Real estate players

Seeing Chen Jin's attitude finally eased, the two of them were finally relieved.

Jules was really worried, if Chen Jin made a disagreement and ordered to see him off, the business would really fall into his hands.

Amos took it for granted. Before he wanted to come, Chen Jin came to the United States with all his hardships and bought a mansion of this level. It can't be used for vacation, right?

So instead he gave birth to a bit of confidence and continued to ask Jules to translate and said: "Mr. Chen Jin, according to my understanding, you have been engaged in the real estate industry in China. Before you came to the United States, your friends also You have registered a real estate development company. It seems that you intend to continue doing business in an industry you are familiar with?"

"Of course." Chen Jin affirmed: "Doing business, practice makes perfect, why bother to change careers?"

Amos smiled: "Then, I think my suggestion will interest you."

As he said, he took out a copy of the information from his briefcase and handed it to Chen Jin, and then explained: "Mr. Chen Jin, please see, this is part of the creditor's information of the Los Angeles 35th Bank."

Chen Jin took it and squinted at it...

In the so-called legal society in the United States, everything follows the principles of commercialization and legalization, especially when it comes to housing loans, the implementation is very thorough.

For example, in China, if a person buys a house but cannot repay the mortgage, even if the house is sealed by the bank, if it is the only house in his name, he can still rely on it, even in special circumstances It may not be forced to auction.

But in the U.S., once the debtor cannot repay the mortgage, I'm sorry, the bank only needs to submit a petition to the court, the house will be immediately emptied, and the ownership will be directly changed to the bank.

Especially after the 2008 subprime mortgage crisis, the housing price in Los Angeles has fallen by more than 35%. By 2010, the number of housing confiscated by banks in the United States reached a terrible 370,000 cases each month.

Among them, Los Angeles was also classified as a "Dangerous City for Real Estate Economy" by Fortune Magazine, and the number of confiscated properties ranks among the top in the country!

Under such a background, the 35th Bank, as a veteran capitalist, actually relies on creditor's rights and owns more than tens of thousands of real estate!

Just listen to Amos continue: "Mr. Chen Jin, if you understand subprime loans, you should understand that these debt assets mean huge wealth. Unfortunately, the wealth of real estate is not what our bank needs, so we Always looking for a way to cash out..."

"As long as you want, we are happy to be your company's first partner!"

"Subprime loan~huh~" Chen Jin sneered, thinking that the leeks in the United States are really pitiful!Subprime loans are nothing more than a mess of U.S. accounts. It is a magic weapon for capitalists to occupy the commanding heights of the economy in a one-by-one manner!

The first link is the release of subprime loans by commercial banks.

At first, people with high credit ratings bought houses. Later, there were fewer and fewer high-quality customers and business was difficult to do. Commercial banks relaxed the conditions so that people with low credit ratings could also buy houses and make money by lending them out.

But the rules of commercial banks are still blocking, what should be done?

Fake!

As long as the lender agrees to buy a house, although the credit is poor, the commercial bank can fill in his credit record as good, which can apply for a mortgage.

It's just that the interest rate that commercial banks lend to high-quality customers is 5%, while the interest rate for loans to people with low credit ratings is 10%.Such spreads are very profitable for commercial banks.

At the same time, in addition to those with poor credit, there is also a part of the market for those who cannot afford a house.

Commercial banks will tell people who can’t afford a house: If you spend 300,000 dollars on a house, you can move in with a down payment of 30,000 dollars.

A few years later, if the house price rises to 500,000 US dollars, you sell the house and return the principal and profit of 300,000 to the main bank, and there is still a profit of 200,000 US dollars.

If you can't afford a 30% down payment, then 20%, or 10%, if it really doesn't work, even a zero down payment will do.

If there is no income or the income is not high, and the monthly payment cannot be repaid, it is fine to start the repayment after three years, but the interest is higher.

Capitalists use this method to let people who cannot afford a house buy a house.Once more people buy houses, housing prices will go up.

People who buy a house are very happy. They can get a house or wait for the property to increase in value.The seller is not at risk because the commercial bank has already paid the buyer for the buyer with the loan.

After this operation is over, you can enter the second ring of the routine: risk transfer!

In the first ring, both sellers and buyers are happy, but commercial banks bear all the risks.

If the house price falls, the buyer will not have the money, the house will be worthless, and the bank will face huge losses.

As a result, commercial banks pooled all housing loans together to form a mortgage security.

The usual mortgage interest rate is 5%, and the subprime interest rate is 10%.The capitalist sells it to investment banks at a 6% interest rate and can earn the remaining 4%.

The risk of such subprime loans is transferred from commercial banks to investment banks.

After the investment banks bought back these mortgage securities, they began to design financial derivative products-they also worked on it and turned the securities into subordinated bonds.

The interest rate of bank deposits is only 1%, while the interest rate of subordinated bonds is 10%, which are then sold to major customers of investment banks...

In this way, the subordinated bonds were sold to the world generously!

In the economic upward cycle, this method can be said to be a costless business-using the world's money to contribute to the US economy.

But at the moment when the U.S. capital group and the government were about to achieve major success in the financial war, a series of financial crises happened...

A large number of financial companies went bankrupt, a large number of creditor banks went bankrupt, and the U.S. government had to announce that it had taken over two major U.S. real estate companies...

Just like dominoes, companies continue to fall, thus forming a financial turmoil that spread to the world!

This……

It was the cause and starting point of the global financial turmoil in 2008, but it was also an opportunity for China to take this opportunity to stimulate the economy, stimulate domestic demand, and rise strongly!

It can almost be said that the global financial turmoil originated from the real estate in the United States, and China’s economic take-off also originated from domestic real estate...

It's just that now, the wheel of history has turned to Chen Jin's face-the Third Five Bank tried to use debt to attract him to intervene in subprime loans, repeating the previous routine...

Or in other words, this routine has never stopped, and the capitalists will not learn their lesson, they only do profitable things!

"1250 properties?"

After reading the information, Chen Jin raised his head and asked Amos, "Is this data wrong? If the information I got is correct, you should have more than 10,000 sets of claims. How can you come up with such a little bit?"

"About this~" Amos explained: "Mr. Chen Jin, we have also assessed your asset situation... This amount of debt should be the limit you can bear!"

Chen Jin "snorted": "Who are you looking down on?"