They are all reborn, and the grandson is still a spare tire

Yao Yuan looked at Director Zhou and said confidently:

"What I call a fierce counterattack on Wall Street can be launched from many aspects, such as stock indexes, futures indexes, bond markets, etc. To sum up, it is to comprehensively short the beautiful country's financial market."

"After more than a month of in-depth research, I found that the beautiful country is brewing an unprecedented and extremely destructive financial crisis. For us, this is a God-given opportunity."

Before he finished speaking, the meeting room exploded.

Everyone in the conference room suddenly stood up from their chairs as if they were electrocuted.

However, everyone's feelings are different.

Director Zhou and Professor Lin were shocked when they heard these words for the first time.

Secretary Qiu, Professor Liu, and Professor Ouyang were shocked by the statement that they were shorting the US financial market in an all-round way!

After the brief shock, Professor Lin couldn’t wait to ask:

"Yao Yuan, you said that an unprecedented financial crisis is about to break out in the beautiful country. What is your specific basis? Are you not being alarmist?"

"This is no joke. If a serious financial crisis breaks out in this beautiful country, it will inevitably affect the whole world, and few countries will be spared."

Immediately afterwards, Professor Guo nodded and echoed a few words.

"Indeed, the financial markets of most countries in the world are closely related to, maintain close ties with, and even depend on the financial markets of beautiful countries."

"And many countries hold a large amount of national debt, a lot of U.S. stocks, and various other bonds."

"Once a serious financial crisis breaks out in a beautiful country, other countries will not be able to avoid being affected."

Yao Yuan looked at the two professors and nodded slightly.

He opened a ppt file and then responded.

"The reason why I said that a very serious financial crisis is about to break out in the beautiful country is naturally well-founded, and this avalanche has already begun, and no one can stop it!"

"This serious financial crisis that is about to sweep the world originated from the real estate market in the United States. To be more precise, it originated from the subprime mortgage market in the United States."

When they heard the term "Meili Country's subprime mortgage market", Professor Lin and Professor Guo frowned in unison, and their eyelids twitched a few times.

In an instant, they thought of something and their brows knitted even tighter!

At the same time, they also somewhat understood what Yao Yuan was talking about about this financial crisis!

The moment they thought of this, they all felt a chill down their backs!

Unlike them, Secretary Qiu and Director Zhou, who were not experts in economics and finance, listened in confusion.

But they made no sound, and continued to listen.

“One of the landmark events of this financial crisis was that on April 4, New Century Financial, the second largest subprime mortgage lender in the United States, filed for bankruptcy protection, which triggered the avalanche.”

"It was when I saw the news in the newspaper that New Century Financial filed for bankruptcy protection that I started to really pay attention to this matter. Who knew that I would actually dig out a nuclear bomb-level mine?"

"After constant digging, I found that the financial crisis had its first signs as early as last spring, and it was not until February this year that it really surfaced."

“On February 2, New Century Financial issued a profit warning for the fourth quarter of last year. Immediately afterwards, HSBC Holdings added an additional US$13 billion in bad debt provisions for subprime mortgage loans in the United States.”

“Next, America’s largest subprime mortgage company, America’s National Financial Services Corporation, announced a significant reduction in lending.”

“On March 3, New Century Financial announced that it was on the verge of bankruptcy, and then applied for bankruptcy protection on April 13,…”

Using the ppt files he made, Yao Yuan carefully sorted out the iconic events of this financial crisis.

Without exception, these incidents were inconspicuous when first exposed, and everyone thought it was nothing serious.

But before long, these incidents will rapidly expand to the point of being beyond control, forming one landmine after another with shocking destructive power.

Following Yao Yuan's introduction, Secretary Qiu and Director Zhou, who were not economic and financial experts, both saw the huge risks contained in it, and their faces became more and more solemn.

The professors, who are top economic and financial experts, naturally heard and saw more things, and their expressions became even more ugly.

Before Yao Yuan finished his introduction, several professors unanimously confirmed.

As Yao Yuan said, a financial crisis is inevitable and the avalanche has begun!

The only thing that is uncertain now is how alarming the harm of this financial crisis is and how exaggerated the scale of the avalanche is!

Realizing this, Professor Lin and Professor Guo suddenly felt heavier.

At the same time, their eyes looking at Yao Yuan became more intense, as if they were looking at a dazzling huge treasure.

At this time, they were extremely envious of Professor Liu and Professor Ouyang, and they also hated their bad luck. Why didn't they discover Yao Yuan's genius earlier!

It took nearly 5 minutes for Yao Yuan to finish introducing some of the early stages of the financial crisis and many landmark events.

As soon as he finished speaking, Director Zhou said in a deep voice:

"Yao Yuan, as you said, there are indeed big problems with subprime mortgages in beautiful countries, and there are indeed some characteristics and signs of a financial crisis."

"However, the scale of subprime mortgage loans in beautiful countries is limited after all. It is estimated that the maximum is less than one trillion US dollars, and it is more likely to be only a few hundred billion US dollars."

"With the current size of the beautiful country's economy, it stands to reason that it should be able to control risks and prevent the crisis from spilling over to the world."

"Looking at it this way, is it a bit exaggerated to say that this will be an unprecedented financial crisis with extremely destructive power?"

Yao Yuan looked at Director Zhou and explained helplessly:

"Director Zhou, what you are talking about is an ideal situation. Without leverage, the scale of subprime mortgage loans in the United States is indeed not large enough to trigger a global financial crisis."

"But don't forget, there are still a group of financial lunatics on Wall Street in New York! How could those lunatics let go of subprime mortgages that seem to have very low risk but very stable returns?"

"Even if the scale of subprime mortgage loans in the beautiful country is only US$5000 billion, what if the leverage is increased by 30 times? Or even hundreds of times of leverage? What a terrifying number that would be!"

"For those lunatics at the major investment banks on Wall Street, it is not surprising that products like subprime mortgages, which appear to have little risk but stable returns, are coupled with [-] times leverage!"

"It's okay if everything goes well, those lunatics can make a lot of money. Once the avalanche occurs, those lunatics will never be willing to bear huge losses alone. It is more likely that they will drag the whole world with them!"

"hiss!"

Everyone at the scene took a breath, frightened by Yao Yuan's words.

The next moment, Professor Guo nodded solemnly.

"What Yao Yuan said about increasing leverage is absolutely correct, and even more exaggerated than what he said."

"Products such as subprime mortgages are generally packaged by Wall Street investment banks into financial derivatives and operated with high leverage to obtain ultra-high returns."

"Not only that, they will also package and sell such financial derivatives, resell them layer by layer, and increase the leverage layer by layer, so that the leverage ratio becomes even more exaggerated!"

“Once the subprime mortgage products explode, it will not only be the subprime mortgage products themselves that suffer losses, but the entire chain, and the losses caused will be staggering!”

After hearing Professor Guo's explanation, everyone's expressions suddenly became more solemn.

The next moment, Director Zhou nodded and continued:

"If this is the case, hundreds of billions of US dollars in subprime mortgage loans will turn into a black hole of tens of trillions of US dollars, or even more exaggerated!"

"The beautiful country has long been accustomed to harvesting the world's wealth to solve its own troubles, which will inevitably form a financial tsunami sweeping the world!"

Before he finished speaking, Secretary Qiu nodded in agreement.

"It's really like this. Just like they harvested the Japanese, we must respond early."

"Yao Yuan, please introduce in detail the leverage issue of subprime mortgages and the role played by Wall Street investment banks!"

"Okay, Uncle Qiu"

Yao Yuan nodded in response and then opened another ppt file.

"Before introducing these issues, let me first talk about the CDS contract, which is called a credit default swap contract. The formation of this financial crisis has a lot to do with the CDS contract!"