Chapter 1181 Economic Collapse?

To put it simply: because of the reason, many chapters have been blocked, and will be changed slowly in the future, but now I just want to escape from being caught, and I will finish the book as soon as possible and keep the whole body. The new book has been uploaded for a week, but it has not been reviewed Passed, for various reasons, currently actively cooperating with the revision, and strive to meet with you as soon as possible,

"Are we finished?"

Watching Jacob leave easily, Olsen walked back quickly.

Yang Cheng nodded, "You remember to contact him later, your spokesperson status should be confirmed."

Olsen couldn't hide his smile when he heard the words, "I must thank you, without you, I would not have been able to get the spokesperson of RBS."

"Aren't we friends? We should help each other, don't take it to heart." Yang Cheng was focused on planning the fashion field, and her reply to Olsen was more like dealing with an errand.

"Do you have something on your mind?" Olsen, as a woman, has a keen intuition.

Yang Cheng withdrew his attention, smiled and shook his head, "Sorry, I was just thinking about what Mark said just now."

If he didn't say anything, Olson wouldn't be able to ask questions. It's not a polite thing to ask someone else.

"By the way, I just chatted with a real estate agent from Canada. He suggested that I go to Canada to buy real estate, and he also guaranteed an increase of more than 20 within 3 years. Do you think I can invest?"

Olson herself doesn't know much about investment and financial management, but not knowing doesn't mean she doesn't want to keep her wealth. If there is a suitable opportunity to participate in investment, she also wants to try it.

Originally, she usually communicated with her sisters about this kind of thing, but now there is an investment expert by her side who doesn't ask, but instead goes home and asks two half-hearted amateur players, that is a waste of money.

Yang Cheng didn't think much about it at first, but just asked casually, "Oh? Where does he suggest you buy a house?"

Olsen pondered for a while, "I didn't ask in detail, but he is from Toronto."

"Toronto?"

Yang Cheng keenly smelled a breath of blood, which was similar to the atmosphere of the Wall Street consortia preparing to retreat after hunting wildly. Generally speaking, with the withdrawal of the Wall Street consortium, the targets ravaged by them would become devastated. lifeless.

And now the real estate market in Toronto and even Canada as a whole is being preyed upon by consortiums.

Since 2010,

Due to the frantic influx of Chinese buyers, housing prices in Canadian cities led by Toronto and Vancouver have soared, with an average increase of more than 50 per year, and more than 100 recently. The hot real estate market has made many speculators see the opportunity to make money. Business opportunities, a large amount of hot money flowed into Canada from the United States, just like the gold rush of the year, when people heard that someone had dug a gold mine in Alaska, all those who dreamed of making a fortune flocked, digging the river bed regardless of the consequences, and mining crazily.

But those who really made money were the first batch of people who ate crabs, and those who followed suit were always only latecomers. As for those who hesitated to consider entering the market, they all died on the road to find gold mines.

Thinking about it carefully, Toronto’s real estate market has been booming for more than ten years. In recent years, housing prices have been on a rocket and have risen in a straight line without any signs of decline. But it is precisely this madness that is the source of the sense of crisis.

Throughout the history of digital large-scale real estate bubble burst cases, housing prices have experienced a period of almost crazy explosive growth before the burst, just like a dying person returning to the light.

The current Toronto housing market is going through this phase.

Moreover, if Yang Cheng remembered correctly, the reason for the bursting of Canada's real estate bubble was not the market's own factors, but the fact that those ninjas in Canada whose asses were bigger than their heads pierced it with their own hands.

To put it bluntly, they don't want to see large sums of cash and precious foreign exchange being taken away by foreigners, and they must resolutely squeeze out the so-called real estate bubble.

For this reason, they did not hesitate to use administrative means to regulate and control. Yang Cheng didn't need to think about it. For example, the review of housing loans will become more and more strict, especially for foreign real estate speculators. It is not so easy to blindly increase leverage. You must know that in the past In order to survive the financial crisis, Canada is encouraging domestic and foreign investors to buy houses in order to boost the economy. Mortgage approval is very easy to pass.

Another example is to increase the interest rate of mortgages. Too low mortgage interest rates can easily stimulate domestic and foreign investors to speculate in real estate.

The last and most effective means of restraint is to collect taxes. The government will charge more than 15% of the purchase tax to foreigners who buy houses in Vancouver and Toronto. Will fall back.

However, it may be difficult for Canada to imagine that it was because of its own actions that it caused a complete collapse of the national economy.

Now that Yang Cheng thinks about this, of course he is not planning to join the army of real estate speculators, and then bury himself with his own hands after the bubble bursts. He thinks that maybe when Canada's economy collapses, he can buy bottoms.

This is an inevitable event. If the real estate is suppressed, the Canadian economy will definitely be affected, because the Canadian economy has two major engines: one is exports, and a decline in exports means dragging down the economy. The main reason is the sharp drop in international oil prices and the global demand for energy. The sharp drop has affected revenues from Canadian oil exports.

The other is that foreign investors are bound to suspend investment in Canada's energy sector due to falling energy prices.

Just imagine, if overseas investment is declining, exports are weak, and the real estate bubble is going to squeeze, the Canadian economy will definitely face short-term or even long-term pains, and that is when Yang Cheng can make a move.

"Sn? Sn?" Olsen didn't expect his own words to make Yang Cheng fall into deep thought. After waiting for a few minutes, he couldn't help but touch Yang Cheng.

"Oh, sorry, I was thinking about something, what did you just say?" Yang Cheng recovered and said apologetically.

Olsen pursed his lips and smiled, "It seems that what I said should remind you of something. It is my honor. I just asked you if I can invest in real estate in Toronto."

"From my point of view, it is actually too late to invest in the market now. Although I can earn some money, it will not be too much. Instead, I have to bear certain risks.

So, if I have to give you a suggestion, I can only say that if you can ensure that the house is sold within 3 years, then this business can be done, as long as the location of the property you choose is not bad, within 3 years is enough to guarantee You make a small profit, and the added value can recover the loss caused by currency devaluation. "

After Yang Cheng's analysis, Olsen's heart, which was still a little ready to move, became silent, and she heard the hidden meaning in Yang Cheng's words.

"Are you not optimistic about the future development of Toronto's housing market?" Olsen asked rather nervously.

Yang Cheng shook his head, "It's not that I'm not optimistic, but I'm worried that the bubble will burst. You know, the current rally is too crazy. Obviously, this kind of madness is beyond the inherent model of economic development. If you are not careful, the bubble will burst. If you leave, your money will disappear with it.”

"Really?" Olsen was dumbfounded. She wanted to question Yang Cheng's alarmist talk, but when she thought of the other party's professional field, she immediately shut up. At least she believed that Yang Cheng's professional achievements were not for a layman like herself. comments.

"As I said, control your greed and make sure you sell the house within three years. This investment is worth a try." Yang Cheng finally emphasized.

Olsen nodded hesitantly, "Thank you, I will seriously consider this matter."

Yang Cheng shrugged, "A little suggestion may not be able to help you, so you are welcome."

In the middle of the party, Yang Cheng rejected Olsen's invitation to have a drink together. After sending him back to the hotel, he went straight back to the company and recruited his right-hand man, Riz Khan.

Because he had communicated by phone in advance on the road, when Ruiz saw Yang Cheng, he still had a bunch of temporarily found materials in his hand.

After sitting down, he kept talking for a while, "Bss, I just searched the historical records. The Toronto real estate market once experienced a real estate market crash in 1989. The average house price in that year fell from 2.74 million Canadian dollars all the way to 1996. 1.98 million Canadian dollars, a drop of far more than 5, and the pain period was long. It was not until after the burst of the Internet bubble in the United States in 2000 that the Canadian housing market began to pick up.

Before 2010, the average house price in the real estate market in the Toronto area was nearly 500,000 Canadian dollars. With the emergence of this hot market, the price has approached 1 million Canadian dollars, and it is very likely to break through the 1 million mark in the next 12 years.

Although I have not had time to do detailed research on the data, I can roughly deduce that if housing prices in the Toronto area collapse again, not only the real estate market and construction industry will fall into depression, but the entire Canadian economy will suffer.

For example, jobs in the Toronto area will be greatly reduced, and people with huge mortgages will be reluctant to find jobs in other areas because they are unwilling to sell houses that have become negative equity at a loss.

As another example, the Canadian dollar, which is already very weak, will depreciate further.

If the decline in housing prices is the result of banks adjusting interest rates, it will cause house slaves to spend more money on housing loans and reduce normal consumption expenditures, which will lead to a decrease in domestic demand in Canada, further slowing down the Canadian economy, and even directly into recession.

However, even if the bank interest rate does not rise, consumers will feel that their wealth has shrunk due to the decline in housing prices, and thus reduce consumption. This is just like consumers will increase consumption when wealth increases.

Although there are still many people talking about the soft landing of the Canadian real estate market and few people talking about the collapse of the real estate market price, I believe that there are many people who are also aware that the bubble is about to burst, and we are not the only ones. "

Yang Cheng nodded slowly. Ruiz's judgment was basically the same as his. Once the Canadian real estate bubble really burst, the country's economy would immediately fall into the abyss.

"What do you think we can gain from this, I mean once the Canadian economy collapses."

Ruiz thought for a long time, and said with great certainty, "A lot, but from a financial perspective, crude oil and foreign exchange, as long as we unite with Wall Street to sell short, it will be a breeze to drain Canada's foreign exchange reserves in a short period of time."