Metropolis: From Manager To World Tycoon

"President Chu! What a miracle! How did you predict that?"

Liu Chuyin looked at Chu Xuan adoringly, her eyes were full of little stars.

Everyone is excited and excited!

Keep bragging about Chu Xuan, and keep flattering Chu Xuan!

Chu Xuan waved his hand: "Basic exercises, don't be six, sit down and watch quietly."

At this time, Zhao Yingqi called.

The phone just connected.

Zhao Yingqi's excited voice came over.

"Hey! Chu Xuan, amazing! Amazing! How did you know there would be an economic crisis?"

Chu Xuan thought for a while: "Well, I just want to explain. The phone is on the outside, so you can listen to it too."

Zhao Yingqi said hello, and then put the phone off the handset.

Chu Xuan put the phone on the table and stood up.

The employees also calmed down, Chu Xuan said slowly.

"This time the economic crisis, in fact, has already had signs, and it happened ten years ago.

Among the crowd, Yang Wei touched his shiny forehead and asked in doubt, "Ten years ago?"

"That's right!" Chu Xuan glanced at Yang Wei appreciatively, and continued.

"Ten years ago, the bubble of Internet companies in the United States burst, investors suffered heavy losses, and countless middle-class people went bankrupt overnight."

"The Internet stock market crashed, and the American leeks were in mourning."

"In order to restore the economy and stimulate consumption, the Federal Reserve has lowered the benchmark interest rate many times.

"What are the consequences of the Fed lowering interest rates?"

"It's not worth saving in the bank!"

"Too little interest!"

"And the stock market has just crashed. Investing in the stock market or funds is not a good choice. We can only invest money in real estate such as real estate to preserve the value of assets."

In fact, real estate speculation is definitely not unique to China.

In any place in the world, real estate in the core area is a scarce asset.

Housing prices in the United States have also remained high.

Everyone is an elite in the financial industry, so they naturally understand this truth.

Chu Xuan continued.

"It is well known that supply and demand determine prices

The essence of price is determined by the relationship between supply and demand.

Everyone is buying a house, and house prices are definitely going up all the time.

Real estate is so hot, but there are only so many rich people, so what if many people can’t afford a house?”

"You know, the rich have already bought what they should buy, and they don't have any spare money to buy a house.

"But the house still has to be sold, and the money has to be earned, so what should I do?"

"So, the lenders decided to lend money to the poor."

"This kind of loan is called a subprime loan."

"However, these lending institutions have lent money to the poor. What should they do if they run out of money and cannot earn more interest?"

"At this time, these institutions have used their brains."

"They put all the loans they collect together, let's just call it the capital pool"

"With so much money put together, interest is charged every month.

"So, they estimated the value of the fund pool, divided it into countless shares, and turned it into a fund wealth management product and sold it to financial institutions on Wall Street."

"The Wall Street financial institutions that bought these products did not want to earn interest."

"They want to repackage it, sell it to ordinary people, and earn the difference."

"However, before ordinary people buy this wealth management product, they must also wonder whether the money can be recovered?"

"After all, this product is a fund pool for poor people's loans. What if these poor people can't afford loans? Then this wealth management product will lose money?"

"Thus, these financial companies on Wall Street went to the insurance company and asked the insurance company to provide a compensation insurance for this wealth management product."

"The insurance company studied it carefully and felt that the risk was not too great, so it agreed."

When Chu Xuan preached here, everyone was stunned.

Zhao Yingqi and the others on the other end of the phone were also shocked.

And this kind of bullshit?

These things are all trivial things.

Very few people pay attention!

But Chu Xuan is so clear about these things?

Then, how did it step by step until today, triggering the economic crisis?

Chu Xuan paused and continued.

"With the protection of the insurance company, ordinary people can buy this wealth management product with confidence and boldness. Anyway, if you don't lose money, the insurance company will pay you if you lose money. What are you afraid of?"

"So, this wealth management product was sold as soon as it was launched! It sold out!"

"The problem also appeared at this time."

Speaking here, Chu Xuan looked at Yang Wei and asked, "Do you remember when the Fed raised interest rates last time? How long did it last?"

Yang Wei was taken aback, and then exclaimed: "I...I seem to understand! The Fed has raised interest rates 20 times from four years ago to one year ago! The interest rate has increased from 1% to 5.5%!

"Good!" Chu Xuan nodded: "The U.S. government is too optimistic about the state of the economy and thinks that the economy is developing very well, so it started to raise interest rates. This hike has increased 20 times in a row." The interest rate has directly increased by five times. so much."

"`" But in this way, a large number of people who took out subprime loans could not afford to pay back their mortgages because the interest rates were too high!"

"The people can't afford the mortgage, and people's enthusiasm for buying a house has begun to decline."

"House prices also stopped rising and started falling."

"As soon as housing prices fell, it caused panic selling among the public, which led to a further decline in housing prices."

"In this way, the consequences will be dire.

Chu Xuan took a sip of water and continued.

"The people couldn't afford their mortgages, which led to the collapse of housing prices, and on the other hand, interest rates continued to rise.

"If you can't repay the loan, the wealth management product will lose money."

"When a financial product loses money, the insurance company will pay for it."

"The amount of money is too huge. Wall Street financial companies can't afford it, insurance companies can't afford it, and real estate companies' house prices have plummeted."

"As a result, Valkyrie Financial Corporation went bankrupt, insurance companies went bankrupt, and real estate companies went bankrupt."

"I named this crisis the subprime mortgage crisis."

"The subprime mortgage crisis was a (well) institutional crisis."

"Under the subprime mortgage crisis, everything is like chicken and dog.

"Those companies that have just declared bankruptcy are really a part, and soon other companies will be unable to bear it and declare bankruptcy one after another.

"The economic crisis has completely broken out!"

"When the economic crisis breaks out, you should all be aware of the consequences, right?"

After Chu Xuan analyzed everything.

Everyone was stunned for a long time, staring at Chu Xuan in a daze.

Open your mouth wide, you can't say a word.

The scalp is numb! The cool air fills the top of the head!

shock!

These things are tiny details that many economists don't notice.

And through these small details, and then combine the whole situation, everything is connected in series to remember the simulation.

too strong!

That's why no one can predict economic crises.

Because everything in this world is so complicated.

Only Chu Xuan!.