Chapter 5378 Financial Game

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

"Soros, how is Madoff?" Lin Feng asked.

"Hey, boss, you may not know much about New York. Madoff is now very famous in the New York rich circle. The funds gathered by his "Ponzi scheme" have exceeded one trillion US dollars. Tsk, tsk, tsk, those who lend him money are successful people after all. They are all people who have gone through the ups and downs in the business world. They are actually deceived by such a simple scam. It's really stupid!" Soros's face was full of sarcasm.

More than 10% annual income, and interest compounding, this is completely unimaginable in the West. Western banks have almost no deposit interest, even the interest rate for purchasing government bonds is not high, only about 3-4%. Even Buffett, who is known as the stock god, would never dare to guarantee anyone an annual rate of return of more than 10%. Buffett's real strength lies in the fact that his assets can guarantee an annual rate of return of about 5%.

5% is not high, but if it continues to increase, it will be scary! It is not noticeable in one or two years, but if the total assets continue to increase steadily every year for ten or twenty years, it will be very scary. This is the way to Buffett's success. Of course, Soros never envies Buffett. He and Buffett are two different people. Buffett advocates steady investment, while Soros advocates speculative investment. He pursues the excitement of getting rich overnight.

In fact, with Soros' wealth, he has long been no longer short of money. How much money he has has no effect on his life. For a person with assets of more than one billion US dollars, how much money he has. For him, there is really no difference. And he is still so obsessed with investment, which has nothing to do with personal wealth, but is purely a need to satisfy his own success.

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

In Lin Feng's memory, Madoff defrauded at most tens of billions of dollars into his "Ponzi scheme". As a result, because of his own intervention, he actually defrauded tens of thousands of yuan this time. This is crazy.

"Tear down the east wall to pay the west wall!" Soros sighed. Soros despised those who were stupid enough to lend money to Madoff. As for Madoff, who set up the scam, Soros admired him, sighed, and felt a little empathy.

Soros admired Madoff because he was able to set up this scam and let so many bosses be deceived. This is the ability. You know, the "Ponzi scheme" doesn't cheat everyone. Ordinary people can't get in even if they want to. He won't cheat you even if you want to cheat him. He only cheats those super rich people. Ordinary people, including the middle class, he doesn't take them seriously at all. This is in addition to. Cheating rich people makes money a little easier, and it's also because cheating poor people is too shameless. The so-called thief has his own code of conduct. Madoff is a liar, but he is not the kind of liar who has no bottom line and no limit.

It's very simple. After cheating those rich people, their money is gone. It doesn't have much impact on their normal life, and they can't buy various luxury brands. Enjoying a luxurious life, but the middle class living comfortably. There is no problem. If you cheat the poor, the money is their hard-earned money, their livelihood money. If you cheat them, it will force them to death. Soros is extremely disdainful of such liars who cheat the poor.

As for Soros's financial crisis, which led to the bankruptcy of poor people in Asian countries, this was not Soros's intention, but the financial markets of these countries had problems. Even if he did not take action, these poor people would still be strangled by other financial tycoons. Of course, he did not deny that he was an executioner.

As for what he sighed for Soros, it was that Madoff was destined to a miserable end. And it would be miserable! This time, it would be really miserable! And he felt the same because he understood why Madoff set up such a "Ponzi scheme".

The reason is nothing else, it is definitely not because of 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 has money, and his life is not worried about money at all. There is nothing in this world that he cannot enjoy. But after he stepped down from the position of Chairman of NASDAQ, he lost his previous glamorous life. This made him extremely unable to adapt. Many people cannot accept mediocre life after stepping down from high positions, and their mentality cannot be adjusted. Madoff is like this.

Soros is the same. He followed Lin Feng because he was unwilling to be lonely. Does he lack money in his life? No, but he lacks the excitement of being a big shot in the financial world. And Madoff wants to get the feeling of being surrounded by people and surrounded by stars.

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

To make money this time, it is natural that Lin Feng has acquired enough and enough bonds.

How did the subprime mortgage crisis come about? Naturally, those commercial banks and investment banks in the United States transferred various loans of customers at a slightly lower price. What does it mean? That is to say, you borrowed 100 yuan from me and promised to pay me 110 yuan in a 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 earned 4 yuan less, my funds were recovered earlier and I can lend them to more people.

The third person bought a 110 yuan contract at a price of 106 years, and he could easily make 4 yuan a year. But he also felt that this time was too long, so what should he do? He resold it at a price of 107 yuan! In this way, he didn't have to pay any money and could easily make 1 yuan by reselling it. The profit is not high, only 1%, but it is very simple. You can make 1% by easily passing it on. The larger the amount of funds, the higher the profit.

Then the fourth person also did the same and kept reselling it. Until the profit is not enough to support the continued sale, he can only hold it in his hand and wait for the time to expire to make the little profit he deserves.

This is strange, why are they willing to buy? It's very simple, it's a problem of market resources. There are many people who have money but no investment direction. This kind of easy money-making thing, and it seems to have almost no risk, why not do it? Why not make money? There is no reason not to make money! In this world, does anyone think that there is not enough money?

This way of financial operation is not wrong in itself. This is also a way for companies to transfer risks. But there is a problem, a most basic problem, that is the repayment ability of the initial "you".

If you can repay by the deadline, then everything is fine. The game ends smoothly, and then the second round of the game can begin. But what if you can't repay? Then the financial game will collapse and problems will arise. Once you can't repay, the company that finally receives the money will not receive the money, and their money will be lost. Losing one time is no problem, but if the loss is too much, they can't bear it, and they will go bankrupt. If they go bankrupt, there are companies behind them, and they will also go bankrupt. This becomes a domino effect.

Because from the very beginning, all this money was borrowed out of thin air. Once a link goes wrong, all links will collapse. This is the simplest source of the subprime mortgage crisis.

Of course, the outbreak rate of this subprime mortgage crisis was originally very low. After all, those who formulated the financial game have considered the risk of financial turmoil. But when this began to pursue profits and disregard everything, the game changed.

The subprime mortgage crisis was caused by real estate. Those who could not afford to buy a house temporarily borrowed money from banks in order to buy a house. In the middle, there is a problem of qualification review. It was originally very rigorous, and there would be many tests for the borrowers. Therefore, the initial estimate was that among 10,000 people, there would be about two or three people who could not repay the loan.

But among these 10,000 people, the money I earned was far more than the money I lost. So I can naturally bear this 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, we will help you borrow money from the bank to buy a house. After all, for real estate agents, their responsibility is to sell houses, and the more they sell, the better. As for whether you can repay the mortgage as agreed, it is not their concern.

When it comes to the bank, the bank credit review below, in order to pursue performance, coupled with the collusion of real estate agents, naturally approved the loan easily. Whether you have qualifications or not, whether you have the ability to repay the loan or not, you can easily borrow a loan and enjoy a house that far exceeds your imagination. This crisis is buried.

Of course, if it were only this, it would not cause a too serious subprime mortgage crisis. The real crisis lies in Wall Street. The financial market in the United States is extremely active, with stocks, futures, heavy metals trading, etc. There are dozens of ways to make money. As long as you have money, you have too many ways to make money. What if you don't have money? It's very simple, mortgage your 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's very easy. And isn't the real estate always booming, and the house price is rising? The credit department will re-evaluate and raise the price slightly, so you can borrow more money, make money through the financial market, and repay the mortgage. You can even say that you can make a fortune without spending a penny and earn a house.

You say, how tempting this is! Will no one be willing to take a gamble?

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

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

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