American Fortune Life

The fall in the three major stock indexes does not seem to have caused much panic in the market. The downward trend in the subprime lending market began in January 2007 and fell by 40 per cent over three months until April, when companies applied for bankruptcy protection in the new century.

And it was in October, six months after the subprime market began to collapse, that the stock market began to collapse in a sharp spiral.

Most importantly, people are not aware of the seriousness of the matter. From a geographical point of view, real estate speculation in the United States was initially concentrated in smaller regions, but no one thought that the bigger the snowball, the faster the regional crisis spread across the United States.

In the aftermath of the Asian financial crisis, countries, both sovereign wealth funds and foreign central banks, have placed enormous demands on fixed-income securities because of reserve needs and because of the rise in international demand for safe, or perceived, United States dollar assets.

This further explains why securitized debt built around United States real estate prices can be issued to some extent around the world. Correspondingly, the financial crisis unleashed by the United States also spread to major global economies.

Securitization has helped the United States Government achieve its policy goals of unlocking liquidity, promoting growth and employment and enhancing social welfare, which can be described as successful “financial engineering"; however, on the other side of the policy objective, risks are accumulating.

The U.S. government is undoubtedly the biggest beneficiary, which is why when the subprime mortgage crisis broke out, all the bankers played scoundrel, lay down directly on the ground, let the crisis ravage, and eventually forced the government to rescue the city, one cup of water truck payroll to fund the collapsed cdo, successively buying MBS bonds that were already garbage.

Andy's $7.2 billion CDS bond, leveraged with $600 million in principal, isn't as crazy as Michael Bree's long crooked bovine cutter, but it's also the best in the sky this time.

George Soros, the god of emptiness, pulled down his old face on his nephew's recommendation and next time he went to see Michael Bree, he said a lot of “old driver with me” to this rear show, and Michael Bree had no choice but to give a rough overview of the trick. He hurried back to draw the gourd and immediately went home to empty a billion CDS.

This poor loan concession, led by the United States Government and Wall Street, to unaffordable housing, has finally detonated a long backlog of great risks.

Andy puts more emphasis on the shortage of cds because CDS is mostly issued by insurance companies as big as AIG, and what he bugs about is that you can buy insurance without having the relevant assets. It's like buying an insurance policy for the old king's car next door. If he crashes, you'll be happy to get the claim, and the old king doesn't know it.

However, it seems that everything is going in the favorable direction of Andy's big, empty CDS, but small and medium-sized skinheads lacking liquidity have already started to jump up and down in a hurry. Well, it's all adjectives for fuelling fire, hot pot ants running around, and so on.

Because the original bond price of MBS remains high, the CDS of MBS re-securitization still maintains the AAA rating, has insufficient cash flow, insufficient liquidity, and does not fall or rise, they will have to lose money inside, invest in the margin account, or be forced to close the position.

Andy puts the marker in his hand, sits on the boss chair, feet on the table, shakes his body gently, and the seat rotates back and forth, looking with ease at all the data displayed on the LCD screen in front of the conference room that has been transformed into a strategic command room.

Alvett walked up to Andy and sat down, “These fucking bastards, full of lies! ”

“Oh, don't be angry, Al, isn't that something we've been thinking about? In fact, this time we took the lead lightly, we have hit the domino effect, the reason why MBS is still high, CDS is not downgraded, it is just pretending to be nothing and luring other colleagues to buy junk bonds that it is anxious to sell, which can bankrupt the company, and thus get away. And the receivers of the drum spreading process, those idiots don't deserve pity.

Oh, you don't even know how many calls I've received in the past few days, and my grandfather called me to keep my mouth shut and not to make any more statements about the subprime crisis in public. ”

Andy threw the marker pen in his hand onto the desk, wrapped his hands around his chest, and put his head on the back of the chair, smiling sarcastically.

“But boss, we lose a little bit of money in the margin every time... ”

“Well, Al, complaining is useless, you know better than anybody that their power is either we can resist right now, they are dead, what can we do, our bond is enough for us to hold on until they can't hold on, we can exchange over a hundred million bonds for billions of dollars in profits, no loss, and CDO Insurance has already started making money, though it's less pathetic, but this is the time, be patient enough, the darkest hour before dawn passes, we will have a flaming sun! ”

“As the fog gets thinner and thinner, the truth will soon be revealed, and I really want to know which greedy guys will take over the garbage. ”

Andy opened his eyes and glanced at Al, smiling softly, "The greed on Wall Street is in the blood, full of fraud and lies, and all they're playing with now is what's called,“ After the dust settles, we and them, who are the idiots? ”of the game. ”

Alvitelli heard the boss's gutter and couldn't help but shake his head and laugh. He didn't expect the young boss to be so calm. Knowing that the risk of emptying is not ordinary, there is no place to die by accident.

In fact, how could Andy not know the risk of being empty, and he also summed up the three major fears of being big on this subprime mortgage crisis?

First, I bought a handful of CDS and found that all the related assets were in default, and the price of the CDS remained constant, thinking that the entire system was colluding to make a fake. We are at this stage, making empty people bitter and ridiculed by returning to normal investors.

Secondly, the CDS in hand made money and began to worry about bankruptcy of gambling rivals, turning their CDS into scrap paper.

Thirdly, it was finally cleared and the money was obtained, but it was found that it was possible that the FBI was targeting or “occupying Wall Street” and that public opinion was under too much pressure.

Though Andy summed up the top three fears, he didn't include himself, and some people didn't want him to yell "wolf come” and naturally pay for it. Through old Smith's mouth to tell Andy, he's not stunned, he knows what a compromise is, he wants to make money and smash someone's pot, he dares to kill you, like Kennedy, chuckle, the favorite thing to do is smash the pot, whether it's against his opponents or allies, so it's like being mythically subjected to something like that.

“Boss, there have been a lot of calls to the company lately, especially from Goldman Sachs Group's financial advisor, Kersey, to visit you.” Alvitelli said without losing time.

Andy looked at Al with a smile and shook his head and said, "They're the main target of Michael Bree's gambling, and the CDO is their responsibility. I'm not interested in seeing him. Well, I'm going to take my girlfriend off duty. Shh. Look at this change for more than a week. The stock market is revitalizing. It should go up. MBS doesn't go up. CDS is still AAA. Although the company is bankrupt, everyone is still as good as it is. What happened on April 2 is almost a laugh. It looks like my two weekly magazines have been hit in the face. ”

Alvitelli shrugged her shoulders and watched her young boss slap her ass off helplessly, seemingly apologizing to her old friend, who could not reveal even a single message to anyone, either out of professional ethics or confidentiality agreements.

And Andy, even more unenthusiastic, sold these MBS with one hand and bragged about how good they were, and the other hand privately invented CDO, a hedge insurance policy to empty MBS, was immoral, and Goldman Sachs was undoubtedly the best at playing this routine.