The American government itself has encountered a big problem, which is the world's largest insurance company, American International Group, with total assets of more than one trillion US dollars.
At that time, the U.S. government was already helpless to other financial institutions. Otherwise, it would not have allowed the Bank of America to acquire Merrill Lynch, nor would it have found someone to take over Bear Stearns, nor would it have ignored Lehman Brothers' filing for bankruptcy. This is also the top investment bank in the United States.
This time, the U.S. government once again took over Fannie and Freddie Group, and after Feng Yu found someone to reveal that the fiscal deficit was extremely high and simply unaffordable, the U.S. financial crisis inevitably broke out.
The subprime mortgage crisis in the United States was originally very serious, otherwise there would not have been so many financial institutions going bankrupt, and capital injections from European and Asian banks would have been needed.
But at that time, the United States pretended that we were strong and could solve these difficulties, and temporarily stabilized the market.
But this time, when big holes were exposed one after another, the U.S. government could no longer suppress it. The subprime mortgage crisis truly evolved into a financial crisis in the United States, or even a financial crisis, and would affect many countries around the world. and region.
Some countries have bought U.S. government bonds or invested heavily in the United States. If the U.S. economy declines, they will naturally suffer losses.
Some countries peg their currency to the U.S. dollar. When the U.S. dollar continues to depreciate, their country's currency also depreciates, reducing purchasing power and turning into inflation.
But the fundamental reason is that the American government wants to kill itself!
Xiaobu Shi's housing plan stimulated the development of real estate and allowed more subprime loans to be issued, seriously neglecting the quality of assets.
Originally, this problem was not too serious, but Wall Street in the United States encouraged "innovative" financial products, so various financial derivatives were abused, financial transaction chains became very long, asset securitization, and products originally worth one dollar were , the packaging became more than ten dollars, which seriously exceeded the original real value.
Among them, Merrill Lynch and Lehman Brothers are the leaders, so they are also two of the largest financial institutions that have declined or even gone bankrupt.
Some people say that these fundamental reasons are the rise in default rates caused by the decline or even collapse of real estate prices, and are even crucially related to the downturn in the automobile industry in the United States. Otherwise, there would not be so many people unemployed and the default rate would be lower. Not that high.
But in fact, these are still due to the political ax of the United States.
Around 2003, when Xiaobu Shi's housing plan was implemented, the interest rate of the Bank of America was only 1%. And it was reduced from 6.5% to 1% in less than two years.
At that time, the rate of real estate growth was much higher.
Therefore, many people find after careful consideration that loan interest rates are not as fast as real estate prices. Buying a house now is very cost-effective.
After they purchased their homes, the Fed began to raise interest rates continuously.
By the time it came out in 2007, interest rates had dropped back to a high of 5.75%, which meant that many people's loan interest rates had increased more than five times!
In addition, many staff of financial institutions that lend money deliberately leave loopholes in their contracts, allowing loan interest rates to rise with the Fed's adjustments, sharply increasing the repayment pressure on many people.
Why does the United States need to adjust interest rates? Because they want to increase income, the American government is so poor that it has no money.
The U.S. economy was originally so good, so why did it suddenly run out of money? It's because of the war!
The United States launched wars in Iraq, Afghanistan and other regions to demonstrate its military strength and to prevent domestic conflicts from breaking out. However, the most fundamental reason was that Iraq decided at that time to change the settlement of oil in US dollars to euros. .
The United States is afraid that other OPEC countries will follow suit, and the status of the dollar will inevitably decline seriously. The several wars launched by the United States are all fundamentally related to these.
The politics of the United States have always been supported by financial groups. Among them, energy, finance and military industry are the main ones. Technology companies such as Microsoft are not ranked at all. Even Wal-Mart Group, the number one in the world's Fortune 500, is nothing.
Originally, the United States thought that for a war in these two regions, a military expenditure of 50 to 60 billion US dollars would be enough. It could not only achieve its political intentions, keep crude oil pegged to the U.S. dollar, but also demonstrate its strength and give them international influence. The right to speak has increased, and it has suppressed the growth of the euro and the economic development of Asia.
It is a pity that due to the support of Europe and Asia for the Middle East, the war could not end in a short time as the United States envisioned. Instead, it dragged on for a very long time, causing the United States' expenditure to fall from the planned level. Ten billion US dollars turned into nearly 800 billion US dollars!
Can such a high expenditure be achieved without raising taxes? Without a way to generate revenue, the U.S. government would have gone bankrupt long ago!
So the fundamental reason lies in the decision-making of the US government and the policies of George W. Bush.
Compared with Colinton, Xiao Bu Shi is really not even a little bit worse. During Clinton's time, wars were also launched, such as Kosovo and War. At that time, it was also because the euro wanted to challenge the status of the US dollar.
The result is that Clinton successfully changed the euro from 1:1.17 US dollars to 1:0.86 US dollars. The dollar did not appreciate, but the euro depreciated.
In addition, during Clinton's tenure, a financial crisis broke out in Asia. Except for a few such as China, the fastest growing regions in Asia, including island countries, suffered heavy losses.
Xiaobu Shi, it seems that the U.S. economy is very good, but in fact, there are many hidden dangers. Those financial consortiums have completely messed up the financial market in the United States.
There were many investment banks in the United States before. The so-called investment banks were domestic securities companies. These investment banks went bankrupt and closed down one after another.
The last two investment banks left on Wall Street are Goldman Sachs and Morgan Stanley. The last two investment banks have also begun to apply to transform into commercial banks so that they can absorb deposits normally.
In other words, there is an inflow of cash that can help them tide over the difficulties on their own without having to resort to assistance from the government.
Of course, although they are commercial banks, they still carry out investment banking-related businesses.
However, these two top investment banks in the world will also be converted into commercial banks, which is enough to prove that the financial crisis in the United States is beyond the control of the political ax.
Tongyong Automobile, Collision Automobile, and Ford Enterprises, which have been struggling for a long time, have also announced that they suffered serious losses in the first half of this year and hope to receive assistance from the government.
Among them, Ford was okay. It sold some of its businesses first and was able to weather the difficulties with its own abilities. However, Tongyong Automobile and Kelisile were different. They also began to prepare to file for bankruptcy protection!
Feng Yu looked at the news on the Internet and realized that the financial crisis had indeed broken out, but it was not serious enough. It seemed that it was necessary to give it a try again!
… (To be continued...)