American Fortune Life

“Let everyone have a chicken in the pot and a big house to live in.” - Roosevelt

The American dream that Roosevelt planted back then gave Americans irresistible obsession with homes and real estate.

For more than 50 years after the Great Depression, the economic path of the United States had been more cautious, until around 1990, when Washington decided to regain economic prosperity.

Unregulating various savings and lending companies, the U.S. financial industry welcomed the second CHUN, when Wall Street Investment Bank could be listed.

And the government is beginning to encourage people to buy more houses, pull domestic demand, stimulate economic growth, and banks are trying to lower or waive down payment requirements, like adjusting interest rates, installment repayments, etc.

Real estate fever began to rise as a result of a sudden influx of new speculators into the real estate industry.

In order to promote the development of the real estate market, the Old American Government even exempted houses from capital VAT up to $500,000. This initiative has contributed significantly to the room rise, while the real estate market has a bright future in the American concept. Real estate agents have begun to advocate on television, trying to convince people that investing in real estate is the only way to become rich.

At that time, whether it was JING Ying on Wall Street, a businessman looking for tax havens, or a noble woman in the upper echelons of society, a common white collar, poured into the real estate industry, everyone wanted to reach the peak of their lives by turning their houses upside down.

(Oh, doesn't it feel like we've met before?

Even so, the Government felt that the incentives for purchasing houses were still insufficient, and it had enacted a number of laws, even stipulating that banks would be fined for failing to reach the amount stipulated by the Government.

In order to complete the loan quotas described above, banks began to offer loans like some marginal homebuyers with credit problems, namely, legendary subprime loans, bank loan standards, non-recognition of borrowers' income certificates, and invented a variety of ridiculous tricks such as non-property proof loans, unproportionate restricted loans, undocumented loans and so on.

Housing prices began to rise in a straight line, spurred by various banking policies, and neither the Government nor the people at the time expected them to be on a no-go path.

Wall Street bankers are smart, and in order to make more money in the middle, they've invented a lot of highly toxic financial instruments, like debt bonds or something, well, simply leverage.

Anyway, the more money a bank borrows, the higher the leverage. Andy used to be basically white on finance, but through a few months of self-study, reading a lot of relevant professional books, he also knew himself. For leverage, one of his most recognized words is that leverage can sometimes get people to heaven, but it's easier to get people to hell!

That's how the first big bubble in American real estate history officially began, and it was more than a decade away until now, in 2007.

The collapse of the Internet bubble in the United States stock market in 2000 and 911 in 2001 led to the start of a low tide in the United States economy, with the Federal Reserve cutting interest rates several times in order to reduce unemployment and revitalize the economy.

After the interest rate dropped, traditional fixed income products such as bonds had low yields, stock markets were also in a slump, hot money had no place to invest, and it was impossible to rush the rich into real estate again.

The prices started to rise again, and there was no pause at all, Hollywood stars, Stallon, Rotten King Cage, etc., well, Andy's three women were also part of the big tide, Theron, Lima, Johnson. Joining this real estate speculative feast, meanwhile, in the news reports, various economic and investment experts have come up with bright ideas to tell everyone that house prices will not fall.

People, huh, are all social xing animals, some factors in society have a huge impact on us, since the media has been advocating that house prices will not fall, and the government has not taken any initiative, then most people who are willing to believe that house prices will not fall.

The number of small lending institutions has grown rapidly, the market is doing well, real estate has become the dominant melody of Americans, and despite the alarmingly high housing prices, the hot money of home buyers is still rising.

The real estate bubble is getting bigger and bigger, and the Fed is aware of the seriousness of the problem, but doesn't dare to act lightly, you know, the truth is a beautiful and horrible thing! Extraordinary caution is required.

From '04 to' 06, the Fed cautiously kept small steps up interest rates, but it didn't do much good. Although higher interest rates suppressed inflation, long-term mortgage rates were still falling.

Andy dropped the coffee cup in his hand and rubbed his brow gently.

A disk collapse that can no longer be concealed is finally about to begin.

Beginning last July, the pace of house price increases has slowed down long ago, and has even begun to decline in many parts of the US Empire. Although very few owners noticed warning signals early, there was always no shortage of acute waves of people in the market.

In the next few moments, there will be a lot of active speculators who will quickly start cashing in and exit the market, and the horror curtain that Andy is waiting for will open.

Falling house prices can lead to the breakdown of the whole chain, the burden of repayment on people who used to buy subprime loans is increasing, the credit default rate will rise dramatically, the house price will fall and fall again, people who buy subprime loans will no longer be able to exchange money through the sale or mortgage of their homes. As a result, more and more subprime buyers will not have the money to repay their loans, and loans will become bad debts.

And now, the market situation has begun to deteriorate, and many people are already homeless, because of economic hardship, they are poor, they are unemployed, they have no money to pay their mortgages, they have no money to set up their houses and they have to live in tents.

In the near future, many banks will fail, companies will go bankrupt, stock markets will shake sharply, and all walks of life will be spared.

The real estate-induced subprime mortgage crisis will eventually spill out of control globally.

(Although the national situation is different and there are great differences in all aspects, we must prevent it from happening.

History always has amazing similarities, and this opens up the history of the world, and you will find that humankind is accustomed to falling over and over on things that have already been taught a lesson. Why?

Humanity's greed is sneaky, so it's hard to say anything. Well, scars forget that pain is a common habit of humans. Why doesn't Andy do what he can to warn us when the crisis comes? Or in your own purpose, after holding a large amount of CDS, come out and sing the dilapidated real estate market, so that people can be vigilant and achieve the early trigger of the disk, why don't you do it?

Oh, the Fed doesn't even dare touch hard. How old is he, Andy Smith? The power to advocate for a real estate bubble is not something that a person or an institution can resist, not even a few, the whole people plus the government plus a combination of banks, Wall Street and other forces, who dare to stand up and be that “hero”?

Andy wouldn't be such an idiot, he's been laying it out from the start, hoping to chew a low profile bite at this feast and not make a head bird, and the whole world would know what a fool 13 would yell at.

The subprime crisis under the real estate collapse, the banking downturn under the subprime mortgage crisis, the gold surge under the depreciation of the dollar...

Andy waited so hard for this chain reaction to start all over his body, he just felt the time was a little rough, why don't you hurry up, Savior, ah!

Under the gray sky, Andy was walking on Wall Street, 500 meters in a dark blue coat, standing in front of a copper cow sculpture representing wealth, exhaling a breath of heat, curling at the corner of his mouth, smiling with a cold smile, watching the people walking by.

“Clicks. ”

“Boss, it's done.” Tory quickly walked up to Andy, handed him the digital camera and said softly.

Andy picked up the camera, looked at it and said, "Let's get it handled, let's go deeper, other than me and this cow, the scene is virtual, and then zoom in, March 1st, today is a memorable day! ”

“Okay, boss, where are you going next?” The little assistant took over the camera and put it in his bag, looking at the Great Demon King's tall body, wide back, asked softly.

“I'm hungry, find a restaurant, I want beef, with blood... ”

Andy turned around and smiled with a charming sunshine.