Although it was demoted to the "European Pig Four", the fiscal deficits of these Greek countries are an old problem. They have been rated as top students by the three major rating credit institutions and have been criticized for a long time. Most of them are due to their own sake. The Tianping Firm took the initiative to expose their debt difficulties this time, which can be regarded as "the emperor's new clothes". Although it is bold, it is still reasonable. The international financial market did not cause much turmoil. Only Yang Xing knew that this was the first to set aside. When things came to an end, it would be possible to see if the so-called economic experts could still cover up the "European Pig Four".

But these are not shocking, but this time, Balance Firm specifically selected Iceland and Ireland to criticize it was beyond market expectations. After all, these two countries have always been widely praised as representatives of new European economies. Iceland has entered the ranks of the richest countries in the world in less than 20 years. Ireland is even known as the "Celtic Tiger". It is the fastest growing GDP in European countries. The Balance Firm team's downgrading evaluation and exposed problems cannot be ignored.

Iceland is a small Nordic country hanging overseas and with very harsh natural conditions. If it were not for the complete Nordic myths and legends left behind, many people in many other parts of the earth had never heard of this small country. Iceland's population is less than 350,000, and most of its territory is covered by glaciers, wastelands and volcanoes. Although it has become one of the few countries in the world that use pollution-free and environmentally friendly energy such as geothermal resources as the main energy, historically, due to the poor land, many necessities had to be transported from outside the island. Iceland has been under the control of Nordic countries such as Denmark for a long time. The national economy is mainly maintained by fishing and tourism.

But since 2000, the Icelandic economy has undergone earth-shaking changes, marked by the listing of Iceland's New Ipsin Bank. In just a few years, Icelandic Bank, Iceland Bank and New Iceland Bank, which are the three major banks in Iceland, have discovered another way to make Icelanders quickly become rich, which is to vigorously develop the financial industry.

The three major banks have listed overseas and boldly expanded their overseas branches, using high savings rates as bait to attract deposits in their own countries such as the UK and the Netherlands. They further rely on deposits to actively acquire and annex financial institutions from European countries to strengthen themselves. When hot money in the international market is rolling in, the Icelandic financial industry's practice of borrowing chickens to lay eggs and being the first in the world undoubtedly attracted many attractive investors.

As a result, the capital of the three major banks is getting bigger and bigger, and now it has reached the level of 100 billion US dollars. Even compared with the old European banks, Iceland's GDP during the same period is less than 15 billion US dollars, which means that the capital of Iceland's financial industry is ten times higher than that of its own GDP!

As a role model in Europe, Iceland chose the economic development model to attract overseas capital by using high interest rates and low-regulation open financial environment, and then invest in high-yield financial projects, and then make profits in the global capital flow value-added chain. However, this leveraged development based on the international credit market has high returns but great risks.

Globalization has brought about the flow of global capital. A country can fight in the global capital market and participate in the sharing of financial interests. It also climbs to the high end of the global financial ecosystem, but the premise is that it is a strong enough real economy to support it. From the perspective of economic scale, Iceland's financial industry is ten times stronger than its own economy and obviously does not have this strength. Not only that, Iceland also bet too much on the virtual economy, ignoring the development of the real economy such as fishing. Icelanders rank among the best in the world in their personal income, but their consumption level is also among the top in Europe. This practice of eating food for the first time hides huge dangers.

60% of the profits of these three commercial banks come from the international market. Whenever a part of the debt matures, these banks borrow more funds from other financial institutions or depositors, fill in holes and expand. However, excessive reliance on international businesses makes the Icelandic financial market susceptible to the turmoil of the international financial market, which also makes the international financial industry a problem, which will cause the Icelandic government to suffer great trouble.

The investments of the three major commercial banks in Iceland are spread all over the world, bringing an annual growth rate of 7% that other developed countries cannot imagine. Balance firm pointed out sharply that the financial market is changing rapidly. If any of the three major banks in Iceland has problems, it will form a chain reaction. Iceland will face a dilemma at that time. If bankruptcy banks are allowed to fend for themselves, all national property will be gone; if banks are nationalized, the huge debts of Iceland banks are already 10 times Iceland's GDP. If this debt is transferred to the country, will the country go bankrupt?

Ireland is taking another development path, which is to rely on a tried-and-test approach - to develop real estate. From 1998 to 2000, Ireland's GDP development rate reached 10%, making it one of the fastest economic growth countries in the EU and even the world, almost catching up with China of its contemporaries. Ireland has jumped from a poor European country dominated by agriculture and animal husbandry to become the third richest country in Europe. Its economic growth lasted for 20 years and was regarded as an economic miracle of Western countries. Therefore, some economists compared it with the Asian dragon and the little tiger and called it the "Celtic tiger".

The pillar industry that drives Irish economic growth so fast and long is the real estate industry. In 2003, Ireland's per capita GDP was 1.36 times the EU average, and its per capita income rose from US$10,000 to more than US$50,000, which once exceeded the UK! In 1996, the real estate industry accounted for 5% of Ireland's GDP, and exceeded 10% in less than ten years.

Currently, the growth in public housing investment is the area that drives Ireland's economic growth. From 1995 to 2006, the investment reached 10.5 billion euros, an annual increase of 218%. Irish residents have become accustomed to reinvesting their newly acquired wealth in real estate. Developers turn docks into office buildings and pastures into residential residential areas. The whole country is trapped in a real estate fanaticism.

A Chinese tourist was sentimental when visiting Europe: "When visiting all over Europe, only Ireland is most like China, with construction sites everywhere, and other places a little dilapidated." The hot real estate industry has prompted the surge in the Irish treasury, and also made the Irish government spend money to make it bigger. In addition, the real estate industry has also created a large number of jobs. The working groups related to real estate account for almost one-third of the country's population, and the construction industry has become the industry with the largest number of jobs.

But like Japan, the United States and China, the real estate bubble brought about by the rapid development of Ireland's real estate market is also looming. The surge in Ireland's housing prices has become a big headache for the government. From 1995 to 2005, the prices of new and second-hand houses in Ireland increased by more than three times, and the ratio of housing prices to the annual income of ordinary Ireland's households increased from 4 to 10, and the ratio of 17 in the capital Dublin.

The surge in housing prices has increased the book income of residents on the surface, further attracting overseas investment, speculative funds have intervened in real estate, pushing up housing prices to rise further.

However, ordinary Irish people cannot enjoy the benefits of rising housing prices, and many civilians cannot afford to buy houses further widen the gap between the rich and the poor in countries. This means that once the international market changes, Ireland's domestic housing purchase demand cannot afford such high housing prices, which will inevitably lead to the collapse of the Irish real estate market and the same end of the bursting of the Japanese real estate bubble back then.

The prospects of Balance Firm are so terrible that they are called "the end of the world" by the market. The rating report is expensive for a while. After all, investors believe it or not, they are uneasy and suspicious by Yang Xing's series of blows. The international market is like a frightened bird. Many investment managers who were originally determined to be bullish in the future began to contact Zhongxing Capital in private. Although they did not intend to completely overturn their investment intentions, they were also prepared to prevent problems before they happened.

Seeing that Yang Xing had almost reversed the confidence of the entire market with one man's strength, Yang Xing's enemies could no longer sit still. Not only did they openly send bricks to call beasts to refute rumors for the market, they also tried their best to stop Yang Xing from continuing to make moves. Unfortunately, since Yang Xing was assassinated, he has been hiding in Hong Kong and the mainland and no longer actively appeared in the public eye.

There was a big explosion in Hong Kong, which increased the defense power of Yang Xing and its subsidiaries by several times. It also took the opportunity to uproot many hidden stakes in the West hidden in Hong Kong. The mainland is a forbidden area for Western forces. After several rounds of baptisms of social security and real estate storms, mainland official figures who dared to contact Yang Xing's enemies were silent. The forces who stayed in the mainland could not protect themselves, so how could they dare to attack Yang Xing?

Once Yang Xing's revenge plan was launched, it would be launched with thunder and would not give the enemy any chance to breathe. In fact, although he took the initiative to advance the financial tsunami, the Western financial system was already full of holes. Yang Xing only needed to detonate a few bombs that would have delayed explosions at the same time, and the results achieved were even more than that.

In September 2005, Yang Xing persuaded Greek rich man Otprio to give up investment in Greek government bonds and instead invest in the "Zigfeld" plan that he used the US 9/11 attack to make a fortune. He once came up with a currency swap contract about the Greek government and Goldman Sachs Group reaching a concealment of Greek debts and whitewashing the Greek economic situation to reach a currency swap contract for the conditions for joining the EU. Now the contract was suddenly exposed, which caused an uproar in the market.

At that time, there were two hard rulings for joining the EU, namely, the budget deficit could not exceed 3% of GDP and the debt ratio was lower than 60% of GDP. The secret agreement reached between Greece and Goldman Sachs allowed Greece, which had not met the standards, to deceive the EU through concealing the truth. Under the rumor of doubt, the EU Statistics Office was forced to re-examine all the documents when Greece joined the EU, and found that when Greece joined the EU, the real domestic budget deficit accounted for 5.2% of its GDP, while public debt accounted for more than 100% of GDP, which was far from meeting the standards!

It's almost the end of the month, please bookmark the monthly tickets and collect them!...)
Chapter completed!