Take a look at that picture, from the "Chinese version of CDS is coming" news. Does it feel familiar when you see this? Just like after Huaguo Mountain was hit by a flood, Tang Seng asked Wukong how many monkeys died. Every time the answer was always wrong and he always wanted to change the subject. The bubble in real estate must be removed. Without CDS, the U.S. housing market will burst. I just don’t know if it will continue to rise and hit even worse, or it will slowly land like a mosquito and slowly absorb the blood of the people. In short, CDS is not the reason for the bursting of the housing market bubble. On the contrary, it discovered the value in advance and wanted to prevent the morbid skyrocketing. It's just that in this crisis you can't blame people for picking up house prices, banks for selling junk securities unscrupulously, and the government for being unregulated, so poor CDS became a scapegoat for those "critics" . It's like "a beautiful woman is exposed by QJ and you accuse the woman of wearing it", a tool for discovering value and resisting risk has become the culprit in the mouth of Chinese "experts", which is really ridiculous.
Regarding the housing market, any country will fall into such a cycle, just don't know when it will happen, at that time, are you and I right in the center of the whirlpool.
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