Vol 6 Chapter 78: See flowers in the mist

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As soon as it was dark, Amanda ran all the way to the master bedroom, "Hey," she turned to bed familiarly, and then she was dumbfounded, where's dad?

Before going to bed last night, my father was clearly at home.

She awoke Huang Jingping, "Mom, mom, dad?"

"Huh?" Huang Jingping, who was woken up by her, said subconsciously, "Daddy went to exercise."

"But, it's not six o'clock," Amanda said.

Huang Jingping touched the alarm clock on the bedside, hey, it's only 5:20?

Thinking about what happened last night, she got up with disheveled hair and hugged Amanda, and she found Feng Yiping in the living room, hugging a pillow, sleeping soundly on the sofa.

What happened to him last night?

She turned off the desk lamp next to her and was about to enter the room to take the quilt out, but Feng Yiping woke up, "Hi, morning,"

"Oh, why am I sleeping here?"

"Dad," Amanda slipped off her mother and looked at Feng Yiping with her eyes wide open, "Did you quarrel with your mother?"

Seeing her serious look, Feng Yiping and Huang Jingping suddenly laughed and laughed, where are they all?

"Baby, it was Dad who thought about the problem after talking on the phone last night, and then fell asleep thinking about it,"

"Is it a difficult question?" Amanda asked with big eyes flashing.

"It's not a problem," Feng Yiping pulled her onto the sofa and waved to Huang Jingping.

Huang Jingping had to squeeze and lie down on the sofa, otherwise Amanda must have thought they had a fight last night.

"Sleep for a while, OK, by the way, think about where you want to go to play today,"

Amanda called out immediately, "The Great Wall,"

This is not difficult, the Great Wall is so long, it is easy to find a place with few people to climb.

…………

For Feng Yiping, the situation is already obvious, but for others, the situation at this time is still difficult to see clearly, and it means looking at flowers in the fog.

It was also this morning, when Governor Zhou was still having breakfast at home, he also received relevant news.

New Century Financial Corporation still closed down.

The information he received is even more complete.

According to the bankruptcy documents submitted by New Century Financial Corporation to the Wilmington Federal Court, the second-largest subprime mortgage provider in the United States plans to sell most of its assets within 45 days and fire about 3,200 employees.

They agreed to sell part of their loans and their remaining interest in certain securitized trusts to Greenwich Capital for approximately $50 million.

With the approval of the court, it will sell its service assets and service platform to Carrington Asset Management Company and its affiliates for a purchase price of approximately US$139 million.

This platform is the company's core asset and consists of 57,000 independent mortgage brokers who are responsible for finding loan customers, as well as personnel who handle loan applications and approvals.

This platform also includes computer software and equipment for analyzing loan applications, as well as 262 retail outlets and 34 regional operation centers in 20 states in the United States.

For companies like New Century, the fiercest competition between them and their competitors is the competition for these independent brokers, because these independent brokers can bring them business.

Of course, according to the information that Governor Zhou received before, it was the 57,000 independent brokers on this platform that brought New Century to where it is today.

These brokers will try their best to obtain loans for prospective customers, even if they know that those customers do not seem to have the relevant loan conditions.

But so what? Get more loans, and they will have more handling fees.

However, New Century Financial Corporation rarely requested re-examination of the loan appraisal issued by these brokers.

President Zhou can understand the reason for this, because New Century Financial Corporation, like most companies and people in the United States, firmly believes that housing prices in the United States will continue to rise.

In fact, including this time, Governor Zhou himself is not sure about the next trend of US real estate prices.

Yes, although the real estate market in the United States has cooled since the end of 2005, until last year, many Americans did feel annoyed by real estate.

But they are not annoyed by the trend of housing prices, but rather annoyed that they have not bought a house in time or have bought a house less.

Because many of the houses they bought before have increased by at least twice this time, why not buy two more?

The New Century Financial Corporation, which declared bankruptcy yesterday, issued as much as 60 billion US dollars in loans last year.

This shows that the willingness of the American people to buy real estate is still very strong.

Therefore, even if there are more and more places now, there are more real estate advertisements on the roadside than before, but who can resolutely deny that this is just a short-term adjustment. It may be that next month, the real estate market will again Will the upward trend resume?

He is also more aware of some policy factors after this than the average person.

Since 2000, in order to stimulate the economic downturn caused by the bursting of the Internet bubble, the Fed has cut interest rates 27 consecutive times, and finally reduced the interest rate to 1%. Low interest rates have given rise to the housing market and helped the US economy to get rid of the continuous The possibility of recession.

Of course, they also paid attention to this issue next, so in order to curb inflation, from 2003 to last year, they raised interest rates 17 times in a row, that is, raised the benchmark interest rate from 1% to 5.25%.

The sharp rise in interest rates has increased the burden on home buyers to repay loans, and has also led to the continuous emergence of mortgage defaults, and the US housing loan market is currently in a downturn.

So, will the Fed use interest rate cuts in time to ensure growth?

Although the old Greenspan had stepped down last year, Governor Zhou was too aware of the Fed's methods to cut interest rates when the economy was in a downturn and lower it to a position where the economy was getting better.

Conversely, when there is a tendency to overheat, try to raise interest rates. If there is no response when raising interest rates for the first time, continue until there is a response.

This is the two axes they are used to.

Judging from the information received by Governor Zhou, the economic circle in the United States is also discussing this issue at this time. Will the bankruptcy of the New Century Financial Corporation lead to a domino effect?

As a result, other real estate mortgage companies with higher credit ratings are also being collected, thus endangering the entire U.S. mortgage market and even the U.S. economy?

The current mainstream view in the US economic circle is still impossible. First of all, it is because Wall Street companies that provide financing support to New Century Finance have limited losses. Their loans are guaranteed by other New Century assets.

More importantly, most people, like Governor Zhou, believe that the Fed will cut interest rates in time.

But Governor Zhou also knew that Feng Yiping, he firmly believed that the real estate market in the United States would not improve.

For him, it is not difficult to inquire about Feng Yiping's fund, the purchase of real estate securities CDS.

On the one hand, the mainstream economic circle in the United States believes that the real estate market is still improving, and on the other hand, Feng Yiping, who thinks he is very accurate, believes that the US real estate market will collapse next.

To be honest, he is also a little uncertain as to which party's point of view is correct.

In particular, he also learned that before the bankruptcy of the New Century Financial Corporation, the investment banks on Wall Street actually proposed a solution, but the terms of the two parties were not negotiated.

This fully demonstrates the confidence of Wall Street.

Therefore, this question is really hard to understand.

He had been thinking about this problem all the way to the office, but when he got to the office, he put it aside.

The bankruptcy of the New Century Financial Corporation is also a wake-up call for China, because the same situation may also happen in China.

In recent years, the amount of fake mortgage loans involved in the domestic banking industry has also increased year by year.

According to statistics, from 2004 to last year, the non-performing rate of domestic mortgages rose from about one in a thousand ~www.wuxiaspot.com~ to about eight in thousand, which has risen more than seven times.

He quickly called a special meeting and asked the management to pay close attention to the real estate credit risk. After that, he called Feng Yiping, "Yiping," he heard the wind over there, "Are you not in the company?"

"It's okay," Feng Yiping gestured to Amanda, and walked to the other side of the beacon tower. "Ms. Zhou, is it related to New Century Corporation?"

"Oh, yes, you must know it too, what do you think about it?" Governor Zhou asked.

"I still stick to my original view," Feng Yiping said.

"Since it is so flat, can you provide a written opinion?"

"A written view?"

"Yes, I think it should be used when I report to it," Governor Zhou said.

"That's it," Feng Yiping looked at the undulating mountains in front of him and the Great Wall winding forward on the top of the mountain, "No problem,"