15: This boy is so talented.

Although Gu Wanzhou was a businesswoman, she was usually trapped in an information cocoon.

Hearing Li Zhiyan's words at this moment, she couldn't help but feel ignorant.

At the same time, she felt a little shocked.

This child seemed to know a lot.

Li Zhiyan helped Gu Wanzhou pick vegetables as he spoke, "The five major investment banks in the US refer to private investment banks: Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns."

"If Aunt Gu is a bit unfamiliar with investment banks..."

"I think Aunt Gu should know about HSBC Bank in Hong Kong; they offer a 10% deposit interest rate domestically."

"These investment banks were incredibly prominent in the US back then."

"Their economic influence had extended into every aspect of ordinary American life."

"However, under the global financial tsunami triggered by the subprime mortgage crisis..."

"In less than a year, most financial institutions couldn't hold on anymore."

"Among them, Merrill Lynch was acquired by Bank of America in 2008."

"Lehman Brothers has already collapsed."

"Bear Stearns also met a bad end, disappearing from history in 2008."

"Now, of the super investment banks, only Goldman Sachs and Morgan Stanley remain."

Li Zhiyan was somewhat impressed that he could remember these things so clearly; he thought it might be related to his rebirth and the significant enhancement of his memory.

"Auntie understands..."

"These super investment banks are private banks, and they use the bank's money to make various investments to earn money."

"But they collapsed during the subprime mortgage crisis."

"However, how is this related to rising housing prices?"

The more Gu Wanzhou looked at Li Zhiyan, the more she liked him, and she felt a deep regret that he wasn't her own son.

What a talented and outstanding young man he was!

"The full name of subprime is subprime mortgage."

"'Sub' here means low credit, low ability to repay debt."

"This is similar to our domestic credit system; people without stable jobs are labeled with low credit."

"It's basically impossible for them to get a loan from a bank."

Looking at Gu Wanzhou, whose eyes were filled with wonder, Li Zhiyan continued, "In the US, loans are a very common phenomenon because everyone likes to spend ahead of their means."

"For something as expensive as a house..."

"It can be said that it's basically all done through long-term loans."

Gu Wanzhou nodded gently, looking at the young man in front of her; she felt as if Li Zhiyan was a teacher instructing her in knowledge.

"However, the unemployment rate in the US is very high, and these people with unstable incomes are defined as subprime credit borrowers."

"Or simply, subprime borrowers."

"Regular banks are unwilling to lend to these people."

"Because they fear they won't be able to repay, subprime mortgages came into being."

"Since banks were unwilling to lend to these people, private banks provided loans by charging high interest rates."

"The returns from the subprime mortgage market were several times higher than bank loans."

"In this respect, it's somewhat similar to HSBC Bank."

Gu Wanzhou recalled that she had also sought a loan from HSBC Bank before.

The interest rate reached a staggering 30% per year, which was essentially usury.

"Due to the rapid increase in housing prices..."

"Many subprime borrowers in the US followed the trend."

"Taking out loans to buy houses."

"Before 2006, the US real estate market was in a state of continuous prosperity."

"And interest rates were particularly low at that time."

"So the subprime mortgage market developed rapidly."

"However, the US subprime mortgage market adopted a combination of fixed and floating interest rates."

"The interest rate repaid in the first few years was a fixed low rate."

"After a few years, the interest on the loan would be repaid according to changes in interest rates."

"After 2006, with the cooling of the US real estate market and the increase in floating interest rates..."

"The repayment rates for subprime loans also rose sharply."

"These subprime borrowers already had weak financial capabilities, and in this situation, large numbers of homebuyers couldn't afford their loans."

"So they could only default."

"And after banks repossessed the houses, there was no one to take them over, leading to a vicious cycle."

"A financial storm began in 2007 and completely erupted in 2008."

"The US government could only print money limitlessly to rescue the market."

"And because of the Bretton Woods system formed after World War II, the US completely pushed all this printed money to the entire world."

"Making people all over the world pay for the US."

In reality, Li Zhiyan didn't understand it either.

However, as someone who could foresee future trends, he could be considered a prophet, so whatever he said was correct.

Li Zhiyan's nonchalant manner when discussing the financial crisis made her heart inexplicably beat faster; this child, how did he know everything?

When he was telling her these things, he was inexplicably handsome.

Talented men are indeed very attractive.

"So, under the US's unrestrained money printing in 2008..."

"We also experienced a wave of massive monetary easing here."

"After this money entered the market..."

"It didn't flow into other industries but was locked into real estate."

"This way, it could ensure that prices wouldn't skyrocket."

"Real estate is our reservoir."

"Ensuring that these additional issued currencies do not enter market circulation."

Li Zhiyan didn't quite understand these things, so he just made some things up next.

Anyway, as long as the result was correct, it was fine.

Gu Wanzhou listened, feeling a bit bewildered, but she had been completely convinced by Li Zhiyan.

This child, who could self-learn computer programming at 18, was indeed different from ordinary people!

"So, for many years to come, I predict that housing prices will continue to rise."

"If you buy a house now, pay a down payment, and you can earn a lot of money later."

Looking at Li Zhiyan, who was still helping her pick vegetables, Gu Wanzhou felt her heart beating faster and faster.

It seemed her hormones had begun to secrete and flow.

Was this the feeling of being smitten?

Thinking about Li Zhiyan's lengthy discourse just now, her heart couldn't calm down.

"My Guaiguai, Auntie really didn't expect you to know so much."

"What you just said makes a lot of sense; Auntie has decided to buy another house."

After patting Li Zhiyan's head, Gu Wanzhou continued to ask, "Auntie just wanted to ask you, would you be willing to be Auntie's godson?"

"Auntie will cherish you like a mother from now on."

Li Zhiyan felt a bit helpless; after being reborn, Yu Sisi's biological mother wanted to be his mother.

Liu Zifeng's biological mother also wanted to be his mother; it was truly incredible.