Risk is something that people cannot see. If the risk can be predicted in advance, it is not called risk. If you know that there are certain risks, you are afraid of being in front of you, which only means that someone is not suitable for investment.

There are actually many such people on Wall Street. If you have to summarize, Han Xuanhui said that most of the management of many companies will only sit in the office and wait for salary, or will only pay wages to others. For the owner of the company, the value cannot be reflected at all, so they may be fired at any time.

Fortunately, Han Xuan doesn't have to worry about these things for the time being. His investment department has reorganized new companies and is still maintaining sufficient vitality. The employees who helped the headhunting companies poach are indeed worthy of the price offered.

A group of motivated and capable financiers were formed, and Han Xuan acted as the brain, causing the company to burst out with great enthusiasm and continue to move forward, bringing huge funds to Han Xuan. A dynamic big company like him can be said that there is no second one on Wall Street.

Companies like Citi, Lehman Brothers, Bear Stearns are nothing to Han Xuan. They are now busy trying to die, trying to sell credit default swaps and other real estate-related businesses. This part can indeed make money in the early stages, but the consequence is that it caused the financial crisis in 2008 in the previous life.

Don't think that those who work on this street are really smart. Before the subprime mortgage crisis in the past life, many Wall Street elites did not expect it at all.

It is precisely because of their own cleverness that they ignore the signs before the crisis. They cannot see more and more people not paying mortgages, nor can they see the skyrocketing housing prices, and even when people buy house loans, banks do not even look at their credit.

When Han Xuan was twelve years old, he figured out one truth, that is, to use the benefits of sheep to make money. As long as he guides public opinion well and creates the illusion of safety, stability, and high profits, the world economy is his ATM!

The most wonderful thing is that they can even cheat on their money without even having to think about it. They can make a lot of money by relying on their actions a few years before the outbreak of the subprime mortgage crisis. Han Xuan already knows the result, just like knowing that the gambler who has cards in his hands has enough chips in front of him, so it is difficult to lose.

The reason for this is that last night, Mr. Dick Fuld, CEO of Lehman Brothers, called Han Xuan and said that he had a great investment idea, which was designed by several mathematical experts in their company, hoping to cooperate with Han Xuan and invest.

According to the model established by those mathematical experts, it is shown that if it is used to invest in the real estate industry, it will get sufficient returns. However, this is a novel investment method. The senior executives of Lehman Brothers were unsure, so they tried to cooperate with Han Xuan.

Now Lehman Brothers is a medium-sized company, and China Merchants Bank is a behemoth to look up to.

Imagine, for example, the general manager of Huamei Bank of Han Xuan, who called Lehman Brothers and said, "The last 100 mortgage customers each borrowed us a million dollars a year. We intend to buy your insurance to prevent them from defaulting.

Judging from the application form, we think each of them has a three-percent chance of default. How much insurance costs are more appropriate?”

There is a three percent chance of default for one hundred customers, so it is expected that three customers will default next year, which means that Lehman Brothers will have to pay three million US dollars next year. Assuming the interest rate is three percent per year, it is only worth $2.91 million now.

Therefore, Han Xuan's Huamei Bank had to pay at least $2.91 million for insurance. Lehman Brothers is not a charity. In order to make money, they will double the price, which is $5.82 million in premiums, and expect these transactions to make an average of $2.91 million. This insurance is called a credit default swap (CDS).

In the early stages of this kind of insurance only participated in the insurance company, but because the profit was too high, banks and private investment institutions were also involved, and the scale became larger and larger.

Wall Street naively believes that people will repay their loans and banks want to make money, so they liberalize loans. In addition, housing prices have risen all the way, resulting in the amazing scale of credit default swaps!

Because it was too big, Lehman naturally worried, so he launched the "debt mortgage bonds". The reason why these companies felt that people would not default was that there had been no large-scale national housing price drop in the United States since the 1920s, so he estimated the default rate of about 3%.

However, the bubble burst, and there were more than three people who defaulted, as many as ten. They felt that the house price was too much of a loss after depreciation, so they refused to pay the loan. The default part required the insurance company and the bank to pay compensation!

This also has a lot to do with the bank's approach, because insurance companies are supported by them, and banks are not afraid of customers with poor credit defaults. Anyway, insurance companies will lose money, and in the end they are jealous of the income of these insurance companies, and they also participate in it. It can be said that they have dug a hole and made themselves lose it. More than 20% of lenders do not actually have the basic conditions for stable repayment.

Therefore, after the bubble burst in his previous life, Lehman Brothers unexpectedly owed more than $60 billion and fell into bankruptcy.

Han Xuan was afraid of betting with ordinary investors because their mentality and practices were unpredictable. Doing business with Wall Street investors made him feel more relaxed. After more than half a century of development, these people have formed some thinking inertia.

The Internet bubble evaporated about three to five trillion US dollars of wealth around the world. He made more than two trillion US dollars in his pocket. This is not the current figure of the value of the stock itself. Although it is depreciating continuously, the bubble has just burst for less than a month, and their depreciation is limited.

The market size of subprime mortgages is much larger than that of the Internet industry. After all, it is an old real estate industry and cannot be compared with the emerging Internet industry. As long as you seize the opportunity, it is also an opportunity to make a lot of money. So Han Xuan came over happily and prepared to meet with the executive officer of Lehman Brothers.

Sitting in the helicopter, Han Xuan looked at the paraglider in the distance and recalled that he jumped out of the sky... To be precise, it was the scene after being pushed off the plane by Gabriel. The wind was strong and the scenery was beautiful. After more than ten seconds of the fall, he floated in the sky for six or seven minutes after the umbrella was opened. If it weren't for someone tied behind him, it would definitely feel better.

Han Xuan had nothing to do, but Chi Shizhen was so ugly that he was so scared that he peed his pants. Finally, he squeezed out a smile to face the camera. It can be said that he was willing to sacrifice his life to steal the spotlight...
Chapter completed!