Chapter 378: Happy cooperation

Chapter 381
Leon took a plane and arrived at New York's Kennedy International Airport at more than ten o'clock Eastern Time. It was still busy, and everyone was walking in a hurry, unlike Phoenix. Leon called a taxi in the parking lot and headed to Manhattan. He had an appointment at eleven tonight.
The night has already enveloped the entire Greater New York area. From the outside, it is still brightly lit. 6 years have passed since the 9/11 incident, and in its seventh year, the original location of the Twin Towers is still empty. This is the attack left in the city. On the scar. But Leon knew that an even more terrifying attack had arrived. After 7 years of brewing, he had already been crushed by a large army and was approaching the city.
The taxi was driving on Avenue No. 678. The driver was a big-and-big-and-big-white white driver with a beard and looked like he hadn't taken care of it for a long time. However, Taylor Swift's popular country single "oursong" was playing on his stereo. This brisk song did not match the driver himself. It just seems that the driver likes this young rural queen who has just emerged this year. When the music rang, he shook his head and chatted with Leon.
Leon sat in the back row, the darkness concealed his face, so the driver did not recognize that this was the famous iron fist coach, he said to himself: "Her voice is really great, I think of my daughter when I hear her song , She likes to play guitar, lives in the countryside of Long Island, and also likes country music. Hey, what kind of music do you like?"
The white uncle looked like a dad who loved his daughter very much. Leon replied, "Symphony."
"Oh, is it? Symphony, symphony! People in the city, listening to a music and dressing up as if going to a funeral, hahaha! Country music is better, in the country, in a small bar, you You can sing along."
Leon didn't refute anything, and agreed: "That's right, I will go to the countryside to buy a villa to live with my daughter."
When it comes to the house, the taxi driver’s tone changed and he said in a persuasive tone:
Oh, it’s not a good time to buy a house now, you know, I just bought a house in Hempstead last year, 100% Loan, I have mortgaged it to the bank this year, haha, because the house price has shrunk, let me repay the loan to buy something lower in value? No way!"
Leon didn't speak, but just nodded slightly. It seemed that the driver was also involved in this crisis, and he just gave up the house as most people did. This is undoubtedly a wise choice, because housing prices have fallen and the value of the house has shrunk. If they continue to repay the loan, they will lose money. Because in the United States, real estate loans are non-recourse, that is, you buy a house with a loan of 1 million from the bank, and the house price drops to 700,000. The lender can choose to directly take the house back to the bank and cut off the supply. The remaining 300,000 losses are borne by the bank itself and cannot be recoursed through the lender’s other property.
This regulation makes many people willing to take out loans to buy houses. It also pushes banks into the abyss when house prices fall, because the more house prices fall, the weaker the market will be. A large amount of shrinking properties will be hoarded in their hands, leading to large areas of bank Bad debts, cash flow problems.
Of course, this is just a prelude to all the problems. Leon squeezed his fists. As the car speeded, the closer he got to Manhattan, he felt the smell of blood getting stronger.
……………………
The car drove for nearly 40 minutes, and the traffic on the road was good at night. The taxi passed the East River from the Midtown Tunnel in Queens and arrived in Manhattan. It was almost 11 in the evening. But Manhattan looks no different from seven or eight o'clock, it's still very lively. The car parked next to a German restaurant near the School of Visual Arts in New York. This is where Leon meets with people. It is in the southeastern part of Midtown Manhattan. This is a place where entertainment and eating places gather. There are restaurants from all over the world. , There are movie theaters, comedy clubs.
Leon paid the fare and went straight to the restaurant, or the beer hall, which was packed with people. He passed through the noisy crowd. Now it is a good time for beer lovers to drink heavily. Leon accidentally ran into a big man who was holding a beer bottle and blowing to the other person. The big man choked out of the wine in his mouth when he couldn't keep his breath, and Leon hurriedly waved his hand and said, "I'm sorry, I'm sorry."
But this big man was obviously a little drunk. Several friends around him laughed at his embarrassment and made him unable to get off the stage. The big man had to vent his anger with Leon, cursing, and trying to pull Leon’s collar, but Leon Easily dodge, turn around and leave. But the big man was still reluctant. He stepped forward and pressed Leon’s shoulders. Leon turned around to block the big guy’s hand, and then suddenly punched out, with a "bang" the beer bottle held by the big guy in his hand. The bottleneck is blown away!
There was one bottle left in the bottle and held it in the hand of the big man. He stood there blankly, feeling a lot clearer in his head. If that punch hits his nose, it will probably be the same as the bottleneck and fly directly. Go out. Leon looked at the big man, still said "sorry", turned and walked away, this time no one dared to stop him.
Of course, the entire beer hall is still very lively. Leon’s punch just sobered one person up, and did not affect the carnival of others. He went up to the second floor, entered the reserved box, and finally saw Eugene Xu, an investment analyst from Deutsche Bank in New York, a financial broker he had contacted earlier.
Eugene Xu is a Chinese American, small, round face, wearing a pair of glasses, and he feels like a typical Asian boy. He graduated from Fudan University and came to the United States to study finance very early. After that, he worked at Deutsche Bank. At the beginning of this year, he and his boss Lippman felt the undercurrents in the US financial market. The energy of a small hedge fund went against common sense to buy a large number of CDS from Deutsche Bank, betting on the decline in housing prices in the real estate market.
After that, Lipman and Eugene Xu began to investigate and analyze the real estate market. During this process, Leon used his relationship in New York to contact Eugene Xu and used his powerful mathematical statistics and analysis skills to help. They conducted a quantitative analysis, pointed out the flaws of Li Xianglin's CDO pricing model, and believed that there are huge structural risks in the US real estate market.
The crowd smelled the tempting scent in the crisis. It was the smell that only scavengers could smell, the smell of the carcass just beginning to decay. The US financial market has been dead since the beginning of 2007, but the market is too large, and layered financial instruments have a lagging effect on the transmission of information, so more than half a year has passed and the decay has just begun.
Leon sat down, smiled at Eugene Xu, took out a tissue from the side, wiped his right hand, there was some broken glass on it, and a small wound on his hand. Eugene Xu asked, "What's wrong with your hand?" He spoke authentic Chinese. He knew that Leon was proficient in Chinese. In fact, this was one of the reasons why the two knew and cooperated. Eugene Xu Mei Thinking of Leon, a Puerto Rican, speaking Chinese so slippery.
Leon wiped his hands and said, "There are some problems. It's better to solve some problems with your fists than with your mouth. How do you think about it? What does Lippmann mean? Do you want to jump out? Does the investment bank move?" Ang asked a series of questions, Eugene Xu pushed his eyes and replied: "I'm still thinking about it, if the opportunity is good. Lippmann has already settled the financial market department, and he will handle the next OTC. You have to make sure you can get the Boston consortium~EbookFREE.me~ The investment bank has already started to take action, and Morgan and Goldman Sachs are already shorting."
Talking to smart people will save a lot of effort. Leon and Eugene Xu were discussing two issues before. One was that he and Lippman left Deutsche Bank to do investment consulting on their own or set up a hedge fund. The other was to take advantage of this crisis. Pull a large hedge fund, buy a large amount of CDS, and short the real estate market. Relying on the second point, Leon and Lippman can make a lot of money, but Leon is not only interested in such a small amount of money, he wants these two people to leave the bank and do it themselves.
Leon knows whether they will come out or not. The key depends on this transaction. In addition to helping them with data analysis, another important task is to persuade the old man’s Boston Consortium to join in and increase leverage. Let the income double again.
Leon took a big sip of the beer in front of him, and said to Eugene Xu: "I will definitely handle it in Boston. If you decide to do it alone, tell me in time. I will help you find a cheap and easy-to-use one in New York. Office building."
Eugene Xu smiled: "We will consider it, and we will cooperate happily."
"Happy cooperation."
(End of this chapter)