Chapter 15 This kid is so talented
Although Gu Wanzhou is a businessman.
But we are usually trapped in an information cocoon.
Hearing what Li Zhiyan said at this time, she couldn't help but feel that she was very ignorant.
At the same time, I felt a little shocked.
This child seems to know a lot.
Li Zhiyan helped Gu Wanzhou pick vegetables.
He said: "The five largest investment banks in the United States refer to private investment banks, Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers and Bear Stearns."
"If Aunt Gu is unfamiliar with investment banking."
"I think Aunt Gu should know the HSBC Bank in Hong Kong Island. The interest rate they give for deposits in the country is 10 points."
"These investment banks were at their peak in the United States at the time."
"Their economic sphere has extended to every aspect of the lives of ordinary Americans."
"However, the global financial tsunami caused by the subprime mortgage crisis."
"In less than a year, most financial institutions could no longer bear the pressure."
"Among them, Merrill Lynch was acquired by Bank of America in 2008."
“Lehman Brothers has collapsed.”
"Bear Stearns also had a bad ending, and disappeared into history in 2008."
"The only super investment banks left are Goldman Sachs and Morgan Stanley."
Li Zhiyan was somewhat impressed by the fact that he could remember these things so clearly. He thought that this might be related to the fact that his memory had been greatly enhanced after his rebirth.
"Auntie understands..."
"These super investment banks are private banks, and they use the bank's money to make various investments to make money."
“But it collapsed during the subprime mortgage crisis.”
“But does this have anything to do with rising house prices?”
The more Gu Wanzhou looked at Li Zhiyan, the more he liked him. He felt very regretful, wishing he was his own son.
What a talented and outstanding young man.
"The full name of subprime is subprime mortgage loan."
"Second" means low credit and low ability to repay debts.
"This is just like our domestic credit reporting system. People without stable jobs will be labeled as having low credit."
"It's basically impossible to get a bank loan."
He looked at Gu Wanzhou, whose eyes were full of brilliance.
Li Zhiyan continued, "In the United States, loans are a very common phenomenon because everyone likes to spend ahead of time."
“Houses are very expensive things.”
“It can be said that it is basically through long-term loans.”
Gu Wanzhou nodded slightly and looked at the child in front of her. She felt that Li Zhiyan was like a teacher teaching her knowledge.
"However, the unemployment rate in the United States is very high, and these people with unstable incomes are defined as subprime credit borrowers."
“Subprime lenders for short.”
“Regular banks are unwilling to lend money to these people.”
"Because they were afraid they wouldn't be able to pay them back, subprime mortgages were created."
"Because banks are unwilling to lend to these people, private banks charge high interest rates."
"To lend money to these people."
"The returns on the subprime mortgage market are several times higher than those on bank loans."
"This is somewhat similar to HSBC."
Gu Wanzhou remembered that he had also applied for a loan from HSBC before.
The interest rate reached 30% a year, which is basically usury.
“Because housing prices are rising rapidly.”
"So many stimulus borrowers in the U.S. followed the trend."
“Loan to buy a house.”
"Before 2006, the U.S. real estate market was in a state of continuous prosperity."
“And interest rates were extremely low at the time.”
"So the subprime mortgage market was growing rapidly."
"However, the U.S.'s stimulus mortgage market uses a combination of fixed and floating interest rates."
“The interest rate for repayment in the first few years is a fixed low interest rate.”
“The interest on the loan will be repaid after a few years based on changes in interest rates.”
"After 2006, with the cooling of the U.S. real estate market and the increase in floating interest rates."
"The interest rates on subprime loans are also rising sharply."
"These subprime borrowers were already financially weak, and under these circumstances, a large number of homebuyers could not repay their loans."
“So we had to stop supplying.”
"After the bank repossessed the house, no one took it over, which led to a vicious cycle."
"A financial storm started in 2007 and completely broke out in 2008."
"The U.S. government can only print unlimited money to save the market."
"And because of the Rebton Woods system that was formed after World War II, the United States completely pushed all the printed money to the whole world."
"Let people all over the world pay for the United States."
In fact, Li Zhiyan didn’t understand either.
However, as he can predict future trends, he can be considered a prophet, so whatever he says is right.
Li Zhiyan talked about the financial crisis in a nonchalant manner.
My heart was beating unexpectedly faster. How come this kid knew everything? He looked inexplicably handsome when he was talking to me about these things.
Talented men are indeed very attractive.
"So, in 2008, the United States was printing money without restraint."
"We have also seen a big wave of liquidity release."
“After this money enters the market.”
“It didn’t flow into other industries, but was locked into real estate.”
“This is the only way to ensure that prices do not skyrocket.”
“Real estate is our reservoir.”
“Ensure that these newly issued currencies do not enter the market circulation.”
Li Zhiyan didn't know much about these things, so he just talked nonsense.
As long as the result is right, that's fine.
Gu Wanzhou was a little confused as she listened, but she was completely convinced by Li Zhiyan.
This kid was able to teach himself computer programming at the age of 18.
Sure enough, he is different from ordinary people!
"So, I predict that house prices will continue to rise for many years to come."
“If you buy a house now, you can make a lot of money later by paying a down payment.”
Looking at Li Zhiyan who was still helping him pick vegetables.
Gu Wanzhou felt his heart beating faster and faster.
It seemed as if the hormones were starting to flow.
Is this the feeling of being moved?
Thinking about Li Zhiyan's long speech just now, she couldn't calm down.
"My dear, Auntie really didn't expect that you know so many things."
"What you said just now makes sense. Auntie has decided to buy another house."
After touching Li Zhiyan’s head.
Gu Wanzhou continued to ask: "Auntie just wanted to ask you, are you willing to be my godson?"
"In the future, Auntie will love you like your mother does."
Li Zhiyan felt helpless. How come after being reborn, Yu Sisi’s biological mother wanted to be his mother?
Liu Zifeng's biological mother also wants to be his mother, that's amazing.
(End of this chapter)
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