Chapter 2735: Scared

Cochin, India.

Feng Yiping was wearing swimming trunks and sunglasses, sitting on the platform by the seaside. Unnamed red flowers hung from the upper swimming pool platform and extended to the parasol behind him.

The sea was calm in the bay, and seabirds flew over the sea beneath his feet. Because the sun was too bright, the high-rise buildings in the city center across the way looked hazy and unreal.

This city, located almost at the southernmost tip of India, was somewhat beyond his expectations. At least from what he had seen so far, it was a much cleaner and tidier city than Mumbai - of course, this requirement was indeed not high.

When he heard the sound of swimming stopping, he closed his eyes. Sure enough, someone tiptoed down from above and stopped behind him for a moment. "Hey," his neck was hugged, and wet hair fell to his face. , then moved down to his chest, Marika kissed him hard, "What are you thinking about?"

With another flick of her hair, she was already sitting on him, "What are you looking at?"

"What do you think?" Feng Yiping stretched out his hand and felt it carefully. This angle couldn't be more suitable.

Marika leaned down, her eyes brimming with water, "Do you like it?"

With his arms full of warm and fragrant soft jade, Feng Yiping nodded honestly, "I like it very much,"

Perhaps because of his affirmation, accompanied by a chuckle, Malika moved her hands, and with another move, the restraints on her upper body flew to the table nearby. She hugged Feng Yiping tightly and moved, oh , boy!

"How is it here?" Marika teased his earlobe.

"Of course it's good, because you're here," Feng Yiping looked at the smile on Marika's face and couldn't help but sigh in his heart, I'm saying these words now, it's really easy for me to say them.

Is this considered progress?

"How long can you stay?"

"I hope to stay a few more days, but it also depends on the situation in the United States,"

"Oh," Malika sounded a little disappointed, but the next moment, she raised her head, "This subprime loan has a great impact on those companies in Bangalore. What is it really about?" As you said, the most difficult time has not yet come?”

The most difficult time is coming next, Feng Yiping said heartily.

"Subprime mortgages, to put it directly, are subprime loans. In order to increase residents' home ownership rate, the U.S. government encourages financial institutions to issue loans to purchase houses to people who would not otherwise be able to apply for home mortgage loans."

"The house," Malika whispered.

"Houses are very important, aren't they? George W. Bush said that owning your own home is the beginning of the American dream,"

“But financial institutions took the opportunity to have other ideas. Through a series of complex operations, mainly securitizing home loans, those financial institutions that issued mortgage loans to the public no longer care whether their loans can be recovered. ,"

"ah?"

"And the problems involved in subprime mortgages now are not just mortgage loans. In order to generate income, many financial institutions will try every means to encourage those Americans who have paid off their mortgages and own their own homes. Then use your own home to borrow money,”

"As housing prices continue to rise, the house you own is like a bank whose value is constantly increasing. How can you let it sit idle?"

"Under such encouragement, more and more retired Americans are taking out loans for their newly owned houses, buying bigger TVs, better cars, and going to more beautiful beaches for vacation..."

“Then prices dropped all of a sudden,” Malika said.

"Yes, house prices have suddenly dropped, and many mortgage users have found that although they have repaid multiple installments of mortgages, the value of the mortgaged house is already much lower than the mortgage they will have to repay next,"

"To make matters worse, they discovered that the monthly loan repayments that the loan intermediaries previously said would be more than $2,000, would now suddenly become more than $5,000,"

“Those people who took out loans for their properties, their pensions of more than 10,000 US dollars a year, were also completely unable to afford the monthly loan repayments. In the past, that didn’t matter, because house prices were rising, and they could continue to borrow money from banks. Loans - banks are also happy to give them more loans to pay off the loans,"

"As a result, some people felt that it was not a good deal and took the initiative to cut off the mortgage payment and move out of the mortgaged house. Some people were evicted from their houses by the bank because they could not repay the loan."

"And we all know that the more vacant houses there are in a community, the more houses that are not being maintained..."

"The housing prices in that neighborhood will be more affected," Marika responded.

"You're right," Feng Yiping rubbed her head.

They don't understand other things about the economy, but they know these things very well.

"Now, this situation is spreading across communities across the United States, so housing prices have been falling. This trend will inevitably affect Wall Street, because Wall Street institutions have a large number of construction projects that can only benefit from rising housing prices. profitable securities,"

"As house prices fall, the assets they own also shrink. What's even more fatal is that all Wall Street institutions are using high leverage. The average level is more than 33 times. That is, their assets only need to shrink by 3%. , those investment banks, banks, and insurance companies that seem to be invincible will go bankrupt,"

"If they go bankrupt, will it have a big impact?" Marika asked, "Oh, if the bank goes bankrupt, will I lose the money I have in the bank? If the insurance company goes bankrupt, will my policy be useless?" she said. sat up.

"Yes, but it's more than that. If you think about it, all companies now rely on the banking system to help them with settlement. The vast majority of companies will use bank loans to develop. If you think about it, once the bank collapses, the company will Not only is the money in the bank gone, they can't even carry out normal business activities because they can neither receive money nor make payments,"

"And those companies that need bank loans to develop, because they can't get loans, can also only..."

"Going bankrupt?" Marika was stunned. She looked at the city opposite, "You mean, many ordinary companies will go bankrupt?"

He successfully made Feng Yiping, a financial novice who originally only knew banks as a place to save money, learn the power of financial bombs and pull her back to his chest.

She didn't have any hair on her upper body. Although the area was empty, why should she give others the opportunity to take advantage?

"If the entire financial system collapses, that will indeed happen, but do you think that whether it is the people in power or the rich..."

Marika looked at him faintly.

"Yes," Feng Yiping smiled and pointed at himself, "How would a person like me allow such a situation to really happen?"

Think about his current deposits in overseas financial institutions. This year happens to be the highest, which has exceeded 50 billion US dollars. How dare you close the bank?

"So don't worry, not only will such a situation not happen, but this situation is also a good opportunity." He kissed Marika, "You don't have to worry about anything,"

"good chance?"

"Yes, in Mumbai, for example, there must be luxury houses that are eager to be sold,"

"Can I buy it?" Marika asked.

"Of course, this will be a good opportunity," Feng Yiping remembered clearly. Mumbai was decades behind us in Beijing, Shanghai, Guangzhou and Shenzhen in other aspects, but later on, only in terms of housing prices, it really became a first-tier city chasing us. The chase was tight.

After conversion, there are many houses that cost more than 100,000 yuan per square meter.

"It's not just Mumbai, it also includes London, Los Angeles, places you are familiar with, you can ask someone to pay attention to them, and take advantage of this opportunity to buy the right one,"

"This will be an investment with high returns and no risk. If you hold it for a few years and then sell it, the rewards will be beyond your imagination."

As for the short selling he was doing, Marika didn't quite understand such a thing, and it was actually hard to tell her.

"Is it really possible?" Marika is still a little unsure. After all, in such a general environment, housing prices in Mumbai are also falling.

Generally speaking, we buy up and not down.

"It's very possible. In this way, I will ask someone to assist you, and you don't have to worry about the required funds,"

It is not good to just build a house in China. Besides, it is not possible to take all the US dollars back home and convert them into RMB.

He is happy to contribute more and more to help Mumbai's housing prices catch up with those in our first-tier cities.

Just as he was thinking about it, Malika kissed him hard and deeply. When they separated, she twisted her body and said with a smile, "I seemed to feel something."

"You know, making money is always exciting," Feng Yiping said.

Marika's hand reached down, but, right here? Okay...I bought it...