Chapter 4976

The wedding is coming, and the financial crisis is about to break out.

"Soros, what's going on with Madoff?" Lin Feng asked.

"Hey, boss, you may not know much about New York. Now Madoff is very famous in the rich circle of New York. The money he has collected by the Ponzi scheme has exceeded one trillion US dollars. Tut tut Tut, those who lend him money are also successful people. They are all people who come through the business sea, I'm fascinated by such a simple trick. How stupid Soros had a sarcastic look on his face.

It is totally unthinkable in the West that the annual income is more than 10% and the profit is rolling. Western banks have almost no interest on deposits, and even the interest rate for Purchasing Treasury bonds is not high, which is about 3-4%. Even the so-called stock god Warren Buffett, he never dares to guarantee to anyone that the annual yield is more than 10%. The real strength of Warren Buffett is that the assets can guarantee the annual yield of about 5%.

5% is really not high, but it keeps increasing, which is very scary! We can't see it in one or two years, but in ten or twenty years, the total assets continue to increase steadily every year, which is very frightening. That's the way to Warren Buffett's success. Of course, Soros never envies Warren Buffet. He and Warren Buffet are two kinds of people. Buffett advocates steady investment, while Soros advocates speculative investment. What he pursues is the stimulation of getting rich overnight.

As a matter of fact, when Soros was rich, he would not be short of money for a long time. More money and less money had no effect on his life. A person with billions of dollars in assets, more money and less money, for him, it really makes no difference. And he is also so persistent in investment, it has nothing to do with personal wealth, purely to meet the needs of self success.

"Can he still play like this?" Lin Feng was surprised.

In Lin Feng's memory, Madoff cheated tens of billions of dollars into his "Ponzi scheme" at most. As a result, he cheated tens of thousands of yuan this time because of his horizontal stick. This is crazy.

"Tear down the east wall and make up the west wall!" Soros sighed. Soros despised the people who foolishly lent money to Madoff. However, Soros appreciated, sighed and felt a little empathy for the scam maker.

Soros appreciates Madoff because he can set up this scam and let so many bosses willingly be cheated. That's his ability. You know, "Ponzi scheme", that is not all people cheat. Ordinary people can't get in if they want to. If you want to cheat them, they won't cheat. He only cheated those super rich people, ordinary people, including the middle class, and he didn't pay attention at all. This is not only because it is easier to cheat the rich, but also because it is shameless to cheat the poor. The so-called thieves also have their way. Madoff is a liar, but not a liar who has no bottom line or lower limit.

It's very simple to cheat those rich people. If they lose their money, it will not have a great impact on their normal life. They can't buy all kinds of luxury brands and enjoy luxury life. But the comfortable life of the middle class is no problem. If we cheat the poor, the money is their hard-earned money and their life support money. If we cheat them, we will force them to die. Soros is extremely disdainful of such cheaters who cheat the poor.

As for Soros, the financial crisis led to the bankruptcy of the poor in Asian countries, which was not Soros's original intention. It was the financial market problems in these countries. Even if he doesn't, these poor people will still be strangled by other financial giants. Of course, he did not deny that he was the executioner.

As for what he laments for Soros, it is that Madoff has been doomed to a miserable ending. And it will be miserable! This time, it will be really miserable! The reason for his empathy is that he understands why Madoff set up such a Ponzi scheme. It is not because of money.

Doesn't Madoff have money? As a former chairman of NASDAQ, his wealth is also extremely amazing, and he is also a billionaire. He has money, and his life is not worried about money at all. There is nothing in this world that he can't enjoy. But since he became chairman of NASDAQ, he has lost his former bright life. This makes it extremely difficult to adapt. After many people come down from high position, they can't accept the mediocre life and can't adjust their mentality. So is Madoff.

He Soros is not so, he follows Lin Feng, it is not because he is unwilling to be lonely. Is he short of money? There is no shortage, but what he lacks is the thrill of being powerful in the financial world. What Madoff wants to get is the feeling that people are looking around and the stars are shining.

"Well, what's the matter with our bonds?" Lin Feng asked.

In order to make money this time, naturally, Lin Feng bought enough bonds.

How did the subprime crisis come about? Naturally, those commercial banks and investment banks in the United States transfer all kinds of loans from their customers at a slightly lower price. What do you mean? That is to say, you borrowed 100 yuan from me and promised to pay me 110 yuan after one year. Now, I will make it into a bond or a contract at the price of 106 yuan and transfer it to a third person. For me, although I earn 4 yuan less, but my funds are returned in advance, so I can borrow money to more people.

And the third person, who bought a 110 yuan contract for 106 years, can easily earn 4 yuan a year. But he also felt that it had been a long time, so what to do? He sold it at the price of 107 yuan! In this way, he doesn't have to pay any money and can easily change hands to earn 1 yuan. The profit is not high. It's only 1%. But it's very simple. You can make 1% easily by doing the work of a passer-by. If you have a large amount of money, the profit will be high.

And then the fourth person, who has been doing the same, has been reselling like this. Until the profit is not enough to support the continued sale, he can only hold it in his hand and earn the profit he deserves when the time expires.

It's strange. Why are they willing to buy? It's simply a matter of market resources. There are many people who have money but no investment direction. This kind of thing can easily make money, and it seems that there is almost no risk. Why not do it? Why not? There is no reason not to make money! In this world, does anyone think money is too little?

There is nothing wrong with this way of financial operation. This is also a way for companies to pass on risks. But there is one problem, the most basic one, which is the repayment ability of the "you" in the beginning.

If it's due and you can repay it, then everything is OK. The game is over and the second round can start. But what if you can't pay it back? Then the financial game will collapse, and there will be problems. Once you can't repay it, the company that receives it will not receive money, and their money will be lost. It's OK to lose a sum, but if they lose a lot, they can't bear it and they will go bankrupt. They go bankrupt, they have companies behind them, and they will go bankrupt as well. This is the domino effect.

Because from the very beginning, all the money was borrowed out of thin air. Once one link goes wrong, all links will collapse. This is the simplest source of the subprime crisis.

Of course, the outbreak rate of this sub-prime crisis was very low. After all, people who made financial games considered the risk of financial turmoil. But when it began to pursue interests, and desperate, the game changed.

The subprime crisis is caused by real estate. Those who can't afford to buy a house for the time being borrow money from the bank in order to buy a house. In the middle of this, there is a question of qualification. Originally, it was very rigorous and would test the borrower in many ways. Therefore, the initial estimate is that about two or three out of 10000 people will be unable to repay.

But among my 10000 people, the money I make is far more than the money I lose. Then I can take the risk. But in the pursuit of interests, those real estate agents directly ignore the qualification examination. As long as you are willing to buy a house, we will help you borrow money from the bank to buy a house. After all, for real estate agents, their job is to sell houses, and the more they sell, the better. As for whether you can repay the mortgage as promised, it's not their concern.

When it comes to banks, the following aspects of bank credit audit, in order to pursue performance, coupled with the complicity of real estate agents, naturally approved loans easily. With or without qualifications, with or without the ability to repay the loan, you can easily borrow the loan and enjoy the house far beyond the previous imagination. This crisis is buried.

Of course, if only this, it will not cause too serious subprime crisis. The real crisis is Wall Street. The U.S. financial market is extremely active, stocks, futures, heavy metal trading and so on, all kinds of transactions dazzling, you have dozens of ways to make money. As long as you have money, you have too many ways to make money. And what if you don't have the money? It's simple. Mortgage the property. Even if you borrow the property, you can still repay the loan. You can borrow in the United States, and it's very easy. Moreover, the real estate is not always on the rise. The house price is rising. The Ministry of credit will reassess it and raise the price slightly, so you can borrow more money. You can make money through the financial market and repay the mortgage. Even say, you can empty set white wolf, a penny does not spend to earn a house.

You say, how tempting! Will no one be willing to gamble?

This money into the financial market, naturally stimulate the financial market. This naturally allows more people to join the game. But in the final analysis, the financial market itself does not produce money, some people make money, some people lose money.

Now, who is losing money? Madoff! He is losing the most at present. Once he breaks down, it will bring chain reaction! Because his money is borrowed! And trillions of dollars!