Rebirth of the Evil Life

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The wedding is coming, and the financial crisis is about to break out.

"Soros, what's going on with Madoff?" Lin Feng asked.

"Hey, boss, you may not know much about New York. Now Madoff is very famous in New York's wealthy circles. The funds collected by his 'Ponzi scheme' have exceeded one trillion U.S. dollars. Tsk, tsk, tsk, tsk, tsk, tsk tsk, those The people who lent him money were successful people after all, and they were all experienced in the business world. How stupid that they would be deceived by such a simple scam!" Soros said with a sarcastic look on his face.

The annual income of more than 10%, and the interest is compounded, is something that is completely unimaginable in the West. Western banks have almost no interest on deposits, and even if they buy government bonds, the interest rate is not high, only around 3-4%. Even Buffett, who is known as the God of Stocks, would never dare to guarantee to anyone that the annual rate of return is more than 10%. The real power of Buffett is that his assets can guarantee an annual rate of return of about 5%.

5% is indeed not high, but if it continues to increase, it will be very scary! You can't tell it in one or two years, but in ten or twenty years, if the total assets continue to increase steadily every year, it will be very scary. This is Buffett's recipe for success. Of course, Soros has never envied Buffett. He and Buffett are fundamentally two different people. Buffett advocates prudent investment, while Soros advocates speculative investment. What he pursues is the excitement of getting rich overnight.

In fact, when his wealth reaches Soros's level, he is no longer short of money. More money and less money have no impact on his life at all. A man with a billion-dollar fortune has more money and less money. To him, it really makes no difference. And why he is so obsessed with investing has nothing to do with personal wealth, but purely to satisfy his need for self-success.

"How can he still play like this?" Lin Feng was surprised.

In Lin Feng’s memory, Madoff defrauded tens of billions of dollars into his “Ponzi scheme” at most. As a result, because of my own sideways stroke, I was defrauded of tens of thousands of yuan this time. This is crazy.

"Tear down the east wall to repair the west wall!" Soros sighed. He despised those who foolishly lent money to Madoff, and he despised Madoff who set up a scam. Soros was appreciative, sad, and a little bit sympathetic.

Soros admired Madoff because he was able to set up this scam and make so many bosses fall for it. That's the thing. You know, a 'Ponzi scheme' doesn't fool everyone. Ordinary people can't get in even if they want to. Even if you want to lie to them, they won't lie to you. He only deceives those who are super rich, and ordinary people, including the middle class, are completely ignored by him. Except. Not only does it make it easier to get money by deceiving the rich, it is also because you deceive the poor. So shameless. As the saying goes, there is a way to thief. Madoff was a liar, but he was not the kind of liar who had no bottom line or lower limit.

It's very simple, you deceive those rich people, and their money is gone. It does not have much impact on their normal life, and they cannot afford to buy various luxury brands. Enjoy a luxurious life, but a comfortable middle-class life. But there is no problem. And if you cheat the poor, the money is their hard-earned money, which is their livelihood money. If you cheat, for them, it will force them to die. Soros is extremely disdainful of this kind of liar who deceives the poor.

As for Soros's original financial crisis, which caused the bankruptcy of poor people in various Asian countries, this was not Soros's original intention. It was because there was a problem with the financial markets of these countries. Even if he doesn't take action, these poor people will still be strangled by other financial giants. Of course, he did not deny that he was the executioner.

As for what he lamented about Soros, it was that Madoff was doomed to a miserable end. And it will be miserable! This time, it will be really miserable! And he felt the same way because he understood why Madoff set up such a 'Ponzi scheme'.

There is no other reason than money.

Does Madoff have no money? As the former chairman of Nasdaq, his own wealth is also extremely amazing and he is also a billionaire. He is rich and his life is not worried about money at all. There is nothing in this world that he cannot enjoy. But after stepping down as chairman of Nasdaq, he lost his previous glamorous life. This makes it extremely difficult to adapt to. After many people come down from high positions, they cannot accept a mediocre life and cannot adjust their mentality. That was the case with Madoff.

Soros is not like this. He follows Lin Feng because he is unwilling to be lonely. Is he short of money? There is no shortage of it, but what he lacks is the excitement of being a master in the financial world and making waves. As for Madoff, what he wanted was to feel like everyone was looking around him and the stars were shining over him.

"Well, what happened to the various bonds in our hands?" Lin Feng asked.

To make money this time, Lin Feng naturally needs to acquire enough bonds of various kinds.

How did the subprime mortgage crisis come about? Naturally, those commercial banks and investment banks in the United States transfer various loans from customers at slightly lower prices. What does it mean? That is, you borrowed 100 yuan from me and promised to pay me back 110 yuan in one year. So now, I will make it into a bond or a contract at a price of 106 yuan and transfer it to a third person. For me, although I made 4 yuan less, my funds were withdrawn in advance and I can borrow money from more people.

As for the third person, he bought a contract of 110 yuan at a price of 106 years. He can easily earn 4 yuan a year. But he also felt that it had been a long time, so what to do, he resold it at a price of 107 yuan! In this way, he can easily earn 1 yuan by changing hands without paying any money. The profit is not high, only 1%, but it is very simple. You can earn 1% by simply doing the pass. The larger the amount of funds, the higher the profit.

Then the fourth person followed the same pattern and kept reselling it. Until the profit is not enough to support the continued selling, he can only hold it in his hands and wait for the time to expire to earn the profit he deserves.

This is strange, why are everyone willing to buy it? It's very simple, it's a matter of market resources. There are many people who have money but no investment direction. They can make money easily and there seems to be almost no risk. Why not do it? Why not make money? There is no reason not to make money! Is there anyone in this world who thinks money is too little?

There is nothing wrong with this way of financial operations. This is also a way for companies to transfer risks. But there is a problem, the most basic problem, and that is the original ‘you’ ability to repay.

If you can repay it when the deadline is due, then everything will be fine. The game ends successfully, and then the second round of the game can begin. But what if you can't pay it back? Then the financial game will collapse and problems will arise. Once you can't repay it, the company that ultimately takes over won't be able to receive the money, and they will lose their money. It's okay to lose a small amount, but if they lose a lot, they won't be able to bear it and they will go bankrupt. They go bankrupt, and there are companies behind them, and they will go bankrupt as well. This becomes a domino effect.

Because from the very beginning, all the money was lent out of thin air. Once there is a problem in one link, all links will collapse. This is the simplest source of the subprime mortgage crisis.

Of course, the original outbreak rate of this kind of subprime mortgage crisis was very low. After all, those who formulated the financial game had considered the risk of financial turmoil. But when it starts to be about pursuing profits at all costs, the game changes.

The subprime mortgage crisis was caused by real estate. It is those people who cannot afford to buy a house temporarily and borrow money from banks in order to buy a house. In the middle, there is a question of qualification review. It is originally very rigorous and will test the borrower in many aspects. Therefore, the initial estimate is that out of 10,000 people, there will be about two or three people who will be unable to repay.

But among the 10,000 of me, the money I made was far more than the money I lost. Then I can certainly bear the risk. However, in the pursuit of profit, those real estate agents directly ignored the qualification review. As long as you are willing to buy a house, then we will help you borrow money from the bank to buy a house. After all, for real estate agents, their job is to sell houses, and the more they sell, the better. Whether you can repay your mortgage as promised is not their concern.

When it comes to the bank, in terms of credit review by the bank below, in order to pursue performance, coupled with the collusion of the real estate agent, the loan was naturally approved easily. Whether you are qualified or not, and whether you have the ability to repay the loan, you can easily borrow a loan, and you can enjoy a house that is far beyond your previous imagination. The crisis was laid.

Of course, if this is all, it will not cause a serious subprime mortgage crisis. The real crisis is Wall Street. The financial market in the United States is extremely active, with stocks, futures, heavy metal trading, etc., all kinds of transactions are dazzling, and you have dozens of ways to make money. As long as you have money, you have many ways to make money. And what if you have no money? It's simple, mortgage the property. Even if your property is borrowed and you are still repaying the loan, you can still borrow money in the United States and it is easy. And isn’t this real estate always booming? House prices are rising. If the credit department re-evaluates and slightly raises the price, you can get more money, make money through the financial market, and repay the mortgage. It is even said that you can earn a house with nothing, without spending a penny.

You say, this is so tempting! Is there anyone willing to take a gamble?

When this money enters the financial market, it naturally stimulates the financial market to flourish. This naturally allows more people to join the game. But in the final analysis, the financial market itself does not generate money. Some people make money and some people lose money.

And now, who is losing money? Madoff! He is currently losing the most. Once he collapses, there will be a chain reaction! Because his money was borrowed! And trillions of dollars! (To be continued)R466

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