Coquettish Rebirth

To be honest, the more Jia Hongjian became familiar with the United States, the more he studied the United States, the more he felt that the United States was controlled by a bunch of gamblers!Why do you say that?In addition to all kinds of weird financial products, including some financial products that can be said to be completely gambling on character like casinos, many financial tools in the United States are to stimulate people's greed!It's okay when the world is good, but when the world is bad, it's really the rhythm of everyone's death together!Why do you say that?Because after taking out a housing mortgage loan in the United States, you can still get a second mortgage loan for a house!What is a second mortgage?This is not to say that a house is mortgaged to two banks, but that a family bought a house for 80 yuan, mortgaged the house and took out a loan of 60, and then after 5 years, for example, the price of the house increased to 120 million.In China in 2012, it was not allowed to revaluate the mortgaged real estate that had already increased in price to the lending bank!But in the US it does!

what does that mean?Doesn't it mean that there is already a 60 loan?However, the 60 loan was obtained as a mortgage when the house price was 80. Now it has risen to 120 million. I went to the bank to apply for a revaluation, and the bank calculated it based on the market price. Drink!120 million?Then it is allowed to give cash loans according to the house price of 120 million!For example, now the family has applied for a second mortgage, or "mortgage refinancing". Such an 80 house can only be loaned at most 64, for example, and then the bank gave the family 60, and now it is 120 million , you can get a loan of 96, and after refinancing, the American bank will make up the difference of 36 for this family!Then with the cash difference of 36, you can do a lot of things!For example, as a down payment to buy a house?

That's right, even if the family didn't save any money in 5 years, and could only refinance the down payment of the second house with the mortgage loan of the house, but after the down payment of the second house is paid and the contract is signed, it is Isn't the second house also available as a mortgage?So in fact, this family bought two houses completely with the money mortgaged by the two houses!In other words, they add from beginning to end.I only paid 20 yuan, but I bought two houses, and of course I ended up with two mortgages!The monthly mortgage payments on these two houses could be quite a lot!But the strange thing about the United States is that for some customers with good credit.They have a variety of loan interest rate combinations to choose from—for example, a low interest rate for the first 10 years and a high interest rate for the next 20 years!

So for this family, if the first house and the second house, they both choose a combination of low interest rates at the beginning and high at the end.In the fifth year, they revalued the mortgaged first house and got more than 30 yuan.When the down payment bought a second house.And at such a time, the first house and the second house put them under little pressure to repay the loan, and then in the 10th year, the preferential interest rate time for the first house is coming soon, and the first house has already risen to 150 million, they sell the house again, starting with 150 million US dollars, assuming the messy calculation, and finally have to pay back 110 million US dollars to the bank, then they finally earned 40 US dollars!Then I have a second house with a lower interest rate for 5 years!And the 40 in hand is divided into two 20.Then maybe I can buy two smaller houses and fry them!This kind of refinancing and secondary loan with various names, isn’t it just that the banks are desperately borrowing money, isn’t it just lending money to the common people, so that the common people can invest more and speculate in real estate?And if the house price falls sharply, no matter it is the real estate speculator or the bank, it will be a tragedy!

The banks must try not to make themselves miserable, so when house prices start to fall, they know the danger, and they will shrink their money.For example, increase the loan interest rate so that the borrower can pay more money every month!Only in this way can the bank recover more money and avoid excessive losses in case of loss!But this will lead to excessive financial pressure for people with good credit!And don't forget that Americans save very little!White families may only have one month's salary in savings!After such a sudden increase in the repayment amount, the higher wages may be due to the tight life.If the salary is not that much or the house speculation is more, it is possible to not be able to repay the loan in an instant-any medical insurance in the United States needs to buy commercial insurance, and all kinds of food, clothing, housing and transportation also need money!

Thus, in September 2007, according to the Mortgage Bankers Association of America, nearly 9 percent of all prime mortgages in the United States were past due.Or be foreclosed on!That's the highest ratio since the association began tracking prime and subprime mortgages separately in 4.Combining good and bad mortgages alike, the combined delinquency rate and foreclosure rate is 1998%, the highest level since the association began tracking the data in 7.3!Did you see that by September 1979, 2007% of the people with high-quality loans and good credit had begun to repay their loans!

Jia Hongjian held Ye Jing in his arms, and for the next period of time, he was watching the good drama unfolding from the US subprime mortgage crisis, and at the same time wondering if there was anything he could intervene in and have fun with!Before Jia Hongjian figured it out, the good show of Citigroup started - in late January, Citigroup officially announced their financial report for the fourth quarter of 2007, and as expected, they lost 98.3 billion US dollars!Then they began to change various executives one after another!In such a situation, just like in memory, Citigroup's stock slowly fell.After February, there was still no good news for Citigroup. Instead, Citigroup restructured its asset management department and alternative investment department with great fanfare.

Then, sure enough, the gossip began to circulate—Citigroup needed more money!Then at the end of February, Citigroup officially announced that they were going to sell their home mortgages worth $2 billion!After such a news was announced, Citigroup stock, which was still around $450, immediately fell in response!In a blink of an eye it's $23 for less than $20!You must know that half a year ago, the stock price of Citigroup was still at 19 US dollars!Now it has almost fallen to one-third of the original!It's only half a year!At the same time as it announced that it was going to sell the mortgage, Citibank announced a change in the top management—the original head of the investment banking department was fired, and replaced by a direct descendant of the current CEO!

Such an approach can be regarded as barely stopping the decline in stock prices - in the eyes of various analysts, the newly appointed CEO has begun drastic reforms, decided to sell non-performing assets like a strong man cut his wrists, and at the same time replaced key candidates in key positions with The future must be bright if you have lost your own people!Don't say anything else, let's just say that the loss in the first quarter of 2008 is less than the loss in the fourth quarter of 2007, isn't it?After all, the non-performing assets have already been divested!If it can be sold within 3 months, maybe the loss in the first quarter will only be 20 billion!In that way, maybe the next quarter can turn losses into profits!So all of a sudden, various investors entered a wait-and-see state. The stock of Citigroup temporarily maintained the price line of 19 US dollars, and did not continue to fall.

Within a few days, gossip began to spread - Citibank estimated that the loss in the first quarter of 2008 would be about 70 billion US dollars!It has decreased a lot compared to the end of 2007!Although the $70 billion in debt seems to have far exceeded everyone's expectations, before the market reacted, people from Citibank came out to speak-they just warned investors that the first quarter may Continue to lose money, but the amount of loss is smaller than that at the end of 2007, and then they announced the good news that they will issue about 3 billion US dollars of additional stocks in mid-March!They want to exchange stocks for cash!As a result, after saying this, the market responded that everyone came to buy Citigroup stock one after another—it seemed that everyone thought that a company as big as Citigroup could not fail!Now that Citigroup is going to issue additional shares, it is still at the current price of less than 60 US dollars. This is definitely the time to buy the bottom!Half a year ago, it cost more than 20 dollars to buy Citigroup stock, but now it only costs less than 40 dollars!If you buy this, the stock price will rise in half a year, not to mention 20, but when it reaches 40, it will also make the people who buy stocks now make a fortune!So after everyone snapped up this stock, the stock price actually rose to $30 a share on the book!

But what they didn't expect was that when they thought it was bottoming out and about to rebound, it was actually just a big truck of Citi just rushing down from the top of the mountain and came across the first small platform to take a rest!At the end of March, Citigroup suddenly announced without warning that they will issue another 3 billion US dollars of stock soon!After the news came out, the market response was no longer like before. Everyone flocked to buy stocks and caused the price to rise a lot. This time, the price fell!After announcing that it would raise another $45 billion, the stock plummeted from $45 to $25!Investors suddenly began to have a bad feeling, and they began to wonder if the bottom they thought was false!Otherwise, why did Citigroup suddenly say that it was going to raise money again without warning?

Just when everyone was holding funds to wait and see, only a week later, Citigroup unexpectedly announced again that it would urgently raise 20 billion US dollars!So the stock price dropped to $23!Analysts in the market began to analyze what happened to Citigroup one after another. Everyone speculated whether Citigroup would split into several companies, sell bad companies directly, and ensure that several good companies made money?But who knows that 3 days later, the CEO of Citigroup will stand up and say that he will never split up Citigroup, and he will choose to sell a total of about 4000 billion US dollars of assets in the next two to three years to turn Citigroup into a profit and travel lightly!

But after such news came out, the stock price of Citigroup in the market dropped immediately and returned to 19 US dollars! (~^~)