"Let everyone have a chicken in the pot and have a big house to live in." Roosevelt

The American dream planted by Roosevelt back then made Americans have an irresistible obsession with housing and real estate.

For more than 50 years after the Great Depression, the US had been cautious in its economic path until around 1990, when Washington decided to restore economic prosperity.

The U.S. financial industry has ushered in second place by lifting supervision of various savings and lending companies, and Wall Street investment banks were able to go public at that time.

Moreover, the government has begun to encourage people to buy more houses, stimulate domestic demand and stimulate economic growth. Banks have tried to reduce or exempt down payment requirements, such as adjusting interest rates, installment repayments, etc.

Many fledgling speculators suddenly flocked to the real estate industry, and the real estate boom began to rise.

In order to promote the development of the real estate market, the US government even stipulated that the sale of houses was exempt from capital value-added tax, up to $500,000. This move greatly promoted the rise of rooms, and the real estate market had a bright future in the American concept. Real estate developers began to promote on TV programs, striving to make people believe that investing in real estate is the only way to get rich short.

At that time, whether it was Wall Street, businessmen looking for tax havens, or ladies from the upper class, ordinary white-collar workers, they all flocked to the real estate industry, and everyone wanted to reach the peak of their lives by buying houses.

(Haha, does it feel familiar?)

Even so, the government feels that the intensity of house purchases is still not enough. The government has issued many laws, and even stipulates that if bank loans do not meet the amount stipulated by the government, banks will be fined.

In order to complete the loan quota explained by the top, banks began to provide loans like some marginal home buyers with credit problems, which are the legendary subprime loans, bank loan standards, and do not confirm the borrower's income proof. They also invented various ridiculous ways to play with loans without property certificates, unproportionate restrictions, loans without documents and documents.

Stimulated by various bank policies, housing prices began to rise sharply again. The government and people at that time did not expect that they were taking a path of no return.

How smart are the bankers on Wall Street. In order to make more money in the middle, they invented many highly toxic financial tools, such as debt mortgage coupons, well, simply put it simply leverage.

Anyway, the more money the bank borrows, the higher the leverage. Andy used to be a novice in finance, but after several months of self-study and reading a lot of books in related majors, he also gained his own understanding. The most recognized sentence about leverage is: Leverage can sometimes make people go to heaven, but it is easier to make people go to hell!

In this way, the first big bubble in the history of American real estate officially began, and it has been gone for more than 10 years, until now in 2007.

The US stock market Internet bubble burst in 2000, and in 2001, the US economy began to reach a low point. In order to reduce the unemployment rate and revitalize the economy, the Federal Reserve lowered interest rates many times.

After the interest rate dropped, the yields of traditional fixed income products such as bonds were very low, and the stock market was also in a downturn. There was no place to invest in hot money, which made the rich anxious and rushed into real estate again.

House prices began to rise again, and there was no sign of stopping at all. Hollywood stars, Stallone, bad movies, Cage, etc. Well, Andy's three women are also one of the tide, Theron, Lima, and Johnson. They all joined this real estate speculation feast. At the same time, in the news reports, various economic investment experts raised their signs to show their opinions and told everyone that housing prices would not fall.

People, haha, they are all social animals, and some social factors have had a great impact on us. Since the media has been proclaiming that housing prices will not fall and the government has not taken any measures, most people with herd mentality will believe that housing prices will not fall.

The number of small lending institutions is increasing rapidly, and the market is getting better. Real estate has become the main theme for Americans. Although the housing prices are so high that they are scary, the hot money for those who buy houses is still rising.

The real estate bubble is getting bigger and bigger. The Fed realizes the seriousness of the problem, but he dares not act easily. You must know that the truth is a beautiful and terrible thing! It needs to be treated with extreme caution.

From 2004 to 2006, the Federal Reserve cautiously kept raising interest rates in small steps, but it was useless. Although raising interest rates suppressed inflation, the interest rate for long-term housing mortgages was still falling.

Andy put down the coffee cup in his hand and gently rubbed his eyebrows.

A collapse that could not be covered up is finally about to begin.

Since July last year, the pace of rising housing prices has slowed down, and it has even begun to decline in many areas of the United States. Although there are few homeowners who noticed warning signs in the early stages, there is always no shortage of keen people in the market.

In the next time, many active speculators will quickly start cashing out and exiting the market, and the horror curtain that Andy is waiting for will be opened.

The decline in housing prices will lead to a break in the entire chain. The burden of repaying loans by those who once bought houses with subprime mortgages continues to increase, the credit default rate will rise sharply, and housing prices will fall again and again. People who buy houses with subprime mortgages cannot exchange money by selling or mortgageing their homes. In this way, more and more subprime mortgage buyers do not have the money to repay loans, and loans will become bad debts.

Now, the market situation has begun to deteriorate, and many people are homeless because of the financial burden. They are poor and poor, unemployed, have no money to pay mortgages or set up houses, and can only live in tents.

In the near future, a large number of banks have collapsed, companies have gone bankrupt, and the stock market has fluctuated violently, and none of them have been spared.

The subprime mortgage crisis triggered by real estate will eventually spread out of control and spread around the world.

(Although the national conditions are different and there are many differences in all aspects, we still need to prevent problems before they happen.)

History always has amazing similarities. When this point turns on world history, you will find that humans are used to falling repeatedly on things that have already learned lessons. Why?

The greed of human nature is at work, so it is difficult to play a role. It is a common habit of human beings when the scar is healed. When the crisis comes, why doesn't Andy do his best to make a warning? Or at his own goal, after holding a large number of CDs, stand up and swear at the real estate market, make people alert, and can also cause early collapse. Why not do this?

Haha, even the Federal Reserve dares to come head-on. Who is Andy Smith? He advocates that the power of the real estate bubble cannot be competed by one person or an institution, or even a few people can't do it. The whole nation will add the government, banks, Wall Street and other forces, who dares to stand up and be that "hero"?

Andy is not so idiotic. He has been making arrangements since the beginning, hoping that he would take a low-key bite in this feast and not make a head-on bird. Only when he could yell at the 13th silly would know that the world would know.

The subprime mortgage crisis under the real estate collapse, the bank bankruptcy wave under the subprime mortgage crisis, and the gold surge under the depreciation of the US dollar...

This chain reaction that moves the whole body is waiting for by Andy. He just felt that time was a bit difficult. Why not hurry up, savior, ah!

Under the dark sky, Andy was wearing a dark blue coat and strolled on Wall Street 500 meters, standing in front of the bronze bull sculpture representing wealth, exhaling a breath of heat, the corners of his mouth were raised, and a cold smile appeared, looking at the people passing by.

"Click."

"Boss, you've taken photos." Tori quickly walked to Andy, handed him the digital camera, and said softly.

Andy took the camera, looked at it and said, "Let someone deal with it and increase the depth of field. Except for me and this cow, the other scenes are blurred and then enlarged. March 1st, today is a memorable day!"

"Okay, boss, then where are you going next?" the little assistant took the camera and put it in his bag. He asked softly at the big devil's tall figure and wide back.

"I'm hungry, I'm looking for a restaurant. I want to eat beef, bloody..."

Andy turned around and showed a charming sunny smile.
Chapter completed!