Risk is something that people can't see, if the risk can be predicted in advance, then it is not called risk, if you know that there is a certain risk and are afraid of the wolf, this can only mean that someone is not suitable for investment.

In fact, there are many such people on Wall Street, if you have to summarize, Han Xuan will say that the vast majority of the management of many companies will actually only sit in the office and wait to get a salary, or will only pay others wages, for the owners of the company, the value is not reflected at all, so they may be fired at any time.

Fortunately, Han Xuan doesn't have to worry about these things for the time being, his investment department has reorganized a new company, and it is still full of vitality, and the employees who were helped by the headhunting company are indeed worthy of the price offered.

A group of energetic and capable financiers were grouped together, with Han Xuan as the brain, which led to the company's huge enthusiasm and continuous development, bringing huge funds to Han Xuan.

Companies like Citigroup, Lehman Brothers, and Bear Stearns are nothing in Han Xuan's view, and they are now busy looking for death, trying to sell credit default swaps and other real estate-related businesses, which can indeed make money in the early stage, but the consequence is to cause the financial crisis in 2008 in the previous life.

Don't think that the people who work on this street today are really smart, and many Wall Street elites didn't expect it before the subprime mortgage crisis in the previous life.

It is precisely because of their self-imposed wisdom that they ignore the signs before the crisis, and they do not see that more and more people are not paying their mortgages, they cannot see that housing prices are skyrocketing, and they cannot see that when people buy mortgages, banks do not even look at their creditworthiness.

When Han Xuan was twelve years old, he figured out a truth, that is, to use the benefits of the flock to make money, as long as he does a good job of guiding public opinion and creating the illusion of security, stability, and high profits, the world economy is his ATM!

The most beautiful thing is that they don't even need to think about it, they can cheat a large amount of money by relying on their practices in the years before the subprime mortgage crisis broke out, Han Xuan already knows the result, just like a gambler who knows the cards in other people's hands, and there are enough chips in front of him, and it is difficult to lose.

The reason why I say this is because last night, Mr. Dick Fuld, the CEO of Lehman Brothers, called Han Xuan, saying that he had a brilliant investment idea, which was conceived by several mathematicians in their company, and hoped to cooperate with Han Xuan to invest.

According to the model established by the mathematicians, it was shown that if it was used to invest in the real estate industry, it would be profitable, but this was a novel investment method, and the Lehman Brothers executives were unsure, so they tried to cooperate with Han Xuan.

Today, Lehman Brothers is a medium-sized company, and East West Bank is a behemoth to look up to.

Imagine, for example, Han Xuan, the general manager of East West Bank, calling Lehman Brothers and saying, "Recently, 100 mortgage customers, each borrowing $1 million a year from us, are going to buy your insurance to prevent them from defaulting."

Judging from the application form, we believe that each of them has a 3% chance of defaulting, how much insurance cost is appropriate? ”

100 customers, each with a 3 percent chance of defaulting, so roughly expect three customers to default next year, that is, Lehman Brothers will have to pay $3 million next year, assuming the interest rate is 3 percent per year, then it is worth only $2.91 million now.

As a result, Han Xuan's East West Bank had to pay at least $2.91 million for insurance, and Lehman Brothers is not a charity, and in order to make money, they will double the price, which is $5.82 million in premiums, and expect to earn an average of $2.91 million on these transactions. This type of insurance is known as a credit default swap (CDS).

In the beginning, only insurance companies participated, but because the profits were too high, banks and private investment institutions were later involved, and the scale became larger and larger.

Wall Street naively thought that people would repay their loans and that banks wanted to make money, so they let go of loans, and that, combined with rising house prices, led to a staggering scale of credit default swaps!

Because it was too big, Lehman was naturally worried, so they launched "collateralized debt bonds", and the reason why these companies felt that people would not default was because there had been no large-scale nationwide house price decline in the United States since the twenties of this century, so they estimated a default rate of about 3 percent.

But I didn't expect the bubble to burst, and there were more than three defaulters, as many as more than a dozen, who felt that the house price was too bad after the depreciation, so they refused to pay the loan, and the default part required insurance companies and banks to pay compensation!

This also has a lot to do with the bank's approach, because there are insurance companies behind them, and banks are not afraid of customers with poor credit defaulting, anyway, insurance companies will lose money, and in the end, they are red at the profits of these insurance companies, and they are also involved, so to speak, they dig their own pits, and more than 20% of the borrowers do not have the basic conditions for stable repayment.

Therefore, after the bubble burst in the previous life, Lehman Brothers unexpectedly owed more than $60 billion and fell directly into bankruptcy.

Han Xuan is very afraid of gambling with ordinary investors, because their mentality and practices cannot be fathomed, and doing business with Wall Street investors makes him feel more relaxed, and after more than half a century of development, these people have formed some thinking inertia.

The Internet bubble has evaporated about three to five trillion dollars of global wealth, and he has made more than 200 billion dollars in his pocket, which is still not counting the current value of the stock itself.

The market size of subprime mortgages is much larger than that of the Internet industry, after all, it is an old real estate industry, not an emerging Internet industry that can be compared, as long as you grasp the opportunity, this is also an opportunity to make a lot of money, so Han Xuan came to meet with the executive of Lehman Brothers.

Sitting in the helicopter, Han Xuan looked at the paraglider in the distance and recalled that he had jumped from the sky...... To be precise, the scene after being pushed off the plane by Gabriel, the wind was very strong, the scenery was also beautiful, and after more than ten seconds during the fall, it floated in the sky for another six or seven minutes after the umbrella was opened, if it wasn't for a person tied behind his back, it would definitely feel better.

Han Xuan has nothing to do, but Ji Shizhen is not only ugly, but he was so frightened that he peed his pants, and finally squeezed out a smile to face the camera, it can be said that he was out of the way in order to steal the spotlight......