After finally catching the rain, everyone returned to Yang Xing's villa. Within a radius of one kilometer, there were guards everywhere, and there was no need for anyone to peep. The group of people had long been used to the uncovered celestial style of each other, and they did not wear clothes, so they rolled down on the oversized step bed of Huanghuali customized by Yang Xing to continue talking.

This step-brush bed is an antique style, but it is ridiculously large. There are enough people lying on it. With the unique outer frame and platform of the step-brush bed, it is simply a small wooden house. Yang Xing and a few girls were lying in one place without any squeeze. He rested on his head with a pair of proud snow peaks, and walked among the mountains and ridges of the beautiful women around him with both hands. Under his body, he felt the breathing of orchids and the agile tongues of the gods. It was really a god who would not change it. But Wang Yiren touched the burn scar on his head that had not been eliminated and asked hurriedly: "We are offending both the United States and the Japanese. They are now attacking our foreign industries, so you are not worried at all?"

Yang Xing finally reluctantly moved his lips from Natasha's wheat-colored breasts, feeling the vitality and heat of her body, and replied comfortably: "Now the earthquake has begun, a tsunami that will sweep the whole world will soon form. When the waves come, they will have no time to take care of themselves and have no time to cause trouble for us. I think someone will come to me for help soon. As long as we don't panic, we will delay those problems for a while to ensure that the smoke will disappear."

Although the "Secret" band is the number one girl group in Eastern Europe that has emerged in the European and American pop music scene today, the pillars in it, Natasha and Kajia actually have another identity. They have both been secret weapons like Lin Jiana. They are secret weapons trained by the Soviet super soldiers plan. Natasha is a super-woman version of the super hacker, and Kajia is even a "electronic man" who can directly interfere with electronic devices. Therefore, they know many secrets of Yang Xing. But even they are not very clear about Yang Xing's choice to kill his opponent with real swords and guns, but use various tortuous and complex economic means to attack the other side. Now they are taking this opportunity to listen to the specific content of Yang Xing's revenge plan. They are curious to let Yang Xing use as popular language as possible to explain what subprime mortgage is and how it becomes the current big crisis?

Yang Xing could only say like a story that loans are very common in the United States, from houses to cars, from credit cards to phone bills, loans are everywhere. However, for bulk commodities such as houses, many people may only buy one or two times in their lives. As a national of the world's number one country, Americans certainly do not want to wait until they retire to own their own house, but want to buy a house when they have a job. Therefore, few people choose to buy a house with full payment, and usually use long-term loans to buy a house.

But everyone knows that Americans are unemployed and re-employed, and a basic standard for banks to issue loans is to judge whether you have a stable income and job. Some people have a fixed income or even no income for a period of time. How can they buy a house? According to the credit rating of the United States, those who do not meet the standards but have the intention to buy a house are defined as subprime lenders.

You should know that in recent years, the US housing market has been booming, and real estate developers provide a large number of houses, and the supply quickly exceeded demand. Real estate developers are unwilling to put houses in their hands. They have expanded their sales targets to subprime lenders. About 10 years ago, loan companies and banks have been advertising on TV, newspapers, and the streets, attracting many people who do not meet the loan standards to buy houses. In order to attract customers, many lenders have even launched zero down payment houses.

Soon, lending institutions achieved amazing results through rising housing prices, but new problems arise. Since real estate loans often take decades to pay off at a time, many somewhat rational lending institutions began to worry that if housing prices fell, can so many loans released be recovered? Fortunately, the United States has an advantage that other countries do not have. That is, the financial industry is extremely developed, so lending institutions have come to the leading company in the American economy - investment banks.

Investment banks are all well-known names (Merry Lynch, Goldman Sachs, Morgan). What do they do every day? They just have nothing to do when they are full, and they look for Nobel economists and professors of Harvard all day long. They use the latest economic data model to make several analysis reports. This will evaluate whether a certain stock is worth buying. The stock market in a certain country has bubbles, allowing investors to follow their baton.

This group of people who are in the risk assessment market, do you think they see that there is risks in subprime mortgages? You can see it with your feet! But they see that there is a lot of profits, so why are you hesitating? Take over! So economists and university professors used various complex data models to calculate, then asked the three major credit assessment institutions to pretend to evaluate, and then repackaged them, and they created a series of new financial derivative products - cdo (collateralized debt obligation). To put it bluntly, it is still bonds, which only allows the bond holders to share the risks of housing loans by issuing and selling cdo bonds.

If you sell like this, the risk is too high and no one will buy it. But this is not a problem for investment banks to turn the original risk level of 6, which is a medium-to-high bond. It is divided into two parts: high-end and ordinary CDO, and promises that when a debt crisis occurs, the advanced CDO enjoys the right to pay first. In this way, the risk levels of the two parts become 4 and 8 respectively, and the total risk remains unchanged, but the former is a medium- and low-risk bond. With the investment bank's "gold" tongue, the 4-level risk bonds can of course be sold for a lot of money, but what should I do if there are high-risk bonds with risk level of 8?

So investment banks came to hedge funds again. Who are hedge funds? They are the roles of short-term and selling in the financial world around the world, and they live a life of licking blood from the edge of the knife. This is a little risk! So with old relationships, they borrowed money from banks with the lowest interest rates in the world, and then bought these ordinary CDO bonds in large quantities. You should know that at this time, the world economies have adopted loose economic policies. The Bank of Japan's loan interest rate is as low as 1.5%, while the ordinary CDO interest rate reaches 12%. The hedge funds can make a lot of money by just eating the interest spread between the two.

As a result, something wonderful happened. Seeing the house prices in the United States soaring and more than doubled in just a few years, the financial institutions that issued subprime loans were smiling and felt that there would be no such thing as not being able to pay the house. Even if they had no money to pay it back, they could make another money by selling the house. They would not suffer any losses. So, the more loans they would be better!

As a result, except for those who bought houses with loans, loan banks, major investment banks and hedge funds, everyone was very satisfied. Only the investment bankers were not very happy. At the beginning, they thought that ordinary CDO was too risky, so they threw it to hedge funds. Unexpectedly, these guys made more money than themselves, and their net worth kept rising. I knew how good it would be to keep it and play with it if they had known.

It was like there was a bad meal at home. I happened to see the annoying little flower dog in my neighbor next door. I originally planned to poison it, but I didn't expect that the little flower dog would not only be fine after eating it, but it grew stronger and stronger. The investment bank stopped doing it now. Could it be that the bad food was more nutritious? So I planned to pick it up and eat it myself!

Now hedge funds are so happy. Who are they? If they have 1 yuan in hand, they can find a way to borrow 10 yuan to play with bandits. Now they can still let go with the sought-after cdo? So they mortgaged the cdo bonds in hand to the bank for a 10-fold loan, and then continued to chase the investment bank to buy ordinary cdos. Hey, we signed the agreement at the beginning, and all these cdos belong to us. Investment banks were so upset. In addition to continuing to buy hedge funds in silence, they came up with a new product called cds (credit default s, credit default exchange).

Wall Street is a breeding ground for these genius products. Don’t you think the original CDO has high risk? Then I have already taken out insurance and take out a portion of the money from the CDO as a security deposit every year and give it to the insurance company for free. However, in the future, everyone will bear the risks together. The insurance company thinks, it’s not that CDO is so profitable now, and you don’t have to pay 1 cent to share the profit. Isn’t this giving us money to us every year? It’s done!

Hedge funds think, it's good. They have been making money for several years, and the risks will become increasingly greater in the future. Just by sharing part of the profit, the insurance company will take half of the risk and do it!

So everyone was happy again, and CDs became popular! But the matter has not ended here: because the "smart" Wall Street people came up with innovative products based on CDs! First, assume that CDs brought 5 billion yuan in profits, and now I have issued a new fund that specializes in investing in CDs, that is, the fund that buys funds.

Obviously, this fund is based on the risky financial products, which are already at high risk, but I use the 5 billion yuan investment I have made as margin. If the fund suffers losses, then use the 5 billion yuan to advance. Only when the 5 billion yuan is lost will the principal you invest in start to lose. Before that, you can redeem it in advance, with a scale of 50 billion yuan.

Oh my God, is there any fund that is more enjoyable than this? A fund that is bought with a face value of 1 yuan will not lose its own money even if it loses 0.90 yuan, but every penny it is owned! When the rating agency sees this genius idea, it is simply unhesitant: give aaa rating! As a result, this fund goes crazy as soon as it is launched, and various pension funds, education funds, financial products, and even banks in other countries have bought it one after another.

As a result, the fund size may be set to be only 50 billion yuan, but no one can tell how many billion yuan is issued in the future, but the margin of 5 billion yuan has not changed. If the current scale is 50 billion yuan, then the margin can only be guaranteed that when the fund net value is not less than 0.99 yuan, you will not lose money, but investors cannot get a penny for the excess. This is also the reason why many investors want to recover their investments after the subprime mortgage crisis broke out. When many investors wanted to recover their investments, they were shocked to find that due to excessive issuance, the money they invested in the fund not only did not make a dime, but would lose a lot of money.
Chapter completed!