Free Web NovelChapter 15: Lecturing The Horny Lady
Victoria was a capable businesswoman, yet she often found herself trapped in an information cocoon.
Hearing Liam’s detailed explanation left her feeling both ignorant and deeply impressed. At the same time, a wave of shock washed over her. This young man seemed to know so much.
Liam helped Victoria pick vegetables, his voice steady and confident as he continued. "The five major investment banks in the United States refer to private investment banks: Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns.
If Victoria is somewhat unfamiliar with investment banking, I think you should know about Citibank in London.
They offer high interest on deposits. These investment banks were incredibly powerful in the United States at the time.
Their economic influence extended into every aspect of ordinary Americans’ lives. However, this was in the wake of the global financial tsunami triggered by the subprime crisis. In less than a year, most financial institutions could not withstand the pressure.
Among them, Merrill Lynch was acquired by Bank of America in 2008. Lehman Brothers has gone bankrupt. Bear Stearns also met a bad end, disappearing into history in 2008. Now, the only real super investment banks left are Goldman Sachs and Morgan Stanley."
Liam felt a quiet satisfaction at how clearly he remembered these details.
His enhanced memory since rebirth was proving very useful. He stayed calculative, feeding Victoria just enough information to impress her without revealing too much.
"I understands...
These mega-investment banks are private banks. They use the bank’s money to make various investments to generate profits. But they went bankrupt during the subprime crisis. However, is this related to rising housing prices?"
Victoria grew to like Liam more and more the longer she looked at him. She felt a pang of regret, wishing he were her own son. What a talented and outstanding young man.
As she watched him work beside her with such focus, a strange warmth spread through her body. His calm intelligence was strangely attractive.
"Subprime mortgages are short for subprime mortgages. The term ’subprime’ means low credit and low debt repayment ability. This is similar to the credit system in China,
where people without stable jobs are labeled as having low credit. It’s basically impossible to get a loan from a bank." Liam glanced at Victoria, noting the admiration in her eyes.
He continued smoothly, "In the United States, loans are a very common phenomenon because everyone likes to overspend. Houses are very expensive things. It can be said that they are basically all through long-term loans."
Victoria nodded gently,
looking at the young man in front of her. She felt as if Liam was a teacher guiding her. His composed demeanor and sharp mind made her heart beat a little faster. Hormones seemed to stir inside her as she imagined those clever hands later massaging her tired body.
"However, the unemployment rate in the United States is very high, and these people with unstable incomes are defined as subprime borrowers.
Regular banks are unwilling to lend to these people. Because of the fear that they wouldn’t be able to repay, subprime mortgages came into being.
Because banks are unwilling to lend to these people, private banks resort to charging high interest rates. Come and provide loans to these people.
The returns in the subprime mortgage market are several times higher than those of bank loans. In this respect, it is somewhat similar to Citibank."
Victoria recalled that she had previously applied for a loan from Citibank. The interest rate had reached a full thirty percent per year, which was basically usury.
"Because of the rapid rise in housing prices, so many stimulus lenders in the United States just followed the crowd. Buying a house with a loan. Prior to 2006, the U.S. real estate market was in a state of sustained prosperity.
And the interest rates were particularly low at the time. Therefore, the subprime mortgage market developed rapidly. However, the US is stimulating the mortgage market by using a combination of fixed and floating interest rates.
The interest rate for repayment in the first few years is a fixed low rate. Interest on the loan will be repaid several years later based on changes in interest rates.
After 2006, with the cooling of the US real estate market and the increase of floating interest rates, the interest rates on subprime loans are also rising sharply.
These subprime borrowers already had very weak financial capabilities, and under these circumstances, a large number of homebuyers were unable to repay their loans. Therefore, the only option is to cut off the supply.
After the banks foreclosed on the houses, no one was willing to buy them, leading to a vicious cycle. A financial storm began in 2007 and completely collapsed in 2008."
"The US government can only print money without limit to save the market. And because of the global monetary system that was established after World War II, the United States completely distributed these printed money to the whole world.
Making the whole world pay for America’s mistakes."
Liam spoke of the financial crisis with calculated nonchalance. In truth, he did not understand every detail perfectly, but his foresight into future trends made him sound like a prophet.
Whatever he said carried weight. His heart beat a little faster as he noticed Victoria’s intense gaze. She’s looking at me like that... Good. Let her desire build.
Victoria listened from the side, somewhat confused but completely convinced by Liam’s confidence.
This kid had taught himself computer programming at eighteen. He was definitely different from most people. As she watched him, her pulse quickened. His voice, his knowledge, the way his hands moved while helping her it all stirred something deep and forbidden inside her. Talented men are indeed very attractive.
"Therefore, I predict that housing prices will continue to rise for many years to come. If you buy a house now and make a down payment, you can make a lot of money in the future."
Looking at Liam, who was still helping her pick vegetables, Victoria felt her heart beating faster and faster. Hormones seemed to surge through her. Is this... the feeling of being moved? Thinking about his long, intelligent speech, she could not calm down.
A warm flush crept up her neck as she imagined those same clever hands later exploring her body during the massage.
Liam , I really didn’t expect you to know so much. What you said makes a lot of sense. I has decided to buy another house."
Liam felt somewhat helpless inside.
Yet outwardly he remained calm and calculative, already planning how to turn this whole thing into something far more intimate and dominant during the upcoming massage.
Everything was proceeding according to his strategy.
