Call.

Angela took a deep breath to calm herself down quickly, and sorted out a little in her mind the thoughts that were a little confused by Tang Bao.

"Different from the previous low-key development, Phoenix Investment Group has frequently expressed its market views in a high-profile manner, shorting gold futures, and gold futures plummeted to $300 per ounce; Short banks and real estate industry, now the real estate market is gradually cooling, housing prices are falling, and the alarm bells of banks around the country are ringing, and the news of bank bankruptcy can be heard everywhere, the entire banking industry is in a violent shock, and bank stocks are one of the worst industries...... It can be said that everything is moving on the trajectory of Phoenix Investment Group's forecast. Is this all what you expected? Angela asked.

Tang Bao nodded with a smile, "Yes!" ”

"Wow."

Angela exclaimed, "What did you base your predictions on?" ”

"It's a big topic, and if you really want to explain it in detail, it's hard to finish it in a day and a night, and Miss Angela shouldn't have that much time." After a little thought, Tang Bao explained and briefly summarized, "There are two major bases for judgment, one is the overall economic situation of the United States, and the other is the basic status quo of the two major industries of banking and real estate. Rational investment can be seen from the real estate data in recent months, the US real estate bubble is bursting, and the banking industry, which is too deeply involved in the real estate industry, especially savings and loan banks, will fall into crisis due to the collapse of real estate prices...... If you pay a little attention to the banks that are in crisis, you will find that they all have something in common, that is, they have serious investment losses in the real estate industry! Banks that have been relatively restrained in investing in the real estate sector and taking out mortgages are confident that they will survive the storm. ”

"So...... Don, do you mean that the bursting of the U.S. housing bubble triggered this crisis in the savings and loan banking sector? ”

"Hmm. It can be said that it is only a trigger, but it is not the essence. Even if the bubble in the U.S. real estate sector does not burst, it will only delay the outbreak of the hidden crisis in the banking sector a little. The outbreak of this crisis was ultimately caused by a series of laws passed by Congress in the early 80s, in order to solve the inverted interest rate inversion at that time and realize the profitability of banks, the government expanded the bank's lending authority indefinitely. There is hardly any regulation...... Although the original intentions were good, it has to be said that the results were terrible, and the implementation of those flawed laws was doomed to the tragedy of today. Tang Bao pointed out the crux of the problem.

"Don, are you saying that Congress is the cause of today's predicament?" Angela was surprised.

"Yes, but more precisely, the U.S. banking regulators, who have not taken their regulatory responsibilities...... Maybe they wouldn't have the financial turmoil they have today if they were a little more serious. Tang Bao replied.

"Well, maybe...... They may have realized their negligence, and the White House is working on a rescue plan for the turmoil in the banking sector. ”

Well.

Tang Bao also nodded, he had heard Mrs. Annette mention the matter for a long time, and soon after Bush Sr. took office, he ordered his team of economic think tanks to draw up a rescue plan.

"That's right. What do you think about President Bush's upcoming banking rescue plan? ”

"Well...... The specific rescue plan has not been announced, and it is difficult for me to comment on it. However, I can only say that with the current state of the US banking industry, if the US government does not pay 200 percent attention to it, I am afraid that it will be difficult to get through the predicament, and even the crisis will go deeper and deeper, and eventually pay a more heavy price. Tang Bao warned solemnly. He remembered very well that in history, Bush Sr. was not able to completely resolve the savings and loan bank crisis until the end of his term of office.

"It seems that you have little confidence in the U.S. government's rescue plan." Angela said.

Tang Bao did not deny this, "Yes, as long as you delve into the current environment of the U.S. banking industry. won't be so optimistic......"

"The White House is rumored to have raised $30 billion for a planned bailout, and I think that's enough money to help the banking industry get through the mess, and now the question is whether Congress will pass the budget. Previously. Many lawmakers from both parties have made it clear that they oppose the use of such large amounts of money to bail out the banking sector. "Angela may have a regular channel of information and knows more about the rescue plan. Also relatively optimistic.

$30 billion?

Tang Bao secretly pursed his lips and expressed disdain, if it could spend $100 billion to solve this savings and loan crisis, the US government should secretly rejoice. In the previous life, the U.S. government spent more than five years and more than $150 billion to completely solve this financial turmoil! It was not until the rise of the Internet economy in 1995 that the rapid recovery of the US economy was completely shaken off the haze of the savings and loan banking crisis.

Right now.

The U.S. government reacts faster than in previous generations, and if it is handled properly, it may consume less money, but it is absolutely impossible to use only $30 billion to get everything right.

"If I'm not mistaken, the first person to call for the government to bail out the banking industry should have been Tang You, right?" Angela regrouped and continued to ask.

"That's right, I have long pointed out that there are many hidden dangers and crises in the U.S. banking industry, and I hope that the government will come forward to solve them as soon as possible. Of course, this market free economy advocated by the United States is contrary to it, so it has not been taken seriously...... In fact, they are not aware of the absolute freedom of the market, which leads to chaos. Today's savings and loan crisis is a very obvious example. Tang Bao said.

"Don, you're a strong advocate for the U.S. bailout of the banking sector, does that have anything to do with East West Bank? This follows a surprising series of mergers and acquisitions at East West Bank, which have led to a surge in non-performing assets as well as rapid expansion. Angela looked at Tang Bao and asked.

"It's not related, and you mentioned earlier that I had called on the U.S. government to bail out the banking sector. At that time, East West Bank was doing well...... To be precise, it is the deepening crisis in the U.S. banking sector that has given East West Bank the opportunity to expand, and I believe that the U.S. regulators would not have been so happy to agree to the merger if the banks acquired by East West Bank had not gone bankrupt. They knew that the East West Bank merger could help them solve some of their problems! Tang Bao solemnly emphasized.

There is a pause.

Tang Bao continued, "I don't deny that East West Bank does have a large backlog of non-performing assets due to mergers and acquisitions, and it is expected to generate hundreds of millions of dollars in losses in the next quarter, but these are small things, and we don't need to ask for help from the outside world, we can solve the problems ourselves." Again...... East West Bank is a foreign bank, and even if the U.S. government bails out the banking industry, it is unlikely that the bank will lend a helping hand. So. To say that my call for the U.S. government to come to the rescue in time is for the sake of East West Bank, which is baseless! ”

"Makes sense!" Angela nodded in agreement, the government spent money to bail out the banking industry, and it was all taxpayers' money, even if it was used on the banks of its own country, let alone East West Bank. And now that the honeymoon period between China and the United States is over, relations are strained, and it is even more unlikely that they will rescue a Chinese bank. "Don, what are the factors that made you stand up?"

"There is an old Chinese saying that 'there are no eggs under the nest'. The entire banking industry in the United States is in a major crisis and turmoil, and East West Bank is not immune to it! Tang Bao said with a smile, he naturally wouldn't say that his early warning was just to establish a stronger prestige in the financial field, and the American banking industry was a matter of life or death. He wished that all the banks of America would go bankrupt so that he would have more opportunities to expand.

Of course.

This is just thinking about it in my heart, with the rapid intervention of the US government, it is difficult for Tang Bao to acquire American banks as easily as before. Even if the government does not come up with enough funds to bail out, I am afraid that it will coordinate and arrange for American banks to merge with each other. It will not be easy to give East West Bank another opportunity to continue expanding.

"Speaking of the government's rescue plan for the banking industry, we have to mention the new President of the United States, George W. Bush, so to speak, about the savings and loan banking crisis. His response was very quick. While many people praised him, there was also a lot of criticism and accusation...... It can be described as a mixed reputation. Don, what do you think of our new president? ”

Forehead.

Evaluation of Bush Sr......

Tang Bao was slightly stunned, he didn't expect Angela to suddenly lead the topic to politics. Although speech in the United States is very free, even when it comes to politics, Tang Bao rarely talks about political topics in front of outsiders. Even when I talked to Baker, Hinton, and others, I rarely touched on purely political topics. His background is very sensitive, and he shows too much interest in American politics, which may touch the sensitive nerves of the United States...... A lot of trouble can be avoided by being indifferent to political performance.

But.

Tang Bao didn't deliberately avoid this question, and if he showed a distant attitude too much, he would seem to be weak-hearted. Therefore, Tang Bao carefully considered his words and said cautiously, "In my personal opinion, President Bush's swift response to the US banking crisis is worthy of praise......

Hear this.

Angela just smiled and nodded in agreement, it was normal for Tang Bao to have a high opinion of this matter, after all, the government rescue was his advocacy.

"But ......," Tang Bao's tone changed, and he said, "We should all know very well that he is a president who is a soldier, and perhaps he is more good at fighting wars than dealing with domestic economic issues." In the face of domestic economic problems, he may rely more on the think tank team! ”

Forehead.

Angela was stunned for a moment, as if she did not expect that Tang Bao, who had previously talked about politics cautiously, would suddenly comment on President Bush so bluntly. After coming to her senses, Angela immediately smiled and patiently explained: "Don, maybe you have some understanding of President Bush...... But what you may not know is that President Bush has no ambiguity in his ability to deal with economic issues in addition to being good at warfare, and he has a bachelor's degree in economics from Yale University, not just a simple-minded big guy. ”

Did George H.W. Bush get a bachelor's degree in economics from Yale University?

Tang Bao was stupid, he really didn't notice this, and he didn't even know it at all. He only remembered that George H.W. Bush was the president who participated in World War II, and during his term of office, he launched the Gulf War that shook the world, but the domestic economy was in a mess...... It is true that he was very surprised, but Tang Bao did not panic, on the contrary, he behaved quite calmly, "A bachelor's degree in economics from Yale University will not help him anything!" ”

"Oh...... Why would you be so sure? Angela was surprised.

"Quite simply, during his tenure as vice president, he was mediocre and even criticized for his mediocre performance in domestic and economic affairs. He was praised for his diplomatic and military achievements...... It can be said that President Bush's past experience clearly tells us that he is not good at dealing with domestic economic problems. Tang Bao talked eloquently.

Angela was silent, she could not find any words to refute it, and she carefully reviewed the past eight years of Bush's vice presidential term, and she was surprised to find...... Almost all of his glorious footprints have stayed in the diplomatic field, and the sense of presence in the domestic and economic fields is really pitifully low.

"Can he really handle the country's terrible economic problems?" At this time, Angela's heart couldn't help but feel a trace of worry, but soon this worry was replaced by excitement, very simply, because Tang Bao's evaluation of Bush will definitely become a hot news. (To be continued......)