Reborn: Instead of Chasing the School Beauty, I Chased Her Mother

Chapter 15: 015 This kid, so talented

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Gu Wanzhou, though a businesswoman,

found herself frequtly snared in an echo chamber of information.

At this momt, after hearing what Li Zhiyan had to say, she couldn't help but feel ignorant.

She was also somewhat shak by it.

It seemed that this child knew a great deal.

As Li Zhiyan helped Gu Wanzhou with picking vegetables,

he spoke, "The Big Five investmt banks in America refer to private investmt banks, namely Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns."

"If Aunt Gu finds investmt banking a bit unfamiliar,"

"you might be aware of HSBC on Hong Kong Island, where they offer domestic deposit interest rates at t perct."

"These banks were once at the height of their glory in America."

"Their economic domains had extded into every aspect of the lives of ordinary Americans."

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

"within less than a year, most financial institutions couldn't hold out."

"Among them, Merrill Lynch was acquired by Bank of America in 008."

"Lehman Brothers has already collapsed."

"The fate of Bear Stearns was not much better, disappearing into history that same year, 008."

"Now, the only super investmt banks left are esstially Goldman Sachs and Morgan Stanley."

Li Zhiyan was somewhat impressed with himself for remembering these things so clearly; he thought that it might be related to his hanced memory after coming back to life.

"Auntie understands now…"

"These super investmt banks are private banks, and they use the bank's money to make various investmts to make money."

"But they collapsed under the subprime crisis."

"However, does this have anything to do with the rise in house prices?"

Gu Wanzhou found herself growing fonder of Li Zhiyan by the momt and inwardly regretted that he wasn't her own son.

What a talted and outstanding young man.

"Subprime dotes loans that are of inferior credit quality,"

"meaning 'subprime' relates to low credit and weak ability to repay debts."

"This is similar to the credit scoring system in our country where people without stable jobs are tagged with a low credit rating."

"Those people are basically impossible to ld to by banks."

Seeing the awe in Gu Wanzhou's eyes,

Li Zhiyan continued, "In America, loans are a very common occurrce because everyone likes to consume beyond their means."

"For something as expsive as a house,"

"it is normally bought through long-term loans."

Gu Wanzhou nodded lightly, looking at the child before her; she felt as if Li Zhiyan was a teacher imparting knowledge to her.

"However, with a high unemploymt rate in America, these unstable earners are defined as subprime borrowers,"

"also known as subprime loan recipits."

"Regular banks are reluctant to extd credit to these people,"

"fearing they won't be able to pay back, thus giving rise to subprime mortgage lding."

"Since banks are unwilling to loan to these individuals, private banks offer loans by charging high interest rates."

"The returns from the subprime mortgage market are several times higher than the bank's loan interest rates."

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

Gu Wanzhou recalled that she too had sought loans from HSBC in the past.

The interest was as much as thirty perct a year, esstially usury.

"Due to the quick rise in house prices,"

"many American stimulus loan recipits just follow the trd,"

"borrowing money to buy houses."

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"Before 006, America's real estate was in a state of continuous boom,"

"and at that time, interest rates were particularly low."

"As a result, the subprime mortgage market was rapidly developing."

"However, America's stimulus for the mortgage market used a combination of fixed and adjustable rates."

"The interest rates for the initial years of repaymt were fixed at a low rate."

"Years later, the loan interest was repaid based on changes in the interest rate."

"After 006, as America's real estate market cooled and adjustable rates increased,"

"the repaymt rates for subprime loans also rose significantly."

"Many of these subprime borrowers were economically weak to begin with, and under these circumstances, hordes of homebuyers couldn't afford their loans."

"So they had no choice but to default."

"After the banks took back the houses, they found no buyers, leading to a vicious cycle."

"A financial crisis began in 007 and totally exploded in 008."

"The American governmt had no choice but to print money without limit to save the market."

"And due to the Bretton Woods system established after World War II, America pushed all this newly printed money to the tire world."

"Making people all over the world pay for America's actions."

Actually, Li Zhiyan didn't understand either.

But, knowing future trds, he could be considered a prophet, so whatever he said was right."

Li Zhiyan discussed the financial crisis with an air of nonchalance.

My heartbeat inexplicably quicked. How does this kid know everything? Wh he talks about these things, he inexplicably looks a bit handsome.

Talted m are indeed attractive.

"So, under America's unrestrained money printing in 008,"

"we also expericed a significant flood of liquidity."

"After this money tered the market,"

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

"Only in this way could they sure that prices wouldn't skyrocket."

"Real estate is our reservoir."

"It sures that the newly issued currcy doesn't circulate in the market."

Li Zhiyan didn't quite understand these things, so he wt on to talk nonsse.

As long as the outcome was right, that was all that mattered.

Gu Wanzhou listed from the side, somewhat confused, but she was completely convinced by Li Zhiyan.

This kid could self-learn computer programming at 8.

He really was differt from ordinary people!

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

"If you buy a house now, with a down paymt, you can make a lot of money in the future."

Looking at Li Zhiyan in front of me, still helping with the vegetables,

I felt my heartbeat quick ev more.

My hormones seemed to start flowing.

Is this the feeling of being smitt?

Thinking back to Li Zhiyan's long speech, my heart just couldn't settle down.

"Little Darling, Auntie really didn't expect you to know so much."

"What you said earlier makes a lot of sse; I've decided to buy another house."

After patting Li Zhiyan's head,

Gu Wanzhou continued, "Auntie wanted to ask you, would you be willing to be my godson?"

"In the future, Auntie will cherish you just like a mother would."

Li Zhiyan felt somewhat helpless. How come after being reborn, both Yu Sisi's real mom and Liu Zifg's real mom wanted to be his mother; it was absurd.