Reborn with wealth that rivals the country

Chen Mo took a deep breath and said seriously: "The way to deal with it is very simple, that is to confront them head-on! It will take seconds for you to show up!"

The corner of Ji Longxiang's mouth twitched: "As soon as you show your head? Are you kidding me?"

Chen Mo said with a playful smile: "Hahaha, it's indeed a joke. If you don't show your head, you'll be dead."

Ji Longxiang: "..."

Feng Hongyang: "..."

Chen Momo said seriously: "As long as we kill these bastards who dare to show up and follow up, and disband this so-called protest alliance, won't the problem be solved?"

"Give me a month, and I promise that no country will dare to protest with the overlord again!"

Feng Hongyang asked repeatedly before confirming that Chen Mo was serious.

But no matter how you listen to it, it sounds like nonsense!

Whoever follows up will be killed, which sounds very domineering.

But do you have that ability?

I'm afraid Daxia Kingdom doesn't have that strength, right?

Can you do it alone?

"To be more specific, what are you going to do?" Feng Hongyang asked.

“Isn’t Greece the first to jump out and become the hegemon’s dog?

Then let’s attack the country first!

I decided to short the entire country of Greece and let it go bankrupt! "

Chen Mo said.

Gudong~~~~

Feng Hongyang swallowed, and her voice trembled slightly: "Let Greece go bankrupt? Xiao Chen, do you know that Greece is a developed country, and do you know how prosperous its economy is?"

"It is still a member of the Ou League. If you go short, the Ou League will not sit idly by."

"Don't say it's you alone. Even with all the efforts of Daxia, I'm afraid I won't be able to bankrupt the country of Xi, right?"

Ji Longxiang echoed: "Xiao Chen, can you tell me what you think? We don't want you to act impulsively."

List

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Mo nodded: "You two elders should know that Ouzhou is the largest investor in Baguo MBS and CDO, right?"

Feng Hongyang nodded: "Well, after all, the annual investment return of 880% is simply irresistible to a developed area like Ouzhou."

Chen Mo: “In July 1988, the Basel Bank Supervisory Committee under the Bank for International Settlements passed the Basel Agreement 1, which stipulates that the capital ratio of large international banks shall not be less than 8%.”

"In other words, if you want to invest a total of 1 million, your own principal must not be less than 80,000, and the maximum leverage is 12.5 times. This is to prevent the risk of excessive leverage."

"But in 2004, when the world's financial madness was triggered by the hegemonic MBS and CDOs, the Basel Committee passed the "Basal Agreement 2". The capital ratio was already 8%, but the leverage requirements were relaxed in two aspects."

“First, the capitalist weighting coefficient for mortgage bonds has dropped directly from 50% to 35%, which encourages banks to invest more in mortgage bonds.

Second, when investing in mortgage bonds, as long as you purchase a certain amount of financial products to hedge risks, you can offset the capital requirements.

This regulation allows various countries in Ouzhou to risk their lives and increase leverage to buy MBS and CDOs. "

“The leverage ratio of Bells and other companies I was shorting before was 45 times, the leverage ratio of Lehman Brothers I was shorting was 75 times, and Fannie and Freddie’s leverage ratio was 108 times.

The average leverage ratio of financial institutions in Hegemony is 30 times. Guess what is the average leverage ratio of Ouzhou Bank under such a loose agreement? "

Feng Hongyang and Ji Longxiang looked at each other.

Feng Hongyang guessed a number: "35 times."

Ji Longxiang was bolder: "40 times!"

In their opinion, 40

𝖘𝖙𝖔55.𝖈𝖔𝖒

The average leverage ratio is already astronomical.

After all, the leverage ratio of Daxia Bank is absolutely not allowed to exceed 10 times.

Chen Mo smiled slightly: "It's 50 times."

The second elder's mouth twitched.

The average leverage ratio is 50 times? !

Damn, if the subprime bond market drops even slightly by 2%, it will trigger the bankruptcy of countless banks! ! !

Not to mention this is an average! ! !

“The banks with the highest leverage ratios in Ouzhou countries are already on par with Fannie and Freddie. During the crazy period of subprime mortgage bonds, they entered the dominant MBS and CDO markets to grab profits.

Even Ouzhou is immersed in the dream of never falling in housing prices! "

"What a pity, leverage can allow them to magnify their gains and losses."

"Once their investment falls 2%, they lose everything."

"And my short selling principle is based on this."

Chen Mo said calmly.

"But I heard that Greece's economy is very prosperous, and it seems that Greece has not followed up on the speculation of subprime bonds?

If you are short based on the other party's speculation in subprime mortgage bonds, then I can responsibly tell you that your idea of ​​shorting Greece cannot be realized. "

Feng Hongyang shook his head in disappointment.

He didn't expect that Chen Mo would just copy the method of shorting Hegemony and shorting Xiguo.

Chen Mo stretched out a finger, shook it, and said "tsk tsk tsk":

"Listen to me first. Ouzhou banks have three investment principles: low cost, high return, and don't put all your eggs in the same basket.

Their investment targets are not limited to MBS and CDOs from the hegemonic countries, but also include investments from all walks of life in all alliance countries.

Bankers in these countries have increased their

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Leverage was used to invest in countries such as Greece and Croatia. A huge amount of money entered these countries, and their own people also made money through economic development.

And then where do they invest their money?

Give you two three seconds to think about it.

3! 2! 1! "

Chen Mo calmly spit out three words: "Real estate!"

“If you have money, speculate in real estate. This is the same all over the world. House prices in Greece have skyrocketed, and the annual return on real estate investment is as high as 30%!

This has led bankers from various countries to join the real estate speculation craze in Greece.

Although a 30% return rate is far from an 880% return rate, it is still much better than other investments.

Between 2001 and 2006, the average house price in Hegemony increased by 126%. During the same period, the average house price in Greece and Jamaica increased by 200% and 260% respectively. Housing prices in other countries have also skyrocketed to varying degrees. "

“In those two years, people speculated in real estate and banks speculated in bs. Everyone was desperately increasing leverage, creating a huge bubble.

Leverage is debt, and behind prosperity is huge debt expansion.

Last year, the bank debt of Crested Ibis and Yaguo reached 3 times of GDP, the debt of Lanxi Empire and Croatia was 4 times, the debt of Patriotism was 7 times. Guess how many times the GDP of Greece was? "

The numbers that Chen Mo blurted out already made Feng Hongyang and Ji Longxiang tremble.

The two of them had no idea and had no channels to understand the debt situation of the Ou League countries. They could not imagine that the debt ratio there was so ridiculously high!

"Is it possible...it can be 10 times more?"

Feng Hongyang said a number that he thought would make people's scalp numb.

A debt ratio of 10 times the country's GDP... This is equivalent to saying that this country is an empty shell and will explode if you poke it!

Chen Mo smiled slightly: "It's 12 times."