Chapter 266: Precursors of Financial Crisis
The next day, Footscray Auto Parts City.
“I see you two are in good spirits.”
“That’s right, last night I took Mr. Shou to experience the customs and customs of Tu’ao.”
“ Haha, I’m old and useless. The ocean horse was really difficult to control yesterday!”
"No, no, Brother Shou is still a treasure."
"It's better to have beautiful girls from all over the world. I'm so envious of you."
"That's right, how can there be true love in the world? Now, I love all girls!”
Listening to the words of the two of them, Chen Xi could imagine the scene yesterday.
Today is the opening of the auto parts store. Tu'ao does not have such a complicated ceremony. It just opened with a simple ribbon cutting.
The goods are all working overtime to put them up, just to rush for a smooth opening today, because the previous advertisements have been out long ago, and there are many people coming here, and some people come from surrounding cities.
Some of the owners here are the owners of various auto repair shops in Mo Village. They came here to see the products and to discuss cooperation.
Wu Shouren was also shocked. He had never seen such a large auto parts city. It is unthinkable to do this in China, because it would definitely be a loss. It would be better to build a large shopping mall on such a large land to gain revenue. Cheap to rent.
And the local officials will not approve of it. After all, they want to stimulate the local economy and build such a behemoth. In their eyes, instead of getting involved in this field, it is better to seek other more profitable industries. .
"Seriously, this place is so big and many places are empty. Isn't it a waste?" Wu Shouren was a little confused about their operations.
"Tu'ao is like this. It's a big place, and those supermarkets do it too. It's naturally useful to keep it in other places." A Lin explained patiently.
"If this were placed in China, the boss would definitely use all the space, and the vacant space would definitely be rented out, or else he would build a children's paradise to make money." Wu Shouren's mind was still full of things from China. Set of ideas.
“This kind of auto parts business does not do well everywhere. In some places, because people are relatively poor, they are more likely to choose to repair rather than replace items when they are damaged. In Tu’ao, People usually prefer to just replace the damaged parts. I have seen before that in India and Pakistan, a car battery broke and they went to a lot of trouble to repair it because the labor cost there is relatively low..." Chen Xi explained the market demand for auto parts in different countries to Wu Shouren in detail.
Business has been very good since the opening of the Auto Parts City. Alin has cooperated with many auto repair shops, and part of the vacant land has been used for auto shows. Chen Xi also opened a second-hand car dealer there.
One month later, due to this year’s profit warning, the United States injected liquidity into the financial system to increase market confidence, and the stock market was able to maintain its high level. The S&P 500 hit 1,565.15, a new all-time high. Just two months later, however, the stock market began to fluctuate wildly.
Long before, Chen Xi had sold all Chen Caiyue's stocks and called Zhao Lingshan to do the same.
I also exchanged part of the Australian dollars in my hand into Chinese currency through Aunt Shi Tao's accounting office.
Since the last yacht party, Chen Xi received several text messages and phone calls from Oksana.
This woman seems to be very interested in him and asks him out to meet. As for what to do, everyone knows what to do.
Oksana was very smart. She did not directly ask Chen Xi if he had a partner, but her words hinted that she could be a lover.
Chen Xi naturally refused directly.
There have been signs of the financial crisis long before, and many thoughtful people have already discovered the problem.
In the early 2000s, as interest rates fell in the U.S. real estate industry, house prices began to rise, and so did the demand for homes.
To meet this demand, banks began to provide subprime loans, loans made to borrowers with lower credit scores.
The loans are packaged into bonds and then sold to investment banks. Investment banks further sell these bonds to investors, an operation known as "reselling."
To further spread risk, investment banks split these recovered loans into smaller tranches, making each tranche less risky.
In this way, more investors can participate, making capital more widely utilized.
In addition, investment banks also cooperate with risk rating agencies and use various means to package their products into nearly risk-free investments to attract more investors.
This operating model was very popular at the time because it not only met people's needs for housing, but also allowed banks and investment banks to maximize profits.
Everything seems to be going well, but they are all based on one premise: house prices will continue to rise.
However, as loan review standards have been relaxed and housing prices have continued to rise, many people have found themselves unable to afford a home.
At this time, the Federal Reserve began to raise interest rates, causing housing prices to begin to fall.
Those who had previously purchased homes found that the value of their homes continued to shrink and had to mortgage their homes to banks. Ultimately, these burdens are passed on to investors who purchase bonds.
The outbreak of the beautiful domestic debt crisis has caused a large amount of funds to flow back to the beautiful country from all over the world.
Countries around the world have also purchased a large number of real estate bonds in the United States, which caused the financial crisis in the United States to quickly evolve into a global financial crisis.
Regarding this financial crisis, the Chinese people have not been affected much. Except for those engaged in foreign trade, factories, and finance, some people have even made a fortune in disguise.
When talking to Zhao Lingshan this time, the other party was obviously in a low mood. Although the voice on the other end of the phone was still gentle and enthusiastic, Chen Xi vaguely felt something was wrong.
Today Chen Xi was in school as usual. Shi Tao in the front row was chatting with the girls next to him, and then he was talking to Li Yuqing.
Li Yuqing, on the other hand, looked cold and cold. She only responded once after Shi Tao said ten sentences.
This made Chen Xi confused.
What's going on with these two people?
Don’t the fellow villagers burst into tears when they see the fellow villagers?
Why did Li Yuqing seem so indifferent? Thinking about how arrogant she had always been, Chen Xi no longer struggled with this issue.
"Ha, go to my place to buy wine from now on and I will give you all discounts!" Ouyang Ming pointed at himself proudly. He opened a chain store selling wine in Blackburn, and his business was pretty good. Gradually, He is becoming more and more confident in his wine selling business. This is also one of Liya's strategies. She still likes Ouyang Ming and doesn't want him to return to China after graduation. Now that he has a business and a family in the future, she can tie him to the land of Tu'ao.
Chen Xi also hopes that the two of them can continue on well. In the past, it felt like it was a pity for them to break up.
Li Yuqing sat in the front row, ostensibly listening to the lecture, but in fact her attention was always on the back row.
Her life has been a little better since she started working as a purchasing agent for health care products. However, her attitude towards customers has not been very good, resulting in few repeat customers.
Seeing that other purchasing agents made more money than herself, Li Yuqing concluded that the goods she sold were too single. Now when she heard Ouyang Ming in the back row talking about the red wine business, she immediately thought of Red wine and purchasing agents are combined.
Originally, she wanted to be a purchasing agent for luxury goods, but none of her friends in China were very rich, and some were even worried that they would receive fake goods. This made her furious to death.
What kind of people have what kind of circles? For Li Yuqing, who comes from an average family, none of her friends are rich second-generation people. In addition to her own reasons, she has not met a few rich people until now. She occasionally comes into contact with a few rich boys, but they all have ulterior motives for her body.
"Business has been good recently! All the dogs have switched to BMW 5 series, but why did the boss sell the car? Now he actually drives a second-hand Sakura car." Ouyang Ming shook his head. Looking at Chen Xi, he looked like a villain who had succeeded.
"Let's change the taste! A new car will be released soon. I will buy a new car then." Chen Xi smiled.
He felt that it didn’t matter what car he drove. The Australian dollar was going to plummet soon. He bought it quickly when the price of the car didn’t adjust. The CLS had already been sold to someone else. Now that I own a car dealership, I can’t just drive whatever I want.
"Haha, if you find a girlfriend from Sakura Country, you will naturally drive a Sakura car." Ouyang Ming raised his arms obscenely and made several vigorous sprinting movements, which made Chen Xu and others laugh. Laughed loudly.
The teacher on the stage glared at several people dissatisfied, and then they stopped laughing.
When these words reached Li Yuqing’s ears, she thought that Chen Xi had lost money in business and the quality of his car had become lower. I was secretly glad that I didn't have anything to do with him.
When she thought of Shi Tao, she was filled with doubts.
After recently contacting Shi Tao, she found that he did not seem to have much money.
Having not bought a car, even the purchase price does not seem very generous.
When we go out to meet him, we always eat rice bowls in small restaurants. He is not even wealthy, let alone giving himself gifts.
Li Yuqing felt that the other party was pretending to be poor and wanted to observe it for a while. If that didn't work, he would withdraw and move on to the next target. The reason why she persisted for so long was because she liked Shi Tao's idea of not getting married.
It was time for get out of class to end soon, and several people got up one after another, preparing to find a restaurant to eat and chat.
"You Chinese students, don't talk during class. You are here to learn, and next time you speak, communicate in English." The teacher is a middle-aged ghost guy with a pockmarked face. He is very He was dissatisfied and educated Chen Xi and others. Seeing that they knew they were wrong, the teacher stopped pursuing them.
"Damn it, a group of big bosses have to be taught a lesson. Where will they lose their face if word gets out?" Ouyang Ming complained loudly after walking out of the classroom.
"Come on! Look, there are students in their forties in the school. Some of them are also bosses. Why don't they still be punished by the teacher? It's just you who is special." Chen Xu kicked him in the butt again. .
Ouyang Ming started to bluster after doing some small business, which made Chen Xu unable to stand it anymore.
“I heard from friends in the beautiful country that the situation there is a bit bad! The stock market has plummeted, and the stock market in China has also begun to fall.”
“My family is still going there. It’s like investing money in it! It’s like a bottomless pit.”
“It’s better to buy at the bottom. You know, it will rise sooner or later.”
In the small restaurant next to the school, several people sat down and started chatting, each expressing their opinions.
"Li Xin! It's not good for you to ask me out alone like this. If other boys see this, how will I find a boyfriend in the future? If you have anything to say, just tell Xinyi directly. , and you still have to be the middleman.”
“Oh my God, in this age, there are still people writing letters. You don’t have one at home. Do you have access to the Internet? Still have no money to pay the phone bill? Isn’t this a love letter? I didn’t expect you to be quite retro. Only those students in China would do this.”
There was a burst of exclamation. Chen Xi was sitting on the second floor. He looked down curiously and saw Zhang Ruoxi and Li Xin sitting at the same table eating.
Li Xin pushed an envelope in front of her. Zhang Ruoxi picked up the envelope and looked at it from left to right, laughing constantly.
In her opinion, writing love letters can only be done by domestic students, and international students like them would only find it old-fashioned.
"Just leave it to her for me." Li Xin said lightly. He is very different now from before. He is not the kind of expressionless person all the time.
Shen Xinyi has never answered his call or text message since the last incident. Although I didn't block myself, it was no different from blocking myself.
So, he could only restore contact with the other party by writing a letter to Zhang Ruoxi.
After thinking about it after he went back last time, he seemed to feel that he had done something wrong, but there was nothing he could do about it. The old man in the family still counts on him...
When he thought of this, Li Xin could only grimace and do something like this that he would never have thought of before.
"What are you looking at? The rice is almost cold."
"Oh."
Chen Xi, who was looking at him unconsciously, was patted by Chen Xu , quickly turned around and continued eating.
This Li Xin is really interesting, but he doesn’t seem to be a bad person.
If Shen Xinyi can follow him...
This should be a good choice.
What is Xinyi doing now?
The last time he said he liked me in public, hey~
Chen Xi ate his meal absentmindedly, while a few people around him talked about the economic problems of various countries.
(End of this chapter)