Chapter Seven Hundred and Thirtieth Entrapment of the Enemy, No Pressure

The emergence of tens of thousands of home buyers who cannot repay bank debts is the direct cause of the outbreak of junk debt in the US real estate, which also triggered the US subprime debt crisis and opened the prelude to the financial crisis.

Speaking of junk bonds in the United States, it is actually a very complicated matter.

The loan credit system in the United States used to be very sound and complete.

But all of this gradually deteriorated after the number of immigrants from China increased greatly.

Why?

Because Chinese people are smart and know how to take advantage of loopholes in the law.

Immigrant Chinese and overseas Chinese, seeing the huge credit market in the United States, began to think about how to use credit to make a fortune.

In the end, they thought of it, that is, you can’t make money by taking the formal path, because there are more and better big companies to do this, and it’s not their turn to talk about it.

If you want to make money, you have to start with the business that big companies don't do - forging fake credit ratings for Americans who don't have enough credit ratings, so that they can get loans from banks smoothly.

Since the 1990s, the consulting and financial companies of Huaguo immigrants have been fraudulent since they were small.

In the beginning, it was just a fraudulent credit rating from bbb to bb, but in the end it developed to the point where someone who dared to fake a B-level person into an AA-level high-quality customer.

It cannot be said that Americans are all fools, and many banks have discovered this problem, but they all need to continue to borrow money to increase their operating income and create a prosperous business scene.

But at the same time, the credit repayment ability of the loan customers is very low, and the loaned money may not be recovered, but it is also a very serious problem.

So American banks simply packaged up all these debts and sold them to funds or insurance companies in the financial market, making a little money for themselves, or not making money. Throw the whole baggage out.

This is the source of subordinated debt. Debt sold from banks to the secondary market is called subordinated debt.

What Xiao Qi wants to do is to ask CFP Company to create a hedge fund that specializes in shorting mortgage bonds. Once the subprime debt breaks out, then short Xiao Qi. You can get a lot of profit.

If only this is the case, it cannot be regarded as immoral.

In the previous life, the most unscrupulous person who made money from subprime debt was a hedge fund manager named Paulson.

Just this month, he will join forces with Goldman Sachs to cheat Deutsche Industrial Bank, ABN AMRO and American ACA Insurance by selling subprime debt and then short selling subprime debt.

Deutsche Industrial Bank bought only $150 million in a subprime portfolio, but Germany spent $13.5 billion to bring it back from the brink of bankruptcy.

ABN AMRO is much worse off. Directly because of the huge loss, the compensation was not enough, and it was finally annexed by the Royal Bank of Scotland.

ACA was also cheated to the point of bankruptcy, with a loss of US$69 billion at the beginning of 2008, which was still not enough to compensate for the losses caused by the subprime debt insurance.

This "greatest hedge fund transaction in history" also made Paulson famous in the first battle, becoming another financial predator after Soros.

You trick people into buying your subprime debt, and then turn around and ruin their families. This method of doing business is really shameless and wicked!

Xiao Qi is not a bad person.

But for the two countries that hate and discriminate against China most in the world-Germany and Japan. However, he was very interested in trying to trick them, just like Paulson, and let them suffer.

As I said before, after Xiao Qi's reincarnation and rebirth, his biggest dream is to create Huaguo's own high-tech electronics industry.

Other than that, if given the chance. The young man also doesn't mind severely suppressing opponents who discriminate and hate China in the international arena.

The economies of Germany and Japan depend to a large extent on blood transfusions from the Chinese market in order to run smoothly.

But these two countries, one is the world's enemy with China, desperately squeezing the living space of China in Asia; the other is desperately slandering China in Europe. It is also the most aggressive country in the European Union that advocates being tough on China. The various economic and trade sanctions imposed by the European Union on China in the past are definitely Germany's proposals, and there is no need to think about the second country.

Poor Chinese people, after using high-quality industrial products from Germany, they feel that Germans are good people.

Including the woman who became the Chancellor of Germany by betraying her own teacher, brought a group of presidents to China to seek benefits, and then began to actively promote trade barriers to China after returning, she is simply a typical white-eyed wolf !

Because Xiao Qi is abroad, he knows more about Germany, so he is determined to teach Germany, a country with a brutal face and a heart, a lesson. As for Japan, they will be indispensable at all times.

Now that the opportunity has come, Xiao Qi has money in his hands, so he naturally wants to have a good time.

In the afternoon, Xiao Qi took the confidentiality clause from Mario's law firm and asked Tong Wencong to sign it, and then told him his plan.

Tong Wencong pondered for a long time, and said a little uncertainly: "Qi Shao, there is a time limit for short selling. According to your short selling level, if there is no major crash within a year, I'm afraid we won't be able to make much money. what!"

"Just follow my plan." Xiao Qi said flatly, "Whether you make money or lose money, I will pay you no less than a penny of fund management fees."

"This is good!"

Tong Wencong is the president of CFP Fund Company. This kind of small fund company is everywhere on Wall Street. He alone can decide whether the company cooperates or not.

According to the contract, Xiao Qi provided funds as high as 1.2 billion U.S. dollars, and the handling fee drawn from it was as high as 50 million. CFP would never miss this business.

But Tong Wencong is worthy of being a self-proclaimed kind person. Just before signing the contract, he reminded Xiao Qi: "Qi Shao, although the subprime debt has been in a dangerous situation in recent years, the strong economic strength of Wall Street in the United States is still guaranteed. Subprime debts have passed the test again and again, you must think about it!"

After he signed the contract, Xiao Qi smiled slightly: "Mr. Tong, don't worry! If you are interested, take out a small amount of money and invest in it with me, you will definitely gain a lot .”

Tong Wencong shrugged noncommittally and did not answer.

Xiao Qi has already written out Paulson's methods according to the memory of his previous life. As long as Tong Wencong follows Xiao Qi's steps, there will be no problem.

However, Xiao Qi's methods are more subtle, and he makes less money than Paulson, and he will not announce his victory in a high-profile manner like Paulson, stealing the limelight.

Quietly making money and defrauding others, as for the blame, let others take the blame!

This feeling of hiding behind the enemy and entrapping the enemy is really cool! (To be continued..)

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