In order to join the EU, the Greek government did not hesitate to join the US Goldman Sachs investment bank to fake financial statements. Once the news of using false numbers to get away with it, it immediately hit the already stormy international market. Now the entire market is full of various rumors. The trust of regulatory units, credit rating agencies and large bank funds in various countries has dropped sharply, and different versions of rumors have caused market confidence to plummet.

In recent years, due to the booming economy, the stock markets, bond markets and futures markets of various countries have begun to recover, intending to get out of the shadow of the bursting of the US Internet bubble. Now, facing this series of confidence blows, various economic expectations have begun to stagnate. The market index represented by Dow Jones has completely lost its previous upward momentum, rising and falling, and lingering.

Because of all the recent events, almost all of them can be linked to Yang Xing, who has just recovered from his injury. Yang Xing's enemies naturally took the opportunity to win over his helpers and counterattack. In addition to asking "Bricks to Call Beasts" to help fight Yang Xing to seize the position of public opinion war, various other means have also been coming.

In August 2005, StarDong Network's base in Silicon Valley was suddenly sealed by the FBI, and several executives were prosecuted at the same time for colluding with WikiLeaks and other parties to disclose state secrets and endangering US national security. He also refused to open the database on the grounds of protecting users** to cooperate with the U.S. Department of Homeland Security's investigation of StarDong customers.

Almost at the same time, Japan also launched an investigation into the Japanese institutions of Xingfu Investment for false charges such as tax evasion and creating public opinion to shake the financial market and making profits. With this, it was the beginning. Many Western countries have rumored that they would review Zhongxing's companies. Indictments from courts from various countries flew like snowflakes, and most of them also required Yang Xing to appear in court in person. In addition, Yang Xing's process of privatizing listed companies has been repeatedly troubled, and many national regulatory departments also asked Yang Xing to explain.

Obviously, Yang Xing's enemies knew that as long as Yang Xing could be transferred out of China's jurisdiction, they naturally had thousands of ways to deal with him. Unfortunately, Yang Xing was not as fooled as the lure of the mountain. Soon, news that "he relapsed due to work hard work and was now receiving emergency treatment in Beijing, and his life was in danger." Zhongxing's daily business activities returned to the joint management mode of the Executive Board and Jack Welch.

After Yang Xing's internal rectification like a thunderous sweeping hole last time, coupled with a series of business and personnel layout, the pace of privatization of listed companies is coming to an end, and Zhongxing Capital has been built as solid as a railway. The group is almost loyal to Yang Xing, and the support of major shareholders such as the mainland and Hong Kong governments, if you want to take action against Zhongxing while Yang Xing is not there, the opportunity has been completely lost. Moreover, Yang Xing, who is not sure whether he is sick, is behind the scenes. His enemies can only curse Yang Xing for real recurrence of his old illness, otherwise they can only wait.

Although Yang Xing's move is insidious, it is very effective. He hiding in the country makes people feel like a mouse pulling a turtle and can't start. He obviously does not intend to deal with the enemy's counterattack. No matter how many ways you come. I just go all the way, he only needs to trigger that financial tsunami. At that time, the crisis will be overwhelming, and the enemy will not have time to protect themselves. There is no time to have no energy to think about conspiracy and tricks. Various means of Zhongxing Capital will naturally collapse.

September 2005 was a completely nightmare for the Western world. In early September, the US real estate boom index began to decline sharply. Major media outlets in the United States predicted that the US housing prices, which had risen rapidly since 2000, would fall rapidly. In the market, real estate developers in various parts of the United States began to adopt various price cuts, spreading news, and the Bush administration quickly came out to refute the rumors and appease the people. It said that "the temporary adjustment of real estate is normal, and the main economic trend is still strong." However, given the precedent of "destruction of weapons of mass destruction" when Bush Jr. said on the reason for the war in Iraq, not many people could believe it.

On September 13, the fourth-quarter earnings warning issued by the US Newcentury Finance, the second largest subprime mortgage company in the United States, finally gave the panic-inducing people the best evidence. However, the signs of this evidence are very bad, which makes investors' confidence shaking.

At the same time, in the face of the aggressive momentum of Balance Credit Rating Institutions, the three major credit rating institutions that have been questioned in Madoff Company's Ponzi scheme, fake gold incident and European Pig Four-Country bonds can no longer sit still. Standard & Poor's, which has always been known for its conservative and stubbornness, took the lead in making a move, and the next day announced that it would re-verify all rating reports related to real estate subprime mortgages, significantly lower the ratings of this type of financial product, and persuade investors to take advantage of such securities as soon as possible to avoid risks.

This undoubtedly became the last straw that crushed market confidence. Global financial institutions immediately took action and began to sell subprime mortgage-related products. However, at this time, investors who followed S&P's advice would dare to take over on a large scale, so they sold more and bought less in the market. Subprime mortgage securities that had been scrambled for high prices in the past turned into a pile of waste paper in a blink of an eye. The huge losses in the middle could only be borne by the financial institutions themselves. Subprime mortgage securities became toxic assets that could not be handled by banks!

Immediately afterwards, a series of bad news came. HSBC announced an additional additional reserve of subprime mortgages in the United States to US$7 billion, and admitted that the total losses caused by this exceeded US$10 billion. As soon as the news came out, global stock markets fell across the board on the same day. Immediately afterwards, German Industrial Bank announced a profit warning, and by the end of the year, it is estimated that a loss of 8.2 billion euros will appear, because its "Rhineland Fund" with a scale of 12.7 billion euros and the bank itself suffered huge losses in its participation in subprime mortgage business in the United States. If there is no help, the bank will immediately go bankrupt. Due to the sudden incident and the serious problems, the German Central Bank had to immediately convene a national banking industry to discuss a basket of plans to save German Industrial Bank.

Faced with the $17.4 billion in debt-responsible debt, New Century Financial Company, which announced its profit warning, had to face the dilemma of bankruptcy protection, and had to cut half of its employees to protect itself. The tenth largest mortgage lender in the United States, the United States Housing Mortgage Investment Company, also followed suit and officially applied for bankruptcy protection from the court. Experts in the industry predicted that in addition to these two unlucky guys, the top ten real estate mortgage lenders in the United States are probably unable to survive, and it depends on who can survive.

According to common sense, as long as a small hole is opened in the dam of the economic crisis, the floods will be enough to destroy the entire embankment. In the next month, the crisis caused by subprime mortgages spread rapidly. Bear Stearns, the fifth largest investment bank in the United States, announced the bank's two funds to be closed; BNP Paribas, the largest bank in France, announced the freezing of its three funds, because it also suffered huge losses due to investing in US subprime mortgage bonds.

On October 13, 2005, a month after the crisis broke out, the parent company of the second largest bank in Japan, Ruisui Group (a core enterprise of the Fuji Consortium), announced that the losses related to the US subprime mortgage were US$6 billion, most of which were caused by the acquisition of subprime mortgage-related products of Xingfu Investment. Anyone with discerning eyes understood that Ruisui was put on by Yang Xing.

According to UBS Japan's estimates, nine major Japanese banks hold more than one trillion yen for US subprime guaranteed securities, and later Citigroup also announced that losses caused by subprime mortgages were more than US$1 billion. The crisis caused by subprime mortgages has officially spread from the real estate mortgage field to formal banks, and its scope is also spread around the world, and the shadow of the financial tsunami is looming.

Almost all economic experts have thought of the core issue of this subprime mortgage crisis, that is, will Freddie Mac and Fannie Mac survive? You should know that these two companies are the two largest housing mortgage financing institutions in the United States. The total amount of housing mortgage loans held or guaranteed is about US$5.3 trillion, accounting for nearly half of the total housing mortgage loans in the United States. Many of them are subprime loans. How big will the impact be?

The United States is a country that advocates freedom. Many other countries believe that the things that should be done by the government can be used by Americans to provide private enterprises to handle. Therefore, the United States is the country with the smallest proportion of "state-owned enterprises" in the world. Even the famous Federal Reserve is essentially a joint group of private banks. Therefore, the US president can only nominate the Federal Reserve Chairman and cannot point fingers at the specific work of the Federal Reserve Chairman.

Freddie Mac and Fannie Mac are quite alternative. They are semi-state-owned enterprises with the largest "US government sponsored enterprise". Both are essentially private listed companies, but enjoy special rights granted by the government, including exemption from various federal and state government taxes, and enjoy US$2.25 billion in credit support from the US Treasury Department. The two companies are jointly responsible for establishing the secondary market for US real estate loans, and the total amount of bonds issued by them with real estate as collateral is as high as US$4 trillion!

The establishment of the two-bedroom house was directly linked to the economic crisis that swept the world in 1938 and caused the outbreak of World War II. At that time, millions of families in the United States were unable to own a house or were at risk of losing it due to lack of loan funds. The government set up a company called Fannie Mae to operate behind the scenes, ensuring that housing mortgage banks and other lenders had sufficient funds to lend to housing buyers at low interest rates.

Although Fannie Mae does not directly provide loans to home buyers, it supports mortgage funds by purchasing mortgage loans from various lending institutions (those institutions directly provide loans to home buyers), with the aim of increasing the liquidity of mortgage loan funds and reducing the cost of buying a house. In 1968, Fannie Mae became a private company, and in 1870, Congress established Freddie Mac to strengthen competition. The two jointly monopolize the secondary loan market of US real estate, equivalent to the general guarantor of US real estate credit...)
Chapter completed!