Reborn as a trillion-dollar real estate tycoon, Boss Yang calls him daddy

In fact.

From the moment he made up his mind to sell the coal mine and the real estate company, Shen Fei had already sent people to investigate the situation of the real estate market in the United States.

According to the information he got, Shen Fei had a general understanding of the current situation in the United States.

At the turn of the millennium, the government began to sharply lower interest rates in order to combat the economic recession brought about by the dot-com bubble.

Stimulated by low interest rates, people in the United States began to borrow money from banks without restraint and used the borrowed money to buy houses, cars, or replace furniture.

By this year, the average number of credit cards per Malaysian is 13, and the proportion of people in debt has increased sharply from 6 percent in the 70s to 40 percent now.

And the total debt of the United States has soared from $460 billion in the millennium to $3 trillion in 03.

The advent of a large amount of cheap money has caused real estate prices in the country to rise sharply, and in just six years from the millennium to 06, the average house price in the country has increased by nearly 70%.

Rising house prices not only make speculators make a lot of money, but also allow borrowers to get a lot of cash by selling their homes or remortgaging them after the prices rise.

All the people of the United States feel that they are becoming richer and richer, and the realization of the dream of the United States is also close at hand.

But Shen Fei was very clear.

The subprime mortgage crisis is about to erupt!

This crisis was caused by a type of housing mortgage loan known as subprime loans, and the main culprits in creating these subprime loans were the large and small banks and financial institutions in the United States, represented by Lehman Brothers.

A home mortgage loan is one of the many loans that banks make to individuals.

Under normal circumstances, banks help buyers who cannot afford to pay the full amount of money to buy a house by absorbing the idle funds of ordinary people and lending them in the form of loans.

In this process, the bank charges the lender interest on the loan and pays the depositor interest on the deposit, while the bank earns the interest rate difference between the two.

Of course, banks have to take on the corresponding risks while earning interest rate differentials.

For example, when a lender is unable to repay a loan due to a deterioration in its own financial situation, the bank will suffer a loss due to the inability to recover the loan.

Therefore, when the bank makes a loan, it usually evaluates the lender's ability to repay and requires the other party to provide corresponding proof of employment, income source and property, and only when the other party proves that it has the ability to repay, the bank will lend.

This type of loan, which is only granted to qualified lenders, is called a "quality loan".

But in some cases, banks will also lend loans to lenders who cannot prove that they have the ability to repay, and this kind of loan is called "subprime loan".

And now, more than 30 percent of the loans in the entire country are subordinated.

It is self-evident how much risk this means.

When interest rates are low, none of this is a problem.

But once the Fed raises interest rates, that raises huge problems.

According to the news obtained by Shen Fei, just last year, the Federal Reserve had officially released the news that the interest rate would be raised to 5%.

This will collapse those who borrow from floating interest rates.

When they wake up, they suddenly find that their monthly payments have risen sharply with the rise in interest rates, and the amount has long been more than they can afford.

So they were ready to sell their homes to pay off their loans, but the price of their homes began to fall due to the sudden increase in the number of homes sold in the market.

Many borrowers only then realize that even if they sell their homes, the price is far from enough to repay the loan

So they simply don't repay the loan and wait for the bank to confiscate their property.

Due to the decline in housing prices, even if the banks repossess these houses, even if they auction them, they will not be able to make up for the losses they cause, and these losses will naturally be passed on to investors who hold "mortgage-backed securities".

Those investors who thought they were buying a wealth management product as safe as "treasury bonds" only then found that the securities in their hands were actually high-risk investment products with high risks.

There's no way to even get compensation!

In this case, the real estate market in the United States seems to be on the verge of collapse.

"My people have collected information, in recent months, the stock market in the United States has been volatile, and it will soon spread to the whole world. "

Shen Fei looked at Lin Yuan and said word by word.

When Lin Yuan heard his words, his expression suddenly became a little weird.

After being silent for a long time, he raised his head and looked at Shen Fei: "Do you want me to go to the United States?"

"Yes. "

Shen Fei nodded: "You go to the United States, let's short the real estate market in the United States!"

Hearing this, Lin Yuan's face suddenly changed!

He never expected that Shen Fei would plan to make Eagle Sauce's national disaster!

PS: This chapter is an excessive chapter, no way, after all, I have to explain to you what the subprime mortgage crisis is.

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