A tea table of golden silk nanmu, gilded and colorful, carved dragons and phoenixes, exudes a strong local tyrant atmosphere.

On the rosewood frame against the wall, the big red robe, Zhengshan small species, Tieguanyin, Baihao silver needle, ancient tree Pu'er...... A jar of tea leaves is a top tea from all over the country.

Lu Zhenghua took the jar of Da Hong Robe casually, and the smooth technique of making tea was done in one go.

This is the tea room of the Lu family!

For township entrepreneurs, drinking tea is a high-end taste that is both cultural and healthy.

It seems that after drinking this sip of tea, your primary school diploma can exude the aroma of a doctor and professor.

"Tell me, why don't you let Dad engage in real estate?"

"I'm 18 years old, I'm an adult, the family's industry, sooner or later, you have to take over, Dad wants to hear your opinion!"

Lu Zhenghua poured a cup of tea and handed it to his son, his eyes full of relief.

After 18 years of raising, I finally started to care about my family's business!

"Dad, do you know subprime loans in the United States?" Lu Cheng asked.

"Subprime loans?"

Lu Zhenghua was slightly stunned, and his brain began to run wildly.

It's a pity that the junior high school degree he studied that year did not allow such a high load of calculations.

"The banking system in the United States has a credit score for borrowers that ranges from 300 to 850. Generally, if the score is more than 700, it is a high-quality borrower, but if it is less than 600 points, or even less than 500 points, it is an inferior borrower with low income and low assets. ”

"The loans issued to these borrowers with low credit scores are subprime loans!"

Lu Cheng sighed.

The education that my father received since he was a child doomed him to be a township entrepreneur in his life.

Dad, in this life, you have to be obedient!

I'm all for your good!

"What does it have to do with the banks in the United States, which lend to whomever they like?" Lu Zhenghua lit a cigarette, took a puff, and hurriedly drank a cup of tea.

Smoking is bad for your health, but drinking tea is good for your health!

A puff of cigarettes, a sip of tea, is really a risk hedge!

"Dad, the economy has long been globalized, Americans fart out, and we can smell that smell across the Pacific Ocean!" Lu Cheng did not ink, and talked about the financial operation mode of the United States in one breath.

From a dog in the United States, who can easily borrow money to buy a house, to a bank that packages a subprime loan into an MBS (mortgage securitization) and sells it to an investment bank.

Then the investment bank bought MBS and made it into a CDS (Secured Debt Certificate).

To put it bluntly, it is the money that may be received in the future, made into a financial product, and sold in advance.

In fact, these junk bonds are shoddy, mixed in a pile of bonds, and then beautified by rating agencies, and finally sold to the receivers in the market.

"Wait...... Wait a minute! ”

Lu Zhenghua suddenly smelled a burning smell, as if something was burning, maybe his brain was burned out.

"You're saying that American banks are lending mortgages everywhere to make money, and then selling the IOUs to investment banks. And then invest in banks, and then package garbage IOUs into high-quality IOUs and sell them to ordinary people? ”

smoked three cigarettes in a row, and Lu Zhenghua finally smoothed out the whole routine.

Although the subprime loans issued by the banks have a high risk of default, they have already sold the IOUs, that is, the risk has been transferred, and they don't care whether they can afford the mortgage.

As for the investment banks that bought the IOUs, they also used the same method, packaging and selling these junk IOUs to retail investors.

The end result is that banks make a lot of money, and investment banks make a lot of money.

Only the poor ghosts who carried the mortgages, and the unlucky ghosts who bought bonds, enjoyed the great lack of virtue of the bourgeoisie!

"yes, that's pretty much what it means."

Lu Cheng took a sip of tea and moistened his throat, "The basis for the operation of this system is that housing prices in the United States have been rising. However, there is nothing in the world that can only go up and down! ”

"Stop, I can understand what you mean. But even you, a high school student, can understand this truth, and there are so many experts and professors in the United States, can they not understand? Lu Zhenghua frowned, and there was a pain on his face that his brain was short-circuited.

I really don't know where my son learned this mess.

"Because the experts and professors are all elites, they are all rich people. What does the bankruptcy of the poor ghost have to do with them? Lu Cheng sneered.

Many things in this world are not about right and wrong, but about interests!

Are you really stupid for those experts?

What people earn is not your money.

The ass decides the head!

Whatever position you sit, you can say.

"Even if you're right, that's just your idea. Chengcheng, we have to look at things in business, you have to take out serious things to convince me! ”

Lu Zhenghua leaned on the Taishi chair and was very satisfied with his son's performance.

Other people's sons are either in love or playing games. Our sons have studied the American financial system.

Tsk, this is called a tiger father without a dog!

Syllable!

A laptop, placed on the tea table.

“New Century Finance！”

"New Century Finance!"

"This is the second-largest subprime mortgage company in the United States, and it announced that it had filed for bankruptcy protection in 2007, on April 2 last year, while laying off 54 percent of its workforce."

“Rhineland Funding！”

"The Rhineland Fund of the German Industrial Bank, which suffered huge losses due to its participation in the US subprime mortgage market, estimated a loss of 8.2 billion euros on August 2, 2007."

"On August 8, 2007, Bear Stearns, the fifth-largest investment bank in the United States, announced the collapse of two of its funds, also because of the subprime mortgage involved."

"On August 9, 2007, BNP Paribas announced that it had frozen three of its funds, also because of the huge losses suffered by investing in the US subprime mortgage. This is the largest bank in France! ”

……

From the United States to Germany to France, and then to Liben, one after another large banks and big investment banks have suffered huge losses because of subprime loans in the United States.

At the same time, the central banks of major economies continue to inject money into the financial system.

To put it bluntly, it is to frantically transfuse blood to save lives to seriously injured and dying patients.

If there is any sudden outburst, everything is traceable!

Just like a serious illness, it all starts with a mild illness bit by bit.

"You let me slow down, let me slow down!"

Lu Zhenghua's face began to change!

If you say that all Lu Cheng's remarks before were just a high school student's self-talk.

But now, every piece of news he shows is genuine and well-documented.

Even people who don't understand finance anymore can perceive the sense of oppression when they see this.

Billow......

No, it's a tsunami!

A financial tsunami sweeping the world is just around the corner!

"Dad, these are not the only banks that have invested in the subprime mortgage market in the United States. The world's economy has long been integrated, and once the subprime mortgage bubble bursts in the United States, the whole world will suffer hard. ”

Lu Cheng pointed to a plastic Christmas tree in the corner, "When the time comes, even our Christmas tree will not be sold." ”