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"You asked for the key point,"
Yi Xiaohai smiled:
"Currently, the largest financial institutions in the U.S. market are Freddie Mac and Fannie Mae. Because they are state-owned enterprises in the United States, the government has restrictions on their business."
¡°Here I want to talk about rating agencies.¡±
"It is the same MBS worth 1 million with a term of 30 years. It is impossible to unify 1.1 million. Rating agencies such as Moody's, Fitch and Standard & Poor's rate each MBS based on the original information of the lender behind the MBS. ,"
"There are relatively good reputation levels such as aaa, aa, and a. Those who can obtain these levels are users with stable jobs and higher credibility."
"Since there are good ratings, there are also bad ratings, B-level, junk level, etc., so every MBS has a reasonable price."
"The U.S. government requires Freddie Mac and Fannie Mae to only do AAA-level business, but where there is meat, there are wolves. The business they don't do, Citigroup, Goldman Sachs, Lehman, and Merrill Lynch will do."
"Bankers predict that in the face of booming housing prices, even if you find someone with bad credit for a mortgage, there will not be a big risk. If you default, you can just take the house back and sell it."
¡°The entire Wall Street is in the subprime mortgage business, issuing more subprime loans to people with bad credit, and then packaging these contracts and selling them.¡±
"In the entire industry chain, everyone hopes for a long-term business,"
"Owners can buy more houses at low interest rates, and financial institutions can lend more money, thereby generating more MBS and transferring risks by selling MBS."
"Financial institution B can buy more low-priced MBS and resell them to the world, and rating agencies can charge more for rating,"
¡°Global investors can make stable profits in the long term, and the United States can absorb more taxes and investments.¡±
"While the world is rejoicing, more and more Jacks are appearing, and there are even many Jacks who own more than ten houses. And Jack may not exist at all."
"As time goes by, more and more Jacks will not be able to repay their loans, and more and more houses will be repossessed and sold by financial institutions, causing house prices to fall. The falling house prices will cause more supply cuts, which will be vicious. cycle."
"The real Jack became a homeless man, a large number of MBS defaulted, financial institutions B lost all their money, and the governments, banks, hedge funds, insurance companies, pension funds, and individual investors who purchased MBS will all go bankrupt."
"Financial Institution A seems to have gained the greatest benefit, but in fact it has not, because the cash they earned from Financial Institution B is invested in other industries, and with the purchase of MBS banks, hedge funds, insurance companies, and pension funds , individual investors go bankrupt, they have a lot of money but they can¡¯t get it back"
"And in this process, financial institutions want to sell more MBS to make a profit. They intervene in the ratings of Moody's, Fitch and Standard & Poor's to buy their own MBS at a good price."
¡°As a result, Freddie Mac and Fannie Mae bought a large number of junk contracts. According to my investigation, more than 70% of the $5 trillion contracts they hold are junk.¡±
"Everything Yi Xiaohai said actually happened in his previous life. He is not alarmist. Everyone here can find rationality in his reasoning.
¡°If a subprime mortgage crisis does occur like Yi Xiaohai¡¯s, I¡¯m afraid many domestic financial institutions and individuals will be severely affected.
If nothing else, there are many mbs among the national pitchers.
"If the subprime mortgage crisis really happens, it will have a great economic impact on the United States, but as you said, the ultimate responsibility is for investors around the world. How can we affect the U.S. dollar?"
Yi Xiaohai explained:
"There are currently more than 8 trillion US dollars in MBS contracts in the market. They are all unreliable junk contracts. As long as the subprime mortgage crisis breaks out, the United States must rescue the market. Otherwise, Wall Street will be indifferent and the credibility of the United States will disappear. Who would dare to Investing in the United States?¡±
"They can only release water to rescue the market, and the result of the release is that the US dollar continues to depreciate. If we can give a heavier financial blow, such as an 8 trillion MBS loss on top of the 8 trillion MBS loss, the United States will probably be very badly affected. Awkward,"
"At that time, unite the world to sell U.S. Treasury bonds. Without those financial institutions, U.S. Treasury bonds will become real waste paper. By then, the credibility of the U.S. dollar will be damaged. We will unite Europe and the world to decouple oil and U.S. dollar settlements! "
The United States relies on the U.S. dollar for survival. As long as the U.S. dollar is eliminated, the United States may become a paper tiger, because all strength is based on the economy.
¡°Your plan is fine, but how do you keep financial institutions from losing money?Losing another US$8 trillion on top of US$8 trillion? "
¡°Short the property market.¡±
Before the subprime mortgage crisis, there was no means of shorting the real estate market in the world. When the short sellers discovered that the subprime mortgage crisis was taking shape, they created a new concept, CDS.
for example,
You can buy insurance when flying. If the plane has an accident, 20 yuan can compensate you 2 million yuan. If there is no accident, you will lose 20 yuan in vain.
same,
When housing prices were at their peak, short sellers bought a lot of insurance, called CDS. The content of the insurance was to buy insurance against possible plummeting housing prices.
If house prices continue to rise, short sellers will lose money on premiums.
If it falls, the insurance company will pay several times the amount.
Yi Xiaohai plans to use this CDS concept to make American financial institutions worse, and at the same time make up for his own losses.
The loss of US$16 trillion by financial companies in the United States is devastating to the entire country.
¡°If financial companies are allowed to fail and the United States begins to decline, I am afraid there will be big internal chaos.
If they bail out, they will have to rely on printing money to mitigate the collapse of the financial system.
Every time the United States issues 1 dollar, it is equivalent to withdrawing 1 dollar of liability to the U.S. Reserve, commonly known as debt currency.
Debt currency is not an honest currency based on the fruits of people¡¯s labor. The main reserve is not gold or silver, but credit.
People believe that the U.S. government will repay its debt in full and on time, and they also believe that the U.S. dollars issued by the U.S. Reserve are valuable and will not depreciate maliciously.
Now the US Reserve is printing money and releasing it, and it¡¯s still tens of trillions of dollars.
They are not only passing on domestic losses to the world, but also maliciously devaluing the U.S. dollar, which provides innate conditions for selling U.S. Treasury bonds.
Because the U.S. dollar and national debt are both based on credibility, and you don¡¯t even want credibility, then why should we blame you for paying the bill?
By then, it will cause a chain reaction.
With the multiplier effect of the U.S. Reserve issuing $1,000 of currency and the flow of market policies, it can lend $9,000 based on the initial $1,000 deposit in the banking system controlled by the shareholders behind the scenes.
The $9,000 is not real.
is created in a series of deposits and loans, and what bankers earn is the interest charged on the loans they create.
The current fiscal revenue and support of the United States are based on borrowing new money to repay old ones. Therefore, most of the U.S. tax revenue is actually in the hands of bankers.
? ? Bankers include families such as Locke and Morgan, who control the economic lifeline of the United States.
The losses of MBS and the U.S. Reserve have all come back, and it¡¯s time to rescue the U.S. economy from recession
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