Extraordinary Genius

[Two Housing Groups are on the verge of bankruptcy, taken over by the US government axe]

Just one piece of news took away the headlines of the Olympic closing ceremony, as it represented the economic direction of the United States.

The economy of the United States has important implications for the global economy. Between the end of last year and the beginning of this year, too many Mi State-owned companies went bankrupt.

However, under the umbrella of the US political axe, many countries in Europe, Asia and elsewhere have given money to help, and it seems that the crisis has been suppressed.

As long as you're patient, you'll be able to relax in a couple of years.

But once a problem arises with a giant two-room group like this, it won't be easy to solve. Five trillion dollar bonds will certainly not be fully convertible, but the liabilities of the two housing groups will have to be settled.

More than $600 billion in debt, every year, no, every day interest is not a small amount. If the debt cannot be settled, then the two housing groups will certainly not be able to slow down.

So in the beginning, the US gave the problem of the two housing groups to the Bank of America to solve, which was simply wrong. Bank of America can't afford this much money at all. Even if it comes out in batches, it will take 450 billion dollars in three or four years.

Companies have a certain percentage of debt, which is fine, and many companies have debt ratios of more than 50 percent, and the same business is very good. But like debt is several times the market value of an enterprise, that's a big problem.

But with the current capabilities of the Bank of America, let alone $450 billion, it's difficult to take out $450 billion. So Bank of America no longer wants to swallow the high-quality assets of the two housing groups, but to unload the baggage again.

Let the two housing groups die on their own? This is definitely not gonna work.

The US government axe had to come out at this time and take over this mess.

Boo Ten felt so depressed that he thought he could drag it to next year. It would be better if he gave it to his successor. It could even be argued that the inadequacy of the successor had led to the insolvency of the two-chamber group and, if it were him, would never have been insolvent or something.

But the US financial institutions are out of money, they can't fill this big hole at all. If there is no alternative to filling it out, it is to raise funds for the issuance of additional shares or to attract other investments.

But at this time, the US stock market is slowly falling, how much money can the stock offer raise, and will dilute their shareholders' equity, shareholders certainly don't want to, let alone invest in making more money, and this is to wipe the ass ~ of others.

Pulling investments is okay, and there are consortiums willing to invest in them, but they also need to pay their shares. How can those shareholders look down on power?

And US companies that have the ability to save two housing groups are not without it, like Rockefeller, Walton or something, and even if they lose something over time, they won't hurt themselves, and they still have the ability to raise money.

But why would they pay for this mistake? The two housing groups went bankrupt and had little impact on them, and even they could take advantage of the opportunity to make a fortune.

Low real estate depreciates the real estate in their hands, but so what? They don't make their own money by investing in them, so they can copy the bottom while the price drops.

Moreover, the deterioration of the economic situation would certainly lead to a large number of unemployed people in the United States and lower wages for workers, which would also benefit them.

The two housing groups have become painless grandmothers, the uncle did not love the business, more than a year ago, the scenery is endless, I didn't expect the world to change so quickly, now it is almost bankrupt.

In fact, according to Feng Yu's analysis, the two housing groups should have filed for bankruptcy protection long ago. Since, when applying for insolvency protection, some debts may not be repaid for the time being, and some interest may not continue to grow, they may have sufficient time to carry out asset reorganization.

During the period of insolvency protection, many enterprises, after reorganization, may attract the interest of a number of enterprises, thus freeing them from the risk of total insolvency.

The fact that the two housing groups are able to issue so many bonds is sufficient to prove that they still have many quality assets.

Unfortunately, because of the cover, many shareholders chose to hide the company's true situation and then borrowed heavily in an effort to overcome the dilemma. As a result, we didn't get past it and fell into a deeper pit.

Now the two-room group, nobody wants it for nothing. Whoever takes over the debt will lose money.

The default rate on US housing loans is still rising, and the pits of the two housing groups will deepen.

The US government axe can't be thrown out at first sight, can only take over by itself. The two housing groups cannot go bankrupt, otherwise the US economy will really end, the financial market will surely collapse, there are too many financial enterprises associated with the two housing groups, there will be a chain reaction.

But the political axe took over, and it was very controversial. Because many say that US taxpayers' money should not be allowed to fill the pits above which businesses operate. Those shareholders should be given more money to save the company.

With so much foreign investment in the shares of the two housing groups, a lot of them are national investment agencies, let them take out the money. Are they still holding so many bonds from the two-house group that they want to see them become scrap paper?

Although claims are higher than equity, what can your bonds recover if your business goes bankrupt?

Isn't the EU and the island countries rich enough to give them money?

The most worrisome question for these people is whether the political axe taken over at this time, once the two-room group has gone bankrupt, will have to pay off the debt?

Other countries that invested in two-house group bonds and stocks were relieved when the news reached them. Miguo Axe has finally taken over the two-room group. Isn't that a less dangerous response?

The S&P credit ratings of both Housing Groups have dropped from the highest quality AAA credit rating to the current CCC + credit rating. In other words, S&P believes that two housing groups are likely to default without good commercial, financial or economic conditions, so the default rate will certainly be very high.

It is also because of this that it is difficult to pull back the shares of the two housing groups.

S&P says the credit ratings of both companies are so low, they don't have enough solvency, what else is there to invest in?

But when the US government takes over, these things will be different. The US government axe, but AAA's credit rating, with great solvency, is basically impossible to breach.

There are even many who say that bonds issued by two housing groups are likely to be re-equated with US Treasury bonds and yield higher returns than Treasury bonds.

At this point, the bond value of the two housing groups began to recover, and the shares of the two housing groups began to recover, as if the two housing groups were about to come back to life.

But is that the truth? Feng Yu is going to break this illusion!

……