bills. It was sold off on the eve of the financial crisis, causing a run on the banks......
The two banks absorb more than 70 percent of Montana's deposits. Americans don't like to save money, but the bank accounts of Montana-related businesses, the bank accounts of farms and ranches, and the accounts of individuals in two banks, there will be no less money circulating through banks, billions of dollars.
As long as there is a run on the banks, coupled with the economic and financial crisis, the two banks will not be far from bankruptcy.
The solution was thought up by Carl, and Ye Mu only felt that it made sense.
"Cornered them, and then you take over the banks? It's vicious, it's robbery. "Zhao Jiyang felt a chill when he saw that Ye Mu and Carl were 'in love'.
Think of the houses, farms, and ranches that are now being bought for $300,000 worth only 150,000 or less after the financial crisis. Even if the money lent by the bank buys back the collateral, it will not be able to sell it at the highest price or even the original price......
When the time comes, Ye Mu and the others will come forward to buy the bank and clean up the bank's assets......
The economic crisis is very scary for ordinary people, but it is a great opportunity for those who see the right time. (To be continued.) Mobile phone users, please browse and read, a better reading experience.