Reborn Dubai As A Prince

When Sheikh took his girlfriend to Manhattan's upper class, his Dubai Holding Group was quietly launching operations, collecting data on the housing market and looking for ways to intervene.

The attitude given by the big boss is already obvious, he wants to short the US housing market.

Many subordinates who got the news at first thought it was unbelievable. Will the housing market in the United States collapse? This is... too far-fetched, right?

Look at the extremely hot real estate market now, and look at the 3A high ratings of mortgage-backed securities given by authoritative institutions such as Moody's and Standard & Poor's. Both the market and the authority are thriving!

Some authoritative people even bluntly said: The housing market is unlikely to collapse! Housing loans are the most basic part of people's livelihood, and housing loans are as essential as eating and drinking! Who can't pay housing loans?

Sheikh sneered at this voice. Didn’t the future collapse to the point of jumping off a building? He threw the data collected by his subordinates in recent days to the North American president of Dubai Holdings.

David Anderson looked through carefully. Since Fasher was transferred to Dubai World, he has been promoted in a straight line because of his outstanding performance and ability.

Although the talent who can be promoted by the Rockets does not believe in inferences in his heart, he knows that many crises are based on the superficial prosperity and erupted secretly.

David Anderson read all the way, and he saw from the data that it was different from the current thriving housing market. The default rate of mortgages is gradually increasing.

"Why is the default rate on mortgages rising, but the credit rating of securities has not dropped?" Sheikh asked—this is one of the reasons why the subprime mortgage crisis has not been noticed.

Without waiting for Anderson to answer, he said first: "As for the ratings of Moody's and S&P, the authority is not unshakable. If you S&P don't give me 3A, I will go to Moody's next door. make life difficult for?"

This answer is slapstick, but Anderson agrees. As an American who doesn't even believe in the government, he has reason to believe that there will be tricks in it.

If this assumption continues, after the financial institutions have launched housing mortgage-backed securities, hidden dangers have already been planted-subprime lenders themselves do not have enough financial capacity to expedite housing loans.

If the economy suffers at least a little bit, they will have no money to repay the mortgage, so of course they run away;

Homebuyers are slapping their butts and running away, but the mortgage finance providers are miserable. This situation is like a match thrown into a gunpowder pile, and it explodes with a bang.

During the conversation with Sheikh, Anderson already had an understanding of the seriousness of the matter in his mind [the reason for the special treatment by the boss was also explained by the transfer of the market: "You want to sell empty houses on a large scale?"

"I'm willing to take a gamble." Sheikh did not dare to guarantee 100% that he must be correct, because there are a few differences in history.

However, based on a large amount of evidence, the rising default rate of subprime loans, the Federal Reserve raising interest rates, and the cooling of the housing market, such a large-scale event is bound to happen.

He can't guarantee the future, but he's willing to bet: "I want to put a lot of money into it, but in terms of engagement, I don't want it to be too obvious that it pushes us to the fore.

Anderson understood: "You want a proxy?"

"It can be said that." Sheikh nodded, "In fact, I am not the only one who is worried about the US housing market, some elites on Wall Street have also seen the hidden dangers and are taking action.

"I understand." Anderson is a smart person. The boss doesn't want to make himself stand out, so naturally he needs some high-profile guys to do things for him.

Anderson's task is to find these people, give them the funds currently held by the prince first, and indirectly participate in this crisis adventure.

John Paulson is the genius being photographed.

At present, he is just an unknown member of the Wall Street circle. Although he has seen the hidden dangers of the housing market very early, everyone around him is full of disbelief.

Even his investors dare not take money to take risks with them. He proposed "credit default swap" insurance with investment banks and banks, because the funds are not much, and it is still proceeding slowly.

He just completed a $300 million "gambling insurance" under the smiles of Citigroup executives. Those people signed the contract in a serious manner, but then jokes spread in the Manhattan circle ——

There is a fool who wants to sell the housing market empty. He established a gambling agreement with the bank on the condition that the subprime debt will collapse to nothing. For this purpose, he needs to pay five to six million U.S. dollars per year for every 100 million bets. insurance.

This is simply a door-to-door gift of money! At present, the housing market in the United States is extremely strong. It is difficult to pre-cool the housing market in five years, let alone two years, let alone the disaster of the subprime debt collapse.

This is equivalent to explaining that it will rain, and then this heavy rain will flood the world - it is possible to rain, but you have read too much Bible to drown the world, right?

But some people believed it. Several investment companies from New York or Europe contacted Paulson's company and were willing to provide enough funds to participate.

Paulson was very surprised by the visitors. He was so talkative in front of him that he almost cried his father and mother, so some customers were willing to let him take care of the funds and take risks.

Well now, after his reputation as a "fool" spread, someone actually came to his door? He also said that he was willing to provide three billion level funds, and there was no lack of approval of his predictive ability in his words.

Paulson wanted to say that he was in a daze throughout the whole process. He spent so much money on himself, and the investor also praised his credit default swap insurance, and was willing to hand over the money to him for custody and pay a certain amount of remuneration.

Of course, Paulson also needs to bear the risk of losing money, but he is more willing to believe that once he succeeds, the income he can get will be several times or even ten times what he is now.

There has always been a saying in the financial circle that Wall Street financiers are actually a large collection of lunatics + anti-governmentists + terrorists + gamblers. These people have a pathological pursuit of money, just like drug addiction.

So Paulson agreed, he could not refuse the temptation of money.

Then this matter was spread by talkative people.

At a party on New York's Upper East Side (a well-known wealthy district), Sheikh heard this series of jokes from the mouths of these gorgeously dressed people who were either bank executives or billionaires.

"々. Let me tell you a joke, there is a fool who wants to bet against the empty house market." (Zhao Wang's)

A group of wealthy people laughed, and Sheikh, who was holding a wine glass, also laughed awkwardly. He tried very hard to find the point of laughter.

Then the fat man said again: "Let me tell you another joke. Someone actually believed Paulson's theory of the end-time crisis."

"Hahaha!"

This time the prince was the first to burst out laughing.

Fatty Bai looked at him: "Your Highness also thinks so, right? Mortgage is inseparable from everyone. If you want to bet that it will collapse within a few years, I am more willing to believe that the end of the world will come.

"Then you guys have to take advantage of this opportunity to make money and prepare to buy an escape spaceship!" The prince exaggerated with his humor.

Everyone continued to laugh, isn't this an opportunity to make money? Paulson now has a lot of money in his hand, and wants to bet against one bank after another on Wall Street.

There are so many bank executives and investment bank partners at the scene, aren't they all looking forward to Paulson's visit? They also come to a huge gambling agreement for themselves, so that they can make a good profit. .