"I never expected this, I actually misjudged you. I always thought you were just a lucky nigger. Now I see, you're not a ghost, you're a devil!" After everyone else had left the conference room, only Young Swift and Dr. Cooper remained. Dr. Cooper walked up to Young Swift and said faintly.
"Sir, I don't understand what you're saying!" Young Swift smiled slightly, "I'm just helping everyone solve their problems!"
"No, you want to destroy the entire United States. Your proposal is like opening the door for demons. I will never let you succeed!" Dr. Cooper said with disgust.
"Is that so!" Young Swift nodded, then continued with a smile, "But whether it succeeds or not is up to you. You'd better go back and ask your board of directors if they want me to succeed!"
"..." Dr. Cooper opened his mouth, but couldn't say anything. He knew the guys on his board too well.
"Coropi, did you set us up?" Dr. Cooper could only set that aside for now and asked the question he cared most about. He wanted to know if he had been framed.
"How could I set you up?" Young Swift laughed heartily, "Others may not know, but you and I know best. That Weibo post wasn't sent by me at all. It was sent by a woman who drugged me and used my terminal. I was in the dark the whole time. When I saw that Weibo post, I was stunned myself."
"Dr. Cooper, I can swear to God, I really didn't do this. It was that woman who did it. So if anyone has to be blamed for setting a trap for your Goldman Sachs, it's that woman, or the forces behind that woman. It has absolutely nothing to do with me, so you don't need to worry!" After speaking, Young Swift looked at Dr. Cooper's expression change with a beaming smile. The look of internal bleeding from anger, yet being a self-inflicted consequence, was truly wonderful.
He then tidied up his things and left the conference room, leaving Dr. Cooper alone to rage impotently.
In the following days, Dr. Cooper did try his best to prevent Young Swift's plan from being implemented, but this effort was rejected by his own board of directors.
When Dr. Cooper suggested that the board could step in to block the plan, all the directors looked at him as if he were an idiot. Some even asked him directly, "Are you a Goldman Sachs person or an American?"
Later, Dr. Cooper tried to persuade the heads of other institutions, and the results were as expected. They only had one sentence: "Dr. Cooper, if you want us not to execute this plan, fine. You, Goldman Sachs, pay off our deficits, and we promise to reject this plan."
The outcome was predictable. Dr. Cooper's efforts were meaningless in the face of the consensus reached by Wall Street. Although Young Swift's plan was not put to any vote, it received unanimous approval from all participating institutions, and everyone began to silently execute Young Swift's plan.
This suddenly made Dr. Cooper feel a great sense of desolation. He once held power on Wall Street, with countless followers. A single word from him could change the entire situation on Wall Street.
But now, even after talking himself hoarse on the phone, no one paid attention to him. This situation finally caused Dr. Cooper to fall into a period of complete silence.
On the other hand, Young Swift's plan was also being executed without any compromise. All institutions completely abandoned market control, and the media that had been silenced were now completely unblocked. Thus, reports about the subprime mortgage crisis began to emerge in various magazines like mushrooms after rain, educating all American citizens about what a subprime mortgage crisis was and how it triggered the current stock market crash.
Simply put, the subprime mortgage crisis was a financial crisis triggered by mortgage loans.
Within the entire banking industry, or even worldwide, there has always been a consensus that mortgage loans are the safest loans in the world.
This is because mortgage loans are secured by property. If a borrower fails to repay the loan, the property can be immediately repossessed. Furthermore, because the borrower needs to pay a 30% down payment.
This is equivalent to buying a house at only 70% of its price, which is naturally a very good deal.
At the same time, if the borrower defaults, then neither the down payment paid previously nor the monthly payments paid are related to them in any way.
Even if they have paid more than 70% of the loan, as long as they default, the entire house will definitely belong to the bank, and will have nothing to do with the borrower. Therefore, this is definitely a win-win deal!
Moreover, with the collapse of the dot-com bubble in 2000, housing prices in the United States began to rise year after year. From 2000 to 2007, the average housing price in the United States increased by more than 60%. Therefore, just like in China, all Americans formed a consensus that real estate is the best investment, and investing in real estate is a sure win.
If you have money, don't do anything else, just use it to buy houses.
The situation in the United States was similar. Anyway, from 2000 to 2007, people all over the country were speculating in housing. Even many people without fixed jobs, who relied on government subsidies for their livelihood, or even drug addicts who were immersed in drugs every day, joined the ranks of home buyers.
What about major financial institutions and banks? Shouldn't they be able to see the hidden crisis?
Whether they could see it or not is unknown, but they were all doing their best to encourage these people to buy houses.
Initially, buying a house required at least a 30% down payment. This condition attracted quite a few people who wanted to buy houses. Thus, major financial institutions had a change of heart and began to lower the down payment ratio.
It dropped from 30% to 20%, then from 20% to 10%, and finally even introduced financial packages that allowed home purchases with no down payment, continuously attracting Americans to borrow money to buy houses.
...harmonious...
So, since you dared to relax the lending conditions, I dared to borrow money. The more casually it was done, in just one year, the transaction volume of the US real estate market more than doubled. This further drove up property prices, and the entire US real estate industry was filled with a prosperous and beautiful vision.
It wasn't just the real estate industry. The financial industry also, in this prosperity, invented a brand new financial innovation, which is subprime lending.
Some clever bankers discovered that since mortgage loans receive fixed repayments every month, in a sense, this is the most stable financial product. They could completely package various mortgage loans held by their banks and sell them on the market, thereby directly obtaining a large amount of huge funds!
For example, if there is a total of 10 billion US dollars in mortgage loans, and if the borrower repays on time every month, they will repay 1 billion US dollars a year. Over a 20-year repayment period, that's 20 billion US dollars, which is equivalent to a stable annual return of about 5%. This is much higher than the return rates of most funds on the market.
Then they packaged these loans and sold them on the market at a price of 12 billion US dollars, and they were snapped up. The bank, which had lent out 10 billion US dollars, recovered 12 billion US dollars in the blink of an eye. This naturally made countless financial institutions envious.
All banks discovered that lending was simply the most wonderful business in the world. As long as loans were packaged and sold on the market, it was a guaranteed 20% return, a profit that no one could refuse.
Therefore, all these banks took action, trying in every way to encourage Americans to buy houses and borrow mortgage loans, which led to the situation described above where the down payment dropped from 30% to zero down payment.
However, in the United States, the number of people capable of buying houses and paying monthly mortgage payments on time is still a minority. By attracting these people in advance with a zero down payment policy, it greatly increased transaction volume, but it also equivalent to overdrawing the future. It would be difficult to find such wealthy potential buyers in the future.
So, what should be done? Could they just watch future performance decline and fail to make money when there's such a good way to earn?
Therefore, some clever people thought that since potential users had already been exhausted, they should find ways to tap into potential potential users.
For example, people without jobs, the homeless, those receiving subsidies, and even drug addicts. Under normal circumstances, these people would not be considered potential users. After all, they don't even know where their monthly living expenses come from, so how can they afford to pay their monthly mortgage payments on time?
These people cannot even pass the most basic mortgage qualification review, and it is impossible to approve them for mortgage loans.
So how can they become potential customers? ... Remove the qualification review directly and lend them money directly!
As a result, a large group of these Americans, who lived paycheck to paycheck, suddenly found that they also had the opportunity to buy houses. Bank sales representatives would even chase after them, patting their chests and guaranteeing that as long as they were willing to borrow mortgage loans, no down payment or asset verification would be required. They could sign the papers that day, get the mortgage loan the next day, and move into the house the day after.
The result is self-evident.