Extraordinary Genius

1664. 1664 Chapter Subprime Mortgage Crisis

Feng Yu woke up from his sleep, the plane was about to land, and he came to New York again.

Wind & Rain Consultation has bought a lot of shares in the company’s real estate Corporation, this time he came to see when it is most appropriate to sell.

Many people in the past have known that the country has experienced a serious subprime mortgage crisis this year, and it has quickly spread to the global financial industry. Most people think that it is a two-room group.

But in fact, there are already some clues now, and the real fuse is the second largest subprime mortgage institution in the United States – the New Century Financial Corporation.

What is a subprime mortgage? That is, the country has divided the personal credit rating into five grades. The first and second grades of credit are excellent and good, and can be used for preferential loans. The remaining three credits are lower, and only subordinated loans can be used.

To put it bluntly, subprime loans are loans for those who have poor credit and low income.

Many people know that people in the country like to live on loans. Various bank loans, credit card swiping in advance, etc., they think that life is very good, and enjoy life in their lifetime.

And China’s mode of saving money and then squandering money and then spending it is very ridiculous to them.

Because of many products, when you have enough money, it has already increased. The price increase may exceed the bank interest. Then why not borrow money, which can reflect the enjoyment of a better life, and maybe save money.

But this is also very ridiculous, because many products, over time, the price is reduced, which means that the product purchased is devalued.

Then you have to pay a high interest rate for this product, and naturally you will lose more. Admittedly, you enjoyed it in advance, but it may have put this burden on you for the rest of your life.

Unless you just need it, living like this, in the eyes of many Chinese people, is the act of losing money and being a loser!

Many Chinese people don’t dare to lend, but they are afraid that they will not be able to get it, but the loans in the country are very bold. What if they don’t? Simple, borrowing money from another bank, isn’t it worth the money?

Two credit card sets are brushed, and the time difference between them is one month, so that one more month to make money, you can repay the money.

In theory, this is the case, but what if you don’t make enough money? Originally borrowing 10,000 yuan, only need to return 10,200, but if you borrow another 10,200 from another bank, then you have to pay more.

After brushing through multiple credit cards, you will find that the original 10,000 yuan has become one and two, and is still growing.

As long as one bank thinks that your repayment time is too late and you clicked on it, the plan for the set of brushes will be aborted. The person who borrows may use other assets to offset the debt. If you still can’t, you can only choose bankruptcy protection.

It seems that bankruptcy is a kind of protection for you. You can’t wait for the money, and you don’t even have to pay it back. However, during bankruptcy protection, all your consumption is subject to restrictions, and it is subject to the supervision of the bank, or even the supervision of the police. This makes people who are used to comfortable life, how can they accept it?

It is a lot of people who are old and like it. Once bankrupt, some of them even prefer to go to jail. It is good to eat and drink, and it is better than starving to the corner.

Normally, when you make a loan, financial institutions such as banks must evaluate your repayment ability and confirm that you will be able to pay the money.

You either have a steady income, or have a fixed asset pledge, or a guarantor, and so on.

However, these are all for preferential loans in the country. For subprime loans, these conditions can be relaxed.

As long as you can prove that you have income, you can basically get a loan. The guarantor’s review is not rigorous enough. Even many guarantors have no occupations. They can find a short-term job. There is also a mortgage, the collateral is not worth the price at all, and the company dares to lend.

Many people here also have the same thoughts as the Chinese people, that is, they are worried that they will not be able to pay the money. They are still youngsters. They don’t want to go to jail. How good the world is outside.

The root is George Bush. After he took office, he launched a minority home purchase program. He wants to complete at least 5.5 million ethnic minority home purchases in his term of office.

He said that promoting the purchase of houses is an important factor in the security of the country.

However, families of ethnic minorities have a low level of education, and it is difficult to find a good job with stable income. How do they buy a house?

At this time, you need a subprime loan program.

For subprime loans, the interest to be paid is itself at least 2% to 3% higher than the preferential loan. In short, the worse your credit, the higher the interest.

Say this, do you have a feeling that this sub-loan is simply licking wool from thin sheep, the thinner you are, the more you are being shackled.

Originally, their income was low, the same loan interest was higher, and their repayment pressure was even greater, which laid a serious hidden danger.

That is these people, it is very likely that they will not be able to make loans, so that banks will suffer losses, bad debts and bad debts.

But what about the loss of the bank and what is the relationship with the two-room group?

The two-room group is an important part of the promotion of home purchases. They buy mortgages from banks and make money.

What does that mean? That is, the bank originally borrowed one million and could recover one million principals and one million interest, but sold it to the two-room group and sold only one hundred and five thousand.

In this way, the bank has more capital turnover, can lend to those who buy a house, and the two-room group also earned an interest. When you see this, do you feel familiar?

Many financial organizations lend money to individuals, which is actually a kind of high-profit-loan. What if they can’t get the money back? Sell ​​the loan and sell it to those receivables.

One million debits, repayment of two million, they sold to the receipt of the book of 1.3 million, the receipt of the book to find a way to recover to 1.5 million to earn. They have some profits, and the same company has some profits.

The two-room group, to put it bluntly, is the role of the Corporation, but it is the acquiescence of the country, the account is turned into a bond and other financial products issued.

The two-room group did earn a lot of profits at the beginning, saying that their CEOs earn more than $15 million a year, and only a few of the world’s top 500 company CEOs. People can compare shoulders.

Where does the two-room Corporation buy money to buy a bank mortgage? One is to raise shares, the other is to issue their own funds, bonds and so on.

In the past, China’s state-owned assets bought a lot of bonds from the two-room group. As a result, the blood was lost a lot and paid for the crisis in the country.

However, in this world, China’s state-owned assets have already sold two-room bonds, and even the stocks in the real estate industry have all been sold under the advice of Feng Yu. This mistake can only make the people of the country pay their own bills!

……