Coquettish Rebirth

Jia Hongjian was very concerned about the US subprime mortgage all the way, after all, this is such a financial storm with worldwide influence!Although such a subprime mortgage crisis has only just begun, New Century Finance Company has just announced that it will lay off half of its employees, but after half a month, it still can't sustain it, and finally announced that it will file for bankruptcy protection. , Their application for bankruptcy protection has led to a decline in investors' confidence in various financial stocks in the stock market. The consequence of the decline in confidence is that everyone sells their shares one after another, and then more people sell and fewer people buy. , Naturally, the price fell all the way.And such a decline all the way caused the market to begin to fall.The market has fallen, which will make many other large companies start to suffer.

What is the logical chain in this middle?It's very simple, companies like Wal-Mart, in addition to making money from their own businesses, basically everyone has a dedicated investment department to avoid putting all their eggs in one basket.This is something that any large company will do. For example, Huaxia Hi-Tech has an investment department. In addition to investing in various small and medium-sized companies, this investment department also invests in the stock market and even the futures market, so that it can make money in other ways Well, after Jia Hongjian retires, in case the main business develops slowly, the development of the entire Huaxia Hi-Tech Group will not slow down.Just like Nokia, which is facing bankruptcy in later generations, although mobile phones are their main business, it does not mean that Nokia is just an empty shell after the mobile phone business is gone. They still have a lot of investment businesses. Can make money!Their Nokia can also transform into an investment company.

And now in the United States, big companies like Wal-Mart have announced that they have lost money—not because of their main business losses, but because their investment in the stock market happens to be invested in financial companies, so they It was a tragedy.As soon as the news of their loss came out, the market's confidence was about to collapse in an instant.Because everyone thought that this kind of stock collapse was just a financial company, and it would not spread to other real economies, but who would have thought that Wal-Mart would lose money because of investment!At this moment, even Wal-Mart and their stocks began to fall!When Wal-Mart fell, and a large number of physical companies lost money due to investment, this became a problem of a larger loss of investor confidence, and then caused the market to continue to fall!Such a phenomenon can already become the fuse of a financial crisis.Not to mention that there is far more than one financial company like New Century Finance Company in the market that is at risk. Others such as Freddie Mac, Fannie Mae, Bank of America, etc. have a lot of bad debts!

When real estate started to stagnate, the stocks of a series of real estate-related companies suddenly fell, and the companies responsible for lending mortgages basically had a huge amount of bad debts. It can be said that now it depends on who can't survive. .And if some people continue to be unable to survive, then successive bankruptcies will inevitably lead to a worse overall economic situation and lead to an economic crisis more quickly!Yes, when financial companies flocked into such a subprime mortgage field.What everyone thinks is that when the time comes, they can stop in a timely manner and leave the risk to other fools.But the question is who the hell is so easy to stop after being addicted!By the time everyone finds out that something is wrong, if you want to stop, you can't take it back, okay?For the top executives of many financial companies, the company is not theirs anyway, they are part-time workers, so how big a deal does it matter to them whether the company goes bankrupt or not?On the contrary, performance has a lot to do with them, so they try their best to press on the risk line and maximize the company's benefits.That way they get more money!And to squeeze profits to the greatest extent can easily lead to the occurrence of non-wet shoes wherever you often walk by the river!If you move, you must face the rhythm of walking too much and being taken away by a wave of people!

And now such a group of financial companies are in the rhythm of giving away their heads!For these financial companies in the United States, is it good or bad?Jia Hongjian is lazy. Anyway, he is not going to invest in financial companies at this time. On the other hand, when Huaxia Hi-Tech established an investment department thousands of years ago, Jia Hongjian made it clear, don't go Invest in financial companies that are involved in subprime mortgages, because this is subprime mortgages after all.This is a big risk!Huaxia High-Tech does not need the investment department to take big risks to make a lot of money, try to find some that are not so risky, so that the overall income of the investment department can outperform the bank interest rate!So at this time, Huaxia Hi-Tech has nothing to do with various subprime mortgage financial companies.Under such circumstances, does Jia Hongjian control those financial companies?

But he did have a little interest in American real estate—at such a time.That was when real estate prices dropped in various ways. In his previous life, Jia Hongjian still remembered that one or two years later he would often see real estate in Cleveland or other places in the United States selling for $1 on the Internet.Although the real estate in those places may not refer to the location, but the location is good does not mean that you will earn money - because there is a real estate tax in the United States, and the real estate tax does not mean that you pay a sum at the time of the transaction and it is over. Pay according to a certain rate every year!If it is based on a relatively low figure such as [-]%, it is not based on the transaction price of [-] US dollars, but based on an average price of the surrounding area, which is the so-called market price!Therefore, it is not impossible to pay a property tax of several thousand dollars a year for a property worth a thousand dollars.

Although this seems to be a good deal on the surface, after all, the "down payment" is small, but the problem is that if you invest thousands of dollars a year, how long will it take for the house price to rise back?Cleveland is a traditional industrial city in the Great Lakes region. Even places like Chicago and Detroit are miserable. How much better is Cleveland?Even if Cleveland's transformation is as successful as Pittsburgh, don't forget that Pittsburgh only has 30 million people. The entire urban area or the surrounding satellite cities have only 80 million people and less than 100 million people. Such a large area is sparsely populated. Can housing prices rise in places like this?So if you buy a house in this kind of place as an investment, it may take ten or 15 years for the house to increase more than the money you have already invested. Earn more by investing elsewhere!

Even the figures support Jia Hongjian’s view—according to statistics, the average annual rate of return of American household housing in the past 30 years was only 0.74%.0.35 percent!This ratio is lower than the deposit interest rate of domestic banks in China!The current deposit interest rate of China's domestic banks is still 3%, while the fixed-year deposit interest rate directly starts from 10%!That is to say, if you invest in real estate in the United States, you can actually only earn 7.4% in the past 30 years, but if you deposit your money in a Chinese bank, you can deposit [-] times a year for a fixed period of time, and the profit can be [-]%!What the hell are ordinary people investing in American real estate?Then why is Jia Hongjian interested in American real estate?Because what he is interested in is not the "rural areas" like Cleveland, but the real estate in large cities like Los Angeles and New York!

That’s right, just like domestic housing prices in Beijing, Shanghai, and Guangzhou cannot be lowered, cities like New York and Los Angeles are originally the financial and economic centers of the United States, and they absorb a large amount of surrounding population and funds. fall.Although it is said that "living in New York is not easy", the rent of various houses in this New York City has reached the point of one hundred dollars per square meter-of course it is a relatively good area, but it is foreseeable that the rent in these places will never How much it drops, it will definitely rise in the next few years, because this is a scarce resource in itself, how many people go to Los Angeles and New York every year to find opportunities, and how many people all over the world go to Los Angeles and New York!So this gave Jia Hongjian the feeling that if China encountered an economic crisis, housing prices in Beijing, Shanghai, and Guangzhou might temporarily drop. If he had enough money, he would definitely go there and buy a few sets first!These cities have a large population and little land. Even if the housing price cannot rise after three to five years after buying it, will it still not rise after ten or eight years?At that time, when the subway passes through, the house price will go up, okay?

Besides, a country like the United States is a country that absorbs the blood of countries all over the world. The last thing the United States wants to see is that the funds from all over the world that come to the United States to invest in the United States escape. They will definitely re-appreciate the dollar after a period of time. This is to attract funds from all over the world to invest, and to use profits to attract all the money from all over the world for their development!And the money from all over the world came to the United States, which cities first poured into it?New York Los Angeles?Then how much proportion will be put into real estate?In this way, the prices in these cities can still fall?Not to mention anything else, next to Madison Square Garden in Lower New York City, a 06-storey high-end independent apartment building started construction in 60. This apartment is not to mention elevator access, and an apartment unit is not If there is only one floor, one household directly has three floors!It directly means a duplex apartment villa!As for such a high-end apartment, it was originally built to attract all kinds of investment, but after a year of construction, the subprime mortgage problem suddenly occurred, and the funds that were scheduled to come later were put away!Is this a good opportunity for us to intervene?

In Jia Hongjian’s view, most of the time, investing is to go against the market. When the aunts selling vegetables on the street start to discuss investing in stocks to make money, the smart people run away because they don’t even understand anything. When all the aunts start to care about stocks, it must be that the stocks have made money to a certain extent, and it is very likely that the dealer will close the net next!And when everyone is fleeing the stock market in various ways, it may not be a good time to go in and buy bargains! (To be continued..)