Masaki Nakamori has a house mortgage guarantee contract signed by her mother and a privately stamped seal, so she can get a loan from the bank.

Although RB real estate has not risen much since its collapse in 1991, it has not fallen much overall.

This does not include high-end communities and prime locations such as RB. These places still have considerable appreciation space. In fact, the reason is very simple, that is, the land in the area is scarce and premium.

Living in such a place is not only for living, but also comes with a middle and upper social class, status and identity. Not only that, it also has the auxiliary effectiveness of investment, school district housing, etc.

This home is built in Tianyuandifu, Ota District. It is not only one of the famous high-end communities in Tokyo, but also comes with a complete land deed, which is completely different from the private apartment building that each household is divided into.

Masaki Nakamori had a market survey. The current market price of this one house is 200 million yen. According to the bank's practice of real estate mortgage loans, you can get a 30% discount on cash, which is 140 million yen.

I plan to mortgage it for two years, which will not affect my current continued residence, and the interest paid to the bank every year will not be too much. After all, the current annual interest rate of mortgage mortgage loans of RB Commercial Banks is within 1%.

According to the individual's demand for mortgage loans, the annualized interest rate is at most 1%. You can get 140 million yen in cash from the bank in the form of mortgage loans, but you only need to pay 1.4 million yen to the bank every year. It lasts for two years, that is 2.8 million yen.

The reason why Masaki Nakamori chose two years is because he knew that the next step would begin to evolve from the subprime mortgage crisis in the United States to a global financial crisis.

In fact, the subprime mortgage crisis in the United States has revealed some signs and clues since last year, that is, in the spring of 2006.

Before this, in order to prevent the economy from overheating and suppressing real estate, the Federal Reserve also carried out the fifth round of interest rate hike operations (the interest rate hike cycle was from June 2004 to July 2006, and the benchmark interest rate was raised from 1% to 5.25%).

At that time, the housing market bubble appeared, and the previous sharp interest rate cuts stimulated the US real estate bubble. In the second half of 2003, the economy recovered strongly and the rapid growth of demand led to rising inflation and core inflation.

In 2004, the Federal Reserve began to tighten its policies, raising interest rates by 25 basis points for 17 consecutive times. In June 2006, the benchmark interest rate rate had already been raised to 5.25%.

In a sense, it was also the Federal Reserve who continuously raised interest rates, which pierced the US real estate bubble and led to the outbreak of the subprime mortgage crisis.

It was not until the US subprime mortgage crisis turned into a global financial crisis that the Federal Reserve began to cut interest rates again to near zero.

Masaki Nakamori knows that crisis and crisis means that danger and opportunity coexist. As long as you grasp it well, you can resolve the crisis and become an opportunity.

Such a historic opportunity can accumulate the original capital that individuals need as quickly as possible. He has already chosen a goal, which is Lehman Brothers, the fourth largest investment bank in the United States.

Lehman Brothers' stock price will fall from its highest $86.18/share at the beginning of 2007 to its lowest $3.65/share on September 12, 2008.

Three days later, on September 15, 2008, Lehman Brothers suffered huge losses due to the subprime mortgage crisis and applied for bankruptcy protection, which also marked the official beginning of the global financial crisis. For this reason, of course, I had to short it.

Masaki Nakamori was an elite financial professional in his previous life, and he was extremely aware of the various risks of shorting a stock. Shorting is much more risky than longing.

As long as there is no leverage, in theory, long-term failure. Stocks are nothing more than delisting directly, with a price of up to 0, and no negative price will be generated.

I won’t have to pay any more money. There is no need to keep an eye on the rise and fall of the market all the time, for fear that I will lose my position when I am still sleeping.

If short selling fails, it will be completely different. In theory, stocks can rise infinitely, which means that short selling will lose money infinitely.

Even if you add a position, it will be useless. For example, if you buy a stock of a company for $10, as long as it rises to $20, the short seller will directly lose his position.

Even if it will fall in the future, it will have nothing to do with short sellers. During this period, you need to keep a close eye on it and be prepared to replenish your positions at any time.

Once leverage is added, if the increase is too large and even exceeds the margin given to the brokerage firm, not only will it be forced to close the position (usually reaching a certain critical point), and you will lose all of it, but you may also have to compensate for the part of the losses that the brokerage firm has suffered.

Even if there is no liquidation, as long as you add leverage from the brokerage firm, you will still have to pay dividends, handling fees or interest to the brokerage firm.

In developed capitalist countries, even if there is a circuit breaker mechanism, it is mainly to prevent stocks from falling sharply, and to give investors the so-called time to think calmly, but it is not specifically to prevent stocks from rising sharply.

Therefore, short selling will occur, and people are still sleeping. Not only will they lose their positions and have nothing, but they will also owe large personal debts.

Short-selling institutions do not care whether people sleep or not, or which country they are from, only money and greed for money are in their eyes.

They will also take advantage of the huge advantages of a certain time when the transaction on the stock exchange is inactive and the huge advantages of a large amount of funds in their hands to suddenly raise the stock price and artificially create a breaching move that will blew up others' positions, so as to achieve the purpose of obtaining huge returns.

It is normal for a stock in a developed capitalist country to double its rise in a trading day. Even if it is not leveraged and short, it can still make it lose its bottom.

The short selling mechanism has a theoretical greatest advantage, which is that it can prevent listed companies from falsely reporting performance and making false accounts to the greatest extent. Once caught or gain insight, it is extremely likely to become the target of being sniped by institutions short selling.

Even if Masaki Nakamori does not fully grasp the future rise and fall of Lehman Brothers, he will not know its general trend and final results.

In addition, there is a time difference between the Eastern Time and RB Tokyo time. I don’t want to focus all my energy on this matter day and night, after all, there are other things he needs to do.

Even if this is a crucial deal for him, there are other safer and more worry-free ways to make money away. He only needs to find RB, a well-known and well-known market maker.

You can buy a short option from a market maker in the next 20 months, Lehman Brothers' stock price will fall to below ten dollars.
Chapter completed!