The emergence of thousands of home buyers who were unable to repay their bank debts was the direct cause of the explosion of junk bonds in U.S. real estate, which also triggered the U.S. subprime debt crisis and kicked off the financial crisis.

Speaking of U.S. junk bonds, it is actually a very complicated matter.

The loan and credit system in the United States used to be very sound and complete.

But all this gradually changed after the immigration from China greatly increased.

Why?

Because Chinese people are smart and know how to take advantage of legal loopholes.

The overseas Chinese who immigrated to the United States began to think about how to use credit to make a fortune when they saw how big the credit market was in the United States.

In the end, they thought that they couldn't make money by following the formal way, because there were more and better big companies doing this, and it was not their turn.

If you want to make money, you have to start with what big companies don't do - forge fake credit ratings for Americans with insufficient credit ratings so that they can successfully obtain loans from banks.

Since the 1990s, Chinese immigration consulting and financial companies have been committing fraud since childhood.

In the beginning, it was just a fake credit rating from BBB to BB, but in the end it developed to the point where it actually dared to fake a B-level person into an AA-level high-quality customer.

It cannot be said that Americans are all fools, and many banks have discovered this problem, but they all need to continue to lend money to increase their business income and create a prosperous business scene.

But at the same time, the credit repayment ability of the loan customers is very low, and the loaned money may not be recovered, which is also a very serious problem.

So American banks simply packaged up all these debts and sold them to funds or insurance companies in the financial market. They made a little money, or they made no money and threw the entire burden away.

This is the source of subordinated debt. Debt sold from banks to the secondary market is called subordinated debt.

What Xiao Qi wants to do is to ask CFP Company to build a hedge fund that specializes in shorting mortgage bonds. Once the subprime debt breaks out, Xiao Qi, who is shorting, can make a lot of profits.

If it's just like this, it can't be considered a bad thing.

In a previous life, the most unscrupulous person who made money from subprime debt was a hedge fund manager named Paulson.

Just this month, he will work with Goldman Sachs to defraud Deutsche Bank, ABN AMRO and the American insurance company ACA by peddling subprime debt and then shorting the subprime debt.

Deutsche Bank only bought a $100 million subprime debt portfolio, but in the end Germany spent $13.5 billion to rescue it from the brink of bankruptcy.

ABN AMRO was in a much worse situation. It was directly absorbed by the Royal Bank of Scotland due to its huge losses. It couldn't even compensate enough.

ACA was also deceived and almost went bankrupt. At the beginning of 2008, it suffered a loss of US$69 billion, which was still not enough to compensate for the losses caused by subordinated debt insurance.

This "greatest hedge fund transaction in history" also made Paulson famous and became another financial giant after Soros.

You deceive people into buying your subprime debt, and then turn around and defraud them until their families are destroyed. This kind of business method is really shameless and immoral!

Xiao Qi is not a bad person.

But for the two countries that hate and discriminate against China the most in the world - Germany and Japan, he is very interested, like Paulson, in trying to hurt them and make them suffer.

As mentioned before, Xiao Qi's biggest dream after his reincarnation was to create China's own high-tech electronics industry.

In addition, if given the opportunity, the young man would not mind severely suppressing opponents who discriminate and hate China.

The economies of Germany and Japan rely to a large extent on blood transfusions from the Chinese market in order to operate smoothly.

But of these two countries, one is a world enemy with China and is desperately squeezing China's living space in Asia; the other is desperately slandering China in Europe, and is also the country in the EU that advocates being tough on China.

The EU's various economic sanctions and trade sanctions against China are definitely proposed by Germany, and there is no need to think about the second country.

The poor Chinese people actually feel that the Germans are good people after using high-quality German industrial supplies.

Including the woman who betrayed her own teacher and became Chancellor of Germany. She brought a group of CEOs to China to ask for benefits, and after returning, she began to actively promote trade barriers against China. She was simply a typical white-eyed wolf!

Xiao Qi knew more about Germany because he was abroad, so he was determined to teach Germany, a country with a human face and a beast heart, a lesson. As for Japan, they will never be left behind.

Now that the opportunity has come, Xiao Qi has money in his hands, so he naturally wants to have a good time.

In the afternoon, Xiao Qi took the confidentiality clause from Mario Law Firm and asked Tong Wencong to sign it, and then told him his plan.

Tong Wencong pondered for a long time and said with some uncertainty: "Qi Shao, there is a time limit for short selling. According to your level of short selling, if there is no large-scale crash within a year, I'm afraid we won't be able to make much money.

ah!"

"Just follow my plan." Xiao Qi said calmly: "No matter you make a profit or a loss, the fund management fee I will give you will not be less than a penny."

"This...okay!"

Tong Wencong is the president of CFP Fund Company. Such small fund companies are everywhere on Wall Street. He alone can decide whether the company will cooperate or not.

According to the contract, Xiao Qi provided up to 1.2 billion U.S. dollars in funds, and the handling fee drawn from it was as high as 50 million. CFP would not miss this business.

But Tong Wencong is indeed a self-proclaimed kind person. Moments before signing the contract, he reminded Xiao Qi: "Qi Shao, although subprime debt has been in a dangerous situation in recent years, the strong economic strength of Wall Street in the United States still guarantees

Subordinated debt has been passed successfully time and time again, so you must think carefully!"

After he signed the contract, Xiao Qicai smiled slightly: "Mr. Tong, don't worry! If you are interested, come up with a small amount of money and follow me to invest. You will definitely gain a lot.

of."

Tong Wencong shrugged noncommittally and did not answer.

Xiao Qi has already written out Paulson's methods based on his memories from his previous life. As long as Tong Wencong follows Xiao Qi's steps, there will be no problem.

However, Xiao Qi's methods are more subtle, he makes less money than Paulson, and he won't announce his victory in a high-profile manner like Paulson and steal the show.

Make money quietly and deceive people. As for letting others take the blame!

This feeling of hiding behind and harming your enemies is really cool! (To be continued. If you like this work, you are welcome to come to Qidian.com to vote for recommendations and monthly votes. Your support is my biggest motivation. Mobile users please

to read.)

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Chapter completed!