No one understands the U.S. economic system and economic rules better than him. Since he proposed this idea, he is sure that Washington will approve it.
"The Chinese people need a lesson to let them understand who has the final say in this world."
Greenspan told Hamilton.
"However, it will take some time to prepare to enter China's financial market. Before that, we must maintain the secondary market so that it does not collapse too badly."
"I heard that Leiman is already looking for investors to acquire themselves. This can be worked on. We have to find a way to facilitate this transaction and at least help them find a good buyer. In this way, this crisis will have a negative impact on Wall Street.
The impact of capital will be greatly reduced."
"In addition, in terms of policy, I am considering waiving 70% of the interest on home loans federally."
"The most important product in the subprime market is the housing credit loan trust. The exemption of interest will be a positive stimulus to the real estate market, so that people will not bear too heavy debt pressure for interest."
Hamilton listened and nodded.
However, when he heard that 70% of the interest was exempted, he still frowned slightly and said, "Is this too high a proportion? Such a heavy burden has been transferred from the people to the banks, and many banks may go bankrupt as a result."
"Then go bankrupt."
Greenspan spread his hands and said: "Who said banks can't fail?"
"Those small and medium-sized banks cannot make much contribution to the federation. If they go bankrupt, they will go bankrupt. After all, a financial crisis requires someone to make sacrifices. Who cares whether they live or die?"
"The problem is that once banks fail on a large scale, leading to the collapse of the bank credit system, the interests of a large number of depositors will be damaged. Moreover, as banks are the main lending entities, their failure will inevitably lead to large-scale defaults on personal loan debts throughout society. This consequence
Very serious." Hamilton still hesitated.
"So Lei Man cannot fall."
Greenspan's thin and sunken eyes showed a scary light, and he said: "We need to find a rich and wealthy buyer for Lei Man, preferably a buyer from China. They are not the most willing to acquire large assets.
Do you want to show that you are rich and have status, so that you can join the world's highest capital circle?"
"Then selling Leiman to them, as the fourth largest investment bank in the world, is enough. Of course, one of the conditions is that they must provide an insurance contract, that is, once small banks and medium-sized banks fail on a large scale, they will
Responsible for keeping track of everything."
Hamilton said in horror: "How can they agree to such conditions? This is a loss of at least tens of billions of dollars. Unless they are crazy."
Greenspan chuckled and said: "But what will happen in the future, only you and I know now, right? The buyer doesn't know."
Hamilton tasted it carefully, then looked at Greenspan with admiration and said: "What we have to do is to dig this big hole and let the people who are ready to take over Lei Man jump in?"
"Whoever jumps will die, so it is best for this buyer to be a Chinese buyer. Of course, if no Chinese capital is willing to come in, there is no need to force it. Anyone with money can take responsibility." Greenspan said with a smile.
At this time, an assistant came in and told the two that the secondary market had fallen short again and had fallen below the historical low in three years.
The two looked at each other and smiled. They were not as nervous or irritable as before, but looked calm and calm.
…
Two hours later, the Federal Reserve and the U.S. Treasury Department issued a joint announcement.
"First, announce 70% interest exemption on all home loans federally."
"Second, comprehensively relax access restrictions on the secondary market, and welcome large and small investors and institutions to invest."
"Third, we urge Congress to pass a tax bill to reduce taxes by 10% for companies in the real estate industry."