Chapter 488 Planning for the Subprime Mortgage Crisis

As the first Android phone in this generation, the Samsung Galaxy S1 is not very expensive. Naturally, it quickly became popular all over the world. The biggest problem with Nokia S1 is the lack of third-generation software support. In addition, coupled with the high price of Nokia S1, it is naturally prohibitive.

After half a month, Xiaomi Mobile 1 was officially released. Xiaomi mobile phones have beautiful appearance and sufficient performance, but the price is extremely low. It is only 299 US dollars, which is 200 US dollars cheaper than the Samsung Galaxy S1. It perfectly explains what high quality and low price mean and what "Made in China" means.

After Samsung Galaxy S1, Xiaomi mobile phone 1 quickly became popular all over the world as soon as it was released. Smartphones have since moved from expensive electronic products to the general public!

This generation of Xiaomi mobile phones has a very high starting point from the beginning. It is not only sold in China, but also has sales channels all over the world. It has achieved an astonishing sales volume of 5 million in one week!

For a time, demand exceeded supply! ! !

Xiaomi and Lei Jun became famous in China and gained many fans.

Previously, although Lei Jun served as the CEO of Kingsoft, not many people actually knew about him.

But now, China's Xiaomi mobile phone is famous abroad. Chinese media news and the Internet are reporting on Xiaomi mobile phone, saying that Xiaomi mobile phone is the best mobile phone in China. Lei Jun's name is also known to everyone.

The SZ Municipal Government also designated Lei Jun as one of the ten most outstanding CEOs in Shenzhen this year.

"Happy Camp" also sent an invitation letter to Lei Jun.

The "Jobs and Jobs" column invites Xiaomi company to send company executives to participate in the program, and it is best if Lei Jun can go.

Lei Jun is high-spirited and feels very dignified wherever he goes.

With the success of Xiaomi mobile phones, more mobile phone manufacturers will emerge in China, such as Huawei, vivo, oppo, etc. I won’t go into details.

At this moment, all mobile phone manufacturers in the world can't help but be surprised that Samsung Galaxy S1 can be so popular. People can understand it. After all, Samsung has been making mobile phones for many years, and its brand influence is there. But Xiaomi mobile phones are a completely new brand, but because they use the Android operating system and are cheap, they actually sell better than the Samsung Galaxy S1!

What does this mean? Description Android phone Niu X...

Needless to say, the Symbian Alliance has collapsed and exists in name only. All mobile phone manufacturers have embraced the Android operating system. As for the Symbian system, let Nokia play by itself.

Li Zetian was very proud for a moment. The three best-selling mobile phone brands at the moment are all his own. Haha, he is so happy!

Li Zetian couldn't help but think to himself, if Google were allowed to develop mobile phones, maybe one of the four major mobile phone manufacturers in the world would own it. However, after Google and Microsoft merged, Li Zetian gave up the idea of ​​letting Google develop mobile phones, and instead focused on software development!

By June 1, 2006, Xiaomi mobile phone 1 had sold a total of 25.5 million units, Samsung Galaxy S1 had sold a total of 18.4 million units, and Apple's iPhone 1 had sold a total of 67.5 million units.

After the Samsung Group was acquired by Li Zetian, it has been developing well. Especially this year, the sales of Samsung Galaxy S1 have been huge, and the performance has been outstanding. The market value of the subsidiary Samsung Electronics alone is as high as 110 billion U.S. dollars!

Xiaomi, which was just established last year, has been valued at more than US$10 billion by an authoritative Wall Street appraisal agency.

Apple's market value has reached $500 billion!

While people were shocked, they also had to sigh that Li Zetian was awesome.

When Li Zetian saw that Android was the general trend, he felt relieved. If Nokia insists on clinging to the Symbian system, it may be even worse than in its previous life.

In his free time, Li Zetian still focuses on developing electric vehicles and autonomous vehicles.

However, everyone also knows that it is now 2006, and the U.S. subprime mortgage crisis is coming, affecting the world. Li Zetian also needs to make preparations. To be precise, he wants to make a big fortune! ! !

The financial crisis caused by the subprime mortgage crisis is the most serious financial crisis in the United States since the "Great Depression" in the 1930s. The subprime mortgage crisis that originated in the United States has spread across the world. The global financial system has been significantly affected, and the crisis has severely impacted the real economy.

Subprime mortgages, also known as subprime mortgages, refer to loans provided by some lending institutions to borrowers with poor credit and low income. When the U.S. housing market was highly prosperous in the past few years, the subprime mortgage market developed rapidly, and even some borrowers who were usually considered to be unable to repay their debts obtained home purchase loans. This set the stage for the subsequent subprime mortgage market crisis. The formation has laid hidden dangers.

The bank holds a handful of loan contracts in its hands. The loan contracts are not liquid, which means they cannot be bought or sold easily. But who are the bankers? They have to find ways to make money out of shit. As a result, banks packaged and packaged these subprime loans to create mortgage-backed bonds (MBS), and then classified the high-risk MBS into "collateralized debt obligations" CDOs according to risk levels, and finally sold the CDOs to investors. .

U.S. real estate has been rising, so financial derivatives such as CDOs have become very popular, even reaching crazy levels!

Frankly speaking, even the bank under Li Zetian's name was involved and made a lot of money...

There's no way around it, you're a bastard if you don't make money.

However, Li Zetian knew that enough was enough. Now that the mortgage crisis was coming, these businesses must be transferred to other banks or investors quickly.

Dongfang Yuqin is proficient in finance, and every time he encountered a financial crisis before, Li Zetian always asked Dongfang Yuqin to handle it. This time is no exception.

As soon as evening came, Li Zetian called Dongfang Yuqin to his study to discuss these matters.

At first, when Dongfang Yuqin heard Li Zetian saying that a subprime mortgage crisis was about to break out in the United States, she was so surprised that she couldn't close her mouth and her face was full of disbelief. However, as Li Zetian provided evidence and speculation, Dongfang Yuqin couldn't help but believe it.

One night, when the two were discussing the subprime mortgage crisis, Li Zetian suddenly said: "Everyone is optimistic about the 'collateralized debt obligation CDO', so we will bet on its fall!"

Dongfang Yuqin asked doubtfully: "How to bet?"

"Bring insurance companies in and ask them to develop a product called 'Mortgage Credit Default Swap CDS'. That is, if the CDO price continues to rise, the short seller will pay the insurance company a sum of money every month. If it falls, the insurance company will lose money!"

Dongfang Yuqin couldn't help being shocked when she heard this. She was silent for a while and asked, "Are you really sure that a subprime mortgage crisis will break out?"

"I'm sure, I trust my judgment!" Li Zetian said very firmly.

"Okay, then I'll make arrangements!" Dongfang Yuqin nodded and said.

Li Zetian said at this time: "Well, but don't worry, it may still be a year before the subprime mortgage crisis breaks out, so the initial investment is less, mainly to let the insurance company convert this 'Mortgage Credit Default Swap CDS' Once the product is ready, wait until next year and we will spend huge sums of money to be a big short seller!!!”

Dongfang Yuqin smiled and nodded: "I understand."

“Also, try not to reveal that we are short.”

Dongfang Yuqin rolled her eyes at Li Zetian and said, "Of course I know this, low-key is king!"

"Well, okay, you go and have a rest first. I still need to read some documents." Li Zetian kissed Dongfang Yuqin's forehead and said.

"Don't look too late."

"Um."

…

A week later, a customer came from the American AIA Insurance Company. This client came up with a strange idea.

"I want to short CDOs. Does your insurance company have this business?" he began.

When the manager of the insurance company heard this, he looked at the other person in astonishment. After a while, he asked: "Sir, are you kidding me?"

"I'm serious, I'm definitely not joking!" The customer shook his head and said in a serious tone.

The insurance company manager was stunned, shook his head and said, "Sorry, our insurance company does not have this product."

After speaking, the manager advised: "Sir, real estate in the United States is booming now, and collateralized debt obligations (CDOs) are rising sharply. If you want to short CDOs, won't you lose money? Therefore, I advise you to invest in CDOs. Credentials (CDO).”

The customer shook his head and then asked: "Can your company develop a product specifically for this, such as mortgage credit default swap (CDS)? If the price of collateralized debt obligations (CDO) continues to rise, I will give the insurance company a sum of money every month. If it falls, the insurance company will lose money!”

When the manager heard this, his eyes suddenly lit up and he thought to himself, is this idiot here to give money?

"Hello, sir, I understand your idea. How about you go back today and I will report your idea to the company's senior management. After they discuss it, I will get back to you, okay?"

"OK."

The manager walked the strange customer out the door.

"Oh, sir, let me take the liberty to ask, if our insurance company develops a mortgage credit default swap (CDS) product, how much do you plan to buy?"

"A few million dollars, maybe more..."

Upon hearing this, the manager's heart suddenly pounded, oh, God, there are so many! ! !

After seeing off the guests, the manager could not suppress his excitement and hurriedly reported the matter to the CEO.

The CEO of the American AIA Insurance Company didn't believe it at first, "Oh, Tom, is this guy crazy and his head was caught in the door?! Or is he deliberately joking with us?"

"Mr. Sandy, this client is the director of a small investment company, with hundreds of millions of dollars in his hands. From his tone, it doesn't sound like he is joking. Perhaps, he really is not optimistic about CDOs..."

"The U.S. real estate market is doing well, how could CDOs fall?! Haha, if he really wants to short CDOs, that's our chance to make a fortune!!!" The CEO of the American AIA Insurance Company couldn't help laughing.

…

But the strange customer who came to the AIA Insurance Company of America just now appeared at another insurance company. He told the manager of this insurance company almost the same words, and the other party was also surprised and shocked...

Soon, it became known in insurance circles that someone wanted to short CDOs.

"This man's name is Mitch Veblen, the manager of an offshore investment company."

"Haha, I have never seen such a stupid person!"

"Haha, give us money, if you don't make money, you won't make it in vain!"

"..."

The insurance companies were all laughing at Mickey Veblen behind his back.

Soon, banks, securities companies, and investors also knew that no one had shorted CDOs because the U.S. real estate industry was so good, but their reactions were all ridiculing.

Los Angeles, Beverly Hills.

Dongfang Yuqin smiled and said to Li Zetian: "If the plan is going to succeed, the insurance companies will agree to develop mortgage credit default swaps (CDS) and think we are stupid."

Li Zetian said nonchalantly: "I don’t know who is stupid! Let’s buy CDS products worth 10 to 20 million US dollars first, so that they can taste the benefits first. Next year, we will continue to buy CDS in large quantities and let these insurance companies lose money." To the point of bankruptcy!!!”

Hearing this, Dongfang Yuqin and Li Zetian looked at each other and couldn't help laughing.

You will not pay for your life if you trick someone to death!

So, in September, Mitch Veblen purchased mortgage credit default swaps (CDS) from 13 insurance companies in the United States, worth a total of US$25 million.

However, the incident passed quickly without causing too many waves. The U.S. real estate market is still good, and Mitch Veblen has become nothing more than a joke in financial circles.

At this time, Dongfang Yuqin has become a busy man. In order to make a big profit from the subprime mortgage crisis, reducing his own losses is also a top priority. Not only does the company have to prepare, but there are also many investments to make. Cash out as soon as possible, otherwise you will lose a lot of money.

In the midst of my busy schedule, before I knew it, it was time for Apple to release new products.

On October 24, Apple released two products, the iPhone 2 and the tablet computer iPad.

iPhone 2 has a 4-inch display, a better camera, a more powerful A2 processor, larger storage capacity, is thinner, lighter, and has a more beautiful aluminum coating. Although the design of iPhone 2 and iPhone 1 are not very different, they became very popular once they were released.

But to be honest, without the advent of black technology, the iPhone cannot make much change no matter how it is designed. Li Zetian somewhat understands Tim Cook in his previous life.

The tablet computer iPad is between the iPhone and the MacBook. Many people complain that the iPad is an enlarged version of the iPhone. Well, that's actually true, but the iPad is selling like hotcakes, so what can you do?

As in previous years, after the official release of iPhone 2 and iPad, there were very many people queuing up at the entrance of Apple's flagship store. Li Zetian was accustomed to these.

As the subprime mortgage crisis drew closer, Li Zetian put aside all other things. He is now a ferocious wolf, his deep and shining eyes always staring at the prey of American subprime mortgages.

During the subprime mortgage crisis, countless companies went bankrupt. This was a huge opportunity for Li Zetian to strengthen his own strength!

It’s hard to imagine how much profit Li Zetian would make from shorting U.S. real estate and the stock market with his current strength. After the subprime mortgage crisis, Li Zetian's wealth is probably so great that even the US government trembles and wants to kill him...