US Mortgage Investment Corporation filed for bankruptcy protection. This is the second largest US mortgage lender facing bankruptcy after New Century Financial Corporation.
After that, Bear Stearns, the fifth-largest investment bank in the US, announced the collapse of two of its fund companies.
In Europe, Germany, France, and other banks announced to freeze their investment funds in the US mortgage market. In Asia, Japanese, and Korean banks also announced their losses in the US market.
This did not cause too much panic outside the US. This is because the Asian and European banks' losses are still bearable, and it will not affect the rest of the banks.
But in the US, all major investment banks suffered losses. Even companies like Walmart suffered huge losses because of this.
Walmart is the world's number one retail giant, and its daily transactions are huge. It has a large amount of cash, and Walmart cannot let this cash remain on its books. It must use it to invest. This is the best way to manage its business.
That's why Walmart also has its own lending companies, and Walmart's lending companies suffered huge losses.
The US cannot hold on any longer, and the Federal Reserve Bank started to inject more than 20 billion USD into the banks to save the market.
Unfortunately, more than 20 billion USD was not enough to fix the situation.
Europe had prepared 150 billion Euros to bail out the market, and Japan had prepared trillions of Yen to bail out the market. But to many people's surprise, China, which was also a major creditor of the US, had remained silent.
These actions had agitated the financial markets. Many people are spreading rumors that the US financial market will collapse, and it will affect the rest of the world's financial markets. Europe and Asia will not be able to escape.
These two days, the stock market, gold, oil, and other major futures markets had all fallen.
Crude oil, which had just exceeded 80 USD a few days ago, fell below 80 USD again. Luckily, Feng Yu and the rest had started to hedge against it.
Furthermore, Feng Yu and the rest had only bought these contracts for slightly more than 50 USD. Although the crude oil price had dropped slightly, Feng Yu and the rest had only lost some of their profits.
The Dow Jones Index, which had risen to more than 14,000 points, suddenly plunged. For two consecutive days, it fell by more than 3%.
Inevitably, Europe, Japan, and Hong Kong's stock indexes also fell. Even Hua Xia's stock index also fell.
It was not an exaggeration to say that the US could influence the world's economy. The US had issued a large number of national bonds, especially during Bush's administration. They had even waged wars to teach Afghanistan a lesson in the name of fighting terrorism. Many countries in Europe and Asia had become their creditors.
The faster the economic development of a country, the more bonds they will buy. Countries like Hua Xia and Japan, which had extremely high foreign exchange reserves, owned an astronomical number of US Treasury bonds.
Why didn't the US launch a large-scale rescue plan? The funds taken out by the US Reserve Bank was less than one-sixth of the funds taken out by the European Union.
Because the US had another trick up its sleeve, and that was to bankrupt its government. He did not know when he would be able to liquidate those national bonds. Of course, if the government goes bankrupt, it will be a huge loss to the US. No president would dare to make such a decision lightly.
Moreover, the issuance of US Treasury bonds was huge, but 60% of it was for domestic purposes. In other words, US investment institutions and citizens were the ones buying US Treasury bonds.
The US is only threatening Europe and Asia's creditors. If not, I will go bankrupt, and all your investments will go down the drain.
Of course, the US had also threatened Hua Xia's government. But Hua Xia's government ignored them. If you really dare to go bankrupt, I don't care if those national bonds become worthless papers. Let's see who will suffer more losses.
The more developed a country is, the more losses it will suffer if it goes bankrupt. It was just like when Hua Xia was poor, and he was not afraid to fight anyone. Everyone had regressed together, but Hua Xia had regressed more than Hua Xia.
Although both sides were hurting each other, I broke a finger, and Hua Xia broke a wrist. Who will suffer more?
Hua Xia's government could tell that the US sub-prime mortgage crisis is about to become a sub-prime mortgage crisis, and it will lead to a serious economic crisis. I have money, and I will use it to stabilize the domestic economy. I don't care about the foreign countries.
Europe's economy is better, and their debts are much higher than Hua Xia's. They will be more anxious than us. It's better to let the capable ones to save lives. We are already kind enough not to kick them when they are down.
You see, when your financial market is in trouble, we will also be affected.
Hua Xia's stock market was also falling, but it was not as bad as Feng Yu's previous life. This was because many investors had returned to their senses after the previous round of attacks.
In Feng Yu's previous life, many of the stocks that were rising were because of speculation. But in this life, after the higher-ups punished them, the stock market was no longer as popular. Now, it is only around 4,000 points, less than one-third of Feng Yu's previous life.
That's why although Hua Xia's stock market was affected, the drop was not as high. Hua Xia still has a lot of funds to stabilize the market.
It was the same in Hong Kong. Although the market had suffered significant losses, it was much better than Feng Yu's previous life. Two months ago, Fu Rongqi and the rest had predicted that the stock market would fall, and that's why they dumped many of their shares.
At that time, Warren Buffett and other famous investors also dumped their Hong Kong shares. At that time, Hong Kong's stock market was not growing anymore.
At this time, the Asia Pacific Central Bank also announced that it will inject funds into the banking system to ease the financial pressure on those Southeast Asian countries' banks.
But Hua Xia's banks were not affected. They had already dumped their sub-prime mortgage bonds under the orders of their higher-ups. Although their profits in the second half of last year and the first half of this year were lower, the impact of the sub-prime mortgage crisis on them was minimized.
These banks had even dumped the US Treasury bonds they had bought in the past. That's why Hua Xia's Treasury bonds were much lesser than Feng Yu's previous life.
The crisis that the US passed on to China will have a lesser impact on China.
The whole world had suffered heavy losses because of the sub-prime mortgage crisis. Many experts predicted that this will affect the global economy, and the global economy might be hit hard this year.
Because of this sub-prime mortgage crisis, the world's central banks had injected more than 400 billion USD into the financial markets, and this figure is still rising.
When the banks plugged the holes, they realized how big the holes were.
Feng Yu looked at the news on the internet and smiled. The sub-prime mortgage crisis is here, and the futures market will see huge profits!
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