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He heard Yang Xing tell the whole story of the subprime mortgage crisis like he was talking on stand-up crosstalk, which made the women laugh so hard that they could not help him. Perhaps only he could beat Wall Street investment banks and hedge funds to the ground in this way, and he had to step on it a few steps to relieve his anger. In his mouth, the difficult terms such as cdo and cds were derogatory, and to put it bluntly, it was just a trick to deceive people. Even those who knew subprime mortgages such as Wang Yiren had a comprehensive and sober understanding of this after listening to Yang Xing's humorous narrative today.

Yeterina couldn't help asking, "Since as you said, many of these tricks are worthless, but why didn't anyone come forward to question them at that time? I saw that you made a speech on the subprime mortgage crisis a while ago. Most economic experts scolded you for a lot of people and believed you very few people. Could there be any mystery in this?"

Yang Xing then changed into a solemn expression. He shook his head and said, "Actually, this is very simple. This is a common problem of human beings. It is greed among the seven deadly sins in the Bible. As I said, at the beginning, it seemed that all parties could make money from subprime mortgages. Those who cannot buy a house can get a house. Those who lend loans can transfer risks. People who use risk speculation make the most profits from rising housing prices in the United States. Everyone feels happy. And through various financial tools that transfer risks, it seems that even if there is a loss, it will not be too great."

"But everyone forgot that the skin is not attached to the hair, and people in every link are very greedy, thinking that they can escape by chance, but the risks in each link are summed up little by little, which is to swallow everyone's catastrophe. Although Wall Street has always believed that greed is the driving force for social progress, greed without restrictions will only be summoned to destroy. In general, the subprime mortgage crisis is because the framework of the system cannot limit the nature of greed. Greed is the original sin!"

The women who do business around Yang Xing were very inspired and thought about it carefully. Indeed, before the problem arises, everyone thought that money could be made through subprime mortgages, but no one thought that all of this was based on the fact that US housing prices have been rising all the time in recent years and firmly believed that this would be the case in the future. House prices would rise and fall. Twenty years ago, Japan's real estate bubble burst, which was a good negative teaching material, but people still repeat the same mistakes. Yang Xing is not a god. He can overthrow the world economy with just one person's strength. But it is precisely because the world economy itself has many loopholes. As long as he unremittingly spreads the problem of the subprime mortgage crisis, he questioned the long-term market ignoring supervision. Once the market confidence is lacking, US housing prices lose support and fall heavily from the peak, the food chain surrounding it will gradually break, and a new economic crisis is inevitable.

As housing prices fell and the interest rate limit for preferential loans reached, first subprime mortgage customers were unable to repay the loan, and then ordinary customers were also implicated. Then the loan company went bankrupt and hedge funds suffered huge losses. These were being staged one by one according to Yang Xing's prediction. The insurance companies and investment banks involved also suffered losses. Although Yang Xing and others hid in the hot spring villa, they occasionally paid attention to the world economic market.

At the end of February 2006, following HSBC and German Industrial Bank, Citi and Morgan, among the major Wall Street banks, also released their fourth-quarter huge losses forecast reports. Related to subprime mortgages, major investment banks investing in hedge funds faced heavy losses. Stock markets in various countries fell sharply, and the number of people who could not repay mortgages continued to increase. More bank loans have problems... Such a vicious cycle continues, and everyone sees that a major disaster is coming.

Freddie Mac and Fannie Mae in the United States are the first to be hit. Due to the economic downturn, many people are unable to repay their mortgages. Now the whirlpool caused by subprime mortgage loans has also brought in many normal loans. A large number of residents' houses were taken back and auctioned by banks, and housing prices have fallen even harder, and countless housing loans have become dead accounts. As the dominant players of the secondary loan market, the mortgage loans of major banks in the hands of the two houses have become similar to waste paper, and naturally they have suffered huge losses.

The initial signs of the subprime mortgage crisis caused the US economic platform to dive, which made the Bush administration, which had already fought two wars overseas, and the public grievances were boiling. In this case, Bush could no longer ignore the domestic finance that he did not pay attention to in the past. The situation where the Treasury Secretary could not even enter the formal leadership circle must be improved. An urgent need for a financial expert to save the situation. Therefore, Henry Paulson, the former head of Goldman Sachs Group, the largest investment bank on Wall Street, became the best candidate for the new Treasury Secretary.

This new finance minister is an old friend of Yang Xing. When the US Internet economy bubble burst in 2000, Yang Xing colluded with several major investment banks on Wall Street to short the market and make a big profit. Later, when the 9/11 incident occurred, Yang Xing sniped the US stock market, and Goldman Sachs Group was also one of the few American companies that privately joined in and made a fortune. In recent years, Goldman Sachs Group has been very interested in Yang Xing's concept of "BRICS" proposed by him, especially China's most optimistic prospects. Paulson has visited China more than 70 times, and even during the 2003** period, he did not postpone his trip and was praised by the People's Daily as "a hero in trouble."

As a relatively pro-China person, Paulson rushed to China when he took office. The official explanation was to strengthen communication between the two sides in the economic field and carry out political and economic strategic dialogue between China and the United States. But the truth is that during Paulson's visit in Beijing, in addition to official social events, he secretly came to Xiaotangshan in private, just to personally visit Yang Xing, who thought the director of the subprime mortgage crisis, and see if there is any way to save it.

After the two met, Paulson went straight to the topic after a brief greeting, and said tactfully that if Yang Xing was for revenge, the current situation would be fulfilled. I am afraid that it would be easy to open Pandora's box, and it would be difficult to take back the devil he released! Yang Xing knew that he was a lobbyist on behalf of Wall Street, so he told Yang Xing not to make aggressive statements that scare the market. This is also his responsibility. Now the US economy is in a downturn, and he, the newly appointed Treasury Secretary, naturally has a headache. It is also very worthy of Yang Xing to negotiate with Yang Xing himself. After all, the US Treasury Secretary has signed the signs on the US dollar. Now he is humble and makes Yang Xing proud. No one believes it if it is spread.

What surprised Paulson was that before coming, he had prepared for some arduous negotiations. Unexpectedly, Yang Xing said lightly that this problem was not a big deal. As long as the US and Japan governments do not continue to investigate his industry, he could remain silent in the future. Paulson was very satisfied. Thinking about it carefully, Yang Xing also wanted to do business, and he would not feel uncomfortable when the international market collapsed.

Just as he felt that this reason made Yang Xing give in, Yang Xing told him another news that shocked him after tasting Kong Siyu's new dish. "Henry, the news that Freddie and Fannie Mae will go bankrupt. You know that we and the Russians have purchased many two-bedroom bonds. Now the subprime mortgage stolen is too big. There are huge losses from banks and investment banks related to real estate mortgage loans. We think this rumor is not necessarily fake. Not long ago, the Russians couldn't sit still and came to us." Yang Xing's words were bluntly regarded himself as the spokesperson of the central government. Anyway, they had broken up. Many people in the West regard him as an agent of the Chinese government. Yang Xing simply stopped hiding it and talked about the issue of two-bedroom securities purchased by the Chinese government in front of Paulson.

"The Russians have about 100 billion US dollars in two-bedroom bonds, and we also have more than 200 billion US dollars in our hands. The Russians have made a suggestion. Before the two-bedroom bonds have become waste paper, the two sides join forces to sell these bonds to the market. What do you think?" Yang Xing's smile was still on his face, but Paulson's chopsticks fell on the table.

The reason why the two-bedroom bonds have always been sought after is that the outside world believes that they have special identities, and the US government will not ignore them even if there is a risk. The actual guarantor of the bonds is the US government. But if there is such a large amount of bonds sold by the Chinese and Russian governments in the market, it means that the two countries have voted negative for the future of the two-bedroom bonds. Paulson dared not imagine what consequences this would cause. At that time, the US Treasury bonds collapsed, and the creditors came to collect debts. The economy based on credit will collapse in an all-round way!

He was speechless and didn't know how to answer, but Yang Xing changed his tone: "We politely rejected this proposal, but Henry's government has guaranteed that the bonds of the two houses are very safe, and we need the US government to continue to make guarantees!" Paulson was a smart man, and immediately understood what Yang Xing meant and couldn't help asking: "What do you want?"

"The situation is now developing to this situation, and it is not something I alone can solve. I know that you Americans like to promote the free economy, but when the Great Depression was in the year, President Roosevelt was also attacked as socialists when he launched the government relief plan. Your government must come forward immediately. If it is too late, it is afraid that it will be too late. At this time, don't consider the problem of inflation caused by issuing more money, but the Japanese and Europeans are even more likely than you. Can they take them back..." Yang Xing and Paulson had a secret talk, and Paulson immediately rushed back to the country in a fire and started a fierce bargaining with the cabinet and Congress.

In November 2005, U.S. Treasury Secretary Paulson unveiled a bill to improve the economic difficulties caused by the subprime mortgage crisis. He proposed a problem-based asset solution that would allow the U.S. government to purchase non-performing assets from financial institutions, including the government allocating $700 billion to purchase non-current real estate-backed securities with the aim of increasing liquidity in the subprime loan market and reducing the losses that financial institutions owning these securities may face.

The key point is that the government has come forward to buy most of the stocks of Freddie Mac and Fannie Mac and promised to take risks for the bonds issued by them, which is equivalent to nationalizing the two houses. The news came out and finally shattered the confidence of investors who had the last glimmer of hope for the US housing market. Now investors can finally confirm that there is a big problem with the US housing market, so run away quickly, otherwise securities related to mortgages will be worthless!

The fastest update, please.

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Chapter completed!