Chapter 2297 Purgatory on Earth
In the previous life, the reason why Greece went bankrupt a year after the subprime mortgage crisis was because it concealed the true situation in the country.
In this life, Chen Mo prepared this blockbuster bomb for the Greek country in advance, which directly left Carter at a loss.
Investors, especially banks in EU countries and investment banks on Wall Street, were more excited than netizens after seeing the news.
After all, they have made huge investments in Greece!
I thought I could make a big profit, but Greece ended up making a big loss.
Less than an hour after the news was released.
Greece's major investors, including the central banks of the EU countries and investment banks of the hegemonic countries, have all begun to take action.
Some asked the Greek Central Bank to list all the debts of the past few years in detail so that they can review them.
Some directly asked to withdraw their investment, without any interest or anything like that, and just wanted to get the principal back.
What's worse, they directly sent people to demand a major investigation into Greece's financial sector. Once financial and debt fraud is discovered, Greece will be treated as in default!
If Greece is really treated as in breach of contract, then its credibility in the world will be completely destroyed.
At that time, the Greek currency might be worse than waste paper!
Carter heard one piece of news after another in the palace, which sounded like the death knell:
"My Lord Emperor, Sunset Royal Bank requires us to hand over all financial statements from 2004 to this year, and has sent a 200-person accounting team to verify them."
"My Lord Emperor, something bad has happened. All banks in the Lanxi Empire are required to withdraw their capital!"
"The diplomatic representatives of the Boot Country and the Crested Ibis Country came and said that we had committed financial fraud and would be treated as in breach of contract. They also said that if we did not want our credit to collapse, we would have to cede some of our land."
"..."
Carter felt like he was falling into an icy cave.
Check the accounts, withdraw investment, and take advantage of the situation?
Any one of them would be a fatal blow to the crumbling Greek Empire!!!
"Delay these people first, provide them with good food and drink, and provide them with plenty of beautiful women from the Greek country. Anyway, delay them as long as possible!"
Carter said helplessly.
She still has a way to deal with Chen Mo's short selling.
But what can she do when the creditors from Ou Meng and Baguo come to collect debts?
After thinking for a while, Carter took a deep breath and called the Governor of the Central Bank of Greece to ask:
“What is the current situation of the Central Bank of Greece?”
The central bank governor said tremblingly: "Lord Emperor... Actually, I wanted to report to you a few days ago that the bad debt rate of the Greek central bank has skyrocketed from 2004% in 0.9 to 15.4% now."
"And this number... is still... still rising..."
Carter only felt his heart suddenly stop!
15.4% bad debt rate?
For a country, even a bad debt rate of only 5 points is already very serious and terrifying.
The bad debt rate of 15.4% means that out of every 100 loans, 15.4 are not repaid!!!
In this situation, the depletion of liquidity and the outbreak of a financial crisis are inevitable.
"How can it be so high? Doesn't your loan department conduct an audit? Where is the collateral?" Carter roared.
“Housing loans for Greek citizens and development loans for Greek real estate companies account for 35% and 17% of the entire national banking business, respectively.
In fact, the subprime mortgage crisis had already triggered a chain reaction in Greece a few months ago, and the real estate bubble burst completely.
House prices are now halved, and many people have found that not only can they not sell their houses, but their value is even much lower than the loan, so they simply don't pay back the loans.
Mortgage companies feel that even if they sell all the land they bought at high prices, they will still lose money, so they simply run away without completing the project and don’t repay the loan.”
“The bad debt rate of 15.4% is the figure after the collateral has been written off. The actual situation is only worse than this.
And as the subprime mortgage crisis continues, we estimate that this figure is likely to reach 30% to 50%..."
When he said this, the president noticed that Carter's face had become so gloomy that it was about to drip water, so he shut up and dared not speak.
What does it mean if a country's bank bad debt rate reaches 50%?
Carter couldn't think of any other answer except bankruptcy.
"Haven't I issued a number of price-limiting orders before? Why are house prices still falling?" Carter asked.
"The premise of limiting the decline is that confidence is still there. Lord Emperor, let me say something unpleasant. Even if Chen Mo had not shorted the market this time, the subprime mortgage crisis alone would have caused confidence to collapse, not to mention that Chen Mo directly exposed our core problem.
Now the whole world has lost confidence in Greece, and once confidence is lost, no matter what policies you put in place, it won’t work.”
The president said helplessly: “As early as two years ago, I said that the financial bubble was too big, and we must find a way to shift the focus of Greece’s economy from real estate to basic manufacturing, so that it can develop steadily.
But who listens to me? Aren’t all the senior executives, including you, indulging in the dream of infinite house price increases? "
The president's words left Carter speechless again.
While the two were talking.
The Greek stock and foreign exchange markets, which had finally stabilized, began to fall wildly again.
Especially when it was learned that the main source of Greek finances - the investments of banks and investment banks of various countries - were likely to be withdrawn by creditors, and even Greek government would be required to pay for breach of contract, the panic of the entire market was infinitely magnified!!!
At this moment, no matter how high-quality the Greek company is, even if it is a monopoly enterprise, its stock price is falling wildly.
The entire market plummeted by nearly 50% within an hour before closing!!!
The exchange rate of the Greek currency has plummeted from 1 Greek currency to 1.27 Hebrew currency to 1 to 0.8! ! ! !
This is a huge drop in one day!!!
In modern history, even those bankrupt countries have never seen such a horrible drop in exchange rates!
Think about it, your original monthly salary is 1 yuan, but when you get the money, you find that this money can only buy things worth 2700 yuan. How do you feel?
Not to mention that Greek stock investors’ assets were almost halved in one day, and there was a long line of people jumping off buildings due to bankruptcy!
The entire Greek country was filled with an atmosphere of despair.
It seemed as if the end of the world had come to Greece!
A few days later, those who went to the soup kitchen to get food were shocked to find... the soup kitchen was closed!
The relief funds that were supposed to be received were also notified to be delayed.
Not only that.
Greek public hospitals began to lay off a large number of staff, resulting in the closure of many hospitals.
Patients can either go to expensive private hospitals or go home and wait to die.
The teachers at the school also chose to go on strike after being notified that their salaries would be suspended for three months.
Schools began to shut down.
The tax department of the Greek country has changed from its previous extremely lazy state to a law enforcement maniac that is even more terrifying than the tax department of the hegemonic country.
Within one day, more than 10 entrepreneurs and individuals were arrested for tax evasion!
They were all required to pay high and exorbitant fines.
In just a few days, Greece went from being the envied "paradise on earth" to being a "hell on earth"...
