Chapter 2297: Hell on Earth

In the last life, the reason why Greece was able to go 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 bombshell for Greece in advance, leaving Carter at a loss.

Investors, especially banks from other alliance countries and investment banks from Wall Street, were more excited than netizens after seeing this news.

After all, they have actually made massive investments in Greece!

I thought I could make a big profit, but in the end, I got a big one.

It took less than an hour after the news was released.

Greece's main investors, including the central banks of EU countries, and the investment banks of hegemonic countries have begun to take action.

Some are asking the Central Bank of Greece to list all the debts in recent years for them to review.

Some directly ask for withdrawal of capital, no interest, etc., as long as they can get the principal.

What's more, they directly sent people to ask for a major investigation into Greece's financial sector. Once financial and debt fraud is discovered, it will be treated as a Greek default!

If the situation were to be treated as if Greece had breached the contract, Greece's credibility in the world would completely collapse.

At that time, Greek currency might be worse than waste paper!

In the palace, Carter heard news one after another that was like the king of hell urging him to die:

"Your Majesty, Sunset Royal Bank requires us to hand over all financial statements from 2004 to this year, and sent a 200-person accounting team to verify."

"Your Majesty, the Emperor is in trouble. All the banks in the Lanxi Empire are asking to divest their capital!"

"Diplomatic representatives from the Boot Country and the Crested Ibis Country came. They said that we had committed financial fraud and should be treated as a breach of contract. They also said that if we don't want our credibility to collapse, we should cede some land."

"..."

Carter's mood at this time was like falling into an ice cave.

Audit the accounts, withdraw capital, take advantage of the situation?

Any one of them would be a fatal blow to the crumbling Greek country! ! !

"Detain these people first, and serve them with good food and drinks. The beauties of Greece are enough to take care of them. In short, how many days can we delay them!"

Carter said helplessly.

Faced with Chen Mo's short selling, she still had a way.

But what can she do when creditors from the Ou League and Overlord come to press for debt?

After thinking about it, Carter took a deep breath, called the Governor of the Central Bank of Greece and asked:

“What’s the situation with the Bank of Greece now?”

The governor of the central bank said tremblingly: "Your Majesty... In fact, I wanted to report to you a few days ago that the bad debt rate of the Central Bank of Greece has skyrocketed from 0.9% in 2004 to 15.4% now."

"And this number... is still... still rising..."

Carter felt his heart stagnant!

A bad debt rate of 15.4%?

For a country, even a bad debt rate of 5 points is already very serious and terrifying.

A bad debt rate of 15.4% means that for every 100 loans, 15.4 are not repaid! ! !

In this case, liquidity dries up and a financial crisis is certain.

"Why is it so high? Your loan department doesn't review it? Where's the collateral?" Carter roared.

“Mortgage loans for Greek people and development loans for Greek real estate companies account for 35% and 17% of the entire country’s banking business respectively.

In fact, the subprime mortgage crisis had already caused a chain reaction in Greece a few months ago, and the real estate bubble completely burst.

Nowadays, house prices have been cut in half. Many people have found that not only can their houses not be sold, but they are even worth much less than their loans, so they simply don’t pay back.

Mortgage companies feel that the land acquired at a high price will still be a loss even if it is sold after the real estate is acquired, so they simply run away without repaying the loan. "

𝔰𝔱𝔬55.𝔠𝔬𝔪

"The bad debt rate of 15.4% is already the data 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 number is likely to reach 30% to 50%..."

When he said this, the president noticed that Carter's face was so gloomy that he was almost dripping with water, so he shut up and did not dare to speak.

What does it mean if a country's bank bad debt rate reaches 50%?

Apart from bankruptcy, Carter could not think of a second answer.

"Didn't I issue a lot of price limit orders before? Why are house prices still falling?" Carter asked.

"The premise of limiting the decline is that the confidence is still there. Lord Emperor, let me put it bluntly. Even without Chen Mo's short selling this time, the subprime mortgage crisis alone has already made confidence jump, let alone Chen Mo's direct It brings our core issues to the fore.

Now the whole world has lost confidence in Greece. If confidence is lost, no matter what policies you come up with, it can't hold it back. "

The governor 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 unlimited housing price increases? "

The president's words left Carter speechless again.

While the two were having a conversation.

The Greek stock market and foreign exchange market, which had finally stabilized, began to fall crazily once again.

Especially when it was learned that the main source of Greek finances - the investment of banks and investment banks in various countries - was likely to be withdrawn by creditors, and even Greek countries had to pay for breach of contract fees, the panic of the entire market was infinitely magnified! ! !

At this moment, no matter how high-quality Greek companies are, even monopoly companies, their stock prices are falling wildly.

The entire market plummeted by nearly 50% within an hour before closing! ! !

The exchange rate of the Greek currency plummeted from 1 Greek currency to 1.27 Hegemony currency to 1 to 0.8! ! ! !

This is the decline in one day! ! !

In modern history, even those countries that have gone bankrupt have never seen such a terrible drop in exchange rates!

Imagine that you originally received a monthly salary of 12,700 yuan, but when it was handed to you, you found that this money could only buy things worth 8,000 yuan. How do you feel?

Not to mention that the assets of Greek stockholders were almost halved in one day, and there was almost a long queue of people who jumped off the building due to bankruptcy!

The whole country of Greece was filled with a kind of despair.

It was as if the end of the world had come to Greece!

A few days later, those who went to the relief center to collect food were shocked to find that the relief center was not open!

And the relief money that was supposed to be received was also notified to be delayed.

Not only that.

Public hospitals in Greece began to lay off employees, resulting in the closure of many hospitals.

Patients either went to expensive private hospitals or had to go home and wait to die.

School teachers also chose to go on strike because they were notified that their salaries would be suspended for 3 months.

Schools began to shut down.

The tax department of Greece, from its previous abnormally lazy state, has become a law enforcement demon that is more terrifying than the taxation of hegemony.

In one day, more than 100,000 entrepreneurs and individuals were arrested for tax evasion!

They were all required to pay high and sky-high fines.

In just a few days, Greece has changed from the "paradise on earth" that everyone envied to a "hell on earth"...