Chapter 1670

At this time, the housing loan financial company market of the United States has shown some crises, but they have been resolved by the political axe of the United States. How did they resolve it? Very simply, adjust the interest rate.

Since last year, the Federal Reserve has been constantly adjusting interest rates and rising. From one percent to five and a half percent.

The rise in interest rates means that the incomes of these mortgage finance companies and banks are rising, but the pressure on those who repay the loans is several times higher.

Under normal circumstances, the interest rate of loans is higher than that of deposits, which is also one of the main sources of bank income, i.e. attracting deposits and lending.

What else does rising interest rates mean? It means that those who could normally repay the mortgage can't afford it now.

The intervention of those mortgage financial companies has given many Americans the opportunity to buy houses, so that they can buy houses with loans even when their credit is not enough and their repayment ability is worrying.

And there is another model, that is, the monthly principal repayment is the same, but the interest is adjusted with the adjustment of the bank.

When the bank's interest rate has been raised several times, many people's interest to repay has also been raised several times, which greatly increases their burden.

Some people who could afford to pay back the loan can't afford it now. Once the house price rose rapidly, so even if these people can't afford the loan, the company can still auction the house without losing money, and the customers can't lose money.

But now the rate of house price rising is not as fast as the rate of interest rising, which means that customers are losing money now, and mortgage finance companies are also losing money.

Under such circumstances, the US government decided to let the Fed cut interest rates. Although the Federal Reserve is not a political axe, it has certain influence.

Unfortunately, it's too late. Many loans have become bad debts.

As the second superior loan company in the United States, the new century financial company, has issued too many loans. And in order to promote efficiency, they have issued loans to many people who did not meet the requirements at all, some of the collateral, or even repeated collateral.

Many people's income situation, should not be able to loan successfully at all, you earn $1000 a month, to repay more than $900, it seems that there is still wealth, but the normal loan, the income is required to more than double the repayment amount to be more secure. And the remaining money should be enough for each other's life.

How to live with tens of dollars left in a month? Not to mention in the highly developed countries like the United States, even in some countries with average economy, they are not enough, and prices are there.

And many people are still short of money, and the new century financial company has come up with a "good way" to change the loan mode. You can choose the loan method again, and the repayment method will change naturally. In this way, it can solve the problem of many people's repayment difficulties.

But it's just a cure for symptoms, not for root causes, or even for drinking poison to quench thirst. As a result, financial companies are losing more in the new century.

The financial company of the new century is also a company with rapid development. It was founded in 1995 and listed in 1997. In 98, the Asian financial turmoil affected the world, especially the collapse of the real estate bubble in Asia.

But at that time, the scale of financial companies in the new century was not large, and successfully avoided this risk, and then, the development became more and more rapid.

When xiaobushi came up with this housing plan, most of the real estate financial companies have developed rapidly, and the share prices of many companies have also risen rapidly.

but in 02 years, Feng Yu launched the Internet bubble in the United States earlier. In particular, it exposed the false accounting methods of WorldCom and Enron, which made the entire stock market and even the stock market of the world suffer heavy losses.

At that time, the development of financial companies in the new century was still faster. But it was also at that time that Fannie and Freddie also broke out in a fake account scandal.

But what's interesting is that the scandal of Fannie and Freddie is not that they inflated their profits, but that they lied about them!

At that time, real estate profits were very high, and the two housing groups also made a lot of money. However, in order to pay less, pay less taxes and other reasons, the two companies concealed many profits.

This gives a signal to many people that the real estate financial industry is making too much money now. After concealing the profits, it still makes so much money. As a result, more and more people began to enter the real estate finance field, want to make more money.

At the same time, the stock price of financial companies in the new century is inevitably affected by the decline, but the decision makers of this company think that the market underestimates their stock price, and then they work together with several companies with the same subprime loans, so that they become real estate investment trust companies, hoping to attract more investors with higher dividends.

In short, this new century financial company doesn't have much money at all.

But they dare to lend, and the review is very low, and even the review is to go through the field, let them lend the amount, rapidly expand, seemingly very prosperous.Bank lending, you go to the bank to handle, and most need to line up, but also review what, very complex. But in new world finance, these processes are not needed at all.

They all use brokers. Even many brokers don't even have offices. They work in their own homes. As long as there is a phone call, the brokers will provide door-to-door service, which is more considerate than the banks.

In the new century, the financial company, just like this, has grown rapidly into the second-class mortgage company in the United States. In more than ten years, the market value of the company has soared from one million dollars to more than three billion dollars!

The company is also very relaxed for brokers, many of whom take paid leave for up to half a year, even including many executives.

Under this kind of operation, the hidden danger of financial companies in the new century is also growing. Many people simply cheat and loan, and the company has more and more bad debts.

The company's financial audit company has already found these problems, but they have always chosen to hide them. Once the shareholders know that the company has lost so much money, the company is over.

This kind of financial loan company should have sufficient cash reserves, but this company does not. So as long as the news is released, the result is doomed.

Feng Yu looked at the information that Ralph had handed him. He didn't expect the company to lose more money than he thought. And it's not just the financial companies of the new century, the same companies, there are many, all the same.

Feng Yu put down the information: "Ralph, tell them that the plan can start!"

……

PS: the title of the previous chapter is wrong. The content has been modified. Don't worry. Just reload it. I've already told Winnie to help modify the chapter name (to be continued). )