Vol 6 Chapter 360: Cliff edge

[Title: Rebirth body of three hundred and sixty chapters cliff edge of ninety-two of business tycoon: plum blossoms fall river]

The latest chapter of "Rebirth 92: The Business Tycoon"~ The domain name of this site: "166 Novel" is a shorthand homophony, easy to remember! Good-looking novels are highly recommended: My loli is a superstar super power, all the way back to the sky, all the way back to the sky, literary star cannon fodder strategy, starway strategy, such as the cherry blossoms on Constitution Avenue, and the magnolia in the courtyard of the Ministry of Finance, are all in bud. At that time, when the sky in Washington, D.C. became clearer day by day, the 62-year-old Paulson felt that the truly difficult time was approaching.

In the past winter of 2007, the Fed cut interest rates several times. Although the relevant data was once more attractive, the effect of such expedient measures will not last long.

After entering 2008, as the grandmother Pelosi said, who did not understand the economy at all, the commonly used two-handedness of the Fed finally lost its effectiveness.

Although the US government has frozen the interest rate of subprime mortgage loans, it has also lowered the discount rate for direct commercial loans, and has continued to invest funds into the financial market by opening discount windows to investment banks and auctioning loans...

None of this has prevented the situation from getting worse.

The data shows that unemployment is rising further, while consumption is continuously falling.

In the fourth quarter of 2007, the U.S. economy fell by 0.2%, the worst performance since the third quarter of 2001. You must know that the United States at that time, but the United States when the Internet bubble burst-the situation is so bad.

But the bad things are much more than that.

Not long ago, the American Association of Real Estate Economists, the largest industry association in the United States, with 720,000 members, 54 state associations, and 120 regional (city) associations, announced a set of authoritative data.

In 2007, sales of old homes in the United States fell by 13%, the largest drop in 25 years; the median price of old homes fell 1.8% to US$217,800 per unit, the first annual decline since the relevant records in 1968.

One thing must be added here. Our stylization still has a long way to go, but the United States has already completed urbanization a long time ago.

Therefore, in the US housing market, old house sales are the main force, and its sales account for about 85% of the entire housing market. The quality of the old housing market is almost equal to the quality of the entire housing market.

The data they released, unobstructed, finally revealed the reversal of the US housing market to the world without any dispute.

In the face of such data, even those guys on Wall Street and Capitol Hill who have always been good at opening their eyes and talking nonsense cannot say that the US real estate market is still going well.

Those who live longer or are good at making comparisons can easily come to the conclusion that this is the first time housing prices have fallen in the United States after many, many years.

The last time housing prices fell in the United States may have been going back to the ‘Great Depression’ (1929-1933) period.

That is, this is the first time that US housing prices have generally fallen in the past 80 years.

For example, when the domestic real estate industry is regulated and controlled later, there are always many scruples, because the development of the real estate industry and the recession will have a direct impact on many areas of the upstream and downstream industries.

In the United States, similar linkages are the same.

Almost a business school student now can draw such a correct conclusion: The report of the US economy is a report of recession.

The recession is like a virus. It is spreading from one industry in the United States to another industry. Because the real estate and financial industries in the United States are already virus-ridden, the manufacturing industry seems precarious...

As the economic situation deteriorates, the job market is naturally doomed.

And students who are also a business school know how important employment is to the stable development of the economy.

If only one number is used to describe the state of economic development, employment will always be the number one in the first place. If it is zero, then no matter how good the subsequent numbers perform, it is meaningless.

And now, this number is getting smaller...

Paulson has calculated more than once at this time, if the worst situation occurs, how high the unemployment rate will be.

But he did not complete the calculation once. He always stopped when the unemployment rate exceeded 25%-he did not dare to continue the calculation.

To another extent, it is meaningless to calculate it further, because as long as the unemployment rate reaches 25%, it is another Great Depression.

The difference from the one 80 years ago is that because the total economic volume now far exceeds that of 80 years ago, the power of this Great Depression will also be far more powerful than that one. Therefore, the consequences will be more serious and the duration will be longer. long.

Paulson now feels every day like watching the American economy grow a big pustule on his back. He has been sore and itchy, but he just doesn't know when it will break.

And he knew that it would break.

The problem is that Pustule still feels good on its own-all the institutions on Wall Street at this time have unprecedentedly consistent external attitudes: we are very good, we are very good!

We have caused some losses due to subprime mortgages, but overall, those losses are not worth mentioning.

None of them admitted that they had problems.

In addition to their unwillingness to tarnish their reputation, it is also because these Wall Street leaders all understand a cruel truth: at such a time, whoever admits that they have problems, then that problem will become a big problem.

To evolve it further, it can also be said that when a financial institution on Wall Street admits that it might die, it will definitely die, and it will only die faster.

Because not only will the peers no longer lend money to it to continue its life, but will also rush to carve up its assets.

That is, the current situation is like this. Paulson knows that the US economy has grown a pustule that may be broken today, maybe tomorrow, or the day after tomorrow.

But the pustule said, you worry too much, we are just a cute little lump, which will disappear after a while.

The problem is that many people simply do not believe that there is a big pustule in the American economy, such as those guys on Capitol Hill.

These days, Paulson has been meeting with some leaders in Congress to prepare for the worst that may come at any time, but many people on Capitol Hill are quite disapproving of this, because the crisis has not affected their voter.

On the other hand, the American people may be aware of this big pustule, but they only have one idea: let it break, break it sooner.

Everyone was eager to see those guys on Wall Street earlier.

Even at this time, many people still hold the view that Wall Street is not short of money. How can Wall Street be short of money?

The reason they say they lack money is because they hide it.

So break it, break it early!

But they did not think of a problem. If the institutions on Wall Street were allowed to collapse, the unpleasant guys on Wall Street would naturally be punished. But then, all those who have invested in Wall Street or bought Wall Street bonds Everyone will suffer losses.

If Wall Street is allowed to collapse, then everyone in the United States will face the general situation of the end of the world.

…………

At this moment, most Americans, in addition to believing that the relevant person in charge of the most powerful country in the world, will surely conjure a rabbit out of their hat to resolve the crisis that has been rendered by experts from all walks of life. He set his sights on well-known figures in the American economy.

Warren Buffett remained silent, but some fragments of his letter to shareholders ~www.wuxiaspot.com~ were revealed.

He said with emotion in the email that the fall in housing prices has led to a large number of unattainable mistakes being exposed, "Only when the tide is low can you see who goes into the water without wearing pants. For some of the largest financial institutions in the United States, I am here. Time can only be described as terrible."

The people failed to seek comfort, but were thrown cold water on their heads.

Looking at Bill Gates, the richest man in the United States, what I want to express to everyone at this time is, "Our foundation has achieved very significant results in reducing malaria in Africa. Our next goal..."

Many people are looking forward to it at this time, and he often feels like malaria. At this time, can you first care about the suffering of the people in our own country?

There are also high-profile people in Silicon Valley in this process.

Another old rival of Bill Gates, Oracle's Larry Ellison, jumped out, "Why would our stock price fall? This is totally unreasonable!"

"Our fundamentals are very good, and our data is also very good. Our stock price should be rising rather than falling..."

Even if your Oracle stock price will rise, what about it? Do you still think that ordinary people still have spare money to buy your stocks?

It turns out that these guys are not reliable at this time.

At this time, some media still approached Feng Yiping on behalf of the American people.

It was in a restaurant full of flowers along the coast of Los Angeles. It was his high-end restaurant brand Man Tingfang, the second store in the United States.

In the face of reporters’ inquiries, Feng Yiping looked solemnly, “I know that after I say this, I will definitely be widely criticized, but I still want to say that from now on, I will be ready to rescue Wall Street financial institutions. Right!"

Suddenly, public opinion was in an uproar.

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