Chapter 2290 Shorting the Greek Kingdom!
Under He Chaoling's admiring gaze, Chen Mo began to draw a mind map of the plan on the mind mapping software on the computer.
“First, MBS, a hegemonic country, packages people’s mortgage loans into bonds and sells them to investors. As long as people continue to take out loans and repay them, the money will flow from the people to the lending banks or the two housing agencies, and then to the hands of investors.
Investors include not only the five major investment banks of the hegemonic country (Golden Steady, Morgan Stanley, Merlin, Lehman Brothers, Bear St, etc.), but also major banks of the EU countries.
The banks of the European Union made money from subprime bonds and began to invest in peripheral countries such as Greece and Croatia, which led to economic prosperity in these countries, crazy increases in housing prices, an increase in the scale of borrowing and consumption, and credit expansion.
A chain of private debt crises was thus formed.”
“Second, European countries represented by Greece have continuously raised their welfare levels and continued to issue government bonds for financing, which has led to an increase in public debt levels. Tax evasion has become a trend under the hedonistic mentality of the people, and these countries have begun to experience serious fiscal deficits.
In the case of insufficient fiscal revenue, the only option is to continue issuing bonds to borrow new money to repay old debt, and the debt level is getting higher and higher.
Thus begins a chain of public debt crises.”
"While these people from Ouzhou were enjoying the carnival of skyrocketing housing prices, improved welfare, and rampant tax evasion, the source of this prosperity - housing prices in the hegemonic country - began to fall. The moment Bells was waiting for arrived, and the subprime mortgage crisis broke out!"
Chen Mo's mind map came to this point and he looked at He Chaoling:
"Secretary He, tell me, under this circumstance, can Greece still be saved?"
He Chaoling looked at the densely packed but clear mind map and felt her scalp tingling.
"It's hopeless. The people of the hegemonic country, the source of liquidity for the entire system, don't pay their loans or buy houses. It's like an engine without electricity. How can it keep turning?
The source of fresh water is gone, and Greece is like a pool of stagnant water. Even if we do not take action this time, it is only a matter of time before it goes bankrupt.
Unless the Greek government can get the people of the country to work together to tighten their belts.
But based on what I have seen and heard in Greece in the past few days, I don’t think the Greek government has the courage to do so, and I don’t think the Greek people can endure this hardship.”
Chen Mo nodded with an appreciative smile: "In fact, Ouzhou Bank, which was deeply involved in the MBS and CDO investments of Baguo, discovered a few days ago that the financial assets they invested in had no returns."
"But their average leverage of 50 times is real debt, which generates interest every moment. They have no income but are heavily in debt."
“It was based on this that I dared to challenge and confront the major banks in Au Chau a while ago.”
As he spoke, Chen Mo opened several pieces of data intelligence sent by Jiang Pengyue on his computer:
"The Third Master has been sending me intelligence continuously these past few days.
Even though I had already withdrawn from shorting Au Chau Bank, voices of losses and bankruptcy continued to appear in Au Chau’s financial market.
“On the 2nd, the Agricultural Bank of China lost 129 billion euros due to subprime mortgage investments.
On the 4th, the Lanxi Bank, the largest bank in the Lanxi Empire, announced the freezing of 300 funds due to investment losses in subprime bonds, citing "completely exhausted liquidity" as the reason.
On the 6th, the Sunset Empire's Southern Rock Bank encountered a liquidity crisis due to losses from its subprime bond investments and asked the Sunset Royal Bank for help. The news leaked out that day, causing widespread panic among the people, who rushed to the counters of Southern Rock Bank to withdraw cash, resulting in a bank run.
Over the next three days, citizens withdrew 100 billion euros.
On the 7th, Nanyan Bank, which had no deposits, no income, and only high debts and high interest brought by high leverage, declared bankruptcy.
The liquidity crisis has now spread to the entire Ouzhou. Just the day before yesterday, the Ouzhou Central Bank urgently announced that it would provide unlimited financial support to all banks in Ouzhou.
49 banks borrowed more than 5000 billion euros in just a few hours, which temporarily eased the liquidity crisis.
But as you said, without the source of living water, these banks and countries will sooner or later become stagnant water if they do not change. "
After Chen Mo finished reading the information, he smiled faintly and said:
"The subprime mortgage crisis is contagious and has a lag effect."
"On the surface, Au Chau is peaceful, the economy is booming, and the welfare is enviable, but in fact, it is already riddled with holes."
"Housing prices in Greece, Croatia, and other countries should have plummeted long ago, but the governments are holding up the prices to prevent them from falling."
"All we need to do now is take out a needle and poke it gently. We don't have to do anything else afterwards, and everything will happen naturally!"
After saying that, Chen Mo closed the mind map and began to make the layout.
A few seconds later, the video between Han Li and Cai Nong was connected.
"Han Li, starting tomorrow, as soon as I give you the order, you will start to short sell Greece's real estate, stock and foreign exchange markets like crazy."
"Sister Cai, after I finish editing the video, please ask the media in the Moyuan Department to forward it crazily. Also, contact the world's top TV stations to do a special program to expose the chaos behind the Greek economic system."
After hanging up the phone.
Chen Mo looked at He Chaoling and said, "Go to Hegemony and ask the three major rating agencies to lower the ratings of Greece's real estate, banks, stock markets, and foreign exchange markets."
He Chaoling was stunned and said, "This... they are the assets of the foundation. Can they help us?"
Chen Mo smiled: "Tell them that if they don't do as I say, I will open my own rating agency. They won't have this job anymore."
He Chaoling couldn't believe it, "This... not giving benefits, but threatening others... is this okay?"
Chen Mo waved his hand: "Do as I say!"
He Chaoling nodded and immediately bought a plane ticket to Baguo.
Han Li and other people from Moyuan Securities also urgently began to deploy plans to short the country of Greece.
Cai Nong made an emergency contact with the paparazzi of Mo Xun Entertainment. After obtaining the materials from them, he found the heads of the streaming media department and the traditional media department to convey the order.
Chen Mo opened the oversized floor-to-ceiling window of the presidential suite, lit a cigarette, and admired the quiet, happy, and peaceful scenes of the Greek people downstairs.
An undercurrent has already begun to surge in Greece.
A huge storm may force everyone within Chen Mo's sight to regress 30 years in terms of food, clothing, housing and transportation!
Chen Mo took a deep breath and exhaled thick smoke.
The smoke covered Chen Mo's eyes, as if it had covered the entire Greek country.
The pedestrians downstairs, against the backdrop of smoke, looked like wandering ghosts in hell.
"Poor Greek people, if you want to blame someone, blame your emperor for being too stupid. He had to use me as a token of his allegiance to exchange benefits with the hegemonic country."
"Originally you could have had more than a year of good life...tsk tsk tsk..."
