The Bomb Of Subprime Mortgage Crisis Is Being Detonated.

Simon Black wrote in Bowen: in July 1, 2005, President George W. Bush's

The consultant told the media: "there is no basis for a nationwide decline in US house prices. Housing prices are expected to slow down or stabilize, and consumer spending may also slow down.

I do not think these will push the economy far away from the situation of full employment.

It is the Ben Bernanke who has been in the US for a year after that, and we all know that his views are wrong.

The US housing market collapsed after the outbreak of the subprime crisis, and the US and the global economy suffered from it.

When Margot Robbie Margot Robbie bubble bath in Oscar's best nominated movie "big short," explains why banks began to package risky mortgages into MBS.

Gosling (Ryan Gosling), a fictional character trader Jared Vennett, explains how securities are divided into different levels by using blocks game.

Their explanation in the film is simple, straightforward and easy to understand.

In short, investors everywhere crazily bet on seemingly no problem economic expectations, but then tragedy inevitably happened.

After the outbreak of the crisis, all kinds of tragic scenes are no longer tautology, but now subprime loans are back.

Recently, there are many discussions in the US financial circles about bubbles that stimulate car belt and student loans.

But this time, the biggest subprime bubble advocates are sovereign governments.

Governments around the world are selling zero interest sovereign debt, and many of them have gone bankrupt.

The Japanese government debt level is equivalent to 220% of GDP, while the BoJ is the latest monetary authority to join the negative interest rate family.

Yet even in Italy, a notorious European country, its government is selling negative rate bonds even at debt levels.

A negative interest rate bond means buying bonds to the government.

Instead, the government pays interest to the government. Once the bonds mature, the money that investors get will be smaller even on the books.

In other words, the government is making money for the action of borrowing money.

This is the same as ten years ago when subprime homeowners borrowed money from the absurd predictions of soaring housing prices.

The difference between the two is only in terms of scale. 10 years ago, when the housing bubble reached its peak in the US, the subprime market accounted for 1 trillion and 300 billion US dollars of the system system, which was enough to make some big banks fail. Now it has a government debt of eight times relative to 1 trillion and 300 billion dollars.

It may be repeating the same mistake - its size is $10 trillion and 400 billion.

In January 2016, the global negative interest rate government debt market totaled $5 trillion and 500 billion, reaching 1 in February after 1 months, and 9 trillion and 900 billion in May. Now it has reached 10 trillion and 400 billion again.

This huge sovereign bond bubble has doubled in the past few months.

This is not just a cause for future panic or the collapse of the financial system, but a rather disturbing trend. The explosion of the heavy explosive may be just a little bit of Mars.

Like most people in big short, the subprime crisis is so dangerous and obvious that it can not be aware of the crisis.