Chapter 372

"Let everyone have a chicken in the pot and a big house to live in." ——Roosevelt planted the American dream, which made Americans have an irresistible obsession with housing and real estate.

For more than 50 years after the great depression, the economic path of the United States was cautious. Until around 1990, Washington decided to restore its economic prosperity.

By deregulation of various savings and loan companies, the U.S. financial industry ushered in the second Chun, when Wall Street investment banks could be listed.

And the government began to encourage people to buy more houses, stimulate domestic demand, stimulate economic growth, and banks tried to reduce or exempt down payment requirements, such as adjusting interest rates, installment payments and so on.

Many fledgling speculators rushed into the real estate industry, and the real estate boom began to rise.

In order to promote the development of the real estate market, the old American government even stipulated that selling houses is exempt from capital value-added tax, up to 500000 US dollars. This move has greatly boosted the rise of rooms, at the same time, in the American concept, the real estate market has a bright future. Real estate developers began to trumpet on TV programs, trying to convince people that investing in real estate is the only way to get rich.

At that time, whether it was Jing Ying on Wall Street, businessmen looking for tax havens, or gentlewoman and ordinary white-collar workers from the upper class, they swarmed into the real estate industry, and they wanted to reach the peak of their lives by flipping houses.

(ha ha, do you feel familiar?)

Even so, the government feels that the incentive to purchase houses is still insufficient, and the government has issued many laws, even laws and regulations. If the bank loan does not reach the amount stipulated by the government, the bank will be fined.

In order to complete the loan quota stated above, the bank began to provide loans like some marginal buyers with credit problems, that is, the legendary subprime loan, the bank lending loan standard, not to confirm the borrower's income certificate, but also invented various ridiculous playing methods, such as the loan without property certificate, the loan without proportion restriction, the loan without documents and documents, and so on.

Stimulated by various policies of the bank, house prices began to rise in a straight line again. At that time, neither the government nor the people expected that they were on a path of no return.

How smart are the bankers on Wall Street? In order to make more money in the middle, they have invented a lot of highly toxic financial instruments, such as mortgage-backed securities. Well, in short, leverage.

Anyway, the more money the bank borrows, the higher the leverage. Andy used to be basically in a small white state for finance. However, after several months of self-study and reading a lot of related professional books, he also has his own understanding. For leverage, one of his most recognized words is that leverage can sometimes make people go to heaven, but it is easier for people to go to hell!

so, the first big bubble in American real estate history has officially started, and it has been going on for more than 10 years, until now in 2007. The Internet bubble burst in the US stock market in

2000, and 911 in 01 years led to a downturn in the US economy. The Federal Reserve lowered interest rates several times in order to reduce unemployment and revitalize the economy.

After the interest rate is reduced, the yield of traditional fixed income products such as bonds is very low, the stock market is also in a downturn, hot money has no place to invest, it is not good to rush the rich into real estate.

House prices started to rise again, and there was no pause. Hollywood stars, Stallone, blockbuster Wang cage and so on. Well, Andy's three women are also part of this tide. Theron, Lima and Johnson. At the same time, in the news reports, various economic and investment experts have raised their cards to show their views, telling everyone that house prices will not fall.

People, hehe, are all social animals. Some social factors have a great impact on us. Since the media has been trumpeting that house prices will not fall, and the government has not taken any measures, most people who have the herd mentality will believe that house prices will not fall.

The number of small loan institutions is increasing rapidly, the market is good, real estate has become the main theme of Americans, although the high prices are frightening, but the hot money of house buyers is still rising.

the real estate bubble is bigger and bigger. The Federal Reserve is aware of the seriousness of the problem. But it is also afraid to act easily. The truth is a beautiful and terrible thing to know. You need to be very careful.

From 2004 to 2006, the Federal Reserve cautiously raised interest rates in small steps, but it was useless. Although raising interest rates suppressed inflation, long-term housing mortgage rates were still falling.

Andy puts down his coffee cup and rubs his brow.

A crash that can't be covered is finally about to begin.

Since July last year, the pace of house price rise has slowed down, and even began to decline in many areas of the United States. Although there are few homeowners who noticed the warning signal in the early stage, there is no lack of sharp people in the market.

In the following time, there will be many active speculators who will quickly start to cash out and withdraw from the market, and Andy's waiting for the curtain of terror will be opened.

The fall of house price will lead to the break of the whole chain. The people who used to buy houses with subprime loans will pay more and more debt, the credit default rate will rise sharply, the house price will fall again and again, and the people who bought houses with subprime loans can no longer exchange money by selling or mortgage houses. In this way, more and more subprime buyers have no money to repay their loans, and the loans will become bad debts.Now, the market situation has begun to deteriorate, and many people have become homeless. Because of the economic burden, they are destitute, unemployed, have no money to pay for housing loans, have no money to build houses, and can only live in tents.

In the near future, a large number of bank failures, corporate bankruptcies, stock market shocks, all walks of life, no one survived.

The subprime crisis caused by real estate will eventually spread out of control to the world.

(although the national conditions are different and there are great differences in all aspects, we should take precautions in advance.)

There are always amazing similarities in history. When we open up the world history, we will find that human beings are used to falling over and over again on some things that have been taught. Why?

The greed of human nature, so it's hard to say anything to work. It's a common habit of human beings to forget the pain after the scar. When the crisis comes, why doesn't Andy do his best to give an early warning? Or in their own purposes, after holding a large number of CDs, stand up to sing down the real estate market, let people be alert, can also achieve the early trigger crash, why not do so?

Hehe, even the Federal Reserve dare not come hard. Who is Andy Smith? The power of advocating the real estate bubble is not contended by one person or any organization, or even a few. No one can stand up to be a "hero" if there are some combinations of forces such as the government plus banks and Wall Street.

Andy is not such an idiot. He has been making layout since the beginning. He hopes to take a low-key bite in this feast. If he doesn't make the first bird, the whole world will know that silly 13 will shout.

The subprime crisis under the real estate crash, the bank collapse tide under the subprime crisis, and the gold boom under the depreciation of the US dollar...

This kind of chain reaction of pulling one hair and moving the whole body is what Andy is waiting for. He just feels that the time is a little hard. Why not hurry up, Savior, ah bah!

Under the gray sky, Andy is wearing a dark blue coat, walking on the 500 meter wall street, standing in front of the bronze bull sculpture representing wealth, exhaling a breath of heat, the corners of his mouth cocked up, showing a cold smile, looking at the people passing by.

"Click."

"Boss, it's taken." Torre walked quickly to Andy, handed him the digital camera, and said softly.

Andy took the camera, looked at it, and said, "let's deal with it, increase the depth of field. Except for me and this cow, the other scenes are virtualized, and then zoomed in. March 1, today is a memorable day!"

"OK, boss, where are you going next?" The little assistant took the camera and closed it, put it in his bag, looked at the big devil's big body and wide back, and asked softly.

"I'm hungry. I'll find a restaurant. I'll have beef, blood..."

Andy looks back with a charming sunshine smile.