The rebirth of the Hong Kong Island chaebol, starting with a short-selling Eagle Sauce

More and more people are finding that they have fallen into a trap.

Their repayments rise quickly as the adjustable rate rises.

By the spring of 2007, their loan amounts were flooding in.

A subprime borrower's payments went from $1200 per month to $2000 per month!

It is very difficult for most families to even pay the original $1200. They need to use credit cards and borrow from here and there to make up for it, not to mention a higher monthly payment.

With no other choice, the strippers can only choose to act bad and continue to breach the contract.

The lender took away her home and put a for-sale sign on it.

Don’t think that once the house is taken over by the lender, everything is over. You need to continue to repay the loan until the house is sold.

Even if sold at a discount, the sale price of the property will not fully repay the debt...

In the end, the stripper failed to make a fortune. Not only did she not get rich, she also became a big loser.

Strippers are just a microcosm of the beauty of the country.

The number of mortgage defaults has increased rapidly since 2007, from 7 to 150 million.

In just a few months, the number of defaults began to explode!

Housing prices collapsed, and the nightmare for real estate developers in the United States came.

They were very surprised that the people who were still looking at houses last month have completely disappeared this month, and people's willingness to buy houses has undergone a huge reversal.

There are a large number of vacant houses circulating in the market, second-hand houses cannot be sold, and new buildings with high prices are being sold.

So much so that in Huanyu Real Estate's financial report for the first quarter of 2007, sales experienced the largest decline since its establishment!

The shareholders were naturally very dissatisfied with this result, and Giltung took the initiative to resign.

Real estate developers are having a hard time, and banking and financial institutions are having an even harder time.

Because the income from their mortgage securities products has been declining rapidly due to a large number of defaults.

In their financial reports, earnings also fell significantly.

This is not the worst thing. Two senior executives of Citibank finally remembered their mortgage default credit insurance business after being reminded by their subordinates.

"Isn't this a profitable business? Why should we lose money?"

Both the matron and the matron were at a loss for the moment.

Because they are used to receiving money, in their perception this is a business that is sure to make money without losing money.

So when the salesperson reported to them, they were extremely shocked.

It took a long time to realize something, and his face turned pale.

"There have been so many breaches of contract and insurance regulations have been triggered. Do we actually need to pay compensation?"

The two of them are pretty good at math, and it is conservatively estimated that they will have to pay $35 billion in compensation.

"Why did you just notify us? When the compensation reaches 10 billion US dollars, you should notify us."

The salesman said aggrievedly:

"Everything happened so fast. There were only a few thousand defaults last month, but this month it has reached 3!"

The matron said categorically:

"Then pay the compensation as soon as possible, and then close the mortgage default credit insurance as soon as possible!"

The butler also echoed:

"Yes, close it immediately. I would rather close it if we unilaterally breach the contract!"

They made a good calculation and simply broke the contract, otherwise they would become Citibank's sinners.

Hearing the two men's urgent urgings, the salesman said helplessly:

"If we were to unilaterally breach the contract, we would need to pay up to 4 billion yuan in compensation to the four foundations!"

Both of them were stunned. In order to keep that idiot, they vowed to agree to a huge amount of liquidated damages...

Now it seems that they are the idiots who know nothing.

The people who were once laughed at by them are probably laughing at their ignorance.

"Fighting a lawsuit with them, they are maliciously blackmailing our bank..."

But not long after, they received another bad news.

The four major funds that short-sold subprime mortgages are selling their insurance contracts with major banks to the market.

As soon as the contract was put on the table, it was snapped up by all parties.

Because people have discovered that mortgage credit defaults will become more and more frequent, but they can buy insurance contracts from the four major funds to hedge!

This gives some banks that are about to lose their pants in the betting to see hope of survival.

The four funds disrupted the insurance contracts and threw them into the market, which was snapped up by the public and institutions.

The two executives at Citibank have questions on their minds.

Their betting contracts are scattered in every corner of the world, and almost every institution on Financial Street holds one of their contracts.

They secretly screamed bad.

"It's over. Once we choose to tear up the contract, we will face condemnation from the entire industry!"

And the largest purchaser of mortgage credit default insurance contracts is Cayman Capital!

The two managers couldn't help but swallowed in fear. It was okay for them to bully the four major short-selling funds, but their chances of winning against Cayman Capital were very low.

At least on Wall Street, Cayman Capital has never lost a lawsuit.

Cayman Capital’s attitude is also extremely tough:

"Hurry up and lose money, or declare bankruptcy directly. If you become bankrupt, you will still have to pay money!"