There are punches all around the body, where to strike.
It’s the first day of Labor Day, and no matter how unsatisfactory the holiday is, this is always a time to celebrate the glory of labor.
However, the word “labor” has suddenly become the label of “loser” in the eyes of many people (such as Zheng Shuang), and “brain-damaged” in the eyes of many people, more than the “deep room theory” that Master He is going to talk about today. The “deep house” is the name of the “deep house”.
What is the “deep house”?
Simply put, ta is a network V start, and then made a lot of members of the APP, ta to members of the welcome word is.
Labor can not get rich, do not work to get financial freedom, with the bank’s money, to fulfill their dreams.
The business of this big V, is to take the “poor” speculation in real estate.
Yes, you read it right, actually “poor” speculation group, speculation is more than 100,000 per square meter of luxury housing in Shenzhen, not their hometown county “seaview houses.
How did they do it? It is “believe in the total, get eternal life”.
The “General Manager” of the Shenzhen Housing Management, will be a one-stop “help you” to do all kinds of fraudulent procedures, including but not limited to: falsify the purchase of housing qualifications, fraudulent business loans, and then repeatedly raise funds repeatedly loans, and even create their own class stock exchange –In short, ta can handle a fully licensed financial holding company’s business scope alone – and all can be faked!
What’s more, he also invented a game called “crowdfunding to buy a house”. You do not have money? It’s okay, I split a house into dozens of copies, everyone one out of 100,000 yuan into the shares, the house to buy down.
The country said, housing is not speculation, the reason always said, housing speculation can not. Want to have some fun?
In fact, the real body of the “deep housing theory” is actually the master of copying homework, in the inheritance of the U.S. subprime crisis of the play, after iterating more “innovation”, of course, if you let this play popular, China’s version of the subprime crisis, not only not far, and will be more intense.
The property market bubble has never been so frightening as it is now.
“Buy a suite and end up being skinned”
As early as May 2020, the deep house was in the hot search because of a report.
The company’s main business is to provide a wide range of products and services to the market.
In 2019, Wei Jing stumbled upon Shen Fangli on Weibo and was brainwashed by his prophecy that “Shenzhen house prices are about to rise”, and got the idea of going to Shenzhen to speculate on housing for her retirement. She paid a membership fee of 12,780 yuan to join the Shenzhen Housing Management “house speculation group”.
Wei Jing looked at, is located in Shenzhen Qianhai a small 49 square meters, the total price of 7.28 million, the unit price up to 148,000.
In the eyes of ordinary people, can buy a single house price of 150,000 people, must be rich people, right? In fact, Wei Jing borrowed friends and relatives, the hands are only more than 2 million, and at the age of 48, the future cash flow is extremely unstable, I am afraid that this life can not pay back the loan.
But this is exactly the way the deep housing theory strongly advocates: not to take out all the savings to buy a house, but to take out all the savings to make a down payment. The rest is to wait for the price to skyrocket, looking for the next receiver to cash in.
In the next few months, the deep house team staff for neither the Shenzhen home purchase qualification, nor enough money Wei Jing, designed a complete set of fraudulent home purchase program – fake marriage, do fake company fake social security, small loan company advances, set up business loans.
The first two steps alone falsify the eligibility to buy a house, Wei Jing spent tens of thousands of dollars.
Next, Wei Jing emptied all the wallets around him, took out 2.92 million down payment, the remaining 4.36 million all rely on small loan companies to match the funds.
In order to facilitate understanding, Master He first to explain the business loan to buy a house set. Compared with a normal mortgage to buy a house, business loans are a very treacherous path.
To buy a house normally, we only need to make a down payment and the bank will call the seller directly with the rest of the money. However, if you want to use the business loan, you must first find various gray channels to borrow money to get the full amount to buy a house, and then mortgage the house to get the business loan and return the loan. These gray channels, the interest rate is extremely high, once the subsequent cheating business loans, the consequences are unimaginable.
The company’s main goal is to provide the best possible service to its customers. The only way Wei Jing could return this debt was to apply for a business loan as soon as possible.
Unfortunately, Shenzhen just at this time tightened the regulation of business loans, Wei Jing’s capital chain, was mercilessly destroyed.
Eventually, Wei Jing’s house was listed on the court auction platform and sold for a reserve price of 6.6 million. At this point from her loan to buy a house has passed a full six months, the worst case scenario, the small loan company advances with interest has accumulated to 5.14 million. I do not know how much of the sale price will be left in Wei Jing’s hands.
Afterwards, Wei Jing described his experience: “bought a suite, and finally was stripped of a layer of skin.”
Specially pitted poor speculation V
After the incident caught fire, people found a surprising fact – in the deep house of the customers, divorced women actually accounted for the majority, and many are single mothers with young children.
How did an ordinary-looking middle-aged man become a “woman killer”? This is to mention another micro-blogger, “beautiful mother Chen Xiaoquan”.
Sometimes, the world is so ironic, claiming to be the “son of a farmer” Simba, specializing in the sinking market of peasant origin, while the self-proclaimed “beauty mother” netizens, often the most able to pit a variety of mothers.
The actual “beauty mom Chen Xiaoquan” is originally a parenting V with nearly 500,000 fans, her self-introduction is: “Master of Peking University, from childhood every day to play the school bully, the city’s first high school exam the city’s second, microblogging Montessori education first IP, 150 Montessori (a child-rearing method) co-founder “.
On Weibo, “beautiful mother Chen Xiaoquan” also often show off their wealth status, “from 1 million to 20 million”, and said this trick is with the deep house science.
With the persona of an independent woman, the fans of “Beauty Mom Chen Xiaoquan” are many older single women, divorced women and single mothers. They are either emotionally frustrated or economically distressed, not looking for a way to raise their children into Tsinghua University, but just looking for a way to raise their children successfully and find a light of hope for their bleak lives.
The hope given to them by “beautiful mother Chen Xiaoquan” is to speculate on real estate. If you want to speculate in real estate, you have to buy a membership of Shamrock.
The introduction of the members of the deep house is just like what Master Ho said in the beginning: labor can not get rich, do not work to get financial freedom, using the bank’s money, to fulfill their own dreams.
In this way, the “women’s real estate speculation group” of Shenzhen Housing Management is getting bigger and bigger, with 1.4 million followers on Weibo, and thousands of people came from all over the country to attend the offline meeting last November. According to the chat logs of the Deep House members’ group exposed so far, the total number of its members may be as many as 5,000, with membership fees starting at 3,980 yuan, and “cradle membership” dues of up to 9,000 yuan.
The deep house without speculation, just to collect membership fees can receive tens of millions of fear.
This is not the only means of enrichment, in the membership group, he also vigorously promote a concept called “Pareto”.
Pareto
“Pareto optimal”, originally a decent economic concept, meaning that we combine their resources reasonably, in the premise that no one’s interests are damaged, at least one person’s interests expand. Simply put: the cake gets bigger.
In the hands of Shamrock, “Pareto” is played as illegal fund raising.
According to his design, members can put their free money into a pool of money called “Pareto” and get a daily interest rate of about four ten thousandths of a percentage point in return; Shamrock takes the money and lends it to people who need to buy a house, and the daily interest rate on the loan is six ten thousandths of a percentage point. This in and out, the deep house to eat the difference of two million.
The discerning eye can see that he opened his own “deep housing theory gold service”.
To master He said, this is not called Pareto, it is called the Matthew effect, the rich get richer, the poor are more poor.
In the deep house members, like “7 crab sister” Wei Jing, can pay for nearly 3 million down payment, already considered rich people. How can the poor who can’t get a down payment speculate on real estate? The deep house has invented another way to play – “crowdfunding to buy houses”.
Members each pay 100,000, 200,000, dozens of people together, the 10 million mansion to buy down. The house is listed in the name of one person to hold, after a few years sold, the money earned by everyone proportional share.
In professional terminology, this play is called property securitization, he is equivalent to the establishment of a real estate trust investment funds (REITs). According to Chinese law, individuals are never allowed to set up and participate in this kind of investment.
To explain it more plainly, the so-called “crowdfunding to buy a house” is actually turning a house into a stock, and buying a house into a speculation.
The company has even put a “share hall” on line in the WeChat app, where members can trade their shares with each other.
This wave operation, is their own and opened a stock exchange ah.
So you see, the scope of business of the “Shenzhen Housing Finance Service” is actually much larger than the “Ant Gold Service”, ta even stock IPO underwriting, stock trading, financing and financing, etc. are all wrapped up!
But the problem is, the creation of this gold service is based on a group of single mothers who have no savings, no income but bought a luxury house, and then be lured to repeatedly add leverage to speculate in real estate and stocks, what will be waiting for them to end up?
Not only will they end up miserable, but Master He feels that the worst is that the entire Chinese society has been dragged into a financial tsunami similar to the U.S. subprime mortgage crisis, with feet in the mud and unable to extricate themselves.
The garden version of the “subprime mortgage crisis”
How did the 2008 U.S. version of the “subprime crisis” come about? The reasons are complex, but there are three consensus is certain.
First, after Greenspan took charge of the Federal Reserve, the U.S. began to issue a sky-high amount of money, and after 2001, the U.S. benchmark interest rate quickly fell from 6.5% to 1.75%, and significantly relaxed the mortgage threshold, the down payment ratio of only 5%-20%.
Secondly, the financial mix and the corresponding relaxation of regulatory regulations led to the unprecedented power of Wall Street, so big that the financial leverage could not be controlled. 2003, President George W. Bush Jr. signed an extremely great name “American Dream Downpayment Act”, requiring the government to pay $200 million a year to 40,000 poor people who could not afford to buy a home for a down payment subsidy of 6% of the price. This way, many people can even make zero down payment on a home.
The mortgage application your landlord filled out in the dog’s name?
Finally, greed. The rise in housing prices has made the logic of leverage – down payment on a house – rising home prices – harvesting a national consensus. At a time when home prices are rising the fastest, it would be politically incorrect for anyone to raise questions about the risk of the poor buying a home, or even to do so. Poor people, addicts, and illegal immigrants who would never have bought a home in their lifetime were saddled with high mortgage payments. The U.S. banks knew that their credit ratings were so bad that they gave these loans a name, “subprime”.
The banks themselves of course know that the matter is very suspenseful, so the wizards of Wall Street came up with a way to securitize the debt, cut these debts into small portions, can eat interest every month, and then marketed to others to take over.
This game, is not very similar to the “crowdfunding to buy a house” of the deep housing theory? The bank is equivalent to the property holder, and the buyer is a member of the crowdfunding.
To trick people into taking over, you have to make them believe. The company’s members have been promised that they will take more than 30 suites under their names as a guarantee, and once the members have lost money in speculation, they will be compensated out of their own pockets.
In fact, this trick is also the rest of the American play.
When the United States subprime loans to take over, are Wall Street financial elite, of course, also know the risks. The reason why they still dare to take over, because a financial derivative called CDS.
CDS (Credit Default Swap), translated into Chinese called “credit default swap”, a simple understanding, is to buy an insurance policy for subprime loans, if the subprime loan default, there will be insurance companies to compensate buyers for losses. This is much more powerful than the personal guarantee of the deep house.
Instead of being a firewall, the CDS became a crisis trigger. Everyone believed that CDS made subprime loans risk-free, so they continued to ramp up, and the size of both subprime loans and CDS ballooned dramatically.
According to Bloomberg, the size of U.S. CDS increased 100-fold in the decade from 1998 to 2008, with the CDS stock reaching $33 trillion-$47 trillion as of November 2008.
When the real estate bubble finally burst, the entire U.S. insurance companies combined could not pocket the huge CDS losses. AIG, the largest insurance company in the United States, lost $99.3 billion in 2008, the market value shrunk from $190 billion to $1.75 billion, if not the U.S. government forced to renew, would have gone bankrupt.
So when you hear “subprime mortgage”, take it as Xiang
AIG can not do the guarantee, rely on his 30 suites, can guarantee?
The Chinese have not experienced the subprime crisis, but just look at the stock market in 2015 to know how powerful the financial leverage. When the tsunami comes, the “national team” can not save you.
What’s even more frightening is that if you let the big V’s like Shen Fangli continue to advocate rising home prices and provide “crowdfunding to buy homes” channels, more and more poor people will join the luxury speculation, triggering a Chinese garden version of the sub-prime crisis, the consequences will be even more serious than the original version.
This is not sensationalism. In the U.S. subprime crisis, the “crowdfunding” is at least involved in the formal financial institutions, the means is unreasonable but legal. Even if the house prices plummeted, the house as a real asset, the ownership is still in their hands. They can stop the loss and liquidate to recover a little cost, or wait for the government to stimulate the economy and bleed back in the next cycle of rising prices.
However, the “crowdfunding to buy houses” engaged in by SZFH, in which people are asked to hold the properties on their behalf, is illegal from the beginning to the end. The investors are suspected of fraudulently purchasing the property, and the people holding the property are suspected of fraudulently obtaining bank loans, and the government or the bank will take the house back, and the investors will lose all their money.
The above is from an individual’s point of view, but if you stand in the country’s point of view, the situation China faces is equally sinister. In China, the vast majority of those who can issue mortgages are state-owned banks, and ultimately, it is the entire national financial system that pays the bills.
Bankers know that the government will help them out with taxpayer money!
The biggest feature of the U.S. financial system is the “mint tax” that comes with enjoying a position of political hegemony. Once the domestic financial crisis, the U.S. government can rely on unlimited spreading of money to bail out the market, while using the dollar exchange rate changes to transfer the crisis to foreign countries.
So we see, the United States a crisis, Argentina, Greece on bankruptcy, Europe “five pigs” social unrest and economic depression, until today, this effect is still continuing.
The Chinese financial system does not have this privilege, all the consequences are borne by the country.
Conclusion
Master He’s specialty is to attack various ugly phenomena in the economic field, combined with some common sense principles, hoping to let the readers’ fans to make their own life decisions as rationally as possible.
In the communication with readers, from time to time, you can hear a feedback: *** this behavior is free, why can not wait until the results are out, society will naturally sanction ***.
Lao He wants to say is that this is a primitive “good reward for good and evil” thinking based on “Qingtian Da Lao”, in today’s society, is not feasible. (Actually, it didn’t work in ancient times, and it’s even more obvious today.
Another analogy, a group of hosts to a release from prison to celebrate his birthday, it does not sound too problematic, many people are saying that the release from prison is not a bad person. In fact, this argument is wrong. To judge the impact of a person on the public order and morals of society, you have to listen to his or her speech and observe his or her behavior.
There are people who have been rehabilitated and have been dedicated to social welfare and patriotism, so we can certainly accept them back into society.
However, this person is still proud to say “do not forget the original intention, I am me, I am back”. At this time, as the public image of society, the hosts collectively on stage for its endorsement, is “evil”.
Back to today’s topic: deep housing and the subprime mortgage crisis.
In the United States in 2008, the subprime mortgage crisis has been on the verge of occurrence, but Wall Street executives do not take it seriously, they still shouted “respect the laws of the capitalist market. What law? The law in their eyes is that the bubble can continue to blow up if it doesn’t burst, and individuals can take commissions from the financial products sold, that is, “I don’t care about the floods after I die”.
The issuance and pricing of financial products is completely “free” and should not be regulated. This stinking logic must not spread to China.
A large group of people, represented by Deep House, believe that the value created by the hard work of the real economy is not worth promoting, and as long as they bet on financial products to bet on housing prices and kidnap the financial system and the state treasury, housing prices will definitely rise without limit.
The big V’s who promote this logic are receiving commissions and membership fees, and they are pushing people who are not rich into the abyss of debt with one hand, and pulling out a handful of bloody silver from their pockets with the other.
Will Shenzhen’s housing prices continue to rise? It’s hard to say. Lao He will do an explanation from the technical level in the next update, the full text is relatively obscure, not as cool as today’s update, but written very seriously, I hope fans can be patient.
The most important thing is that, regardless of whether housing prices will rise or not, this infinite pile of leverage, this thinking of getting something for nothing, is what we as a society must put an end to. Otherwise, the bubble will definitely burst, China does not have the right to mint money taxation in the United States style, the evil will ruin the efforts of two whole generations!
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