Chapter 2237 Flowers in the Mist

This should be Chapter 80, haha, sorry, the chapter name is wrong again.

…………

As soon as it started to dawn, Amanda ran all the way to the master bedroom, "Hey, hey," she flipped onto the bed in a familiar manner, and then she was dumbfounded. Where is her father?

Before going to bed last night, my father was obviously at home.

She shook Huang Jingping awake, "Mom, mom, where is dad?"

"Huh?" Huang Jingping, who was shaken awake by her, said subconsciously, "Dad has gone to exercise."

"But it's not six o'clock yet," Amanda said.

Huang Jingping touched the alarm clock on the bedside and looked, hey, it's only 5:20?

Thinking about what happened last night, she got up with disheveled hair and hugged Amanda. Sure enough, she found Feng Yiping in the living room, holding a pillow and sleeping soundly on the sofa.

What happened to him last night?

She turned off the table lamp next to her and was about to enter the room and take out the quilt when Feng Yiping woke up and said, "Hi, morning."

"Hey, why am I sleeping here?"

"Dad," Amanda slipped off her mother and looked at Feng Yiping with wide eyes, "Did you quarrel with your mother?"

Seeing her serious look, Feng Yiping and Huang Jingping were dumbfounded. Where is this?

"Baby, it was Dad who was thinking about something after making a phone call last night, and then he fell asleep thinking about it,"

"Is it a difficult question?" Amanda asked with her big eyes flashing.

"It's not a problem," Feng Yiping pulled her to the sofa and waved to Huang Jingping.

Huang Jingping had no choice but to squeeze in and lie down on the sofa, otherwise Amanda would have thought they had a fight last night.

"How about you sleep a little longer and think about where you want to go today?"

Amanda immediately called out, "The Great Wall,"

This is not difficult. The Great Wall is so long that it is easy to climb in a place with few people.

…………

For Feng Yiping, the situation is already obvious, but for others, the situation at this time is still difficult to see clearly, a bit like seeing flowers in the smoke.

Also this morning, while having breakfast at home, President Zhou also received relevant news.

New Century Financial Company still went bankrupt.

The information he received was even more complete.

New Century Financial, the second-largest U.S. subprime mortgage provider, plans to sell most of its assets within 45 days and lay off about 3,200 employees, according to bankruptcy documents filed in federal court in Wilmington.

They agreed to sell a portion of the loans they originated, as well as their remaining interests in certain securitization trusts, to Greenwich Capital for approximately $50 million.

It will, subject to court approval, sell its service assets and service platform to Carrington Asset Management and its affiliates for a purchase price of approximately US$139 million.

The platform, the company's core asset, is made up of 57,000 independent mortgage brokers who find loan customers and process loan applications and approvals.

The platform also includes computer software and equipment for analyzing loan applications, as well as 262 retail outlets and 34 regional operations centers in 20 states across the United States.

For companies like New Century, the most intense competition between them and their competitors is the competition for these independent brokers, because these independent brokers can bring them business.

Of course, according to the information previously received by President Zhou, it is the 57,000 independent brokers on this platform that have brought New Century Company to where it is today.

These brokers will try their best to obtain loans for interested customers, even if they know that those customers do not seem to meet the relevant loan conditions.

But so what? The more loans they take out, the more fees they can collect.

New Century Financial Company rarely requests re-examination of the loan appraisals issued by these brokers.

Governor Zhou can understand the reason for this, because New Century Financial Company, like most companies and people in the United States, firmly believes that housing prices in the United States will continue to rise.

In fact, at this time, even Governor Zhou himself is not sure about the next trend of U.S. real estate prices.

Yes, although the real estate market in the United States has cooled down since the end of 2005, although as of last year, many Americans were still upset about real estate.

But they are not upset because of the trend of housing prices, but because they have not bought a house in time, or they have bought too few houses before.

Because many of the houses they bought before have at least doubled in value by now, so why not buy two more at that time?

New Century Financial Corporation, which declared bankruptcy yesterday, issued loans as high as US$60 billion last year.

This shows that the willingness of the American people to buy real estate is still very strong.

Therefore, even though there are more and more real estate advertisements appearing on the roadside in more and more places now than before, who can firmly deny that this is just a short-term adjustment. Maybe next month, the real estate market will change again. Will the upward trend resume?

He also understands some of the subsequent policy factors better than the average person.

Since 2000, in order to stimulate the economic downturn caused by the bursting of the Internet bubble, the Federal Reserve has cut interest rates 27 times in a row, and finally reduced the interest rate to 1%. The low interest rate has given the housing market an upward momentum and also allowed the US economy to get rid of the possibility of continued recession.

Of course, they also paid attention to this problem, so in order to curb inflation, from 2003 to last year, they raised interest rates 17 times in a row, that is, raising the benchmark interest rate from 1% to 5.25%.

The sharp rise in interest rates has increased the repayment burden of home buyers and led to the continuous occurrence of mortgage defaults, which is also a major reason for the current sluggish mortgage market in the United States.

So, will the Federal Reserve use interest rate cuts in time to ensure growth?

Although Greenspan stepped down last year, Governor Zhou knows the Fed's methods too well. When the economy is sluggish, interest rates will be cut until the economy gets better.

On the contrary, when there is a tendency to overheat, try to raise interest rates. If there is no response to the first rate hike, then continue until there is a response.

These are their two usual tricks.

Judging from the information received by Governor Zhou, the US economic community is also discussing this issue at this time, that is, will the bankruptcy of New Century Financial Corporation lead to a domino effect?

Will its bankruptcy lead to other real estate mortgage companies with higher credit ratings also being chased for debt, thereby endangering the entire US mortgage market and even the US economy?

The current mainstream view in the US economic community is still that this situation is impossible. First of all, the losses of Wall Street companies that provide financing support to New Century Financial are limited, and their loans are guaranteed by other assets of New Century.

More importantly, most people, like Governor Zhou, believe that the Federal Reserve will cut interest rates in a timely manner.

But Governor Zhou also knows that Feng Yiping firmly believes that the US real estate market will not improve.

For him, it is not difficult to find out about Feng Yiping's fund buying real estate securities CDS.

On the one hand, the mainstream economic community in the United States believes that the real estate market is still improving, and on the other hand, Feng Yiping, who he thinks is very accurate in seeing the problem, believes that the US real estate market will collapse next.

To be honest, he is also a little unsure about which side's view is correct.

In particular, he also learned that before New Century Financial went bankrupt, the investment banks on Wall Street actually proposed a solution, but the two sides did not reach an agreement on the terms.

This fully demonstrates the confidence of Wall Street.

So, this problem is really hard to understand.

On the way to the office, he kept thinking about this problem, but when he arrived at the office, he put it aside.

The bankruptcy of New Century Financial is also a wake-up call for China, because the same situation may also happen in China.

In recent years, the amount of fake mortgage loans involved in the domestic banking industry has also increased year by year.

According to statistics, from 2004 to last year, the domestic mortgage non-performing rate has increased from about 1/1000 to about 8/1000, which has increased more than seven times.

He quickly convened a special meeting and asked the management to pay close attention to the real estate credit risk. After that, he called Feng Yiping. "Yiping," he heard the wind from the other side, "Are you not in the company?"

"It's okay," Feng Yiping gestured to Amanda and walked to the other side of the beacon tower, "Teacher Zhou, is it related to New Century Company?"

"Oh, yes, you must know it, what do you think about it specifically?" President Zhou asked.

"I still stick to my original opinion," Feng Yiping said.

"In this case, Yiping, can you provide a written opinion?"

"Written opinion?"

"Yes, I think it should be useful when I report to the top," President Zhou said.

"Is that so," Feng Yiping looked at the undulating mountains in front of him and the Great Wall winding forward on the top of the mountain, "No problem,"

PS: Sorry, before typing last night, I said I would only take a nap for half an hour, but when I woke up, it was morning. I won't do it tomorrow.