Chapter 1855

Hawke was a tramp. He was violent, XD, fighting, had no parental care, and didn't like reading. Finally, he wandered the streets in his 20s and became a tramp.

Hawk thought he would spend his whole life on the street.

But unexpectedly, Haoke had good luck. In 2004, he met a housing manager. After hearing that Haoke had not bought a house, the manager immediately enthusiastically invited him to apply for a housing loan to buy his own house through a loan.

"I have no job and can't pay back the money!" Hawk refused at that time!

"There's no problem with this. We have a new policy. First, we support zero down payment loans. Second, we don't need to repay within six months after the loan," the other party said.

"But I can't afford to pay back in six months. I don't have a job at all!" Hawke thought the man in front of him was a fool.

"No problem, these six months are enough to complete the house purchase contract and raise the house price!" the manager said hurriedly. "At that time, you can mortgage the house to another bank and get a huge loan from them."

"Is this really OK? My house should have been mortgaged in the hands of loan institutions! How can it be mortgaged to another bank?" Haoke asked puzzled.

"No problem, it just needs some financial means and bypassing some rules... You can rest assured that everything can be done with us!"

"You can use this loan to repay your mortgage and start a business with this money. Now the economy of the United States is so developed. A black man selling Chinese snacks on the street can earn $5000 a month. As long as you have this money as your starting capital, you can give full play to your wisdom and talent and become a rich man like Jia Yapeng!" manager humanist.

"As rich as Jia Yapeng!" Hawk swallowed his saliva. Like Bill Gates, everyone's goal now is Jia Yapeng.

There's no way. Jia Yapeng's experience is really inspiring. A boy who came out of a poor country and didn't have anything started by selling instant noodles and finally grew into the world's second richest man (boss Jia was still the second richest man in 2004), which has inspired countless young people to start businesses like boss Jia, so that tens of thousands of different instant noodle brands are added around the world every year.

Haoke believed. He thought he was so smart and strong. The reason why he was so bad was that his parents were too bad to make an investment.

Now that you have the first gold, you can make a fortune!

So Haoke applied for a loan and bought his own house in the suburbs of New York, and then mortgaged the house under the operation of the manager.

The total price of the whole house, including loan interest, is $2.8 million. Six months later, the mortgage was paid back $2.5 million, which is really very cost-effective. Hawk turned into a millionaire in the blink of an eye!

After getting $2.5 million, Hawke took out $1 million to start a business while repaying the loans of previous years without pressure.

As a result, he failed to start a business because he couldn't stand complicated work, couldn't calculate all kinds of data, and he often delayed business due to XD. All $1 million was gone.

Then Haoke found that entrepreneurship is too tired. Instead of starting a business, he might as well take the rest of the money to enjoy life. By the way, XD, so that the money can last for two years instead of losing it all in half a year.

As a result, the time slowly came to 2006. Haoke spent all his dollars and sold out all the valuable furniture and household appliances in his house. Haoke simply returned to the bottom of the overpass.

That manager sweated to find Haoke and asked Haoke to repay the bank loan.

"I have no money!" Hoke patted his ass and said, "you can check. All my accounts have no money. I will continue to wander here now. If you think cutting my meat can offset the loan, you can cut it!"

Seeing the rogue appearance of Haoke, the manager understands that the other party really has no money to repay. The most fatal thing is that even if he uses all means, he can't squeeze money from this rotten man.

"Then we want to take back the mortgaged house!" the manager said solemnly.

"No problem!" Hawke grinned. "But you have to hurry up. As soon as the loan company in the back goes in to collect the house, if you are late, the house will be gone!"

Not to mention how the two loan companies competed for the house, Hawke was very happy anyway. Although his house was gone, he enjoyed $2.5 million. In the end, he just returned to the state of wandering again. This wave of steady profits!

This is a true story and one of the microcosms behind the subprime mortgage crisis.

The worst people are the first to break the contract, because they have no money and live a vagrant life on the roadside. So even if they bear a huge debt of up to several million dollars, it is enough for them to live the same life, wander around the streets, get food stamps every month, and then use them to get some cheap food in exchange for their own food and clothing!

If someone wants to kill them, it doesn't matter to them. In fact, they are just a group of poor people who dare not commit suicide. They have nothing to miss about life.

This is also the reason why a number of loan institutions closed down in 2007. These institutions are the most open and have no bottom line in subprime loans. They constantly sign loan contracts with all kinds of rotten people for temporary interests.

Then there are bad debts and losses of tens of billions of dollars. It is impossible for bad people to repay the money. This account can only be swallowed by financial institutions themselves.

These banks also have their own way, that is, directly declare bankruptcy. As long as they fail, all their debts will not have to be paid off.

Some are even more extreme. They directly apply for financial support from the Federal Reserve. They open their mouth with hundreds of billions of dollars, because if they go bankrupt, the whole American economy will explode.

Anyway, the larger the scale, the more loan institutions lose, the more indifferent it is. Anyway, the government has the bottom.

In fact, the government also revealed the bottom, so the several closures in 2007 did not trigger a comprehensive crisis, and even the stock market was very hot.

Until 2008, because a large number of borrowers gave up their houses and defaulted directly, a large number of houses sold were vacant, and banks could auction to find buyers.

A large number of houses entered the market through auction channels, which directly led to the collapse of the whole real estate price. From January to June 2008, the average house price in the United States fell by about 30%.

Those buyers who could barely repay the mortgage found that the sharp decline in house prices outweighed the losses, so they directly gave up repayment and chose to default.

A tsunami came.