"America's economy is absolutely fine! Our path is correct, prosperity is inevitable. While some crises may indeed appear at the moment, this problem is fundamentally not a problem at all!"
"Let's look at the source of this crisis: subprime mortgages. What are subprime mortgages? Simply put, they are housing loans, where homebuyers borrow money from banks to purchase a house and are responsible for monthly mortgage payments. This is subprime lending!"
"So, subprime loans are mortgage loans, and mortgage loans are by far the safest loans in this world, the least likely to have bad debts? Why? Because mortgage loans are secured by the house. If you can't repay the mortgage, the bank can immediately repossess your house."
"Ladies and gentlemen, houses are the most tangible hard currency in the world; they can be sold easily. Moreover, housing prices are now steadily rising. A house bought for $100,000 before might now be worth $150,000!"
"If the homebuyer defaults on the mortgage, the bank or institution has the right to reclaim the house and auction it. A $100,000 loan is repaid with $150,000 in assets? Isn't that profitable?"
"And considering that the homebuyer may have already repaid several years of mortgage, the bank might have already recovered $50,000 to $60,000. Now, they repossess the house and sell it for $150,000. That's $200,000 in revenue in total, a doubling of profit!"
"Therefore, subprime loans can never result in a loss, regardless of the circumstances. Banks and institutions are making a fortune. This is the most stable investment project in the world, and there will be absolutely no problems!"
"Don't believe what you're hearing on the internet these days. Everyone knows that the internet is a lawless zone where you can't hold anyone accountable. So, deceiving people, malicious scams, or spreading false information online, all of this carries no legal responsibility."
"Therefore, all that talk you see online about an impending subprime mortgage crisis, the stock market facing a massive collapse, or Wall Street institutions fleeing—these are all fabricated lies by online fraudsters trying to deceive you!"
"What? You ask why these fraudsters would want to deceive you?"
"Isn't it obvious? It's to buy your stocks cheaply. These fraudsters see how profitable subprime mortgage products are and everyone wants a piece of it. Since they don't want to buy from us at a high price, they've resorted to this tactic of maliciously driving down stock prices with rumors, tricking you into quickly selling your shares at a low price so they can buy at a bargain."
"These are the calculations of those shameless Wall Street financial institutions. Not only have these financial institutions not fled, but they are also coveting your accounts, waiting for you to sell your golden assets at a low price so they can profit handsomely. This is the mystery of the so-called subprime mortgage crisis!"
"Ordinary people wouldn't explain this to you. It's only because I consider my fans as my own family that I'm clearly explaining the reasoning. Everyone, please don't be fooled, or you'll regret it too late!" A middle-aged man with receding hairline, dressed in a suit and tie, was speaking fervently to all viewers on a television program.
Because this financial analyst was somewhat famous on television, no one knew what his actual track record was. However, according to the prompt displayed by the TV station, this financial analyst had created a miracle of turning $10,000 into $120,000 in one year, a super prodigy. He shouldn't be wrong.
Recently, more and more American stock investors had started paying attention to the sudden emergence of the subprime mortgage crisis. After all, their own stocks had plummeted several times. Although they seemed to have risen a bit afterwards, they were still at a loss.
Coincidentally, at this time, various messages suddenly appeared online, such as "a huge financial crisis is imminent," "all Wall Street financial institutions have completely fled," and "hundreds of people might perform aerial acrobatics on Wall Street every day in the future."
Such rumors had caused widespread panic in the market. Fortunately, television, newspapers, magazines, and other media were all trying their best to refute these rumors, telling everyone that subprime mortgages were safe and that they should not be deceived by rumors.
Overall, the refutation of rumors was successful, and the market was still stable. After all, major stock indices were mostly up with fewer downs. Moreover, there was the meme stock "00 Network" continuously breaking world records. From any perspective, this was a thriving market environment, and a financial crisis was absolutely impossible.
So, seeing that Wall Street's tactics were about to succeed once again, allowing them to stabilize the volatile situation and secretly withdraw their funds from the quagmire.
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"How much of our capital is still stuck?" At Goldman Sachs headquarters, Dr. Cooper's face showed a rare trace of impatience. The last time he displayed such emotion was when he was contending with Jiangnan Group.
"Sir, we still have 80% of our funds, which is over $460 billion, trapped in this quagmire and unable to be withdrawn!" Dr. Cooper's secretary said with her head down.
"Why is your progress so slow? What are you people doing? Do I need to teach you such basic operations?" Dr. Cooper said angrily.
"Sir, our colleagues downstairs haven't left the company for the past three months. Everyone has been working very hard, but the difficulty of withdrawing funds now is simply too high."
"This is because almost all institutions on Wall Street are currently withdrawing their capital from subprime projects. The total amount of these funds is a staggering $9 trillion, and everyone wants to escape now."
"However, it's impossible to expect other Wall Street institutions to fall for it and foolishly come to take over. The only ones who can take over are the retail investors. But how much capital do these retail investors have? We can only escape bit by bit, and we also have to compete with the capital of other institutions. Slowness is unavoidable!" the secretary explained softly.
Some readers may not have understood clearly. Simply put, the funds in the subprime mortgage crisis are like a swimming pool, and now everyone in the pool wants to escape.
But they cannot directly open the drainage valve, because doing so would create a terrifying vortex that would shock everyone outside the pool.
Therefore, they can only wait for the faucet outside the pool to release water. For every amount of water released, an equal amount of water can escape. But for a small faucet to fill the entire swimming pool, it would take at least ten days to half a month.
How could Dr. Cooper not understand this logic? In fact, he understood it better than anyone. The funds trapped at Goldman Sachs were unlikely to escape. Therefore, he could only vent his bad emotions through these means and shift the blame.
"I told you to start withdrawing funds a year ago. How can your reaction be so slow!" Dr. Cooper said with anguish. The new secretary just kept her mouth shut, some things could only be held back and not spoken out!
That's right, we discovered the arrival of this crisis a year ago. But it was you, the boss, who said that Goldman Sachs had at least another year and could wait until the deadline arrived, extract the maximum profit, and then withdraw.
Now the deadline has arrived, but how easy is it to withdraw? Haven't you seen all the institutions on Wall Street wanting to withdraw?
There's no such thing as a regret pill!
As the secretary was thinking this in her mind, Dr. Cooper gritted his teeth and made a decision.
"No, we can't stay here any longer and escape slowly. If we do, we will all be finished!" Dr. Cooper's face revealed a ruthless expression. "No matter what, go and convey my order: have the trading department seal the building, close all external communication channels, confiscate everyone's communication devices, and dispatch security personnel to directly monitor every person in the trading department!"
"Ah!" The secretary was shocked. This order sounded like she was going to lock up everyone in the entire trading department!
"There's nothing to be surprised about, because secrecy is the most important part of our upcoming operations!" Dr. Cooper's face regained its composure, and he said in a cold voice, "I'll give you three days to prepare. After three days, we will launch a full-scale sale of all our assets related to subprime mortgages!"
"Don't hesitate. Sell them all at once, even if it means reducing the price by more than 10%... No, I authorize you to reduce the price by 30%. Spare no expense to sell all $460 billion in assets in the shortest possible time. Even if the final $460 billion is reduced to only 70%, we won't have too much of a loss. On the contrary, our cash flow will be replenished!"
"Remember, spare no expense and move as quickly as possible to sell off all subprime-related assets!" Dr. Cooper issued this order, which even made his secretary's face turn pale with horror.
"Sir, if we do this, the entire market will collapse, and all our colleagues on Wall Street will be furious with us!" the secretary said cautiously.
Because Dr. Cooper's order was too damaging, the entire Wall Street had maintained a tacit understanding, working together to maintain market stability, coaxing the foolish into the game, and then slowly escaping.
Although this speed was slow, it was stable, and everyone had a chance to escape.
But Dr. Cooper's order was equivalent to disregarding everyone else's life or death, directly pulling the drainage valve, and being the first to rush down.
Therefore, Goldman Sachs' capital should mostly be able to escape. But by then, no matter how foolish retail investors were, they would understand how terrifying the subprime mortgage crisis was, and no new investors would dare to enter the subprime market. Those institutions trapped behind would have no way to sell their assets and stocks at a low price, even if they wanted to.
Dr. Cooper was trying to escape by stepping over others' corpses. It would be strange if Wall Street didn't hate Goldman Sachs to death!