In fact.
Ever since he decided to sell the coal mine and real estate company, Shen Fei had already sent people to investigate the real estate market in the United States.
According to the information he received, Shen Fei had a general understanding of the current situation in the United States.
In the 2000s, the US government began to drastically reduce interest rates in order to fight against the economic decline brought about by the Internet bubble.
Stimulated by low interest rates, Americans began to borrow money from banks without restraint and used the borrowed money to buy houses, cars, or replace furniture.
By this year, the average number of credit cards owned by each American was 13, and the proportion of Americans with debts had also increased from 6% in the 1970s to 40% now.
Meanwhile, the total debt of the Americans soared from 460 billion US dollars in 2000 to 3 trillion US dollars in 2003.
The emergence of a large amount of cheap money caused the real estate prices in the United States to rise sharply. In the short six years from 2000 to 2006, the average house price in the United States rose by nearly 70%.
The rising house prices not only made speculators rich, but also allowed people who borrowed money to buy houses to obtain a large amount of cash by selling their houses or re-mortgage their houses after the house prices rose.
All the Americans felt that they were getting richer and richer, and the realization of the American dream was close at hand.
However, Shen Fei was very clear.
The mortgage crisis was about to erupt!
This crisis was caused by a type of housing mortgage loan called a substandard loan. The main culprit behind the creation of these substandard loans was the banks and financial institutions of the United States, represented by the American banks, such as the American Brothers.
A housing mortgage loan was one of the many loans that banks issued to individuals.
Under normal circumstances, banks would absorb the idle funds of ordinary people and lend them out in the form of loans to help those who could not afford to buy a house in full.
In this process, the bank collected loan interest from the loan and paid deposit interest to the savers, while it earned the interest difference between the two.
Of course, banks had to bear the corresponding risks while earning interest spreads.
For example, when the loan holder was unable to repay the loan due to the deterioration of his own financial situation, the bank would suffer losses because it could not recover the loan.
Therefore, when banks made loans, they would usually assess the repayment ability of the loaned party and require the other party to provide the corresponding job, source of income, and proof of property. Only when the other party proved that they had the ability to repay the loan would the bank lend money.
This kind of loan that was only issued to qualified loans was called a " premium loan."
However, sometimes, banks would also lend loans to those who could not prove their ability to repay the loan. This kind of loan was called a " secondary loan."
Now, more than 30% of the loans in the entire US were substandard loans.
It was self-evident how much risk this meant.
When interest rates were low, these were not a problem.
But once the Federal Reserve raised interest rates, it would cause a huge problem.
The news that Shen Fei received showed that just last year, the Federal Reserve had officially released news to raise the interest rate to 5%.
This would cause those who borrowed at a floating rate to collapse.
When they woke up, they suddenly found that their monthly payment had risen sharply with the rise in interest rates, and the amount had long exceeded their tolerance.
Therefore, they were prepared to sell their houses to pay off the loans. However, due to the sudden increase in the number of houses sold on the market, the price of the houses began to fall.
Only then did many mortgage buyers realize that even if they sold their houses, the price was far from enough to repay the loan.
Therefore, they simply refused to repay the loan and waited for the bank to confiscate their property.
Because of the decline in housing prices, after the banks recovered these houses, even if they auctioned these houses, they could not make up for the losses. These losses were naturally transmitted to the investors who held the " mortgage support certificates."
Those investors who thought that they were buying financial products as safe as " national debt " found that the bonds in their hands were actually extremely risky investment products.
They couldn't even get compensation!
Under such circumstances, the US real estate market was on the verge of collapse.
"My people have already collected information. In the past few months, the stock market in the United States has fluctuated and will soon spread to the whole world.”
Shen Fei looked at Lin Yuan and said word by word.
When Lin Yuan heard his words, his expression turned strange.
After a moment of silence, he raised his head and looked at Shen Fei."You want me to go to America?"
"Yes."
Shen Fei nodded." You go to the US. We'll short the US real estate market!"”
Lin Yuan's expression changed when he heard that.
He had never expected that Shen Fei would actually plan to take advantage of Ying-chan's national disaster!
This book comes from：m.funovel.com。