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Text Chapter 1972 Chaos (Part 1)

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    It¡¯s pretty much the same history as the previous life.

    On August 15th, U.S. time, although it had just arrived on Monday, the two largest state-owned mortgage companies in the United States, Fannie Mae and Freddie Mac, finally couldn't hold on anymore and made public statements about huge losses.  , requesting financial assistance from the federal government, otherwise it will involve the collapse of the bond market worth tens of trillions of dollars!

    They can¡¯t hold on any longer.

    From February to now, the stock prices of Fannie Mae and Freddie Mac have fallen by a total of 70%, tens of thousands of dollars of assets have evaporated, and they are only a few centimeters away from bankruptcy.

    The Federal Reserve also issued a warning that if the federal government does not intervene, Fannie Mae and Freddie Mac may really bring down the entire U.S. economy and plunge the U.S. economy into darkness.

    As mentioned before, Fannie Mae and Freddie Mac are companies that specialize in mortgage loans for low- and middle-income people in the United States. They are also companies in charge of 70% of the issuance and circulation of U.S. bonds. They are basically the Federal Reserve of the bond and mortgage industry.

    ??It can even be said that the Federal Reserve is a private enterprise, but they are a serious government-sponsored enterprise and can themselves be regarded as government agencies.

    Fannie Mae and Freddie Mac¡¯s remarks about huge losses are not as simple as those mortgage companies, financial companies, Bear Stearns investment banks, etc. that collapsed before, but they are real hard currencies.

    ¡°If the two of them fail, basically U.S. home mortgage loans will be finished, and other countries and companies that have bought U.S. bonds will be completely dumbfounded.

    In fact, after they were unable to support themselves and there were rumors that they would be placed under government custody or directly declare bankruptcy and delisting, all investors and governments around the world were scared to death.

    Global stock markets, which were already very fragile, immediately fell in response, especially those companies that bought Fannie Mae and Freddie Mac bonds, all wailed.

    For example, Japan's Mitsubishi Financial Group held more than 30 billion U.S. dollars in Fannie and Freddie bonds. Early the next morning, it fell by 21 at the opening. It was absolutely panic-stricken.

    Then there are banks such as Mizuho and Sumitomo Mitsui, which are also involved.

    Not only Japan, but also South Korea, the United Kingdom, Germany Commercial banks and fund companies in developed countries that you can imagine are all involved to a greater or lesser extent.

    Not only operating companies, but also the governments of various countries that hold U.S. Treasury bonds, such as Japan, South Korea, the United Kingdom, Australia and other countries, are also crying for fear that the bonds in their hands will become a pile of waste paper tomorrow.

    China¡¯s banks and financial investment institutions also hold more than 30 billion US dollars in bonds from Fannie and Freddie.

    But if you take a closer look, most of these institutions are small and medium-sized investment institutions, and only three major banks have been involved: Minsheng, China Everbright and CITIC.

    The Fannie and Freddie bonds in the hands of China's four major commercial banks, including Zhongnong Construction Bank, plus China Merchants Bank and Bank of Communications, were slowly sold off three months ago without any loss at all.

    Huaguo State Investment's US$376 billion in bonds have already been secured, avoiding the loss of being taken advantage of.

    After hearing the news, Niu Ruzheng opened the phone and called Xiao Qi, saying thank you very solemnly.

    Xiao Qi understood that Uncle Niu¡¯s thank you was not because he thanked Xiao Qi for making him a great contribution, but because he thanked Xiao Qi for helping the country avoid huge losses.

    Without Xiao Qi, not only the US$376 billion of SDIC would not be able to escape, but also the nearly US$100 billion in the hands of the six major banks would not be able to escape. With so much money, we have worked hard to provide OEM services and make low-cost products for others.  Every penny accumulated from the factory¡¯s products is a result of hard work. I don¡¯t know how heartbroken it would be if it were all reduced to nothing due to the financial crisis.

    After reincarnation, in addition to developing the smart electronics industry and making himself rich at the same time, Xiao Qi's greatest achievement is to avoid a lot of losses to the country and the people.

    ??Don¡¯t think this sentence is too high-sounding, but it is actually like this.

    When a person's wealth reaches a certain level, his sense of responsibility will arise spontaneously, and he will definitely do something that can help more people.

    While he was happy, Xiao Qi was also a little frightened.

    Although this crisis happened in the United States, the damage to the whole world is not that serious. It can even be said that the United States is unlucky, and the whole world is unlucky with them.

    Subprime debt is the first wave, and U.S. bonds are the second wave. Two attacks have caused heavy losses to financial institutions around the world. Many have been damaged, and more than three or five banks have collapsed.

    But all this is not over, Lehman Brothers collapsed in September!

    GlobalIt was also under this circumstance that the economy fell into a severe crisis, so that the high-welfare countries in Europe lost their cover, and a more serious sovereign debt crisis broke out.

    As a result, the world's economy has fallen into the most serious recession since the Great Depression in the 1930s. Even in 2013, when Xiao Qi was reincarnated, there was no sign of improvement.

    There are many reasons for this, but Wall Street¡¯s fueling of the situation is definitely a big black hand.

    Needless to say, subprime debt is a financial derivative invented by Wall Street. When the economy is good, it is a good thing with high profit returns. Once the economy declines, it becomes a fatal poison.

    And the current predicament of Fannie Mae and Freddie Mac in the United States also has a lot of Wall Street factors.

    Fannie Mae and Freddie Mac were established to issue housing mortgage loans. They were government-operated projects. Wall Street used subprime debt to mess up the procedures and rules of housing mortgage loans. In the end, many people who were not qualified went to Fannie Mae.  American and Freddie Mac mortgage loans have incurred large amounts of bad debt.

    This cannot be said to be that Fannie Mae and Freddie Mac are stupid.

    The personnel of Fannie Mae and Freddie Mac are guaranteed income in droughts and floods, so it is obvious that they have little resistance and analytical ability to the complex financial products developed by the smartest elites on Wall Street.

    Then, after the subprime mortgage crisis broke out last year, Fannie Mae and Freddie Mac were called on to play a role in stabilizing the real estate market. Now Fannie Mae and Freddie Mac bit the bullet and acquired or guaranteed 81% of the real estate market.  Mortgage-backed securities are prepared to weather this crisis.

    But if you think about it, the mortgage-backed securities sold at this time are the worst assets in the hands of those financial institutions, and they are a hot potato that is eager for someone to take over.

    When Freddie Mac and Fannie Mae reach out, they are destined to foot the bill for those financial institutions.

    Originally, I was already in the serious injury stage, and I still had to pay for those greedy Wall Street financial institutions. It would be strange if Fannie Mae and Freddie Mac didn't fall into a huge loss crisis!

    From this we can also see how greedy and unscrupulous Wall Street is.

    They are not just trying to trick foreigners, they are also trying to trick the United States!

    This fully illustrates a truth: in the eyes of greedy Wall Street, there is no motherland, no enemy or friend, only lambs to be slaughtered.

    It¡¯s no wonder that in the past few years, many ¡°Occupy Wall Street¡± movements have broken out in Congress across the United States, all of which were forced by these bastards!

    Of course, Xiao Qi is not a compassionate saint. He only worries about the situation of Chinese people. He even enjoys seeing the decline and misery of other countries, especially European and American countries.

    The reason is very simple. The first pot of gold that Western countries developed was obtained by plundering China.

    It can be said that they are able to have a good life today because of the foundation laid at that time.

    It¡¯s time to cooperate with Wall Street and collect interest from them.

    "As for how to deal with Western countries without letting them grasp the situation, it depends on the means.

    Xiao Qi did not get involved with the Eurozone's CDS last time, which is a credit default swap insurance product. The reason was that it was too conspicuous. Only the bold guys on Wall Street could blatantly badmouth a country's economy.  do it.

    But Xiao Qi still had to participate in the cake-cutting process.

    The opportunity lies in plundering the assets of European banks.

    A country¡¯s continued financial collapse must begin with the banking industry.

    After the debt crisis broke out in Europe, their banking industries suffered an unprecedented blow. Except for the three major countries of France, Germany and the United Kingdom, almost 80 banks in other countries fell into bankruptcy. As a result, the entire euro zone almost collapsed.  .

    , also made a cry-like appeal at the EU General Assembly: "We have finally reached this point. We must resist and work together, otherwise Europe will become a mess again."

    However, Germany is destined to fail.

    Because they not only have the United States, a bad boss who is unwilling to see European unity, not only do they have polar bears that are in confrontation with the entire Europe, but they also have a "good ally" that has been dedicated to causing trouble for 500 years - Great Britain!

    As early as the Louis Dynasty, Britain began to incite Europe to fight against each other.

    And this was even more true during the Napoleonic era. Anyway, as long as Europe became stronger, it felt uncomfortable and wanted to make them miserable. It was best to work on their own and then win by themselves.

    What Xiao Qi did wouldn¡¯t be too obvious.

    HeThere is no need to follow the lead of the United States and the United Kingdom and attack the banking systems of major European countries. In this way, huge economic benefits can be obtained, Europe can be weakened, and it can be avoided.

    Making a fortune in silence is what a smart person should do!  r1152
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