Hollywood legendary director

Where there is supply and demand, there is a market. For capitalists, as long as there is profit margin, there is nothing they dare to do.

Nowadays, the prosperous financial subprime business in the United States is the result of their operation, because they think the money is too slow, they can also be made into financial products and put into the market in batches.

After all, the loan services generated by the sale of subprime loans are actually the same thing as buying bonds. Although they are different in nature, smart people always have a smarter explanation.

Anyway, as long as the public believes that this thing can be profitable, then someone will want it. Before mid-2007, the subprime mortgage market was indeed very risky. Even now, the risk is not that big, because everyone recognized that there will be For a "bright" future, even the government believes that with the world's dollar hegemony, it seems that speed should be accelerated.

But history will tell naive people that the subprime mortgage crisis really came after the Tulip Massacre and the Internet bubble.

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In New York in mid-August 2008, various stock exchanges were still in full swing.

What’s more interesting is that the evil wolves on Wall Street, after knowing that there was a small problem in the sub-prime mortgage business, began to short their “owners” frantically. They turned their attention to other investment banks that had problems because of the excessive proportion of subprime mortgage business, such as Freddie Mac and Fannie Mae. Under the tide of running-

As losses in the real estate market continue to increase, the two rooms have encountered the same situation as Bear Stearns.

And because the government's credit is useless without cash, the share prices of the two rooms have plummeted.

In just one month, Fannie Mae’s stock price fell 28%, and Freddie Mac’s share price fell 34%.

More importantly, the two houses accounted for almost half of the mortgage market. In desperation, Secretary of the Treasury Paulson decided to request Congress to authorize the Ministry of Finance to take over the two companies.

This kind of trusteeship is equivalent to nationalizing it.

After the scene fell, Bernanke and Paulson squatted side by side on the steps and tremblingly took out two cigarettes, right to the fire, and spit out a smoke ring-these two difficult brothers were made by Bear Stearns and the two rooms these days Depressed, now I can finally take a breath.

However, Lehman Brothers was rushing at full speed carrying the gas tank.

Many people regard the fall of Lehman Brothers as a landmark event in the subprime mortgage crisis. In fact, it makes sense. They rank fourth among the top five investment banks and their homes are large in size.

Although as the market tightens, Lehman Brothers has also suffered, with a large amount of subprime assets stranded in its hands that cannot be sold.

In the first quarter of 2008 alone, Lehman had a repurchase agreement worth nearly US$200 billion that had not been repaid, and the deducted assets amounted to US$10 billion.

After Bear Stearns was acquired, Lehman Brothers, which was similar to it, was of course questioned by many people, and its stock was also affected.

But Lehman is Lehman after all, not the newly promoted wolf Bear Stearns. Under such unfavorable circumstances, he just persisted for a long time.

In June 2008, Lehman Brothers had 26 billion US dollars in shareholder equity on the balance sheet, 639 billion US dollars in assets, and a leverage ratio of only 25:1, which was far lower than similar investment banks.

At the same time, Lehman still has 45 billion U.S. dollars in cash and highly liquid securities on hand, and the company's executives are confident to meet any payment needs.

However, in the current market, no one believes that these things are really worth so much money.

As long as Lehman's business assets are reduced by 30%, they will be insolvent.

In July, Lehman Brothers applied to the Fed to transform into a bank holding company to obtain access to all Fed projects to ensure the stability of funds, but was rejected.

Later, negotiations with the Korea Development Bank hoped to introduce strategic shareholders, but the negotiations broke down.

Then I communicated with Bank of America, but failed.

Lehman Brothers hasn't given up yet, and after repeated defeats, he has sought Barclays Capital.

At that time, Barclays Capital was strong and coveted Wall Street tickets. It was a very suitable strategic shareholder, but in accordance with British regulatory requirements, this matter must be approved by the British Financial Services Authority.

When Paulson used as an intermediary to call the president of the UK Financial Services Authority, he was refused.

In short, in the beginning, no one wanted Lehman Brothers to fall. After all, the Fed even helped Bear Stearns.

Sure enough, after the failure of "self-rescue", on September 12, 2008, Federal Reserve Chairman Bernanke, New York Federal Reserve Chairman Geithner, US Treasury Secretary Paulson, and Securities and Exchange Commission Chairman Cox convened Citigroup, *** *, Morgan Stanley, Goldman Sachs, Merrill Lynch's senior management for three consecutive days in Manhattan, the Federal Reserve Bank of New York headquarters urgently discussed how to rescue Lehman Brothers.

These financial institutions have a common feature, that is, everyone is Lehman's creditor-if Lehman falls, they will be hit hard and investment will be in vain.

Obviously, Bernanke and Paulson hope that these guys can stand up and help each other, first through the quagmire.

However, Lehman Brothers, lacking a government escort, is a bottomless pit. These institutions are neither willing nor able to bear Lehman’s non-performing assets. They all hope that the Fed can help as in the Bear Stearns case-the Fed can fully bear it. Most asset baggage.The meeting ended in vain.

So, why is the Fed determined not to take the bailout responsibility this time?

Because at this time the two houses are being managed by the government, the political atmosphere is different.

During this period of time, due to the negative publicity of "interference in the market" and the unrestricted commitment to Fannie and Freddie, Bernanke and Paulson have been under tremendous pressure to rescue the market.

If taxpayers' money were used to rescue the capitalists, lawyers and some political groups would clamor again, and it would take far more to rescue Lehman than Bear Stearns and Liangfang.

The two are also very worried that the government's underpinning has given a very bad head to the financial market-major institutions will be more confident and will carry out more reckless operations in the future-anyway, there is government underpinning; the income belongs to me, and the risk belongs to me. The government is fine.

In other words, Paulson and Bernanke have reached a consensus that they will never make Bear Stearns and the two rooms a common practice, otherwise the institutions will threaten to death and market rules will no longer have any effect. .

For this reason, the Fed’s psychological bottom line is: the public’s money will not be invested in any Lehman-related transactions, and these people should not be allowed to think that the government will indefinitely cover the bottom.

On September 14, a very ordinary day, Paulson notified the president of Lehman Brothers, Fuld, of the bad news that the meeting decided not to rescue.

After hearing the sentencing, Lehman Brothers burst into tears, and looked at Bear Stearns in a vengeful direction, swearing: After I die, there will be a flood!

That night, Lehman Brothers filed for bankruptcy protection.

This company has been in business for 158 years, has experienced the collapse of the railway company in the 19th century, and has also experienced the economic "Great Depression" of the 1930s. It can be called the battle-tested big brother crashing down.

By the way, before the fall, Lehman Brothers humanitarianly distributed the remaining reserve funds as an early year-end reward to the senior management who should be issued.

In the post-Lehman financial era, international hot money began to endanger everyone. Affected by this and subsequent market panics, the global financial market has stagnated. What is more serious is that the United States is very dependent on credit and the economy can withstand the stock market. The decline in real estate, but the economic austerity cannot be accepted.

This has directly led to economic depression-many large companies need bank loans to support them, not to mention some small and medium-sized enterprises or companies with less healthy finances. Banking operations have become more tight and will face the embarrassment of not being able to pay workers' wages.

Then, a wave of bankruptcy came, and then, it deteriorated further.