Hulk was a homeless man. He was violent, perverted, and fought since he was a child. He didn't have parents to care for him, and he didn't like to study. Eventually, he became a homeless man in his twenties.
Hulk thought that he would spend the rest of his life on the streets.
But what he didn't expect was that Hulk got lucky. In 2004, he met a housing manager. After the manager heard that Hulk hadn't bought a house yet, he immediately invited him to apply for a housing loan. Through the loan, he could buy a house of his own.
"I don't have a job. I can't pay back the money!" Hulk refused at that time!
"That's not a problem at all. We have a new policy. First, we support zero down payment loans. Second, you don't need to pay back the loan within six months after the loan," the manager said.
"But I can't pay back the money after six months. I don't have a job at all!" Hulk thought that the person in front of him was a fool.
"No problem. These six months are enough to complete the purchase contract, and it's enough for the house price to rise!" The manager quickly said, "When the time comes, you can mortgage this house to another bank and get a huge loan from them."
"Is that really possible? My house should already be mortgaged to a loan institution! How can it be mortgaged to another bank? "Hulk asked, puzzled.
"No problem, you just need to use some financial means to bypass some rules … Don't worry, with our help, everything will be settled!"
"You can use the loan to pay off the mortgage and use the money to start a business. Now the economy of the United States is so developed that a black man selling Hua Xia snacks on the street can earn $5,000 a month. As long as you have this money as a starting fund, you can fully use your wisdom and talent and become a rich man like Jia Yapeng!" the manager said.
"As rich as Jia Yapeng!" Hulk swallowed his saliva. Everyone's target was Bill Gates before, and now everyone's target was Jia Yapeng.
It couldn't be helped. Jia Yapeng's experience was too inspirational. He came from a poor country and started his business by selling instant noodles. In the end, he became the second richest man in the world (Boss Jia was still the second richest man in 2004), which inspired countless young people to start their own businesses like Boss Jia. Every year, there would be tens of thousands of different instant noodle brands around the world.
Hulk believed him. He felt that he was so smart and had good stamina. The reason why he was so bad before was because his parents were too terrible and couldn't invest in him.
Now that he had his first gold, he could definitely make a fortune!
So, Hulk applied for a loan and bought his own house in the suburbs of New York. Then, under the operation of the manager, he mortgaged the house.
The total price of the entire house, including the interest on the loan, was 2.8 million USD. After half a year, the mortgage actually reached 2.5 million USD. This was indeed very cost-effective. In the blink of an eye, Hulk had become a millionaire!
After Hulk got the 2.5 million USD, he repaid the loan from a few years ago without any pressure. At the same time, he took out one million USD to start his own business.
As a result, halfway through the business, because he couldn't stand the complicated work, couldn't calculate all kinds of data, and often had sex which delayed the business, the business failed, and the one million USD was all gone.
Then, Hulk found that starting a business was too tiring. Instead of starting a business, it was better to use the rest of the money to enjoy life and have sex at the same time. This way, the money could last for two years, instead of all being lost in half a year.
As a result, time slowly passed until 2006. Hulk spent all his US dollars. All the valuable furniture and home appliances in his house were sold. Hulk simply returned to the foot of the overpass.
That year, the manager found Hulk with sweat all over his forehead and asked Hulk to quickly repay the bank loan.
"I have no money!" Hulk patted his buttocks and said, "You can go and check. All my accounts have no money left. I will continue to wander here. If you think that cutting off my flesh can make up for the loan, then go ahead and do it!"
Seeing Hulk's rascally look, the manager understood that the other party really had no money to repay. The most terrible thing was that even if he used all means, it was impossible to squeeze money out of this rotten person.
"Then we will take back the mortgaged house!" The manager said seriously.
"No problem!" Hulk grinned. "But you have to hurry. The loan company behind you will take back the house as soon as they enter. If you are late, the house will be gone!"
Regardless of how the two loan companies fought over the house, Hulk was very happy. Although his house was gone, he enjoyed 2.5 million USD. In the end, he just returned to being a vagrant. This was a sure win!
This was a true story, and also one of the microcosms behind the subprime mortgage crisis.
The worst people began to default first because they had no money and lived a vagrant life on the side of the road. Therefore, even if they were burdened with huge debts of up to millions of USD, to them, their lives were the same. They still wandered on the street, received food stamps every month, and then used the stamps to get some cheap food in exchange for their own food and clothing. That was enough!
If someone wanted to kill them because of this, they did not care. They were just a group of pitiful people who did not dare to commit suicide. They had nothing to lose in life.
This was also the reason why a group of loan institutions went bankrupt in 2007. These institutions were the most liberal in subprime loans and had the least bottom line. For temporary benefits, they constantly signed loan contracts with all kinds of rotten people.
Then, tens of billions of USD of bad debts and losses appeared. Rotten people could not pay back the money. This debt could only be swallowed by the financial institutions themselves.
These banks also had their own way, which was to directly declare bankruptcy. As long as they went bankrupt, all the debts would not be repaid.
Some were even more ruthless. They directly applied for financial support from the Federal Reserve. The first request was hundreds of billions of USD of funds. If they went bankrupt, the entire United States economy would explode.
Anyway, the larger the scale of the loan institutions, the more losses they suffered. The government would cover for them anyway.
In fact, the government covered for them as well. Therefore, a few bankruptcies in 2007 did not cause a full-blown crisis. The stock market was even very hot.
Until 2008, because a large number of borrowers gave up on their houses and directly defaulted, a large number of sold houses were empty. The banks could auction them to find buyers.
A large number of houses entered the market through the auction channel, directly causing the entire property price to collapse. From January to June 2008, the average property price in the United States fell by about 30%.
Those who could barely pay their mortgage found that the property price had plummeted. The gains did not make up for the losses. They directly gave up on paying and chose to default.
A tsunami came.
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