Chapter 1829 Financial Crisis Breaks Out

The U.S. government itself has taken over a big trouble, that is, the world's largest insurer, the U.S. International Group, with total assets exceeding one trillion U.S. dollars.

At that time, the U.S. government could do nothing to help other financial institutions. Otherwise, it would not let Bank of America acquire Merrill Lynch, nor would it find someone to take over Bear Stearns, let alone Lehman Brothers Bank filing for bankruptcy. This is also the top investment bank in the United States.

This time the U.S. government once again took over the two Fangfang Group, and after Feng Yu found out that the financial deficit was extremely high and could not afford it at all, the financial crisis in the U.S. inevitably broke out.

Originally, the subprime mortgage crisis in the United States was very serious. Otherwise, so many financial institutions would not have gone bankrupt, and banks in Europe and Asia would need to inject capital.

But at that time, the United States pretended that we were strong and could solve these difficulties, and temporarily stabilized the market.

But this time, when the big pits were exposed one by one, the U.S. government could no longer suppress it. The subprime mortgage crisis has truly turned into a financial crisis in the U.S., or even a financial storm, and it will affect many countries around the world. and region.

Some countries bought the national debt of the United States, or invested a lot in the United States. If the economy of the United States fell, they would naturally lose money.

Other countries peg their currencies to the U.S. dollar. When the U.S. dollar continues to depreciate, their national currencies also depreciate, reducing their purchasing power and turning into inflation.

But the root cause is that the U.S. government committed suicide by itself!

The housing plan of Xiao Bushi stimulated the development of real estate and allowed more subprime loans to be issued, seriously ignoring the quality of assets.

Originally, this problem was not too serious, but Wall Street in the United States encouraged "innovative" financial products, so various financial derivatives were abused, financial transaction chains became very long, asset securitization, and products originally worth one dollar , the packaging became more than ten dollars, seriously exceeding the original real value.

Among them, Bank of Merrill Lynch and Lehman Brothers Bank are the leaders, so they are also the second largest financial institutions that have declined or even gone bankrupt because of this.

Some people say that the fundamental reason is that the default rate has risen due to the decline or even the collapse of real estate prices, and it is even crucially related to the downturn in the auto industry in the United States. Otherwise, so many people would not be unemployed, and the default rate would be lower Not that high.

But in fact, these are still because of the US government.

Around 2003, when the housing plan of Xiaobu Ten was implemented, the interest rate of the Bank of America was only 1%. And it dropped from 6.5% to 1% in less than two years.

At that time, the rate of real estate growth was much higher.

Therefore, many people find out after weighing that the interest rate on loans is not as fast as that of real estate, and it is very cost-effective to buy a house now.

After they bought a house, the Federal Reserve began to raise interest rates non-stop.

By the time it was released in 2007, the interest rate had dropped to a high of 5.75%, which meant that the interest on loans for many people had increased by more than five times!

In addition, the staff of many financial institutions that lend money deliberately leave loopholes in the contracts, so that the interest on loans will rise with the adjustment of the Federal Reserve, which has sharply increased the pressure on many people to repay.

Why does the United States adjust interest rates? Because to increase income, the U.S. government is poor and has no money.

Originally, the US economy was so good, why did it suddenly run out of money? It is because of the war!

The United States launched wars in Iraq, Afghanistan and other regions. One is to demonstrate its military strength, and the other is to prevent domestic conflicts from erupting. But the most fundamental reason is that Iraq decided at that time to change the US dollar settlement of oil to the euro settlement. .

The United States is afraid that other OPEC countries will follow suit, and the status of the US dollar will definitely decline severely. The United States has launched several wars, all of which have a fundamental relationship with these.

Isn't the politics of the United States always supported by financial groups?

Among them, energy, finance, and military industry are the main ones. Technology companies like Microsoft are not ranked at all, and even Wal-Mart Group, the number one in the world's top 500, is nothing.

Originally, the United States thought that the war between these two regions would cost 50 to 60 billion U.S. dollars in military expenditures. It can not only realize political intentions, keep crude oil pegged to the U.S. dollar, but also demonstrate their strength, so that they can stand in the international arena. The right to speak has increased, and it has suppressed the growth of the euro and the economic development of Asia.

It is a pity that due to the support of Europe and Asia to the Middle East, this war did not end in a short period of time as the United States envisioned. Ten billion U.S. dollars has turned into nearly 800 billion U.S. dollars!

Can such a high expenditure be done without raising taxes? If there is no way to generate income, the government of the United States has long been bankrupt!

So the fundamental reason lies in the decision-making of the US government and the policy of Xiao Bushi.

Compared with Clinton, Xiao Bushi is really not a little bit worse. Clinton also launched a war in Kosovo. At that time, it was also because the euro wanted to challenge the status of the dollar.

As a result, Clinton successfully changed the euro from 1:1.17 to 1:0.86. The dollar did not appreciate, but the euro depreciated.

In addition, when Clinton took office, the financial turmoil broke out in Asia. Except for a few such as China, the fastest-growing regions in Asia, including island countries, suffered heavy losses.

As for Xiao Bushi, it seems that the U.S. economy is very good, but in fact, there are many hidden dangers. Those financial consortiums have completely messed up the financial market in the United States.

There were many investment banks in the United States before. The so-called investment banks were domestic securities companies. These investment banks went bankrupt and closed down one after another.

The last two remaining investment banks on Wall Street are Goldman Sachs and Morgan Stanley. The last two investment banks have also begun to apply to transform into commercial banks so that they can absorb deposits normally.

That is to say, there is an inflow of cash, which can allow them to tide over the difficulties by themselves without resorting to government assistance.

Of course, although they are commercial banks, they still have business related to investment banking.

However, these two top investment banks in the world are also going to be transformed into commercial banks, which is enough to prove that the financial crisis in the United States is beyond the reach of the government.

Tongyong Automobile, Cresile Automobile, and Ford Enterprises, which have been struggling for a long time, have also announced that they suffered serious losses in the first half of this year, and hope to get government assistance.

Among them, Foote is alright. He sold some of his business at the earliest and was able to tide over the difficulties with his own ability. However, Tongyong Automobile and Kelesle are different. They are also preparing to file for bankruptcy protection!

Feng Yu looked at the news on the Internet. The financial turmoil has indeed broken out, but it is not serious enough. It seems necessary to push it again!

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