At this time, Du Zhilin and Tian Dongyu also looked at Wang Guanxi anxiously.

Wang Guanxi said, "Don't look at me, I can't answer, hurry up and admit defeat."

He didn't care about the winner and loser of the debate. Du Zhilin had swear to win before and left it to him. Now he was crushed and couldn't even answer the words, and it was a big ugly. Then Wang Guanxi said again: "Student Du, if you lose, you will lose, hurry up and admit defeat."

Du Zhilin's face turned green, so he had to get up and speak to Wu Zhongqian: "Student Wu, this classmate of our side does not understand economics. He can't answer, we lost."

Wu Zhongqian said relentlessly: "He has never spoken, so just let him speak."

To be honest, he also wanted to see Wang Guanxi make a fool of himself. Who told him that the girl he liked Ding Lijuan was very interested in him? Moreover, Wang Guanxi is more handsome than him, which is what he hates!

Let Wang Guanxi speak now, which is to make Wang Guanxi the last stepping stone for him today.

Du Zhilin's face suddenly turned red, he looked at Wang Guanxi and said, "Student Wang, you didn't speak today, just talk."

After saying that, he sat down with a embarrassed, ashamed, and his face turned red.

Wang Guanxi had no choice but to get up and speak, "Student Wu, I have nothing to say, and I have already admitted defeat. If you win, what else can I say?"

Wu Zhongqian smiled and said, "Student Wang, the debate is not over now. You can tell me your opinion. It's okay, speak boldly. This is your chance to exercise in life!"

Wang Guanxi sighed: "Then I will just say something randomly. If you are wrong, please ask for advice from Classmate Wu."

Wu Zhongqian smiled very happily and said, "Student Wang just say it, everyone is learning from each other. I will correct the wrong things you said."

"Okay," Wang Guanxi coughed lightly and said, "Student Wu, I don't agree with the views you said. I found that there are many illogical aspects, not in line with the national conditions of the United States, and in the United States' policies."

As soon as Wang Guanxi said this, the audience suddenly became quiet!

Everyone thought this kid would ask for advice modestly, but he didn't expect to find fault when he opened his mouth.

Everyone shook their heads at this moment!

At this time, Wang Guanxi pointed out the flaws of Wu Zhongqian's views and the illogical aspects.

"In fact, American junk bonds can be compared to a rotten apple. They are made of exquisite packaging and sold to the next investor layer by layer. Until the apple leaks out the rotten water and leaks out the packaging, everyone realizes that it is a rotten apple!"

As soon as these words were said, everyone began to pay attention and entered a state of listening.

Wu Zhongqian and Du Zhilin were completely stunned!!!

This kid Wang Guanxi has something to do!

Before that, Wang Guanxi started talking endlessly!

Loans are very common in the United States, from houses to cars, from credit cards to phone bills, loans are everywhere.

Locals rarely buy houses in full, and usually take long-term loans.

But we also know that unemployment and reemployment are very common here.

How do these people whose income is not stable or even have no income at all buy a house?

Because credit ratings do not meet the standards, they are defined as subprime lenders.

Starting about 10 years ago, when advertising from loan companies appeared on TV, newspapers, streets, or stuffed with tempting flyers in your mailbox:

"Do you want to live a middle-class life? Buy a house!"

"Don't you save enough? Get a loan!"

"Don't have any income? Find a Daniu Loan Company!"

“The down payment can’t be paid either? We offer zero down payment!”

"Worry about the interest rate being too high? We offer a 3% discount rate in the first two years!"

"I can't afford it every month? It doesn't matter, you only need to pay interest in the first 24 months, and the principal of the loan can be paid in two years!

Think about it, you will definitely have found a job or been promoted to manager in two years, and you will still be afraid that you will not be able to afford it!"

"Worried that you still can't afford it after two years? Oh, you're so careful. Look at how much the house has increased compared to two years ago. Then you can sell it to someone else. Not only will you live in for two years in vain, but you may also make a fortune! Besides, you don't have to pay for it, I believe it.

You must do it, do I dare to lend, but you still dare not borrow?"

Under such temptation, countless American citizens chose to buy a house without hesitation.

Are you worried about their debts in two years? I will tell you to American citizens who feel good about me that anyone who acts in movies can become governors, and maybe I can still run for president in two years.

Daniu Loan Company achieved amazing results in just a few months, but the money has been borrowed. Can it be recovered?

Mr. Daniu, the chairman of the company, is also a person who is familiar with the history of the US economy. It is impossible not to know that the real estate market also has risks, so it seems that this profit cannot be taken over. You have to find a partner to share the risks.

So Daniu found the leading brother of the American economy, the investment bank on Wall Street.

These guys are all well-known names (Merry Lynch, Goldman Sachs, Morgan). What do they do every day?

Even if I have enough food, I am idle. So I found a Nobel economist and a Harvard professor. I used the latest economic data model and made several analysis reports after some tricks.

This is why we evaluate whether a certain stock is worth buying. The stock market in a certain country is already bubbled.

A group of people who cheat food and drink in the risk assessment market. Do you think there is any risk when they see it?

You can see it with your feet!

But it's profitable!

Then why are you hesitating? Take over!

So economist and university professor used data models and the old three examples to evaluate them, repackaged them, and then they created a new product - cdo (Note: collateralized        obligation, debt-secured bond).

To put it bluntly, bonds are bonds. By issuing and selling these cdo bonds, bond holders can share the risks of housing loans.

If you sell like this, the risk is too high or no one will buy it. Assuming the original bond risk level is 6, it is medium or high.

So the investment bank divided it into two parts: high-end and ordinary cdo. In the event of a debt crisis, the high-end cdo has the right to pay priority.

In this way, the risk levels of the two parts have 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 "golden" tongue, of course it's a lot of money! But what should I do if the remaining high-risk bonds with risk level 8?

So investment banks found hedge funds. Who are hedge funds? They are the roles of short-selling and selling in the financial world around the world, which is a role that calls for wind and rain.

Living a life of licking blood from a knife, this is a little risk!

So with old relationships, I borrowed money from the bank with the lowest interest rates around the world, and then bought this part of ordinary CDO bonds in large quantities. Before 2006, the Japanese Bank of When loan interest rate was only 1.5%; the ordinary CDO interest rate could reach 12%, so I made a lot of money by relying on interest spread hedge funds alone.

As a result, something wonderful happened. At the end of 2001, real estate in the United States soared, and it more than doubled in just a few years.

In this way, just like the advertisement at the beginning of Daniu Loan Company, there will be no need to pay back the house. Even if you don’t have the money to pay it back, you can still make some money by selling the house.

The result is that everyone makes money from people who buy houses with loans to Daniu Loans, major investment banks, banks, and hedge funds, but investment banks are not very happy!

At the beginning, I thought that the risk of ordinary CDO was too high, so I threw it to the hedge fund. Unexpectedly, these guys made more money than me, and their net worth kept rising. I knew I would have kept it for fun.

So investment banks also began to buy hedge funds, intending to get a share of the pie.

It was like "Lao Hei" had a rotten meal at home. He happened to see the annoying little flower dog next door. He originally planned to poison it, but he didn't expect that the little flower dog would not only be fine after eating it, but it grew stronger and stronger.

"Old Hei" is so confused. Could it be that the rotten food is more nutritious? So he started eating it himself!

This made the hedge funds very happy again. Who are they? If they have 1 yuan in hand, they can find a way to borrow 10 yuan to play with bandits.

Now, can they be honest with the sought-after CDO? So they mortgaged the CDO bonds they had to the bank for a 10-fold loan, and then continued to chase the investment bank to buy ordinary CDO.

Hey, we signed the agreement at the beginning, 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 (Note: credit                                                                                                            

Then I have taken out insurance and take out some of the money from the cdo every year as a security deposit and give it to the insurance company for free, but if there are risks in the future, everyone will bear it together.

The insurance company thinks, it’s good. Now that CDO is so profitable, you don’t have to pay a cent to share the profit. Isn’t this giving us money for free every year? Isn’t it 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 things are not over here: because the "smart" Wall Street people came up with innovative products based on CDS!

Let's assume that cds has brought us 5 billion yuan in profits, and now I'm a new "sanmao" fund, which is specifically invested in buying cds.

Obviously, the risk of this fund built on a series of previous products is very high, but I used the 5 billion yuan I had earned as margin.

If this fund suffers a loss, then use this 5 billion yuan to advance it first. Only when the 5 billion yuan is lost will the principal of your investment start to lose.

Before that, you can redeem it in advance, with the initial launch scale of 50 billion yuan.

Oh my God, is there any fund that is more enjoyable than this?

A fund bought with a face value of 1 yuan will not lose your own money even if it loses 0.90 yuan, but every penny you make will be your own!

When the rating agency saw this genius idea, he didn't hesitate to give aaa rating!

As a result, this "Sanmao" is so crazy that various pension funds, education funds, financial products, and even banks in other countries have bought them one after another.

Although the initial scale was originally scheduled to be 50 billion yuan, the number of subsequent issuances is simply impossible to estimate.

However, the margin of 5 billion yuan has not changed. If the current scale is 500 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.

When time reached the end of 2006, the US real estate industry, which had been in full swing for five years, finally fell heavily from its peak, and the food chain finally began to break.

Because of the decline in housing prices and the time limit for preferential loan interest rates has come, ordinary people are unable to repay the loan.

Then Daniu Loan Company went bankrupt and hedge funds suffered huge losses.
To be continued...