Rebirth of the Financial Crisis Sweeping the World

At this time, Du Zhilin and Tian Dongyu also looked at Wang Guanxi anxiously.

Wang Guanxi said: "Don't look at me, I can't answer the question, just give up quickly."

He didn't care about winning or losing the debate. Du Zhilin had vowed before that he could win and leave it all to him. Now he was crushed by others. He couldn't answer the question and made a big fool of himself. Then Wang Guanxi said again: "Du Classmate, if you lose, just lose. Hurry up and admit defeat."

Du Zhilin's face turned green, so he had to stand up and face Wu Zhongqian and said: "Classmate Wu, our classmate doesn't understand economics. He can't answer it. We lose."

Wu Zhongqian said reluctantly: "He hasn't even spoken yet, just let him speak."

To be honest, he also wants to see Wang Guanxi make a fool of himself. Who told this boy to make the girl he likes, Ding Lijuan, very interested in him? Moreover, Wang Guanxi is more handsome than him, which is what he hates!

Letting Wang Guanxi speak out now is to make Wang Guanxi his last stepping stone today.

Du Zhilin's face suddenly turned red. He looked at Wang Guanxi and said, "Classmate Wang, you didn't speak today, so just tell me."

After saying this, he sat down with embarrassment, shame, and a red face.

Wang Guanxi had no choice but to stand up and say: "Classmate Wu, I have nothing to say. Classmate Du has already admitted defeat. You have won. What else can I say?"

Wu Zhongqian smiled and said: "Student Wang, the debate is not over yet. You can express your opinion. It's okay. Just speak boldly. This is a training opportunity for you in life!"

Wang Guanxi sighed: "Then I'll just talk nonsense. If I'm wrong, please ask Wu for advice."

Wu Zhongqian smiled very happily and said, "Comrade Wang, just say it. We all learn from each other. I will also correct you if you are wrong."

"Okay then." Wang Guanxi coughed twice and said, "Student Wu, actually I don't agree with the views you said. I found that there are many places that are illogical and incompatible with the national conditions of the United States. There are also places where the United States policy place”

As soon as Wang Guanxi said these words, the whole place fell silent!

Everyone thought that this kid would ask for advice humbly, but they didn't expect that he would find fault with him when he opened his mouth.

Everyone was shaking their heads at this moment!

At this time, Wang Guanxi pointed out the flaws and illogical aspects of Wu Zhongqian's views one by one.

"Actually, U.S. junk bonds can be compared to a rotten apple, which is beautifully packaged and sold to the next investor layer by layer. Only when the apple oozes rotten liquid and leaks out of the package does everyone realize that it is actually a rotten apple. !”

As soon as these words came out, everyone began to pay attention to it and entered a state of listening.

Wu Zhongqian and Du Zhilin were completely stunned! ! !

Wang Guanxi is a rich kid!

Then, before it was over, Wang Guanxi started talking nonstop!

In the United States, loans are a very common phenomenon. They are everywhere from houses to cars, from credit cards to phone bills. Locals rarely buy houses with full payment and usually take out long-term loans.

But we also know that unemployment and re-employment are very common here.

How can these people with unstable or even no income buy a house?

Because their credit rating is not up to standard, they are defined as subprime lenders.

Starting about 10 years ago, at that time, advertisements from loan companies appeared on TV, in newspapers, on the streets, or filled your mailbox with tempting flyers:

"Do you want to live a middle-class life? Buy a house!"

"Don't you have enough savings? Get a loan!"

"No income? Find Daniu Loan Company!"

“Can’t afford the down payment? We offer zero down payment!”

"Worried that the interest rate is too high? We offer a preferential interest rate of 3% for the first two years!"

"Still can't pay every month? It doesn't matter. You only need to pay interest in the first 24 months, and the principal of the loan can be paid after two years! Think about it, you will definitely have found a job or been promoted to a manager in two years. , I’m afraid I won’t be able to pay by then!”

"Worried that you still won't be able to pay it back in two years? Oops,

You are really too careful. Look at how much the current house has increased compared to two years ago. If you sell it to someone else, not only will you live in it for two years in vain, but you may also make a fortune! Besides, I don’t need you to pay, so I believe you can do it. Do you dare not borrow if I dare to lend? "

Under such temptation, countless American citizens choose to buy houses with loans without hesitation.

Are you worried about their debt in two years? American citizens who have always felt good about themselves will tell you that anyone who acts in movies can become governor. In two years, I might even be able to run for president.

Daniu Loan Company has achieved amazing results in just a few months, but the money has been loaned out, can it be recovered? The chairman of the company, Mr. Daniel, is also a figure who is familiar with American economic history. It is impossible not to know that the real estate market also has risks, so it seems that this profit cannot be kept alone, and a partner must be found to share the risks. So Daniel found the big brother in the American economic circle, the investment bank on Wall Street.

These guys are all bosses with famous names (Merrill Lynch, Goldman Sachs, Morgan). What do they do every day? Even if I am full, I am still idle, so I hired Nobel economists and Harvard professors, used the latest economic data models, and after some tinkering, I came up with several analysis reports to evaluate a certain stock. Is it worth buying? There is already a bubble in the stock market of a certain country. A group of people are cheating and drinking in the risk assessment market. Do you think they see any risks in this? You can even see it with your feet! But there is profit, so why are you hesitating? Let’s take over!

So after economists and university professors used data models and other methods to evaluate, they repackaged it and came up with a new product - CDO (Note: Collateralized Debt Obligation). To put it bluntly, it is a bond. By issuing and selling this CDO Bonds allow bondholders to share the risk of a home loan.

If you just sell it like this, the risk is too high and no one will buy it. Assume that the original bond risk level is 6, which is medium to high. So the investment bank divided it into two parts: senior CDO and ordinary CDO. When a debt crisis occurs, senior CDO has the priority to pay compensation. In this way, the risk levels of the two parts become 4 and 8 respectively. The total risk remains unchanged, but the former is a medium-low risk bond. With the investment bank's "gold" tongue, of course it sold a lot of money! But what about the remaining high-risk bonds with risk level 8?

So the investment bank found a hedge fund. Who are hedge funds? They are the ones who buy short and sell long in the financial world all over the world. They live a life of licking blood. This kind of risk is trivial! So relying on old relationships, we borrowed money from banks with the lowest interest rates around the world, and then bought these ordinary CDO bonds in large quantities. Before 2006, the Bank of Japan loan interest rate was only 1.5%; the ordinary CDO interest rate may reach 12%. , so hedge funds have made a lot of money just by relying on interest differentials.

As a result, a wonderful thing happened. At the end of 2001, real estate in the United States soared, more than doubling in just a few years. In this way, just like the advertisement at the beginning of Daniu Loan Company, there would be no need to pay for it. Regarding the house payment, even if you don't have the money to pay it back, you can still make some money by selling the house. The result is that everyone from the people who took out loans to buy houses, to Daniel Loan Company, to major investment banks, to hedge funds, all make money, but the investment banks are not very happy!

At first, I thought that the risk of ordinary CDOs was too high, so I threw it to hedge funds. I didn't expect that these guys made more than me, and their net worth kept rising. I knew I would keep it for fun, so investment banks also started to buy hedge funds. , planning to take a share of the pie. It's like "Old Hei" had some spoiled food at home, and he happened to see the annoying little flower dog next door. He originally planned to poison it, but he didn't expect that the little flower dog was not only fine after eating it, but also grew stronger and stronger. " "Lao Hei" was confused now. Could it be that sour food is more nutritious, so he started to eat it too!

Now the hedge funds are very happy again. Who are they? Bandits who can find ways to borrow 10 yuan for fun with just 1 yuan in hand. How can they still be honest now that they have a sought-after CDO? So they mortgaged their CDO bonds to banks in exchange for 10 times the loan, and then continued to chase investment banks to buy ordinary CDOs. Hey, we signed the agreement, and these CDOs belong to us! ! !

The investment banks are unhappy. In addition to continuing to buy hedge funds, they have come up with a new product called CDS (note: credit default swap). Well, Wall Street is the hotbed of these genius products: not all Do you think the original CDO has high risk? Then I have insured it. Every year, I take part of the money from the CDO as a deposit and give it to the insurance company for free. But if there is a risk in the future, everyone will bear it together.

The insurance company thought, not bad. CDOs are so profitable now, and they share the profits without paying even a penny. Isn’t this giving us free money every year? Done!

Hedge funds think, good, they have been making money for a few years, and the risks will become bigger and bigger in the future. Just share a part of the profits, and insurance companies will bear half of the risks, so let’s do it!

So everyone was happy again, and CDs became a hit!

But things are not over yet: because the "smart" Wall Streeters have come up with innovative products based on CDS! Let's assume that CDS has brought us 5 billion yuan in income. Now I have launched a new "Sanmao" fund. This fund is specifically invested in buying CDS. Obviously, the risk of this fund based on a series of previous products is It is very high, but I invested the 5 billion yuan I have earned before as a deposit. If this fund suffers a loss, then use the 5 billion yuan to advance it. Only when the 5 billion yuan is lost will the principal of your investment begin. Loss, but before that you can redeem it in advance, the initial scale is 50 billion yuan.

Oh my god, is there any fund more exciting than this? If you buy a fund with a face value of 1 yuan, you will not lose your own money even if it loses 0.90 yuan, but every penny you make will be yours! When the rating agencies saw this genius idea, they did not hesitate: give it an AAA rating!

As a result, this "three cents" sold like crazy, and various pension funds, education funds, financial products, and even banks from other countries also bought it. Although the initial scale was originally 50 billion yuan, it is impossible to estimate how many billions were subsequently issued, but the deposit of 5 billion yuan has not changed. If the current scale is 500 billion yuan, then the margin can only guarantee that you will not lose money when the net value of the fund is not less than 0.99 yuan.

When the time came to the end of 2006, American real estate, which had been prosperous for five years, finally fell heavily from its peak, and the food chain finally began to break.

Due to the fall in housing prices, after the preferential loan interest rate expired, first ordinary people were unable to repay their loans, and then the Daniu loan company collapsed, and hedge funds suffered huge losses, which in turn affected insurance companies and loan banks. Citigroup and Morgan successively issued huge loss reports. At the same time, Major investment banks that invested in hedge funds also suffered losses, and then the stock market plummeted. People generally lost money, and the number of people who were unable to repay their mortgages continued to increase...

Eventually, the U.S. subprime mortgage crisis broke out.

When Wang Guanxi finished speaking in one breath, the whole audience was dumbfounded!

The whole place was quiet!

So everyone stared at the handsome young man on the stage in stunned silence. He was so handsome at this moment.

From history, from economy, from culture, from society, from financial system...multi-faceted explanation!

This is simply crushing, crushing, crushing!

Complete crushing!

Naked crushing!

"Oh my god, that's amazing!"

"What kind of transparent person is that?"

"What kind of person is this?"

"This damn guy is just a financial genius, okay?"

"Not even this damn finance professor can compare to me, right?"

"This is the real financial genius!" A girl who originally admired Wu Zhongqian instantly fell in love with Wang Guanxi.

Qin Yuan, Liu Xinghui, and Jiang Jinpei were immediately excited.

"Haha, I knew Brother Xi could stun the whole audience and crush them all."

"Fuck, then Du Zhilin is just a piece of shit. How can he compare with Brother Xi? Before, Brother Xi just kept a low profile and didn't want to argue with a superficial guy like Du Zhilin."

"This damn Wu Zhongqian still has the nerve to be called a financial genius? In front of Brother Xie, he is just a piece of shit!"

And Bi Fengling also said: "Oh my god, this student Wang is so awesome, so awesome. This is how to hide everything, this is how to be restrained!"

Shu Jinghan said nothing, but looked at Wang Guanxi affectionately.

At this time, a girl said again: "This Du Zhilin is simply a piece of shit. Fortunately, I thought he was generous and broad-minded before, but now it seems that he is just shit."

Another girl echoed: "Wang Guanxi is the real talent, crushing everyone!"

"Too awesome and handsome, how can clowns like Du Zhilin deserve to stand with them?"

··

At this moment, Du Zhilin looked at Wang Guanxi with a look of disbelief on his face, his heart was aroused, his head felt like a short-circuit, and his eyes were extremely dull!

Tian Dongyu was dumbfounded and muttered to himself: "How is this possible??"

Now there was a burning sensation on his face, and he was so ashamed that he wanted to find a hole to hide immediately.

These two people became clowns and were despised by the students of St. Paul!

"Du Zhilin is so cruel and insensitive, he is such a stupid pig!"

"He gave in before and said that classmate Wang Guanxi didn't understand anything!"

"This Du Zhilin is stupider than a pig!"

"I really misjudged Du Zhilin, he is just a idiot!" said a girl.

When Du Zhilin heard these words, his face turned extremely red and his mentality completely collapsed!

On the stage, Wu Zhongqian's face was burning. He stood there, gaping at Wang Guanxi, losing his ability to express himself in words.

Naked and crushed!

Wang Guanxi first pointed out all his shortcomings, existing logical problems, and too many unreasonable places!

His face is really ugly now. How ironic it is to stand on the stage!

At this moment, he realized that he was a big joke, and his heart was shattering!

Ding Lijuan on the side was also horrified, and her heart was in turmoil. Before, she thought that Wang Guanxi was just here to make up for the numbers. She was just a transparent person who knew nothing and had nothing but good looks. But now? Wang Guanxi crushed everyone, None of them could say anything, and they couldn't refute it. This Wang Guanxi was much better than their economics teacher!

At this moment, she looked at Wang Guanxi with admiring eyes!

Such a man is so handsome and talented!

Oh my god, it was absolutely stunning to Wu Zhongqian next to her!

Wu Zhongqian saw his favorite Ding Lijuan looking at Wang Guanxi with such admiration. Her eyes were full of hormones, which made Wu Zhongqian's century-old jealousy overturn, jealousy and anger, but there was nothing he could do. Now he I became a stepping stone for Wang Guanxi, and I regret it very much in my heart!

Fei Chengdong, an economics teacher at Queen's College, also exclaimed: "This student is so awesome and sharp that I feel inferior to him."

Hu Hongjian, an economics teacher at St. Paul's Secondary School, also said in horror: "I graduated with a master's degree in finance from the University of Hong Kong and am still a top student. At this moment, I feel inferior to myself! This Wang Guanxi is indeed an extraordinary person. It's just my eyesight that is stupid!"

The class teacher Yue Mingfu's eyes widened and he said with surprise: "Oh my god, isn't this Wang Guanxi so good? Why do I feel like I'm facing a finance professor? Oh my god!"

Kong Zhongcheng, deputy director of St. Paul's Academic Affairs Office, was also dumbfounded and said: "This Wang Guanxi is so professional. Oh my god, what kind of genius is this? We all missed it!"

Xie Kaigui, the deputy director of Huangren Academy, also said in shock: "This young man is so extraordinary. He is simply a genius among geniuses. No, he should be a genius. I didn't expect that your St. Paul's Middle School would hide such an extraordinary person!"

Chen Huanglijuan, vice-principal of St. Paul's, smiled and said: "I didn't expect Wang Guanxi to be such a genius. Fortunately, I didn't have blindness before. I strongly recommend him to join the debate team."

Qiu Guotao, the vice president of Queen's College, was also shocked and said: "This is the most talented finance student I have ever seen!"

At this time, Wang Guanxi on the stage said to Wu Zhongqian: "Classmate Wu, I'm done. Do you have any advice?"

"By the way, do I think Wachovia is going to go bankrupt?"

“When will the Fed cut interest rates?”

“Will the U.S. government’s $700 billion bailout plan be passed?”

"When will this loan crisis end?"

"What kind of monetary policy do you think the head of the Federal Reserve, Greenspan, will adopt, and how much of an interest rate cut is appropriate?"

··

Wu Zhongqian was completely dumbfounded, as if his head was malfunctioning when he was asked!

He stood there like a piece of wood, speechless!

How does he know these questions?

Who is this damn person?

How could he possibly answer such a question?

At this time, Wang Guanxi said to the host: "Okay, classmate, I'm done. Du Zhilin has already admitted defeat to Wu Zhongqian before, so please declare Wu Zhongqian's side the winner."

The host was also dumbfounded and has not yet come to his senses!

How the hell do you announce this!

Du Zhilin's side did admit defeat before, but Wu Zhongqian's side did not agree to admit defeat!

Then he pulled Wang Guanxi out and insisted on Wang Guanxi talking about it. What was the result?

Now Wu Zhongqian was directly crushed and couldn't even speak.

If Du Zhilin’s side didn’t lose at that time, then the debate continued, and now St. Paul’s Middle School won.

If Du Zhilin had admitted defeat before, what Wang Guanxi said later was just a personal communication with Wu Zhongqian!

But it’s hard to announce the results now!

Thinking of this, the host asked Du Zhilin: "Classmate Du, are you still admitting defeat now?"

Du Zhilin was stunned on the spot and didn't know how to answer, but another girl from the St. Paul's debate group said: "We admitted defeat before, but classmate Wu Zhongqian disagreed and wanted to continue the debate, so we couldn't be considered to have admitted defeat at that time. Now Wang Guan Student Xi is done with the debate, you should ask classmate Wu Zhongqian if he wants to admit defeat."

The host looked embarrassed, so he said to Wu Zhongqian: "Classmate Wu, do you admit defeat now?"

Wu Zhongqian didn't know what to say. Du Zhilin had already given up before, but he wanted to find trouble and let Wang Guanxi speak, thinking that he would be sure to make Wang Guanxi look bad and become his last stepping stone today. He never expected that Wang Guanxi would make a fool of himself. This guy's economic knowledge is so terrifying that he completely overwhelms himself.

Thinking of this, Wu Zhongqian felt 10,000 regrets in his heart. If he had known earlier, he should not have let Wang Guanxi speak!

At that time, he just agreed with Du Zhilin to admit defeat. He was still the most dazzling handsome boy, but he didn't expect that he would now be Wang Guanxi's stepping stone. It really made him extremely unbalanced, and the anger in his heart reached the extreme, and he was suppressed to the extreme.

At this time, Ding Lijuan said: "Host, Du Zhilin has already admitted defeat before. The following matter is a private communication between Mr. Wang and Wu Zhongqian. We had agreed to their admission at that time, but Mr. Wu Zhongqian did not agree."

Now the people at Queen's College are unwilling to give in. It is obvious that people at St. Paul's Middle School have given up. It was Wu Zhongqian's personal communication with Wang Guanxi.

The debate was over beforehand, and the winner was decided.

In the end, it was impossible to decide and had to draw.

Du Zhilin and Wu Zhongqian were both losers.

There is only one winner present, and that is Wang Guanxi.

This time Wang Guanxi shocked the students of St. Paul's Middle School and Queen's College. Today, there is no one who does not remember him.

He became the object of love and admiration of all the girls, the god in their hearts.

Du Zhilin and Wu Zhongqian were reduced to clowns and no one cared about them in the corner. Mobile phone users value re-reading before the subprime mortgage crisis swept across the world for a better user experience.