Chapter 705: Methods for Shorting the Property Market

Chen Changliu asked the last sentence by looking at everyone, but without giving a few people a chance to speak, Chen Changliu said directly:

“No, because to put it bluntly, the US government is controlled by capitalists such as Wall Street and the military-industrial complex.

So the simplest solution for them, who control the US dollar financial system, is to print money and lend it to these capital giants at low interest rates.

These Wall Street bankers have huge amounts of money in their hands, so they will rush into various industries around the world. I don’t need to tell you what the consequences will be, that is, they will pass on the consequences of the economic crisis to all countries in the world.

The prices of oil, energy, food, and ores are bound to skyrocket in a short period of time.

So can countries like many in Europe, whose economic resilience is already very weak, be able to withstand this wave of impact?

If it doesn't work, then the European debt crisis will inevitably break out. The euro will be sold off wildly and eventually depreciate crazily. European stock markets will plummet, becoming one of the best places for beautiful countries to successfully pass on the financial crisis.

So everyone, if we plan ahead in this process, can we harvest European and American capital and make a lot of money? "

Everyone was shocked by Chen Changliu's bold analysis. However, this analysis was logically correct, but it was not convincing enough.

Chen Changliu seemed to have understood what they were saying. He took out several documents and handed them to them and said:

“This is some information about the current real estate market in China that I collected through the data disclosed by banks and companies on Wall Street.

Let's put it this way, just the information disclosed is already chilling. So is the information they disclosed complete?

I don’t think so. In fact, the problem may be more serious. It’s just that the beautiful country and the whole world are immersed in this false prosperity.

And as far as I know, some people have already begun to short-sell the U.S. housing market. When the news breaks out, they will make a lot of money!

And if we want to go in and harvest, not only the U.S. debt at that time, but also the European debt crisis, we can also short-sell and harvest the property market bubble in beautiful countries..."

The people at the dining table listened to Chen Changliu's analysis and compared the information. Everyone's brows frowned deeper.

Because judging from Chen Changliu's analysis and information, they actually felt that what Chen Changliu said was reasonable, but they couldn't believe it.

However, after hearing Chen Changliu talk about shorting the property market, someone asked in confusion:

"Shorting the property market? Is this okay? I have never heard of shorting the property market?"

Chen Changliu smiled slightly and said:

"It hasn't happened before, but that doesn't mean it can't be done, because there are already people in Beautiful Country making plans."

How to short the property market? Let’s use an analogy:

Xiao Ming discovered that real estate in Meimei Country was really popular, but he found that he couldn’t even afford a toilet with only 10,000 US dollars.

So he gave the money to the hedge fund, and the hedge fund gave the money to Fannie Mae. Fannie Mae gave Xiao Ming's 10,000 to Bank A.

The bank lent Xiao Ming's 10,000 yuan to Gou Dan. Gou Dan took Xiao Ming's money and bought a house to enjoy the rising sun.

The rich Xiao Ming is still carrying bricks, but the poor Gou Dan is still enjoying life. The whole process seems perfect.

But there is a huge premise, that is, they will never default.

What if one day the mortgage cannot be repaid?

Another detail is that it is also a 30-year loan contract worth 1 million. How should it be priced?

It is impossible to sell them all for 1.1 million, so rating agencies came into being. Moody's and Standard & Poor's have become the three largest rating agencies in the beautiful country.

Based on the original data of the lenders behind them, they rated each contract as 3A, A, B, or junk.

So that every contract has a reasonable price, and because Freddie Mac and Fannie Mae are state-owned enterprises, the government requires them to only do AAA-level business.

But where there is meat, there are wolves. If Freddie Mac does not do business, Citigroup will do it, Goldman Sachs will do it, and Lehman will do it.

Moreover, these bankers predicted that in the face of such hot housing prices, it would not be very risky to find people with bad credit to lend money, because even if there is a default, they only need to take the house back and sell it.

So they started to issue more stimulus loans, which is to provide loans to people with bad credit. This is what our beautiful country is like now.

Throughout the entire industry chain, everyone hopes that this business will last long and achieve win-win cooperation.

Owners can buy more houses with low wages, and banks can lend more money, thereby generating more contracts and transferring financial risks by selling contracts.

Financial institutions can also buy more low-priced contracts and resell them globally.

Rating agencies can charge more for ratings, global investors can make stable profits in the long term, and governments of beautiful countries can absorb more taxes and investments.

At this time of global rejoicing, the airdroppers discovered a shocking secret. More and more Goudans appeared, more and more proletarian Goudans with 10 apartments, and more and more Goudans were just dogs or... A fictional doll.

Even dogs are allowed to get loans, and short sellers firmly believe that as time goes by, more and more dogs will not be able to repay their loans, and more and more houses will be repossessed by banks and sold off, causing house prices to fall.

The falling housing prices will inevitably lead to more defaults, thus causing a serious vicious cycle. A large number of contracts will be defaulted, and all financial institutions will die miserably.

What should we do after predicting this situation? How to reap the benefits?

It's very simple, an insurance policy.

If the plane crashes, the insurance purchased for 10 yuan can compensate 1 million yuan. If there is no crash, the 10 yuan will be lost in vain.

Similarly, any insurance can appear in the United States. These short sellers bought a lot of insurance when the housing prices were the hottest. The insurance content is to buy an insurance policy for the possible collapse of housing prices.

If it really falls, you will pay several times the money. Of course, if it rises, you will lose the premium.

Then when the bubble is punctured, a crisis will leave millions of families homeless. Can the Wall Street financial tycoons in various links withstand these trillions of contracts?

They can't withstand it. As I said just now, it is necessary to pass on the financial crisis.

But no matter how many people this financial crisis affects, it can allow some short sellers to make money that they can't spend in their lifetime.

This is exactly the portrayal of the financial battlefield. "

Chen Changliu told the way of shorting the real estate market like a story, which made everyone present stunned and took a long time to digest it.

The deputy of the economic department came back to his senses first. He was tangled and seemed to have suddenly realized:

"That is to say, before the beautiful real estate bubble is punctured, if you follow this shorting method, the higher the house price rises, the more money you invest, right?"

Chen Changliu nodded and said:

"Yes, it's no different from shorting in the futures market. You have to cover your position!

To put it bluntly, no matter what prediction is a gamble, but I think this one is worth a gamble, and the chance of winning is more than 80%.

Everyone has also read the data. This financial crisis is inevitable. At that time, the global minerals, energy, and food will soar.

You are also business tycoons. You must know how to harvest in this real industry.

And this time I want to invite you to harvest together in the financial market, where the wealth is most concentrated and the easiest place to harvest.

Whether you believe it or not, I will say this in advance. If you choose to cooperate with me to harvest a lot in the financial market, I have a cooperation plan here. ”

PS: The typo will be corrected first and then corrected.