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In the short period of one week since Yi Xiaohai came to the United States, the United States has a tendency to become chaotic.
The p fund incident broke out and the real estate market began to collapse, resulting in more and more defaulted contracts in the hands of Han and Tang Dynasties, and more houses were repossessed.
Lu Zhixin followed Yi Xiaohai's order and sold all the houses in his hands. The number of second-hand houses in the real estate market increased rapidly, and the prices became lower.
As the real estate market approaches collapse, more and more people will default, and financial companies will be unable to withstand it.
As time goes by, more and more people are unable to repay their loans, and more and more houses will be repossessed and sold off, causing housing prices to fall.
??The falling housing prices have caused more supply cuts, thus creating a serious vicious cycle. A large number of MBS have defaulted, and financial institutions are littered with skeletons.
The American media is reporting crazy reports that houses are about to become more expensive!
More and more people are worried that their property will become negative but they still have to repay the loan, so they choose to go bankrupt automatically and not repay the loan!
Hunter just wanted to trigger the subprime mortgage crisis in advance, but he did not expect that the situation would be so bad. It was impossible to regulate the market through benchmark interest rates.
He could only watch the real estate market collapse.
Within a month of Yi Xiaohai¡¯s arrival in the United States, the subprime mortgage crisis completely broke out and had an impact on financial institutions.
Huifen Holdings announced an additional US$14 billion in subprime housing loan provisions in the United States, bringing the total to US$22 billion compared with the previous US$8 billion.
As soon as the news came out, Huifen¡¯s stock price plummeted.
The affected Hong Kong Hang Seng Index fell by 900 points, or 5%.
The second largest subprime mortgage company in the United States, New Century Financial issued a third-quarter profit warning a week ago, and then faced a $40 billion debt squeeze from Wall Street.
The company announced it would file for bankruptcy protection and lay off 69% of its employees.
Like Mikoto, the U.S. financial industry is in bankruptcy mode.
The 10th largest mortgage lender in the United States, Home Mortgage Investment Corporation, filed for bankruptcy protection the day after New Century Financial declared bankruptcy.
It became the second large mortgage lender in the United States to file for bankruptcy after New Century Financial Corporation.
Then,
The fifth largest investment bank in the United States, Bear Stearns, announced the collapse of two of its funds, and President Spector resigned.
National Financial Services Corporation, the largest subprime mortgage company in the United States, announced a loss of more than 10 billion U.S. dollars, and the data was only last month.
If we were to count, it would probably be 50 billion now.
The U.S. real estate investment trust company quickly filed for bankruptcy protection, and more and more financial companies declared bankruptcy and filed for bankruptcy protection.
U.S. stocks fell sharply, with the Dow and S&P falling more than 3%, and the Nasdaq falling 2%.
It¡¯s August,
Relevant agencies released data on existing home sales in the United States last month, which dropped 43% from June, and transaction prices fell 40% month-on-month.
Then,
Standard & Poor's lowered the overall rating of subprime mortgage bonds, causing global financial markets to be shaken.
Macquarie Bank¡¯s two high-yield fund investments faced a 50% loss. Parry Bank suffered a quarterly loss of 32 billion, and its stock price plummeted.
Citigroup¡¯s stock price has dropped from a high of $33 to $3. Its market value has shrunk by 90%, and its financial situation is not optimistic.
In the financial futures market, metal crude oil futures and spot gold prices have plummeted, and central banks around the world have warned that a financial crisis is coming.
In mid-August,
The subprime debt crisis continued to spread, and the European Central Bank was forced to intervene and inject more than 400 billion euros to rescue the market.
The U.S. Reserve injected $100 billion into banks three times in one day to stabilize the stock market, but it still failed to avert the turbulent financial crisis.
Faced with the continued decline of U.S. stocks, within half a month, the U.S. Reserve continuously injected a total of US$700 billion to rescue the market and lowered the window discount rate by 50 basis points to 5.75%.
The central bank injected 3 trillion Australian dollars into the banking system, and the Reserve Bank of Australia injected 40 billion Australian dollars into the financial system.
Central banks around the world have taken action to avoid the loss of domestic assets caused by the United States printing money.
¡¡
At Han and Tang North America Headquarters, Lu Zhixin reported the status of the financial market to Yi Xiaohai, which made Yi Xiaohai sigh.
The fact that the subprime mortgage crisis can have such a big impact is actually directly related to the United States' own economic structure and related policies.
In the early 1980s, in order to solve the economic stagflation crisis of the 1970s, the United States launched neoliberal economic policies.
? Reduce government intervention in the financial market and advocate high consumption.Stimulate economic growth and encourage people to eat and consume in advance.
By formulating and amending bills to reduce government intervention in the financial market and promote financial liberalization and so-called financial innovation,
There is a bill called the "Gain Savings Institutions Act".
Allows thrifts to purchase commercial paper and corporate bonds, issue commercial mortgages and consumer loans, and purchase junk bonds without being subject to U.S. Reserve regulations.
There are also many bills, such as eliminating barriers between banks, securities, and insurance, opening the door to financial speculation.
It is precisely because of these backgrounds that the relevant interest rates in the United States continue to fall, and asset securitization and financial derivatives are emerging one after another.
The entire American people consume blindly and borrow money to consume ahead of schedule. Capital even promotes that real estate will only rise but not fall, inducing a large number of mortgages to buy houses.
Decades of excessive consumption have hollowed out the foundations of the United States, and the subprime mortgage crisis is a major outbreak that has been building up for a long time.
Someone once said,
Technically speaking, the United States should have gone bankrupt long ago, just because they owe money to the whole world, and those creditor countries do not want the United States to go bankrupt.
They cannot sell off U.S. Treasury bonds, and even continue to subscribe to ensure that the United States does not go bankrupt, so that the United States can confidently solve domestic problems by releasing water.
Now that the subprime mortgage crisis has broken out, they still plan to use this method to solve the problem.
"Boss, Morgan has received news that the U.S. government will adopt a package plan to save the subprime mortgage crisis, and they are in contact with Locke, DuPont, Morgan and other families to discuss countermeasures."
Lei Jun reported all the news he received to Yi Xiaohai. Yi Xiaohai was not surprised:
"Do you know the specific plan?"
"The U.S. Reserve lowered the federal funds rate by 50 basis points to 4.75% The Treasury Department joined forces with major families to establish a $1 trillion super fund to purchase distressed mortgage-backed securities, and Bank of America took the lead in raising funds. In addition, the U.S. Reserve plans to release $10 trillion"
Yi Xiaohai¡¯s eyes lit up:
"Is the news confirmed?"
"It is basically certain, but the amount of water released by the US Reserve is not certain and may be adjusted, and the United States wants to join forces with Canada and the European Central Bank to rescue the market, including short-term auctions, foreign exchange swaps, etc."
"Very good!"
Yi Xiaohai is just waiting for the US Reserve to take action. If they want to join forces with Europe, it is in line with Yi Xiaohai's heart.
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