Zhaohui traces the funds of Jumut's offshore company in the Cayman Islands, and discovers an even bigger secret.

Zhaohui found that the funds were shorting subprime mortgage financial products in Sam's Country's property market. Moreover, the funds for shorting subprime mortgage financial products are not only Zumut and his family, but also some short sellers.

If you want to understand why you are short Sam's Country's real estate subprime mortgages, you need to know what Sam's Country subprime mortgages are. This is actually the conspiracy of those capital predators on Hua Second Street.

Sam Nation saw that the Dragon Nation's Happiness Project was a great success. Sam Nation also wants to boost the economy through real estate. The greedy Huaer Street capital predators immediately sniffed out the business opportunity. In order to make subprime mortgages easy to understand, let's use an example.

For example, Jack, a citizen of Sam's Country, is a blue-collar worker at the bottom of the society, with a monthly salary of 5,000 US dollars and an annual income of 60,000 US dollars.

One day, a manager named Tom at the Second Wall Street Investment Bank approached Jack. I hope he will buy a house for 1 million US dollars to live in. But Jack didn't even have the money to pay a down payment of 200,000 and couldn't buy a house.

Tom told Jack that the bank could give him a loan of 300,000, he could take 200,000 to pay a down payment of 200,000 to the real estate company, and the remaining 100,000 could be repaid slowly.

Tom also told Jack that the reason for this loose financial policy is that Sam's country is promoting a housing project for all, and it would not have been possible to give credit loans to blue-collar workers in the past. After all, Jack has neither property nor savings, and is entirely borrowed from credit, so it is accurate to say that the credit loan.

Tom also told Jack that more and more blue-collar workers like Jack are now buying houses, and now the price of the house is increasing every day. Your Jack spent the money from the bank to buy a house, and the house is increasing in value every day, helping you make money, this kind of thing is simply too cost-effective.

So Jack was fooled into buying a house for 1 million. The investment bank lent him 300,000 yuan. After Jack bought the house, he felt that the 100,000 yuan given by the investment bank to repay the interest would still run out, so he called Tom and asked Tom if the house he bought could be mortgaged to the bank for refinancing.

Tom said to Jack, of course. You can mortgage your house for 1 million yuan to the bank, and then borrow hundreds of thousands from the bank. It's just that the interest rate is a little higher than normal.

Jack thought to himself, anyway, the house was bought with a loan, and it didn't cost me money, so I mortgaged the house to the bank and then loaned out the money to pay off the debt. In case the price of the house rises and does not outperform the repayment of the loan, it is a big deal to return the house to the bank. In case the price of the house rises and outperforms the bank loan, it is to sell the house and pay back the bank's money, and you will have some leftovers. No matter how much he thought about it, it was a good deal, so Jack decided to mortgage the house to the bank and continue the loan.

Millions of people like Jack appeared all over Sam's Country. Real estate in Sam's Country seems to be in the ascendant. The price of real estate is also rising, one price per day.

Here, it seems that it is the banks that take the risk, and they lend all their money and can only collect some interest. This view is prevalent, and everyone thinks that the bank is doing a great thing, and there is a little worry about the bank's risk.

The money of the investment bank is quickly used up, and the investment bank must get more money if it wants to keep playing. As a result, investment banks have packaged the current behavior of lending to low-level people to buy houses as a subprime financial product.

Why is it called a subprime mortgage? Because the first time is to lend money to the user to pay a down payment and a part of the interest. The second loan is to use the house as collateral and borrow funds to pay the repayment to the buyer. In this way, two loans occurred. Actually, this is just the beginning, and there will be more levels to come.

The investment bank of Hua 2nd Street began to collude with Sam Guo**. Ask Uncle Sam to take the lead in subscribing to some financial subprime mortgage products. After all, Uncle Sam is a very big beneficiary. People with an annual income of tens of thousands live in million-dollar mansions. Real estate is on fire, driving the country's economy, and GDP and tax revenue have increased. Then take the lead in subscribing to some subprime mortgage financial products. A larger number of subprime mortgage products are sold to investors all over the world. If your country takes the lead in subscribing, then those individual investors will be assured to subscribe more.

As a result, the investment banks of Hua 2nd Street began to publicly sell subprime mortgage financial products to the world. The annualized investment return is 6%, which is higher than the yield of any sovereign country's national debt. There is also Sam Guo's lead subscription, as well as the 3A credit rating of a well-known investment company on Hua Second Street. Where can I find such a good financial product?

As a result, banks and individual investors in some countries around the world have begun to invest in this kind of credit subprime mortgage products. Moreover, subprime mortgage financial products can also be put on the market and can be traded. That is, the securitization of subprime mortgage products.

A buys the subprime product, sells it to B, and B sells it to C, and so the subprime product is amplified again and again. And it is an amplification of the way in which leverage is allowed. The so-called financial leverage means that if you take 100,000 yuan of principal, if the market allocates 15 times the leverage for you, that is to say, you are equivalent to having 1.5 million purchasing power. In this way, the subprime mortgage market has been turned into an investment market of 80 trillion US dollars.

At this time, the financial predators of Hua Second Street began to laugh secretly in the back. They took the risk and lent money to blue-collar workers to buy a house. But they have created a subprime mortgage financial market through the real estate market. All the investors gave their money to these investment predators on Hua 2nd Street. This means that they have recovered their investment principal in disguise and have obtained huge benefits.

When things got here, it was like a happy situation. Low-income people have moved into houses, Uncle Sam's real estate is booming, and the investment bank on 2nd Street has created a great subprime financial securities market, and investors are getting at least 6% or more investment returns, and those who take over seem to be making more premium than 6%.

Where do investors in the subprime financial securities market get their money from? The answer seems to be that Sam Country's real estate is climbing, creating one miracle after another. So what happens when house prices are pushed up to a fairly high price?

It will bring stagflation in housing prices, and there will be no one to buy a house anymore, once there is no transaction between houses. That's when the real estate bubble was punctured. That's when there was a subprime mortgage crisis. All investors will become a piece of chicken feathers.

Sooner or later, this soap bubble of the real estate economy will happen. This is the ending that the bigwigs of Hua Second Street have already designed. They know it's the only answer. Next is the time for these Huaer Street capital predators to open their blood basins and eat people.

These financial predators of Hua Second Street began to short subprime mortgage financial products in the securities market of subprime mortgages in advance. Once the housing prices in Sam's Country rise to the sky and cannot be operated, the bubble will burst, and the prices of subprime financial products will plummet. When it plummets, the index of subprime finance will also plummet, and at this time, the financial predators who short the subprime mortgage index will make money and eat people.

The financial predators of Hua 2nd Street actually dug three holes in this project at the very beginning. The first resistance is to the person who bought the house, in order to trick you in, the bank paid you to buy the house first, live in the house, and seemed to take advantage. When house prices rise to the sky and the economic bubble is punctured, you can't afford to pay it back, and you're going to get out of the house.

The second pit is for capital investors who invest in subprime mortgage financial products. When the bubble is punctured, there is no takeover, no one will cash out your 6% investment income for you, and not only will no one cash it out for you, but you will even lose the principal.

The third pit is for banks and investors from all over the world who are investing in the subprime mortgage regime market. They want to make money at a premium. When the bubble hits, everyone will be smothered inside.

There is only one winner of all, and that is the predators of Hua Second Street who manipulated this subprime mortgage crisis! They will receive tens of trillions of dollars in earnings. Thoroughly invest in subprime financial products all over the world, national banks and individuals, and collectively gather wool.

When Zhaohui thoroughly analyzed the conspiracy behind the subprime mortgage, he first went to the National Supercomputer Center and used his privilege to do an analysis simulation.

He went to Minister Qu Wei of the Ministry of National Security of the Dragon Kingdom for the first time. He briefly reported to Minister Qu Wei that after the national scum, hacker conspirators, and the huge national financial risks behind it, they secretly reported to the No. 1 chief and the prime minister together.

After listening to Zhaohui's analysis, the No. 1 leader and the prime minister were shocked by the conspiracy behind it. Overnight, I found a leader from the China Banking Regulatory Commission and the central bank.

"How big are the major banks in China that have invested in Sam's Country subprime mortgage products? How big is private capital? The prime minister asked the two heads of finance.

"According to the Prime Minister, the scale of funds invested by major banks in subprime mortgage financial products is 1.5 trillion yuan." Xing Yue, governor of the central bank, said.

"According to our statistics, there are 0.8 trillion yuan of private capital." Ju Wenbin, chairman of the China Banking Regulatory Commission, said.

"Zhaohui, how many months do you estimate the time window for the subprime mortgage crisis to occur?" The Prime Minister asked again.

"Report to the Prime Minister, I went to the National Supercomputing Center once before I came, and from the data I have, I simulated the evolution of the subprime mortgage crisis, and the result is that the probability of occurrence is the highest in four to five months from now, that is, between August and September 2010." Zhaohui replied to the Prime Minister.

The Prime Minister went on to ask: "What do you suggest?"

"I checked the delivery maturity time of the short funds of the subprime mortgage financial product is December 10, 2010." Zhaohui paused and looked at everyone.

"We're going to eat up the short-selling funds, and we're going to get the wool for them."

Everyone didn't expect Zhaohui's approach to be so arrogant, and they glanced at each other.

"Supervise the outflow of funds in China, put the P2P platform on the end, and we will operate it for him..."

Next, the extremely secret meeting lasted for more than two hours. Zhaohui made a detailed report to the national high-level on the detailed operation ideas.

"It's a risky move, but the form has to be faced. Since they want to have a dark war against the Dragon Kingdom on the financial front, let's fight back! The No. 1 leader said to everyone.

"Action!" The prime minister spat out two words very stiffly.