I'm back in 1990

Chapter 844: Exclusive Interview

As soon as I arrived at the office, someone came to report to Gao Song that there was a very important interview scheduled for today. The other party's team and reporters were already in place, just waiting to begin.

"Understood!" Gao Song waved his hand to dismiss his subordinate, then turned around and went to report the matter to his boss.

"Mr. Huang! The reporter from CNBC has arrived. When would you like to begin?"

Huang Xiaochuan raised his hand to check the time: "Ten minutes from now, in this office."

"Okay!" Gao Song immediately made the arrangements.

Before long, more than a dozen people were busy setting up and installing interview equipment in the office. However, the office was so big that even with more than a dozen people, it still felt very empty.

Huang Xiaochuan stood by the window, holding a cup of tea, overlooking the city view.

This interview was part of his overall plan; he wanted to clearly express his speculations and predictions to the market, contributing his own small part to the impending collapse of the financial market.

Moreover, this interview was not requested by the interviewer. Rather, it was because the Hong Kong Economic Research Institute had published several articles, all of which were research reports on the impending subprime crisis, and the authors were listed as "Huang Xiaochuan".

It was because of these articles that many media outlets in Europe and America submitted interview requests to Huang Xiaochuan. After considering various factors, he finally accepted an interview from CNBC in China.

"Mr. Huang, Ms. Miller has arrived!" Gao Song informed him that the reporter had arrived.

Huang Xiaochuan turned around, and Gao Song skillfully stepped forward and took the teacup from his hand.

"Ms. Miller, welcome to China!" Huang Xiaochuan smiled and shook Miller's outstretched hand.

The visitor was none other than Haviland Miller, a senior financial reporter for CNBC, known for his sharp and incisive questions.

Miller exclaimed, "I must say, this city has left a very deep impression on me. It's completely different from what I had imagined. It's fantastic! Thank you for accepting our interview request, which allowed me to come to this mysterious country." As expected of a media professional, his language skills are excellent.

At this point, all the interview equipment was installed and debugged, and the interview began.

After the opening remarks, Miller cut straight to the point: "So, let's talk about the current market! Recently, subprime mortgage defaults have been surfacing, with institutions like New Century Financial Corporation filing for bankruptcy. What are your thoughts on this? Do you see it as a localized adjustment or a sign of an impending crisis?"

Huang Xiaochuan's expression turned serious: "Partial adjustments? No! Ms. Miller, I think this is a serious misjudgment. I believe that the bankruptcy of the new century is not the end of the problem, but the prelude to a huge crisis."

Huang Xiaochuan continued to explain his analysis: "I have conducted a series of studies on this, and the conclusion is that this is a systemic risk event. In the current financial securities market, there are a large number of financial derivatives based on subprime loans..."

These financial derivatives were irresponsibly labeled "AAA" by rating agencies and then sold to banks, pension funds, and hedge funds worldwide, but the risks of these derivatives are clearly increasing.

Huang Xiaochuan revealed a sneer: "Controllable? I think that's just some people's self-comfort. This isn't a fluctuation; it's a sign of a structural collapse of the entire financial system. I can clearly warn that danger has arrived and is rapidly accumulating, just like the snow on the summit of a snow-capped mountain has accumulated to a certain extent, and the underlying foundation can no longer support it, so an avalanche is about to occur."

The cases of the new century illustrate that the capital chain is beginning to break, and according to data from the first quarter of this year, US housing prices have reached a turning point, with defaults by low-credit homebuyers increasing exponentially. The chain reaction from this is that financial institutions holding large amounts of subprime mortgages will collapse first, followed by investment banks holding large amounts of related financial derivatives. Once that happens, the liquidity of these financial derivatives will drop to zero, because at that point, most of these assets will be worthless.

If someone else had said this to her, she would have been skeptical, but the person she was interviewing today was different, given his past achievements and record.

She swallowed hard and pressed on, "So, you mean this will turn into a..."

Huang Xiaochuan nodded, his tone very certain: "Yes, this will be a global financial crisis, its destructive power no less than Black Monday of 1987, and comparable to the Great Depression of 1929. This is not alarmist; it's an inevitable result based on data and model deductions. Massive defaults are merely the fuse; the subsequent series of artificially created financial derivatives are the powder keg. Those financial professionals who frantically created these derivatives will inevitably pay the price for their greed. This is the law of the industry, independent of human will."

Huang Xiaochuan slowly shook his head: "The avalanche is an uncontrollable event. All I can do now is remind ordinary investors to be more conservative in their investments, stay away from highly leveraged financial products, and increase their holdings of cash and high-quality government bonds as much as possible. Greed will ultimately lead to destruction."

This is terrifying! Even the cameraman was stunned, not to mention the assistants and helpers that Haviland Miller brought. They had all invested in some subprime mortgage derivatives, which is the norm in the American financial society. Citizens have almost no savings and own all sorts of investment and financial products, which leads to them suffering heavy losses when the crisis comes.

As agreed beforehand, the interview was coming to an end.

Huang Xiaochuan leaned back on the sofa, arms crossed, his expression indifferent: "Reputation? Compared to the potential economic disaster and consequences, my personal reputation is insignificant. I would rather my warning be proven wrong than see the vast majority of people pay the price. History and time will prove everything, and you and I will soon see the results." He pointed to himself and then to Haviland Miller.

"Thank you for accepting our interview. Viewers at home, I'm Haviland Miller from CNBC. Thank you for watching."