Li Jin knew that the real core of the subprime mortgage crisis was the subprime loan credit crisis.

In order to stimulate national consumption and maintain its strength as the world's largest country, the United States has long implemented quantitative monetary easing policies.

And this currency quantitative easing policy is not quite the same as that of Neon.

It is essentially a US-printed banknote for domestic welfare and ease of debts to the US government itself, and the process lasts for decades.

If it were other countries who would have played like this, they would have been finished long ago.

But the United States is different. The dominant position of global finance and military politics has allowed the United States to build a core and important system, that is, the US dollar settlement system.

Its full academic name is the Bretton Woods system, which is the global dollar core system.

To describe it in detail, it is difficult to explain tens of thousands of words, but there is only one core, that is, the world settles currency with the US dollar as the core, but the printing rights of the US dollar are in the hands of the Federal Reserve Central Bank.

In other words, the United States' monetary easing policy has led to all countries around the world that support the settlement of the US dollar to pay for the United States' high consumption, high debt and high welfare.

So the United States has been playing like this for decades, but there has been no big problem, because people from all over the world have paid for it.

But this is not foolproof.

The long-term domestic monetary easing policy has led to a lot of money on the market and banks.

The profit-seeking nature of capital and money will inevitably find an industry to generate profits.

When all countries around the world face this problem, these hot money went to two places, stock markets and real estate, and the United States was no exception.

At the craziest time, now, as long as you are a American, you don’t need to do any asset or credit investigation to buy a house. If you dare to lend, the bank will dare to give it to you.

For the sake of their own performance, salesmen frantically sell bank loan products to everyone, while in order to give investors a decent report, the bank simply refuses the applications of these people.

In this way, the real estate industry is completely booming, resulting in a surge in national debt ratio.

But loans have a term. For example, a loan of $1 million will have to wait for 10 years, with principal and interest of $1.5 million, and earn $500,000 in 10 years.

But the bank's investors were unwilling to wait for so long, so the bank packaged the loans to a credit company for US$1.3 million. After the credit company purchased the loans, it packaged them and put them on the market for sale.

The cost price of $1.3 million, each $100,000 is divided into 15 shares. After the credit company earns $200,000, the loan is diversified to the market.

This group of capitalists like geniuses turn debt into a subscribeable asset, which is a subprime credit loan.

With the layers of reselling loans, all banks and credit companies make a fortune, but this is a game of passing the ball through the drums, and in the end someone will have to pay for these profits.

When the growth rate of the United States economy declines and national income falls, real estate prices begin to inevitably fall. When the amount of loans you want to repay exceeds the value of the house itself, large-scale loans will break out.

These subprime credit loans instantly became garbage.

Institutions that have purchased subprime credit loan products have begun to lose their positions, investors have lost all their money, and the entire market is full of sorrow.

This is the fundamental core of the entire subprime mortgage crisis.

Looking at the entire subprime mortgage crisis, this financial crisis that knocked the world's largest financial power, the United States, down for 20 years but has not stood up, was definitely not formed overnight. In fact, now is its craziest time.

Someone must have noticed it, but who cares, as long as he is not the last takeover.
Chapter completed!