Extraordinary Genius

The US government axe itself took over a big ~ trouble, which is that the world's largest insurer, the US International Group, has more than $1 trillion in total assets.

By then, the US government axe had no help to other financial institutions. Otherwise, it would not have allowed Bank of America to acquire Merrill Forest Bank, nor would it have asked anyone to take over Bellstein, nor would it have ignored Lehman Brothers Bank's application for bankruptcy, which is also the best investment bank in the United States.

The economic crisis in the United States inevitably erupted after the US government axe took over the two-room group again and Feng Yu found someone to burst out with a very high fiscal deficit, which he could not afford at all.

The subprime mortgage crisis in the US was very serious, otherwise not so many financial institutions would go bankrupt, and banks in Europe and Asia would be needed to invest or something.

But at that time, the US made a very strong appearance that all these difficulties could be solved and temporarily stabilized the market.

This time, when a large pit was exposed, the US political axe could no longer be suppressed, and the subprime mortgage crisis had truly evolved into a US financial crisis, even a financial storm, affecting many countries and regions around the globe.

Some countries bought US Treasury bonds, or invested very heavily in US, and the US economy declined, naturally losing money.

Others have linked their currencies to the United States dollar and, as the dollar continues to depreciate, their currencies are depreciating and their purchasing power is declining, turning into inflation.

But the root cause is the US government axe itself!

The Xiaobu X housing scheme stimulated the development of real estate, allowing more subprime loans to be disbursed and seriously neglecting the quality of assets.

The problem was not too serious, but Wall Street in the US encouraged “innovative” financial products, so various financial derivatives were abused, financial transaction chains became long, assets were securitized, products originally valued at one dollar were packaged into more than ten dollars, seriously exceeding the original real value.

Here at Merrill Forest Bank, the Lehman Brothers Bank is one of the best, so they are also two of the biggest financial institutions to fail or even go bankrupt as a result.

It has been argued that these underlying causes are the rise in defaults due to falling real estate prices and even a collapse, which is even critically linked to the downturn in the automotive industry in the United States, without which so many people would not be unemployed and default rates would not be as high.

But actually, this is because of the U.S. political axe.

In or around '03, when the Xiaobu X Housing Program was launched, the Bank of America had an interest rate of only one percent. And in less than two years, it dropped from 6.5 percent to one percent.

At that time, real estate rose at a much higher rate.

So a lot of people measured it and found that interest on loans was not going up as fast as real estate, and now buying a house is very affordable.

When they bought the house, the Fed began to keep raising interest rates.

By the time it came out in '07, interest rates had fallen back to a high of 5.75 percent, which means that many people's interest on loans had risen more than fivefold!

Coupled with the deliberate loopholes in contracts that many staff members of lending financial institutions deliberately left, interest rates on loans rose as the Fed adjusted, dramatically increasing the pressure on many to repay.

Why should the US adjust interest rates? Because if you want to increase your income, the US government has no money left.

If the US economy was so good, why did it suddenly run out of money? Because of the war!

The US is waging wars in Iraq, Afghanistan and other areas, one is to show its military ~ factual strength, and also to stop domestic conflicts from erupting, but the most fundamental reason is that Iraq decided at that time to settle the dollar for oil, instead of the euro.

Mi Guosheng feared that other OPEC countries would follow suit, so the dollar's position would surely decline dramatically. Several wars have been waged by the United States, all of which are fundamentally related to these.

The politics ~ politics of the US has always been supported by a consortium. Among them, mainly energy, finance and military ~ industry, technology companies like Microsoft are not ranked at all, even the world's top 500 Wal-Mart Group is nothing.

Originally, the US thought that $56 trillion in military ~ spending would be enough to achieve political ~ political intentions, link crude oil to the US dollar, but also show strength, increase their international voice, and suppress the growth of the euro, suppress economic development in Asia.

Unfortunately, thanks to the support of the European and Asian counterparts on the Middle East side, the war did not end in a short period of time, as envisaged by the US, but was delayed very long enough to allow US spending, from the planned tens of billions of dollars, to nearly 800 billion dollars!

Is it okay to spend so much without taxes? Without a way to generate income, the political axe of the US is already bankrupt!

So the underlying reason is also that the decision of the US government axe is the policy of Xiaobu Xu.

Boo Ten is worse than Clinton, not a little bit. There was a war in Clinton, too, because the euro challenged the status of the dollar.

As a result, Clinton succeeded in moving the euro from 1: 1.17 to 1: 0.86, and the dollar did not appreciate, but rather the euro depreciated.

Together with the financial turmoil that erupted in Asia during its tenure in Clinton, the fastest growing region in Asia, including island countries, has suffered, with the exception of a handful such as Huaxia, which was spared.

Little Boo X seems to have a very good US economy, but in fact, there are many hidden dangers. Those financial syndicates have completely disrupted the US financial markets.

Before the United States, there were many investment banks, the so-called investment banks, which were domestic securities companies. These investment banks have successively become insolvent and closed.

The last two investment banks left on Wall Street, Goldman Sachs and Morgan Stanley, also began to apply to be converted into commercial banks so that they could absorb normally.

In other words, there is a cash inflow that allows them to survive without the need for political axe assistance.

Of course, they are commercial banks, but they also have investment bank-related operations.

But these two of the world's top investment banks are also about to be converted into commercial banks, enough to prove that the US financial crisis is no longer viable.

The same cars, Chrysler cars and Ford companies, which have been dying, have also announced that they have lost a lot in the first half of this year and hope to be assisted by a political axe.

Footer is fine, he sold some of his business at the earliest, and with his ability, he was able to get through it, but the same car and Chrysler are different, and they are ready to apply for bankruptcy protection!

Feng Yu looked at the news on the internet. This financial storm did break out, but it wasn't serious enough. It seems necessary to push another one!

……