Seeing Feng Yiping coming over with a smile on his face, Paulson felt a little relieved. He did not expect that whether he was the former king of Wall Street or the financial director of the richest country in the world, he could still feel jealous.

But he couldn't help but be jealous.

Whether he came to China yesterday and saw the scene of lights and decorations everywhere in China, or when he met with Chinese officials later, they looked calm and calm, and felt that the situation was still very good, and the guy who had easily earned at least 20 billion US dollars by using subprime mortgages, and was smiling at this moment...

It made Paulson feel very jealous just like those guys who could only celebrate Double 11 yesterday when he saw those couples who went to the restaurant to book a Chinese Valentine's Day in a restaurant yesterday.

"Villa," Feng Yiping shook Paulson's granddaughter's hand, who was only one year old, "I said, what's there to worry about? Whether it's Freddie or Fannie Mai, they are all at their own fault."

Paulson did not directly agree with Feng Yiping's statement. He handed the granddaughter he was holding to his wife and took a photo on the beacon tower, "There are problems with the two-bedroom model,"

Feng Yiping comforted him casually, "That's all an old problem,"

There are indeed problems with the two-bedroom model.

It should be said that housing, which is closely related to people's livelihood, is a matter that every government pays great attention to.

The demand for housing is also a common need of all people in all countries. In the United States, having housing is an important part of the American Dream.

But a common problem in all countries is that there will always be a considerable number of people who have the need to buy housing but are unable to bear the high expenditures related to it.

Many countries have taken measures such as affordable housing and low-rent housing for this purpose, but the United States' approach is somewhat unique, and they hope to solve the problem through financial institutions.

The original intention of Freddie Mac and Fannie Mae was to enable most Americans to borrow housing loans more easily at lower interest rates.

The biggest difference between two houses and private banks in the United States is that they are actually semi-state-owned, so their financing costs are lower than those of the banks with the best credit, so they can indirectly provide low-interest loans for ordinary people to buy houses with mortgages - this is actually equivalent to the US government providing subsidies for low-income groups (this is a pity to them, look at us, big banks are all state-owned, but low-income families buy houses with low interest rates, what daydreams do they have?)

There are indeed many commendable aspects to this plan. More Americans own their own houses - more than 70 Americans own their own houses, which makes the American dream more attractive; and after buying a house, many people must work harder in order to repay the loan - this can effectively promote economic development... It is a good thing that kills multiple birds with one stone.

But one problem is that Freddie and Fannie Mae are not state-owned enterprises after all, so after subsidizing the purchase of houses by ordinary people, the remaining profits naturally belong to shareholders.

This is why Paulson said the two-bedroom model, which is inherently problematic.

Pure state-owned enterprises will find ways to enjoy profits, such as various luxurious buildings, various luxurious decorations, and various luxurious consumption... What's more, two-bedroom apartments are privately owned companies from a legal perspective.

As government supervision gradually relaxes, the two houses' minds gradually become more active. In order to create more profits, they will come up with various ways to generate income.

Like all their Wall Street counterparts, they design various complex investment portfolios to invest and design various complex products to sell. Because of the hidden guarantees of the US government, they are more unscrupulous than Wall Street investment banks in using leverage.

In short, by the end of last year, the total assets of the two houses were only more than US$80 billion, but the total amount of their assets and guarantees held by them exceeded US$5 trillion, with a leverage of more than 60 times.

Such high leverage means that in the mortgage and investment they guarantee, as long as there is a problem with 15, their capital of more than 80 billion US dollars will be instantly gone.
Chapter completed!