Chapter 1972 Chaos (Part 1)

It is almost the same as the history of the previous life.

On the day of August 15th, US time, although it had just arrived on Monday, the two largest mortgage companies in the United States, Fannie Mae and Freddie Mac, finally couldn’t hold on and made public statements about huge losses , Ask the federal government for financial assistance, otherwise it will involve the collapse of the bond market worth tens of trillions of dollars!

They couldn't take it any longer.

From February to the present, the stock prices of Fannie Mae and Freddie Mac have fallen by 70% in total, tens of thousands of dollars in assets have evaporated, and they are within a hair's breadth of bankruptcy.

The Federal Reserve also issued a warning that if the federal government does not intervene, Fannie Mae and Freddie Mac may really drag down the entire U.S. economy and plunge the U.S. economy into darkness.

As I have said before, Fannie Mae and Freddie Mac are companies specializing in mortgage loans for low- and middle-income people in the United States, and they are also in charge of 70% of the issuance and circulation of US bonds. They are basically the Federal Reserve of the bond and mortgage industry. .

It is even said that the Federal Reserve is a private enterprise, but they are a serious government-sponsored enterprise, which can be regarded as a government agency in itself.

The huge losses of Fannie Mae and Freddie Mac are not as simple as those mortgage companies, financial companies, Bear Stearns Investment Bank, etc. that went bankrupt before. The 2.2 trillion US dollars of housing loans that flowed out of their hands , 5.3 trillion US dollars in bonds, but the real hard currency.

If both of them go out of business, basically home mortgages in the U.S. are doomed. Then other countries and companies that bought U.S. bonds were completely dumbfounded.

In fact, after they were unable to sustain themselves, there were rumors of letting the government take custody, or directly declaring bankruptcy and delisting. All investors and governments around the world are scared out of their wits.

The global stock market, which was already very fragile, immediately fell, especially those companies that bought the bonds of Fannie Mae and Freddie Mac, all wailed.

For example, Japan's Mitsubishi Financial Group has more than 30 billion US dollars in bonds between Freddie and Freddie, and the next morning. It fell 21% as soon as the market opened. Absolutely panicked to the extreme.

Then there are banks such as Mizuho and Sumitomo Mitsui, which are also involved.

Not just from Japan, but from South Korea, the United Kingdom, Germany... All commercial banks and fund companies in developed countries that you can imagine are more or less involved.

It is not just about operating companies, but also the governments of countries that hold US treasury bonds, such as Japan, South Korea, the United Kingdom, Australia and other countries, are also crying without tears. I'm afraid that the bonds in my hands will become a pile of waste paper tomorrow.

Huaguo's banks and financial investment institutions also have more than 30 billion U.S. dollars in bonds between Freddie and Freddie.

But if you look carefully, most of these institutions are small and medium-sized investment institutions, and the only big banks involved are Minsheng, China Everbright and CITIC.

The four major commercial banks of Huaguo, China Agricultural Construction Industry, China Merchants and Bank of Communications, and the two mortgages in the hands of the six major banks were slowly sold off as early as three months ago, without any loss.

Hua Guo Guotou's 376 billion US dollars in bonds has already been secured, avoiding the loss of being taken advantage of.

heard the news. Niu Ruzheng turned on the phone to Xiao Qi, and thanked him solemnly.

Xiao Qi understood that Uncle Niu's thank you was not because he thanked Xiao Qi for making him a great contribution, but because he thanked Xiao Qi for saving the country from a huge loss.

Without Xiao Qi, not only the 376 billion U.S. dollars of SDIC would not be able to escape, but also the nearly 100 billion U.S. dollars in the hands of the six major banks would not be able to escape. So much money, but we have worked so hard to do OEM for others and make cheap factory products. Every penny is hard work. If it is wiped out because of the financial crisis, I don’t know how distressed it will be.

Reincarnated and reborn, apart from developing the smart electronics industry and making himself rich, Xiao Qi's greatest achievement is to avoid many losses for the country and the people.

Don't think this sentence is too high-sounding, but in fact it is.

When a person's wealth reaches a certain level, then his sense of responsibility will arise spontaneously, and he will definitely do something that can help more people.

While happy, Xiao Qi was also a little scared.

Although this crisis happened in the United States, the damage to the whole world is not so serious. It can even be said that the United States is unlucky, and the whole world is unlucky with them.

Subprime debt was the first wave, and U.S. bonds were the second wave. The two attacks caused heavy losses to financial institutions all over the world.

But all this is not over. The collapse of Lehman Brothers in September was the beginning of the real climax of the financial crisis!

The global economy is also in this situation, falling into a serious crisis, so that these high-welfare countries in Europe lost their cover, and a more serious sovereign debt crisis broke out completely.

As a result, the world's economy has also fallen into the worst recession since the Great Depression in the 1930s. Even in 2013, when Xiao Qi was reincarnated, there was no sign of recovery.

There are many reasons for this, but Wall Street is definitely a big black hand.

Needless to say, subprime debt is a financial derivative instrument invented by Wall Street. When the economy is good, it is a good thing with high returns. Once the economy is in recession, it becomes a deadly poison.

There is also the current plight of Fannie Mae and Freddie Mac in the United States, which also has a lot of Wall Street factors.

Fannie Mae and Freddie Mac were established to issue housing mortgage loans, which are government-run projects. Wall Street used subprime debt to mess up the procedures and rules of housing mortgage loans. In the end, many unqualified people went to find housing loans. The Mac and Freddie Mac mortgages left a large amount of bad debts.

That can't be said of Fannie and Freddie assholes either.

Most of Fannie Mae and Freddie Mac's personnel are government servants, and they are guaranteed income in drought and flood. Therefore, they are obviously not resistant to the complex financial products formulated by the smartest elites on Wall Street. Skills of analyze.

Then, after the outbreak of the subprime mortgage crisis last year, politicians bought by financial institutions called on Fannie Mae and Freddie Mac to play a role in stabilizing the real estate market. Scalp bought or guaranteed 81% of the mortgage securities in the market, preparing to fight this crisis.

But when you think about it, the mortgage securities sold at this time are the worst assets in the hands of those financial institutions.

As soon as Freddie Mac and Fannie Mae reached out, they were destined to pay for those financial institutions.

Originally, I was in the serious injury stage, and I still had to pay for those greedy Wall Street financial institutions. It's no wonder that Fannie Mae and Freddie Mac didn't fall into a huge loss crisis!

From this we can also see how greedy and unscrupulous Wall Street is.

They don't just cheat foreigners, they even cheat the United States!

This fully illustrates a truth: in the eyes of greedy Wall Street, there is no motherland, no enemy or friend, only slaughtered lambs.

It's no wonder that in a few years, there will be many "Occupy Wall Street" movements breaking out across the United States, all of which are forced by these bastards!

Of course, Xiao Qi is not the kind of saint who is sympathetic to the world, he only worries about the situation of Chinese people, and he can even say that he likes to see the decline and misery of other countries, especially European and American countries.

The reason is simple. The first pot of gold that Western countries developed was obtained through plundering China.

They can have a good life today, it can be said that it is the foundation laid at that time.

Now is the time to cooperate with Wall Street and charge them interest.

And how to deal with Western countries, and not let them grasp the handle, it depends on the means.

Last time, the CDS in the Eurozone, that is, the credit default swap insurance product, Xiao Qi did not blend in, because it was too conspicuous, and only those bold guys on Wall Street could blatantly bad-mouth a country’s economy. do it.

But Xiao Qi still has to participate in the process of cutting the cake.

The opportunity lies in the looting of the assets of those banks in Europe.

The continuous financial collapse of a country must start from the banking industry.

After the outbreak of the debt crisis in Europe, their banking industry has been hit unprecedentedly. Except for the three major countries of France, Germany and the United Kingdom, almost 80% of the banks in the other countries have fallen into bankruptcy, and the entire euro zone almost collapsed. collapsed.

German Chancellor Merkel was so frightened that while she was running around, she also made a near-crying appeal at the EU General Assembly: "We have come to this point with great difficulty. Everyone must stand up and work together, otherwise Europe will fall again." Become a plate of loose sand."

However, Germany is doomed to fail.

Because they not only have the United States, the bad boss who does not want to see the unification of Europe, not only the polar bear who confronts the whole of Europe, but also a "good ally" who has been making trouble for 500 years-Great Britain!

As early as the Louis Dynasty, Britain began to provoke Europe to fight me and fight you.

And it was even more so in the Napoleonic era. Anyway, as long as Europe became strong, it felt uncomfortable and wanted to make them miserable.

What Xiao Qi did would not be too obvious.

He only needs to follow behind the United States and the United Kingdom, and follow the banking systems of major European countries. In this way, he can get huge economic benefits, weaken Europe, and not be a leader.

Making a fortune in silence is what a smart person should do! (to be continued ~^~)

PS:  Brothers who are interested can look at the relationship between the UK and the European continent, which is very interesting. However, the UK is an island country after all, and it is not grand enough, so even though it was a moment of glory, it did not achieve much in the end.