Chapter 2209 More than 20 allies join!
On the way back, Rexel and the other three were silent for the entire journey.
The truth is too cruel.
It’s so cruel that even capitalists and plutocrats like them can’t accept it!
The people at the bottom are so ignorant that it doesn't take much effort to deceive them into getting loans, and they get mortgages with floating interest rates.
Bank loans are like child's play. Dancers without stable income, couples without jobs, and even a dog can get a mortgage loan!
Mortgage default rates are much higher than they thought.
Today, they not only went on-site investigation themselves, but also asked their subordinates to visit everywhere.
The results of the investigation are outrageous!
Today’s real data on the default rate of subprime mortgages in new communities is even lower than 50%! ! !
This is more than ten times higher than the official 4%! ! !
What Chen Mo said about the subprime mortgage crisis and the collapse of the building was definitely not a joke!
Rexel and the three of them were just like the aloof emperors in the past. After a private visit incognito, their inner sense of superiority towards the financial system of the hegemony was gone.
Some are full of distrust!
If this continues, the overlord will take jujube pills! !
Wait until you return to the company.
Before Chen Mo could speak, Rexel spoke first: "Mr. Chen, don't say anything.
We follow up by buying CDS and short Baguo Real Estate! "
Venet gritted his teeth and said: "We will fight to the end with this bullshit hegemonic financial system!"
Trevor: "A thunderstorm is bound to happen sooner or later. The trend is unstoppable. We follow up and short-sell, which is an act of self-protection. Go to hell with the hegemony! If this continues, the chaebols will not be able to handle it!"
In this way, the Cliff Consortium officially became Chen Mo's first ally.
As long as Chen Mo gives the order, the Cliff Consortium will frantically purchase CDS products to short the country's real estate market.
Immediately afterwards, Chen Mo followed the same pattern and successively took down more than 20 consortiums and families such as the Churchill Family of the Sunset Empire, the Cavendish Consortium of the Lanxi Empire, the Flick Consortium of the Crested Ibis Kingdom, and so on.
Strength increases by leaps and bounds!
The overlord Fuzhou.
The residence of the Quandt family.
This is the last giant on Chen Mo's list that he wants to win over.
The patriarch, Roque Quant, met with Chen Mo and followed Chen Mo to witness the evidence that Baguo Real Estate was unreliable.
After returning, Roque Quant said speechlessly: "I just asked someone to investigate, and Hegemon's loan-to-value ratio has soared to 110%."
"This is so crazy, so unbelievable!"
Loan-to-value ratio refers to the ratio of the loan amount to the value of the collateral.
For example, if I want to get a loan from a bank to buy a house, the house is the collateral I hand over to the bank.
If the house is worth 100 million, and the loan-to-value ratio stipulated by the bank is less than or equal to 70%, then my maximum loan is 70.
So what does it mean when the loan-to-value ratio is as high as 110%?
It means that the house is worth 100 million, but the lender can get a loan of 110 million from the bank! ! !
In the past few years, when the loan-to-value ratio soared as high as 70%, borrowers only needed to put down 30% of the down payment to buy a house.
But now, with a loan-to-value ratio of 110%, not only can borrowers get a loan to buy a house without spending a dime, but they even have 10% extra money that can be used for renovations and furniture!
In order to lend money, the bank is really shameless!
No wonder the boss was so angry.
With this way of playing, once the financial crisis breaks out, people like them will lose much more than ordinary people!
“So, I want to unite allies from various countries to short real estate together.
This is the only way to hedge your risk. "Chen Mo said with a smile.
However, Roque Quant did not relent: "Mr. Chen, I have one last question."
Chen Mo: "Please speak."
Roque Quant: "During this period, the default rate of subprime loans has indeed been declining. But the prices of MBS and CDOs have not declined as the default rate of subprime loans has soared.
On the contrary, it is still rising!
Bond ratings have also been slow to be downgraded.
I want to know why.
After knowing the reasons and solutions, I am willing to join. "
Chen Mo: "Mr. Quant, you have considered everything comprehensively. While the default rate of subprime loans is soaring, the prices of MBS and CDOs are rising. This is indeed very strange."
"But actually speaking, it's very simple."
"Let's go, I'll take you somewhere."
Chen Mo waved his hand and took Roque Quant directly by car to S&P Global, one of the most authoritative rating agencies in the country.
The boss in the financial world not only dominates the Federal Reserve, but also the three major rating agencies. The financial hegemony of a hegemonic country not only has a powerful influence in controlling the global money-printing machine of the hegemonic Federal Reserve.
Many people seem to have overlooked another big weapon that controls global finance, and that is credit rating agencies.
When a hegemon intends to short-sell a country's economy, rating agencies usually have already taken action.
Just like a long time ago, when Chen Mo was doing the bottom-up work, Hannibal's men wanted to threaten Dali Group and wanted to short the Dali Group's stock price.
The first method it used was to ask rating agencies to lower Dali Group's international and stock market ratings, and downgrade its issued stocks to B or even C levels.
S&P, MuDi and Huiyu, these three giants from the hegemony, can be said to be the three giants in the credit rating market, controlling more than 90% of the global situation.
Just like weather forecasters mine data to play with the weather, these institutions dig deep into economic and financial data to reveal the mysteries of borrowers’ creditworthiness.
When the subprime mortgage crisis broke out in 2008, these three rating agencies can be said to have played a major role.
Chen Mo clearly remembered that in the previous life, these three major rating agencies actually gave Baguo's real estate subprime mortgage products extremely high credit ratings.
However, investors had no idea about the potential risks of subprime mortgage bonds, blindly trusted rating agencies, and snapped up these junk bonds.
Major Western banks also rushed in to buy without caution. As a result, these so-called "treasures" eventually opened the prelude to disaster and triggered a global economic crisis.
It's funny that many people who don't understand economics think that these foreign rating agencies are so authoritative and reliable.
When he arrived at the S&P rating agency, the person who received Chen Mo was a middle-level leader of the company.
Because the patriarch of the Quwante family was present, the middle-aged man named Oha Gang seemed more respectful and polite.
However, Chen Mo immediately confused him when he opened his mouth: "We just want to ask why the default rate of subprime mortgages is so high now, but the bond ratings related to CDO and MBS are all 3a, and there is even a B-level product. Haven’t seen it yet?”
Oha Gang was suddenly sweating profusely.
Are you here to ask a question?
I think you are here to cause trouble! ! !
