Hulk is a homeless man. He has been violent since he was a child, fighting, has no parents' care, and does not like to read. In the end, he wandered on the streets in his 20s and became a homeless man.

Hulk thought he would spend his whole life on the streets.

But unexpectedly, Hulk had good luck. In 2004, he met a house manager. After hearing that Hulk had not purchased a house, the manager immediately enthusiastically invited him to apply for a housing loan and to buy a house of his own through the loan.

"I don't have a job, I can't pay back the money!" Hulk refused at the time!

"This is completely free. We have a new policy, first, supporting zero down payment loans, and secondly, no repayment is required within 6 months after the loan." The other party said.

"But I can't afford to pay back the money in 6 months, I have no job at all!" Hulk felt that the person in front of me was a fool.

"No problem, these 6 months are enough to complete the purchase contract and the housing prices are enough to rise!" the manager said quickly. "At that time, you can mortgage the house to another bank and get a huge loan from them."

"Is this really OK? My house should have been mortgaged in the hands of a lender! How can it be mortgaged to another bank?" Hulk asked in confusion.

"No problem, this only requires some financial means and bypass some rules... Don't worry, if we have the operation for you, everything can be done!"

"While you use this loan to pay off your mortgage, you use this money to start a business. Now the United States' economy is so developed. A black man selling Chinese snacks on the street can earn $5,000 a month. As long as you have this money to start the money, you can fully utilize your wisdom and talent and become a rich person like Jia Yapeng!" said the manager.

"As rich as Jia Yapeng!" Hulk swallowed. Just like everyone's goal was Bill Gates, everyone's goal is now Jia Yapeng.

There is no way, Jia Yapeng's experience is really inspiring. A boy who came from a poor country who had nothing started his business by selling instant noodles and finally grew up to be the world's second richest man (in 2004, Boss Jia was still the second rich man), which inspired countless young people to start their own businesses like Boss Jia, so that tens of thousands of new instant noodles brands are added to the world every year.

Hulk believed it. He felt that he was so smart and had good physical strength. The reason why he was so bad before was entirely because his parents were too bad to invest in him.

Now that I have the first money, I will definitely make a fortune!

So Hulk actually bought a house of his own in the suburbs of New York, and then mortgaged the house under the operation of this manager.

The total price of the entire house, including loan interest, is US$2.8 million. Half a year later, I got US$2.5 million in the mortgage loan. This is really cost-effective. In the blink of an eye, Hulk actually became a millionaire!

After Hulk received $2.5 million, he took out $1 million to start a business while repaying the loan from previous years without any pressure.

As a result, he failed to start a business and lost $1 million because he couldn't stand the complicated work, could not calculate various data, and his frequent delay in business.

Then Hulk found that starting a business is too tiring. Instead of starting a business, it is better to enjoy life with the remaining money. By the way, this way, the money can last for two years, instead of losing all of it in half a year.

So, in 2006, Hulk spent all the dollars on his body, and all the valuable furniture and appliances in his house were sold out. Hulk simply returned to the bottom of the overpass.

The manager found Hulk with sweat and asked Hulk to repay the bank's loan immediately.

"I have no money!" Hulk patted his butt and said, "You can check it. All my accounts are gone. I will continue to wander here now. If you think that cutting my flesh can be compensated for the loan, then you can cut it!"

Seeing Hulk's rogue appearance, the manager understood that the other party really had no money to repay the loan. The most serious thing was that even if he used all means, he would not be able to squeeze out money from this bad person.

"Then we will take back the mortgaged house!" the manager said seriously.

"No problem!" Hulk grinned, "But you have to hurry up. As soon as the loan company behind comes in, you will buy that house. If you are too late, the house will be gone!"

Not to mention how these two loan companies compete for houses, Hulk is very happy anyway. Although his house is gone, he enjoyed $2.5 million, and in the end he was just back to a wandering state. This wave of profit is a sure thing!

This is a true story and one of the microcosm behind the subprime mortgage crisis.

The worst people started to default because they didn't have a penny and lived a wandering life on the roadside. So even though they were carrying huge debts of up to several million dollars, for them, their lives were still the same, they were wandering on the streets, and they also went to get food stamps every month, and then used the coupon to get some cheap food in exchange for their own food and clothing. This was enough!

If someone wants to kill them because of this, it doesn't matter to them. They are actually just a group of poor people who dare not commit suicide. They have nothing to nostalgic for life.

This is also the reason why a group of lending institutions went bankrupt in 2007. These institutions are the most relaxed and have no bottom line in subprime loans. For temporary benefits, they continue to sign loan contracts with all kinds of bad people.

Then there were bad debts and losses of tens of billions of dollars. It was impossible for bad people to pay back the money, and this debt could only be swallowed by financial institutions themselves.

These banks also have their own way, which is to declare bankruptcy directly. As long as they go bankrupt, they don’t have to pay back all their debts.

Some of them are even more amazing. They directly apply for financial support from the Federal Reserve, and they can ask hundreds of billions of dollars in funds at the first time, because if they go bankrupt, the entire American economy will explode.

Anyway, the larger the scale, the more you lose, the less you don’t care. Anyway, there is a government guarantee.

In fact, the government has also made a guarantee, so the several bankruptcies that occurred in 2007 did not trigger a comprehensive crisis, and the stock market was even very hot.

Until 2008, because a large number of lenders gave up their houses and directly defaulted, and a large number of sold houses were vacant, banks could auction for buyers.

A large number of houses entered the market through auction channels, which directly led to the collapse of the entire property prices. From January to June 2008, the average house price in the United States fell by about 30%.

Those home buyers who could barely repay their mortgages found that the housing prices plummeted and the gains were not worth the loss, so they gave up repaying the loan and chose to default.
Chapter completed!