An analysis report!

Analysis report on the North American housing market.

The stock market and the housing market have always been linked.

When the stock market is good, the housing market is average.

But once the stock market goes bad, everyone's funds flow into the real estate market, which will push the real estate market up and boom.

Liu Kun looked at this report strangely. The rise in housing prices in North America didn't seem too strange. Is there a need to give him a special report?

Chen Huaiqing motioned to Liu Kun to pick up another report.

"Someone has submitted such a plan to me. I think there is room for maneuver. Take a look."

Liu Kun: “Subprime mortgages!”

Normally, banks grant loans to high-quality customers, and the repayment ability of high-quality customers is guaranteed.

There is another type of customer, that is, customers who have less credit and less repayment ability.

Subprime mortgage loans are a high-risk, high-yield industry, and the interest rates on such loans are definitely higher than those on normal loans.

Just like an online loan, the interest rate can be several times higher than that of a normal bank loan.

If you can't get a loan from a bank through formal channels, you can only turn to online loans.

Online lending came later. At this time, many customers who did not meet the bank's requirements were getting subprime mortgage loans.

The subprime mortgage crisis is an economic crisis that Chen Huaiqing has personally experienced and deeply remembered. It has affected the whole world, and the whole world has not been able to catch its breath for a long time.

When I was in college in my last life, the message I saw in the news for a long time was that the job market was in recession.

Later, Chen Huaiqing also checked on the Internet what was going on with the subprime mortgage crisis and why it evolved into a global economic crisis!

The root cause lies in subprime mortgages.

When banks make subprime mortgage loans, the risks are very high and they can lead to huge profits!

The nature of capital is really fully unleashed on Wall Street. How can you make money without taking risks?

If you don't make any money, it means you haven't taken enough risks.

Therefore, many investment banks increase leverage in order to seek huge profits.

If we have 3 billion of our own funds, we will increase the leverage by 30 times and leverage 90 billion of funds to do it.

Subprime mortgages are very risky. Since we know that the risks are high, there is a saying in business called transferring risks.

Wall Street's financial market is among the most developed in the world, with many "financial innovation tools", such as CDS contracts (credit default swaps).

Using leveraged investment as insurance is called CDS.

Bank A finds another bank or insurance company B to insure its loan against default.

At this time, B will naturally conduct some investigation and calculation and find that the default rate of subprime mortgage loans in the market at this time is 1%.

Even if compensation is paid, B finds that he has gained something, so he naturally agrees.

Then C entered the market again, and B sold the CDS to C. B made a huge profit, and C started selling again, and it ended up in G's hands.

Anyway, this thing has become the benchmark for speculation.

In the end, the scale of CDS reached US$62 trillion.

If everything develops smoothly, then there will be no problem and the game can continue to be played.

But the bad thing is that house prices will not keep rising. After rising for a few years, they will never rise again.

The subprime mortgage loans themselves cannot withstand the slightest disturbance in the market. At this time, they will naturally stop repaying the loans, and banks' subprime mortgage loans will default on a large scale.

Bank A is not in a hurry at this time. It has taken insurance anyway, so it will make less money.

B is not in a hurry, nor is C. Anyway, the insurance has been sold long ago and is now in G's hands.

Faced with so many breaches of contract, can G afford compensation?

Of course, you can't afford the compensation, so you can only go bankrupt.

G went bankrupt, and the pressure returned to Bank A.

Bank A will definitely be unable to withstand the situation and will directly go bankrupt.

During the subprime mortgage crisis, many major banks around the world suffered huge losses.

Liu Kun pinched his chin: "Boss, I have to say that introducing CDS is undoubtedly an extremely genius idea."

Chen Huaiqing naturally does not intend to be Bank A, or G who will eventually take over.

He wants to do B!

"How's it going? Are you interested in coming out again?"

Liu Kun said with a smile: "Okay, it's comfortable to stay at home, but without the light of swords, iron horses and gold, I am still more suitable for galloping on the battlefield."

Liu Kun is really not short of money or anything.

Chen Huaiqing is a very generous boss. After the Asian financial crisis, Liu Kun received a large dividend.

This money is enough for Liu Kun to spend for several lifetimes.

Liu Kun bought a yacht and went out to sea twice. The yacht is now at Jinkou Yacht Marina!

Since he didn’t need it himself, Liu Kun didn’t even think about selling it, so he handed it over directly to a yacht company to take care of it and rent it out!

Bring some rent to Liu Kun every year.

In addition to personal enjoyment, Liu Kun also donated some money to his alma mater, the Weiyang Student Aid Fund, and the Huaxu Technology Fund.

It cannot be said that just as the boss Chen Huaiqing has ideals and pursuits, he also has them.

As a Chinese, Liu Kun hopes that the prosperity of China will go as planned, far beyond the Han and Tang Dynasties.

Chen Huaiqing picked up the tea cup: "Come, our General Liu, I wish you a great victory!"

Liu Kun: "Thank you boss for giving me this opportunity!"

Liu Kun found such a report in the data information database of Meta Investment, about the Wanta Project.

There is very little information circulating about Project Vantaa.

When Liu Kun was in North America, he only heard about it, but the specific content was kept secret and was not discussed at all.

However, this report contains a report on contact with Leo Vantaa, a core member of Project Vantaa.

And there are some specific operating methods of the Vantaa Project.

Chen Huaiqing left some words unsaid, but everything was left unsaid. Liu Kun knew very well that he was going to make money on the surface, but what he actually did was extraordinary.

No, I don’t have anything to do secretly, it’s all done openly, and everything is reasonable and legal.

Chen Huaiqing went to the airport to see Liu Kun off in person. He would go to Xiangjiang first to meet up with some people.

In addition to the financial elite, there is also a team of black iron security personnel.

After arriving in North America, security personnel will come over.

Black Iron Security is not the security company with the most employees, but no one dares to underestimate the strength of this old security company.

Compared with other security companies that recruit people directly from all over the world, Black Iron Security has its own training system.

Some children are trained from an early age.

Those who have a talent for learning will be sent to continue their studies, such as high school or university.

If there is no talent for learning, then give the children the choice to do security work or learn technology and become a worker in the future.

No force!

Where there is oppression, there is resistance.

Black Iron Security does not want to cultivate a group of people who are malicious to itself.

There are now many security personnel in Black Iron Security who have been trained since childhood, and these people are also absolutely trustworthy personnel.

The security personnel with Liu Kun are naturally there to protect their safety. After all, everyone knows that North America is a mess.

Perhaps, it also has a hint of surveillance.
Chapter completed!