Vol 6 Chapter 550: Or we are hard

? Seeing Feng Yiping walking over with a smile on his face, Paulson's mood was a little unwell. He didn't expect that whether he was once the king of Wall Street or now the financial leader of the richest country in the world. , Can actually give birth to such emotions as jealousy.

But he couldn't help being jealous.

No matter if he went to China yesterday, he saw the lights and festoons everywhere in China, a scene of beaming joy, or when he met with Chinese officials later, they were calm and relaxed, feeling that the situation was still in a good state, and what was in front of him. The subprime mortgage has easily earned at least 20 billion US dollars. At this time, the guy with a smile...

It makes Paulson feel like those guys who can only spend 11.11, watching those couples who went to the restaurant to book a table for the Chinese Valentine's Day yesterday, feeling extremely jealous.

"Vera," Feng Yiping shook the little hand of Paulson's one-year-old granddaughter, "I said, what's to worry about, whether it's Freddie Mac or Fannie Mae, they're where they are now. It’s all taking the blame,"

Paulson did not directly agree with Feng Yiping's statement. He gave his granddaughter to his wife and took a picture on the beacon. "The two-room model has problems."

Feng Yiping comforted him casually, "That's all an old problem,"

There are indeed problems with the two-room model.

It should be said that housing, which is closely related to the people's livelihood, is an issue that every government pays great attention to.

The demand for housing is also the common demand of all people in all countries. In the United States, housing is an important part of the American dream.

But a common problem that exists in all countries is that there will always be a considerable part of the people who have the need to buy houses but cannot afford the high expenditures.

Many countries have adopted measures such as affordable housing and low-rent housing for this purpose, but the United States’ approach is somewhat unique. They hope to solve the problem through financial institutions.

The original intention of the establishment of Freddie Mac and Fannie Mae was to make it easier for most people in the United States to obtain housing loans at a lower interest rate.

The biggest difference between the two houses and the U.S. private banks is that they are essentially semi-state-owned, so their financing costs are lower than those of the most creditworthy banks, so they can indirectly provide low-interest loans for common people to mortgage their houses— -This is actually equivalent to the US government providing subsidies for low-income groups to buy houses (I would like to praise them in this respect. Look at us. The big banks are all state-owned, but low-income families buy houses with low interest rates. What do they do?

Speaking of this plan, there are indeed many commendable places. More Americans have their own houses-more than 70% of Americans own their own houses, which makes the American Dream more attractive; and After buying a house, in order to repay the loan, many people have to work harder-this can effectively promote economic development... It is a good thing that kills birds with one stone.

But one problem is that, after all, Freddie Mac and Fannie Mae are not state-owned enterprises, so after subsidizing the common people's purchase of houses, the remaining profits naturally belong to shareholders.

This is why Paulson said that the two-room model is inherently problematic.

Pure state-owned enterprises will find ways to enjoy profits, such as all kinds of luxurious buildings, all kinds of luxurious decorations, all kinds of luxurious consumption... What's more, Liangfang is a privately owned company from a legal point of view.

And with the gradual relaxation of government supervision, the two houses have gradually become more alive. In order to create more profits, they will come up with various methods to generate income.

Like all Wall Street counterparts, they design a variety of complex investment portfolios to invest and design a variety of complex products to sell, and because of the hidden cover of the U.S. government, they are better than others in the use of leverage. Wall Street investment banks are even more brazen.

In short, by the end of last year, the total assets of the two houses were only more than 80 billion U.S. dollars, but their total assets and guarantees had exceeded 5 trillion U.S. dollars, and the leverage was as high as 60 times.

Such high leverage means that as long as 1.5% of the mortgages and investments they guarantee have problems, their capital of more than 80 billion US dollars will be wiped out in an instant.

But as far as the US real estate market looks like, let alone 1.5% of the problem, more than 15%. The current deficit of the two houses is at least trillions of dollars. That's why Paulson is so big.

This number will be big for everyone.

Last month, the problem of the two houses was already critical. For this reason, Paulson had to explicitly guarantee the debt of the two houses, and at the same time announced that they would provide them with further discounts.

But this only temporarily saved the lives of the two houses. The assets they hold are still depreciating, and their stock prices are still falling... While they can't make blood, continue to lose blood like this, they are also a dead end.

"But it's not difficult to solve it, isn't it? Bear Stearns' results are very good," Feng Yiping continued.

Paulson really wanted to choke Feng Yiping, you are not standing and talking.

The result of Bear Stearns is essentially that the shareholders of Bear Stearns have nothing in the end. On the contrary, the rights of the creditors Feng Yiping and the others have been effectively protected.

Such a desperate plan, of course, is a plan for a great sinner, and he did the same for the two rooms, Paulson felt that he had to worry about his personal safety.

As an outsider, Feng Yiping is of course very relaxed. "The plan is very simple. When necessary, the government will invest in the two housing estates, appoint a new management team, and ensure that government investment and bonds held by foreign investors are paid at a priority level. Before ordinary shares and preferred shares,"

"In this way, the problem will naturally be solved,"

The core is still regardless of the interests of the shareholders of Liangfang.

Paulson asked suddenly, "Feng, tell me, are you also shorting the two houses?"

Feng Yiping shook his head, "I never get involved in the following specific operations,"

Of course there is shorting.

Now that their fund has such a strong background and has such a good relationship with relevant people in the U.S. government, it will only be better when Xiao Ouhe comes to power next year. When you know that the stock prices of the two rooms will definitely fall sharply, why not go short?

He likes making such quick money in the United States.

So he is not really an outsider. He made Paulson firm on such a plan, in fact, to ensure future benefits.

He greeted Paulson with a deep gaze and asked, "But when you are in charge of Goldman Sachs, what will you do in this situation?"

Paulson was speechless, so of course he did not hesitate to go short, so this shows that Feng Yiping and the others must be doing this.

"Frankly speaking, on this issue, I don't think there is any hesitation," Feng Yiping continued to say mercilessly. "Let go to the two rooms? No, let alone the current situation. There is no such system on Wall Street. When it’s at risk, you can’t afford such consequences,"

"At the same time, would those foreign investors who hold a large amount of two-bedroom bonds let their bonds become waste paper? You know, that's not a small number,"

Paulson is even more frowning. This is also an important part of his talks with China. He hopes that China will not sell off the bonds of the two houses at such a threshold. We are the largest buyers of the bonds of the two houses.

But China hopes that they can make clear commitments to ensure the safety of the bonds they hold.

The worse news is that it is believed that Russia has proposed to China to jointly sell a portion of its bonds in order to ensure the safety of assets to prompt Americans to take action.

If they really do that, not to mention that the US financial institutions that also hold the two housing bonds will collapse one after another. After overseas investors holding a large amount of the two housing bonds suffer such losses, they will definitely withdraw their capital from the United States. That means, The total collapse of dollar asset prices...that was truly beyond the reach.

That is to say, ~www.wuxiaspot.com~ really has no choice, it still offends people, and also offends people to death.

Paulson lowered his head again, and Feng Yiping shouted, "Be careful," but it was too late.

The head of the US Secretary of the Treasury came into close contact with the thousand-year-old bricks on the Great Wall.

It's still very intimate, because Feng Yiping saw that Paulson's head was bleeding (real thing).

But in front of your granddaughter, can you stop screaming so loudly?

Seeing the U.S. Secretary of the Treasury yelling while clutching his **** head, the accompanying officials rushed up to him in shock.

Some of us here can't help but look admiringly at Feng Yiping next to him, and chatting can make the US Treasury Secretary hurt his head. It is Feng Yiping!

Looking at them, Feng Yiping opened his eyes very innocently. What do you think, it really has nothing to do with me!