Coquettish Rebirth

After Ye Jing reminded him of the stock price, Jia Hongjian also went online to check the closing price of the American stock.Originally, before the big earnings cut was announced in October, the stock price of Citigroup was at $10 per share. However, after the big earnings cut was announced, the stock price immediately dropped to $47 per share!It can be said that the American people and investors from all over the world at that time had already underestimated the future profitability of Citigroup - but I still didn't think that Citigroup would be in too much trouble, because if there was too much trouble, the stock should fall Even more powerful!

Now, after announcing the expected loss of US$100 billion, the loss of US$100 billion may also include the cost of acquiring financial companies in Argentina and other places in December, and the profitability of the acquired company is not bad. According to various analysts Analyzed on TV how much help this more than 12 billion US dollars can bring to Citigroup - some people even learned from some gossip that the whole world is scrambling for such a private equity quota!And now the Abu Dhabi consortium in the Middle East is scrambling to exchange fortress money for Citigroup’s shares. It is said that the prince’s family in the UAE will force more than 120 billion US dollars to Citigroup for stock exchange, just waiting for Citigroup’s ups and downs After that, the stock went up all the way!It is even rumored that local tyrants in the Middle East believe that Citigroup's stock can rise to more than $50 in the future. After all, Citigroup is now the world's largest bank!

"It seems that the local tyrants in the UAE... really don't know how to invest..." Jia Hongjian shook his head and said.In his opinion, since the local tyrants are already so rich, why do they have to go through the muddy water to fight for profits?The greater the profit, the greater the risk!As a local tyrant, when you are not short of money, it is actually a more rational choice to seek stability—for example, if you have an investment of 100 billion U.S. dollars, even if it is the most brainless investment like a bank, it is based on an annual interest rate of 4%. 4 million US dollars a year!Although the profit ratio does not look good, the return on the actual figures is quite good!Investments with greater profits are risky.What is risk?It is possible to lose money!Generally speaking, those with bare feet are not afraid of those who wear shoes, and those with little money want to make more money, so they will fight for character and risk.You said that the local tyrants are already so rich, why are they still so risky?Of course, from the perspective of capitalism, when capitalists see high profits, even if they know that the risks are high, they will fight for it with all their might.

If Jia Hongjian is a local tyrant in the United Arab Emirates.He will definitely not take risks and invest in various risky projects.Maybe this is the difference between him and many big local tyrants, but this is also the advantage of being successful, it is not easy to lose money, isn't it?Although it is impossible to double the family wealth in a short period of time, the long-term accumulated income is also good!And if local tyrants invest in venture capital, they might lose a lot of money at some point?Just like the investment in Citigroup this time, the local tyrants thought that they had picked up a bargain, that Citigroup had just encountered a temporary difficulty, and the stock price was rare. After sponsoring Citigroup now, the stock price will go up in a short time.If calculated according to such an ideal situation.They invested 50 billion US dollars in Citigroup, and the stock price rose from 29 US dollars to 49 US dollars. Their 50 billion US dollars will become 84 billion US dollars!But what about the loss?They didn't think about what would happen if Citigroup continued to lose money, and Jia Hongjian happened to be the one who knew what kind of dog Citigroup would lose if it squeezed it out!

What's next for Citigroup?Very simple, the more than 120 billion US dollars can't save Citigroup!After the financing, Citigroup operated for a month, but found that it was still not working. On the one hand, the chief risk officer was changed, and the CEO was changed, and then the stock price began to slowly decline.All the way from $29 can slowly drop to $23 - this is half the price than the original price!Not long after that, various gossip said that Citigroup's first financing did not solve the troubles, Citigroup needed more money, and at the same time, Citigroup also began to reduce the size of their housing loan department.And began to try to package and sell some subprime housing mortgage loans that could not be recovered and had relatively high risk of recovery!

How to sell this kind of thing in a package?Generally speaking, sales of departments and businesses like IBM are sales of departments that do not make much money. Even if these departments or businesses may lose money, they can still make money if they are properly adjusted-after all, many times in the manufacturing industry It is a matter of market and product positioning. Selling high-priced products is not easy to sell, so change to selling low-priced products!It is really impossible to rent out the brand.There is always a way to make money anyway.So it is feasible to sell businesses and departments in this way. Even in the United States and other countries in the world, there are even a group of capitalists who specialize in this kind of work-to sell all kinds of loss-making departments, loss-making businesses, and even loss-making small and medium-sized enterprises. After the company is bought and undergoes a series of transformations, it turns losses into profits as quickly as possible, and then sells them to make such a short profit!

But how to sell non-performing loans?The reason for the subprime mortgage crisis in the United States is that many people who were not suitable for lending were issued loans. This kind of loan to unsuitable people is called subprime loan, which means that it is risky.These people may not be able to repay the loan even when the world is good. In the past few years, when the real estate prices in the United States were rising all the way, the banks were not afraid that some people would not be able to repay the loan—collect the house and put it in As soon as the court is auctioned, it will be won!At this time, the auction price must be lower than the market price, but for the bank, it can make a lot of money!For example, in order to buy a house for a family, the total price of the house is 80, and they can take out 20 and borrow 60 from the bank for 30 years.

Then according to the interest rate, they may eventually calculate the total amount of 30 million to the bank in 140 years!Now maybe after they repaid the 10 yuan, the family has no source of income, and the bank took the house away and handed it over to the court for auction.At the time of the auction, the original house price of 80 yuan had risen to 100 million yuan, and it might be sold at a price of 80 yuan.Judging from the superficial figures, the bank only got 80 yuan, so it’s better to get the final 140 million yuan according to the loan contract!It is right to look at the numbers, but don't forget the time!In terms of time, if the bank "invests" 60 yuan, it will take 30 years to get 140 million yuan, which means earning 30 yuan in 80 years!The 80 is 133% of the profit. The average profit is 30 years, and the 80 profit is 30 years. This year, the profit is less than 3!But what if the house is auctioned off?Although the total selling price was not as high as 140 million, the funds were quickly withdrawn!It may have taken the bank 5 years to collect 60 yuan, not to mention, and earn 20 yuan!And the 20 was earned within 5 years, 4 a year!In this way, why would the bank not want to do this?

But after the subprime mortgage crisis broke out, this method will not work at all!Originally, the family bought a house of 80 yuan when the house price was at its highest point, and borrowed 60 yuan. As a result, the house price began to fall, and the family lost their income. After the bank took back the house, it turned out that the previous market price was 80 yuan. His house is only 60 now!If you sell it again, because everyone’s houses are falling in price, consumers will wait and see-humans have always chased the rise, not the fall!Human beings see that the price of the things they want to buy keeps rising, and they are afraid that they will lose money if they buy them late, so they will buy them immediately!As a result, everyone rushes to buy, and the result is that the price can rise further!But as soon as I saw the price of something drop, I thought that I would lose money if I bought it soon, and I wanted to see what price I could go down to be the bottom. As a result, no one sold it, and the price would fall even more!

So this house with a market price of 60, if you ask for 50, no one will buy it, and even if the asking price reaches 40, no one will buy it—people will think that they have to wait half a year, or the market price will become 40. ?If no one makes a move to buy it, wouldn't the house just fall into the hands of the bank?The house is neither edible nor wearable, and it can't be exchanged for money for the time being. If you exchange money, you will lose money. Doesn't this become a bad debt in the bank?And the most important thing is that after the explosion of this kind of non-performing loans, that is, subprime loans, it will further promote the decline of housing prices, and then people with stable jobs may not be willing to continue to pay loans—the same example, A civil servant took out a loan of 60 yuan and bought a house with a total of 80 yuan. The loan had to be repaid 30 million yuan in 140 years. He found out that within a few years, the house price had dropped to 40 yuan!

It's fine if he lives in this house by himself, there's no way, but what if he bought it for investment?He counted with his fingers, I'll go, even if the house price is stable at 40, it's 40 when I sell it, but I have to repay the mortgage for 30 years, a total of 140 million, and he lost more than 100 inside and out. Wan!He is so full that he wants to work for the bank?If he doesn't repay the loan and let the bank take the house away, he will stop the loss, right?It's only a loss of hundreds of thousands, isn't it?How to choose between a loss of hundreds of thousands and a loss of more than 100 million?So if the subprime mortgage crisis comes to an end, even high-quality loan resources will collapse!

How can such a non-performing loan resource be sold?After the sale, the bank will not be able to get back the original loan resources. Can others make money if they take over?Really can!For example, Citibank, they historically sold 08 billion US dollars of housing mortgage loans in early 450.There are a lot of bad debts in the 450 billion, and the figure of 450 billion itself is also an "accounts receivable amount", but what about Citibank selling the 100 billion bad debts at a price of, for example, 450 billion US dollars?For example, Jia Hongjian and the others spent 100 billion to buy this pile of bad debts?Citi instantly recovered 100 billion blood. Although it was less than what it should have received, at least it has recovered blood now. It is better than losing blood all the time!As for Jia Hongjian, how did he make money with these bad debts?Is he going to form a triad organization to force those who have not paid the money to pay back the money?

No, he can also directly ask for these properties!These properties are only 100 billion now. Although the price may be slightly higher than the market price, they are sold in packages and in large quantities!It's even possible that a whole community has defaulted... So how about holding these houses in your hands and waiting for the real estate recovery in a few years?How about even bulldozing the houses and just building tall buildings?How about building various shopping centers directly? (~^~)