Chapter 2270 He even raised the inflation rate!
The foundation can only use the tactics of "unplugging the network cable" and "repenting" once in a short period of time.
If within the next two years, similar transactions with sky-high amounts of money are "unplugged" in the financial market, then the credibility of the hegemonic country will completely collapse.
Global capital will flee in panic and no longer trust the hegemonic financial market.
Therefore, Chen Mo is not afraid that the foundation will dare to use such dirty tricks again and again.
In addition, according to the memory of the last life, the leverage ratio of companies such as Bells is 45 times, while the number one investment bank Lehman Brothers is 67 times, and Freddie Mac and Fannie Mae, two companies with official backgrounds, are 108 Times! ! !
If Bales and other moments are the prologue to the outbreak of the subprime mortgage crisis, then the Lehman moment is the mid-term period when the subprime mortgage crisis breaks out in full force, and the jump of Fannie and Freddie is the moment when the subprime mortgage crisis reaches its peak and begins to enter its later stages.
Therefore, after fully closing the position, He Chaoling asked Chen Mo:
"Boss, will there be such a good opportunity to attack later?"
Chen Mo responded with a smile: "Where is this? Tens of trillions cannot shake the foundation of the foundation and the hegemonic country.
This battle has just concluded its warm-up match. "
Immediately afterwards, Chen Mo immediately issued an order:
"Go ahead and order all the financial products related to the housing market that can be shorted, such as subprime mortgage bonds, ABX index, CDO, synthetic CDO, etc., to purchase CDS on a large scale!"
βItβs time to carry out the short selling to the end!β
This move is equivalent to Chen Mo ambushing all the chips before the Lehman moment arrives.
Sharks that smell blood are very scary.
Global capital even knows that the opponent it faces is a foundation and a hegemonic country.
But they still flocked to join the Sky God camp!
This also resulted in the abx index falling to 60% in just two weeks.
Anxiety spreads across financial markets.
A bigger avalanche is coming.
When house prices rise, subprime mortgage customers, with the help of intermediaries, refinance their original houses to obtain new loans for consumption and to buy a house again.
\u003cfont color=red\u003e#Every time verification appears, please do not use incognito mode! \u003c/font\u003e
Once housing prices fall, the refinancing loan will no longer be able to repay the previous mortgage.
And interest rates have also risen a lot because of interest rate hikes.
The original positive feedback turned into negative feedback.
More and more people are joining the trend of selling their properties.
When the sell-off swept through every state in the country like a tide, a vicious cycle appeared in the property market!
The lower the price, the less people will buy it, and the lower the price, the more people will cut off their loans!
Subprime loan bonds are rapidly losing value!
The prices of MBS and CDOs are jumping again and again, while the prices of various CDSs are soaring crazily!
As the housing market deteriorates, ratings agencies can no longer sit still.
News of the three major rating agencies taking money to make fraud is flying all over the place.
The most important thing is that even idiots now know that subprime loan bonds are the most junk bonds. Under such circumstances, if these three major rating agencies dare to continue to rate subprime bonds with a 3A rating, it is blatant. Tell everyone they are shameless and their ratings cannot be trusted.
Unable to withstand the pressure, the three major rating agencies applied to Salomon to correctly re-rate the financial market to ensure its credibility.
After Hannibal learned the news, he immediately objected: "They must not be allowed to lower the rating! No one has bought the subprime mortgage bonds. If they lower the rating again, won't there be no more buyers?"
Solomon said helplessly: "Hannibal, I told you, if you don't understand financial knowledge, just don't interrupt, okay?"
Hannibal was dissatisfied: "Am I wrong? No one will buy Class 3A bonds. If you change it to Class D, they will buy it?"
Solomon: βIf the three major rating agencies do not change their ratings and their credibility collapses, no one will buy any bonds rated by them.
However, if they are willing to re-rate according to the real market and restore their credibility, at least real high-quality bonds will still be purchased by investors and some liquidity can be restored. understand? "
Hannibal is so
He looked like he was suddenly enlightened.
Immediately afterwards, the three major rating agencies finally began to re-rate the financial market with the permission of the foundation.
S\u0026P downgraded 623 mortgage bonds with a total value of 214.2 billion U.S. dollars.
Subsequently, S\u0026P downgraded the bond ratings of Lehman Brothers, Freddie Mac, and Fannie Mae.
Even though Fannie and Freddie used their official connections to warn rating agencies, S\u0026P remained unmoved.
In this period, if the rating agencies give any more face, they will be the ones to go bankrupt!
Rating agencies adjusted bond ratings to real levels, and housing prices plummeted, finally making everyone realize that a housing market crash was inevitable!
People with funds all over the world began to customize or purchase CDS contracts like crazy!
The price of the CDs in Chen Mo's hand has skyrocketed again!
Some people who did not have enough financial strength to buy CDS in the subprime mortgage market began to use CDS to short their houses. In order to get a compensation to hedge the risk after the house price falls. .π .
This scene is quite ironic. I bought a house, but I have to short-change it to keep it.
Some renters began to use CDS to short-sell their landlords or neighbors' houses.
At this time, the market began a major reversal.
The investors who previously speculated in real estate began to join the short-selling camp, and the craze for buying MBS and CDO was replaced by the craze for buying CDS!
The most ridiculous thing is...
Fannie Mae and Freddie Mac also joined in the purchase of CDS!
This is also helpless.
Because two-thirds of the profits of the two housing agencies in the past two years came from the subprime mortgage market.
If he does not follow the trend and short-sell at this time, he may follow the footsteps of Bells and others.
The subprime mortgage crisis broke out completely and could no longer be controlled. Finally, according to the script written by Chen Mo, it began to spread to the real economy of the hegemony!
Chen Mo sat in the office every day and received all good news:
\u003cfont color=red\u003e # Please do not use the incognito mode every time verification appears! \u003c/font\u003e
"Boss, the unemployment rate in the hegemony has skyrocketed recently, and the prices of oil and food have skyrocketed simultaneously."
"Report to the boss, the consumption of the hegemony has begun to plummet, and ordinary hegemons have begun to tighten their belts and no longer dare to borrow money for consumption, even if the interest rate of the loan is only one or two points."
"Boss, great news! The manufacturing, retail and employment data of the hegemony have weakened overall!"
"Hehe, oil prices have soared in the past two days, and the overall inflation rate has soared to 8%, which is the largest increase in the past year. At the same time, the mortgage default rate continues to rise, and major financial institutions continue to announce loss reports.
Wall Street and even the entire hegemonic financial community are in a panic!
Even the monetary policy of the hegemonic Federal Reserve is in a dilemma. I don't know whether to save housing prices or inflation, haha!"
Hearing this information, Chen Mo was also happy.
The inflation rate, also known as the price change rate, is an economic term used to reflect the rate of increase in the general price level over a certain period of time. It measures the degree of inflation, that is, the degree of decline in the purchasing power of money.
The level of inflation can affect many aspects of the economy and society. Usually, the inflation rate can be divided into several different categories according to the speed of price increase:
Crawling inflation: the annual price increase rate is within 1%~3%.
Moderate inflation: the annual price increase rate is between 3%~6%.
Severe inflation: the annual price increase rate is between 6%~9%.
Flying inflation: the annual price increase rate is between 10%~50%.
Hyperinflation: the inflation rate is very high, usually leading to the collapse of the monetary system.
Chen Mo remembered that in the last life, even after the moment of Bells and others came, the inflation rate of the hegemony only rose to 4.4%.
And now, after Chen Mo's operation, the inflation rate of the hegemony directly soared to "severe inflation"! ! !
On the other side of the ocean, Feng Hongyang, who learned the news, couldn't help but exclaimed: "Chen Mo's method is simply amazing! What many countries united can't do, he actually did it by his own strength!"
