Hamilton’s words caused a moment of silence on the other end of the phone.
“Mr. President, I have already written the relevant report and I will send it to your email immediately. Please approve and put in your comments after you review it with your team.”
Hamilton‘s words brought the president on the other end of the phone back to his senses.
“Okay, I look forward to your report.”
After favonovel.com finished speaking, favonovel.com hung up the phone. Hamilton sat next to the computer in excitement and sent an email from the encrypted USB flash drive to the business e-mail of the president in Washington. Hamilton knew that if this went smoothly, this report would be classified as top secret and would be kept permanently under wraps.
As the initiator of this report, Hamilton felt a sense of accomplishment from participating in a major historical process.
Facing the current tense domestic economic situation, Washington had obviously raised the priority of this report to the highest level.
Hamilton only waited for an hour before favonovel.com received an official notice.
Approved!
That word perked Hamilton up. He immediately contacted his partner, Greenspaner. “Washington has passed our report and we can start at any time.”
Hamilton’s words did not surprise Greenspaner too much.
No one knew the economic system and economic rules of the United States better than him. This idea was proposed by him, so favonovel.com was confident that Washington would pass it.
“Those people from Somerland need to be taught a lesson to let them understand who has the final say in this world.”
Greenspaner said to Hamilton.
“However, we need some time to prepare before entering Somarland’s financial market. Before that, we must maintain the subprime market so that it does not collapse too much.”
“I heard that Layman is already looking for investors to acquire them, and we can manipulate this. We have to find a way to facilitate this transaction and at least help them find a good buyer. In this way, the blow on Wall Street capital from the crisis this time will be greatly reduced.”
“In addition to this, in terms of policy, I am considering exempting 70% of the interest on housing loans across the federal government. The most important item in the subprime market is the housing credit loan trust. If we exempt interest, it will be a benign stimulus to the real estate market, so that people will not be burdened with debt pressure that might ward off interest.”
Hamilton nodded as favonovel.com listened.
However, when favonovel.com heard about the 70% interest exemption, favonovel.com frowned slightly and said, “Isn’t this ratio too large? If such a heavy burden is transferred from the people to the banks, many banks may go bankrupt.”
“Then so be it.”
Greenspaner spread his hands and said, “Who said that the bank can’t go bankrupt?”
“Those small and medium-sized banks can’t contribute much to the federal government. If they go bankrupt, then so be it. After all, in a financial crisis, there will be sacrifices. Who cares whether they live or die?”
“The problem is that once banks go bankrupt on a large scale, it will lead to the collapse of the bank’s credit system, then, the interests of a large number of depositors will be impaired. Furthermore, banks, as the main distributing body of loans, will inevitably lead to large-scale personal loan defaults throughout society if they fail. It will be very serious.” Hamilton still hesitated.
“That’s why Layman can’t collapse.”
Greenspaner’s thin and sunken eye sockets glimmered terrifyingly. He said, “We need to find a rich and affluent buyer for Layman, preferably someone for Somerland. Aren’t they the most willing to acquire large assets to show how rich and powerful they are so that they can squeeze into the world’s richest circle?”
“Hence, we’ll sell Layman to them as the world’s fourth-largest investment bank. That’s enough for them, right? of course, one of the conditions is that they must provide an insurance contract, that is, if small banks and medium-sized banks fail on a large scale, they will be responsible to provide a backstop.”
Hamilton replied in horror, “Why would they agree to this condition? Unless they are crazy, this is a loss of at least tens of billions of dollars!”
Greenspaner chuckled, “But only you and I know what will happen in the future, no? The buyer doesn’t know.”
Hamilton savored it carefully, then looked at Greenspaner in admiration. He said, “All we have to do is dig this big hole and let those who are ready to buy Layman jump in.”
“Whoever jumps will die, so it’s best if this buyer is from Somerland. Of course, if no Somerland capital is willing to enter, we won’t force it, whoever has the money can be responsible.” Greenspaner smiled and said.
At this time, an assistant came in and told the two that the subprime market had fallen again, and it had fallen below its lowest point in the past three years. The two looked at each other and smiled. They were not as tense and irritable as they were before. Instead, they looked carefree and calm.
Two hours later, the Federal Reserve issued a joint announcement with the United States Department of the Treasury.
“First, we announce that 70% of interest will be exempted for all housing loans in all our federal territories.”
“Second, we’ll comprehensively relax the access restrictions on the subprime market and welcome investors, big and small, as well as institutions, to invest.”
“Third, we’ll urge Congress to pass a tax bill to reduce taxes by 10% for companies in the real estate industry.”
When Jake reported the news, Jasper was drinking tea with the little prince and Lord Alvarado. The two had just arrived in Nauritus City. As the host, Jasper naturally wanted to receive them properly.
“Hmm, not bad, but they are a bit rash.”
Jasper put down his teacup and laughed. “The second one is just rubbish and the third one is basically useless. The political system means that even if the Federal Congress passes this bill, the following state capitals and state assemblies will most likely not implement it because it will affect the income of the state government.”
“But the first one is pretty interesting.”
Jasper looked at the little prince and Lord Alvarado.
Then, favonovel.com said relaxedly, “The crisis this time will be detonated no matter what. No one can stop it from happening.”
The little prince and Lord Alvarado looked at each other. They both saw the excitement in each other’s eyes.
“There is finally some good news after such a long time. When can we start exploiting them?”
As the main short-selling institution, JW Capital’s profits in this round’s subprime market crash were sky-high.
“Not yet. The best time to do that is when the storm has complete swept across the United States. To be honest, it’s almost impossible for them to make up for the previous deficit now.”
Jasper narrowed his eyes slightly and said meaningfully, “What’s more, we still haven’t brought out our two big bombs.”
