American Fortune Life

"Let everyone have a chicken in the pot and a big house to live in." Roosevelt

The American dream planted by Roosevelt that year gave Americans an irresistible obsession with housing and real estate.

For more than fifty years after the Great Depression, the old American economic path has been more cautious. Until around 1990, Washington decided to restore economic prosperity again.

The deregulation of various savings and lending companies, the US financial industry ushered in the second, when Wall Street investment banks were able to go public.

Moreover, the government has started to encourage people to buy more houses, stimulate domestic demand, stimulate economic growth, and banks have tried to reduce or eliminate down payment requirements, such as adjusting interest rates and paying in installments.

Many fledgling speculators suddenly poured into the real estate industry, and the real estate fever began to rise.

In order to promote the development of the real estate market, the old US government even stipulated that the sale of houses should be exempted from capital gains tax, up to 500,000 US dollars. This move has greatly boosted room growth, while the real estate market has a bright future in the American concept. Real estate developers began to advocate on television programs, trying to convince people that investing in real estate is the only way to get rich and short.

At that time, whether it was Jing Ying on Wall Street, or a businessman looking for a tax haven, or a noble lady in the upper class, ordinary white-collar workers were pouring into the real estate industry, and everyone wanted to reach the pinnacle of life by turning upside down houses.

(Ha ha, don't you seem to know each other?)

Even if this is the case, the government feels that the stimulus to house purchases is still insufficient, and the government has issued a lot of laws, and even there are laws that require bank loans not to reach the government's prescribed amount, and will impose fines on banks.

In order to complete the loan quota explained above, the bank began to provide loans like marginal home buyers with credit problems, which is the legendary subprime loan. The bank loan standard does not confirm the borrower's income certificate, and it also invented no property certificate. Loans, unrestricted loans, undocumented loans, and other ridiculous games.

Stimulated by various bank policies, house prices started to rise again, and the government and people at the time did not expect that they were on a path of no return.

Wall Street bankers are so clever. In order to make more money in the middle, they have invented many highly toxic financial instruments, such as debt mortgages. Well, in short, it is leverage.

Anyway, the more money the bank borrows, the higher the leverage. Andy used to be basically indifferent to finance, but after months of self-study and reading a lot of related professional books, he also has his own understanding. Leverage, his most recognized sentence is: Leverage can sometimes make people go to heaven, but it is easier to make people go to hell!

In this way, the first big bubble in the history of real estate in the United States has officially started, and it has been more than 10 years since it was left until 2007.

The Internet bubble of the US stock market burst in 2000 and 911 in 2001 caused the US economy to enter a period of low tide. In order to reduce the unemployment rate and revitalize the economy, the Fed repeatedly cut interest rates.

After the interest rate was lowered, the yield of traditional fixed income products such as bonds was very low, and the stock market was also in a downturn. There was no place to invest in hot money, and it was impossible for the rich to rush into the real estate.

House prices have started to rise again, and there is no meaning to stop. Hollywood stars, Stallone, bad movie king Cage, etc. Well, the three women of Andy are also part of this tide, Theron, Lima, Johnson . One after another joined this feast of real estate speculation. At the same time, in the news reports, various economic and investment experts have raised signs to show that house prices will not fall.

People, huh, huh, they are all social animals. Some factors in the society have a great influence on us. Since the media has been arrogantly saying that house prices will not fall, and the government has not taken any action, most people with herd mentality will believe in house prices. Will not fall.

The number of small lenders is rapidly increasing, and the market is doing well. Real estate has become the main theme of the Americans. Although the housing prices are scary, the hot money of buyers is still rising.

The real estate bubble is getting bigger and bigger, the Fed realizes the seriousness of the problem, but dare not act easily. You must know that the truth is a beautiful and terrible thing! You need to be extra careful.

From 2004 to 2006, the Fed cautiously and continuously raised interest rates in small steps, but it was useless. Although raising interest rates to suppress inflation, long-term housing mortgage rates are still falling.

Andy lowered the coffee cup in his hand and gently rubbed his brows.

A crash that has been and cannot be covered is finally about to begin.

Since July last year, the pace of rising house prices has slowed down, and has even started to decline in many areas of the United States. Although there are few homeowners who notice the warning signs early, there is no shortage of keen people in the market.

In the next time, many active speculators will quickly start cashing out and withdraw from the market, and the horror curtain that Andy waits for will be opened.

The fall in house prices will cause the entire chain to break. People who used to subprime mortgage buyers will continue to increase the burden of repayment. Credit default rates will rise sharply. Changing money, just like this, more and more subprime home buyers have no money to repay the loan, and the loan will become a bad debt.

Now, the market situation has started to deteriorate, and many people have become homeless. Because of the economic burden, they are poor, they are unemployed, they have no money to pay their mortgages, they have no money to set up a house, and they can only live in tents.

In the not-too-distant future, a large number of banks will close down, companies will go bankrupt, the stock market will be volatile, and all walks of life will be spared.

The subprime mortgage crisis triggered by real estate will eventually spread out of control to the world.

(Although the national conditions are different and the differences are huge in every aspect, we still need to take precautions.)

History always has amazing similarities. When this opens up the history of the world, we will find that human beings are used to falling down on things that have already learned lessons. Why?

Human nature is greedy, so it ’s hard to say anything. Well, scars forget that pain is a common habit of human beings. Why is Andy not doing his best to give a warning when the crisis comes? Or for your own purpose, after holding a large number of cds, stand up and sing down the real estate market, so that people can be vigilant and can also lead to an early collapse. Why not do it?

Hehe, even the Fed dare not come back to it, how old is Andy Smith? The power of advocating the real estate bubble cannot be countered by a single person or an institution, even a few can't. The people plus the government plus the bank, Wall Street, and some other combination of forces, who dares to stand up and become that "hero"?

Andy will not be so idiot, he has been constantly layout from the beginning, hoping to take a bite of low-key in this feast, without making a head bird, silly 13 will shout all over the world know.

The subprime mortgage crisis under the collapse of real estate, the tide of bank failures under the subprime crisis, and the surge in gold under the depreciation of the dollar ...

This chain reaction that affects the whole body is waiting for Andy, he just feels that time is a bit difficult, why not hurry up, savior, ah!

Under the dark sky, Andy wore a dark blue coat, strolled 500 meters on Wall Street, stood in front of the bronze bull sculpture representing wealth, exhaled a breath, and turned his mouth up, exposing a cold smile, watching from his side People walking by.

"Click."

"Boss, it's already taken." Tori walked quickly to Andy, handed him the digital camera, and said softly.

Andy took the camera and looked at it and said, "Let's take care of it and increase the depth of field. Except for me and this cow, the other scenes are blurred and then zoomed in. March 1, today is a memorable day! "

"Okay, boss, then where are you going next?" The little assistant took the camera off, put it in his bag, and looked at the big devil's tall body, wide back, and asked softly.

"I'm hungry. I'm looking for a restaurant. I want to eat beef, **** ..."

Andy turned back to show a charming sunny smile.