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The wheel of history is rolling forward, running according to the established track.
The subprime mortgage crisis that originated in the United States, after the hype of financial institutions, is like a trumpet shouting into the valley, and its influence is getting wider and wider, and it gradually becomes unstoppable.
Due to the huge debt owed to Wall Street of 17.4 billion U.S. dollars, resulting in a breakdown of the capital chain, New Century Financial Corporation, the second largest subprime mortgage loan company in the United States, announced to file for bankruptcy protection and lay off 54% of its employees.
On September 2, 2007, the German Industrial Bank announced a profit warning, and there was a loss of 8.2 billion euros, because one of its subsidiaries was the "Rhineland Fund" with a scale of 12.7 billion euros and the bank itself participated in the US real estate subprime mortgage market business. suffered huge losses.
The tenth-ranked mortgage lender in the U.S. - U.S. Housing Mortgage Investment Corporation formally filed for bankruptcy protection with the court on September 6, becoming another large mortgage lender that filed for bankruptcy after New Century Financial Corporation.
On September 8, Bear Stearns, the fifth largest investment bank in the United States, announced the closure of two of its funds. The reason was also due to the subprime mortgage crisis, which resulted in a loss of tens of billions of dollars.
On September 9th, France's largest bank, BNP Paribas, announced that it would freeze three of its funds. It also suffered huge losses because of investing in US subprime mortgage bonds. This move caused European stock markets to plummet.
On September 13, Mizuho Bank, the second largest bank in Japan, announced a loss of 600 million US dollars related to the US subprime mortgage. Japanese and Korean banks have already incurred losses due to the US subprime mortgage crisis.
According to estimates by UBS Securities Japan, the nine major banks in Japan hold more than one trillion yen in US subprime mortgage-backed securities.
From January 22, 2008, from January 30 to March 6, the Federal Reserve lowered the discount rate three times in a row, from 4% to 3.25%, and urgently released 750 billion US dollars of liquidity to the market.
The signs of the bubble bursting are already so obvious, but it is difficult to see this information in European and American media magazines. Only in professional financial magazines can you see related reports as big as tofu.
On TV, government officials talked freely;
Claiming that the real estate market in the United States is developing steadily and orderly, the bubble is only partial, and more of it is a problem in business operation, which is irrelevant.
From Dallas to Connecticut, the streets and alleys are full of advertisements for mortgage companies;
"The real estate market is still stable and full of stamina."
Everyone turned a blind eye to the coming disaster, just like the "elephant in the room". Although it was there, the boom in real estate dazzled most people and selectively ignored it.
Loan money comes too easily, stimulating early consumption by groups who do not have the ability to repay.
Red Hat Fund investor Eisman went to a strip club at night to find excitement. While chatting with a stripper, Eisman discovered that this erotic practitioner who had no stable income and relied entirely on tips from customers actually Bought 5 suites and an apartment with a loan.
According to general rules, before banks and loan companies issue housing loans to applicants, they must review the lender's credit, whether they have a stable job, and their property status.
? But when Americans are speculating in real estate, no one checks your credit, and no one checks whether you can repay the loan on time.
The stripper fills in "therapist" in the occupation column, so she can easily get multiple loans, and the mortgaged house can get new loans to buy more houses.
? Even if her job is obviously a precarious stripper, the bank will not miss the loan. Some Americans even directly write the name of their dog on it, and they can still buy a house with a loan.
In order to encourage more people with meager income to consume early, the loan company thought of a "coup;
As long as the first few months of the loan are free and the interest rate is low for the first few years, you will earn money when you get the loan.
A Mexican strawberry picker earning $14,000 a year bought a $720,000 house with easy loans when he was penniless.
But if you look carefully at the loan contract, you will find that although the first few months are interest-free or low-interest, the monthly payment will increase year by year until the leeks are cooked.
Once the payment is broken and the loan cannot be repaid, the house used as collateral will be taken back, and you will sleep on the street.
The market is full of false prosperity, and the random flowers are gradually becoming charming.
? The Peak Tower, Victoria Peak, Hong Kong
In the big study
? Wang Yaocheng held the World Financial Tracking Report (6) of the Hong Kong Guanfengyun Economic Research Center in his hand. He was shocked when he read it. He put the report on the table and stood up.
the??The Samsung family has been hiding the business status of the business, hoping that his health will improve. "
"Well, regarding President Li's physical condition, the Secretariat must continue to focus on follow-up."
"Understood, we have a reliable news channel at Samsung Hospital in Seoul, and we can deliver first-hand medical information at any time."
"It's fine, don't relax."
"The secretariat will definitely focus on follow-up and keep an eye on it."
Wang Yaocheng nodded, as long as the Samsung Group is in the hands of the ambitious and talented Li Zairong, the threat will be reduced by 80%, and it is best not to do anything now.
Before the financial turmoil, cash is king is the supreme criterion.
At this time, any mergers and acquisitions that significantly reduce cash reserves are inappropriate, and ducks that are not cooked in a hurry will run away.
After the financial turmoil swept the world, you will find that the market is full of unbelievably cheap M&A targets, not to mention the 460 billion US dollars in cash held by the Royal Family Fund, even if it is several times more, it is not enough to spend.
"Achen, please inform the Fixed Assets Management Office of the consortium to arrange for a proper reduction in the stock of Atlantic Business Machines. The rate is no more than 10%, and we will try to get back about 40 billion US dollars in cash."
"Chairman, do you have any specific requirements?"
"Well, thanks to the launch of smartphones, the profitability of Atlantic Business Machines has reached a new level, and its market value has also skyrocketed to more than 410 billion US dollars. You have to make a plan to lose weight in batches, and you can reduce the weight every month. It is advisable to hold 3% and divide it into three to four months to complete.¡±
"Chairman, I know. I will work with the Fixed Assets Management Office to formulate a detailed shareholding reduction plan and submit it to the New York Stock Exchange for approval. If there is no other order, then I will go down and do things."
"Okay, let's go."
Wang Yaocheng watched He Chen leave, tapped the table with his slender fingers and pondered;
It seems that the group of bankers on Wall Street realized that the fire could not be covered with paper, and now they are raising funds and selling assets all over the world to deal with the upcoming financial disaster.
Whoever can last the longest in the financial turmoil may escape the catastrophe and survive.
At this time, cash flow is more important than any asset.
Once the capital chain is broken, the consequences are self-evident.
People on Wall Street know how serious this global financial crisis will be, because they are the ones who stabbed the betel. (Remember the site URL: www.hlnovel.com - Didn't finish reading? Add this book to your favoritesI'm a member and bookmarked this chapterCopy the address of this book and recommend it to your friends for pointsChapter error? Click here to report
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