Volume One: I Came, I Saw, I Conquered!

Volume One: I Came, I Saw, I Conquered! Chapter Fifteen: The Big Bubble "Buying a house?" Markbaum asked in confusion. He got up and pulled Zhang Yu aside, leaving the two mortgage brokers to divide the dollars between them. Zhang Yu didn't mind. He led the way, and the two of them headed for the sales office. "Everyone in this area is in a hurry to sell. See that house? The owner's even willing to lower the price," Laura said, pointing to another home. After they left the sales office, Markbaum looked over the desolate neighborhood and growled, "He started the car. The Ford Mustang's engine rumbled low as the car slowly picked up speed. "I love this green beauty! No problem, ask whatever you like." Then Laura led the two men back to the sales office. Laura smiled. Markbaum shot him a sideways glance. The white man grinned smugly, swirling the liquor in his glass. "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "Are your clients immigrants too?" Markbaum asked the white man. "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. "Fuck!" Markbaum leaned back against his chair and muttered under his breath. "Looks like she really likes you," Zhang Yu said with a smile. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "Buying a house?" Markbaum asked in confusion. "I'll have to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. "He says he appreciates the information. We have somewhere else to be, so we'll be going," Zhang Yu said with a smile, pulling Markbaum toward the lobby's exit. "Aren't a lot of people in a hurry to sell?" Markbaum asked with a frown. "Buying a house?" Markbaum asked in confusion. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. In less than half an hour, they arrived at the LaSalle Community on Roosevelt Avenue. Markbaum parked the car, and the two got out. Laura smiled. "Obviously, this kind of thing isn't a secret in the mortgage industry. Everyone's doing it. Would you hide whether you ate bread or bacon for breakfast?" Zhang Yu said unhurriedly. "Fuck, those bastards!" Markbaum was about to speak, but Zhang Yu tugged at his sleeve. He changed tack and said, "Almost all of them." "The vast majority," the white man replied. "Mr. Baum, let me remind you: right now, you're my friend, a lawyer. We're here to look at houses, understand?" Zhang Yu said. "Looks like she really likes you," Zhang Yu said with a smile. "Aren't a lot of people in a hurry to sell?" Markbaum asked with a frown. "Does everyone understand the risks of these loans?" Markbaum asked. The white man smiled teasingly. The white man burst out laughing. "Of course. This girl's made a lot of money for me." The white man ogled Laura as she walked away, then laughed. She waved to the man, who paused his work and smiled back. "Fuck, those bastards!" "All right, I get it." Markbaum nodded, looking a little impatient. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Of course. This girl's made a lot of money for me." The white man ogled Laura as she walked away, then laughed. She waved to the man, who paused his work and smiled back. Zhang Yu didn't mind. He led the way, and the two of them headed for the sales office. "Come with me, you two. I'm Laura, a real estate agent." The blonde woman smiled professionally and gestured for them to follow. "I only care about returns. If I write a good fixed-rate loan, I'll make only two thousand dollars. But if I write a subprime adjustable-rate loan, I can make ten thousand! If those bimbos didn't take out loans, I couldn't afford a Mercedes. Their credit is terrible, but they have plenty of money for down payments, and every one of them has bought more than one house." The white man burst into laughter. He stormed toward the parking lot, and Zhang Yu followed. The white man smiled teasingly. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" They hadn't noticed that Markbaum's face had darkened. "Hello, we'd like to look at some houses." Zhang Yu entered the lobby, spotted a nearby blonde woman in uniform, and walked straight over to her. Laura smiled. The two men laughed together, as though they'd heard an especially hilarious joke. The white man's vigorous laughter even sent a little liquor sloshing out of his glass. "Could you wait a moment?" "Do you both want to buy a house?" Laura asked. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. "Does everyone understand the risks of these loans?" Markbaum asked. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" After following Laura to the sales office, Zhang Yu and Markbaum boarded a sightseeing cart. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "Hahaha..." In less than half an hour, they arrived at the LaSalle Community on Roosevelt Avenue. Markbaum parked the car, and the two got out. Laura smiled. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. "Buying a house?" Markbaum asked in confusion. "You can send people to investigate all over the U.S. and see if things are the same elsewhere. In Los Angeles, New York, Miami, and San Francisco, this happens every day. Banks hand out huge loans to bimbos and illegal immigrants, then bundle those loans into securities and put them on the financial market with an 'A' rating to attract hedge funds. But those bonds are worthless garbage!" Zhang Yu said. After leaving the sales office, Markbaum looked over the desolate neighborhood and growled, "Do you both want to buy a house?" Laura asked. Markbaum's mouth fell open. He stared for a moment before saying, "Do they know that subprime adjustable-rate loans mean they'll have to pay more? Once the introductory rate period ends, their monthly payments will double or triple!" Markbaum exclaimed in surprise. "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "Do you both want to buy a house?" Laura asked. Markbaum nodded without a word and looked around. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "Could you wait a moment?" "Do you both want to buy a house?" Laura asked. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Ten? Or fifteen?" The two men got into the Ford Mustang. Zhang Yu opened his briefcase, took out a thick stack of documents, and handed them to Markbaum. The white man smiled teasingly. "Buying a house?" Markbaum asked in confusion. "Hello, we'd like to look at some houses." Zhang Yu entered the lobby, spotted a nearby blonde woman in uniform, and walked straight over to her. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. Markbaum's mouth fell open. He stared for a moment before saying, "She waved to the man, who paused his work and smiled back. In less than half an hour, they arrived at the LaSalle Community on Roosevelt Avenue. Markbaum parked the car, and the two got out. "Could you wait a moment?" He started the car. The Ford Mustang's engine rumbled low as the car slowly picked up speed. "Almost all of them," the white man replied. The white man grinned smugly, swirling the liquor in his glass. "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "Even too many people are in a hurry to sell?" Markbaum asked with a frown. "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "This operation obviously isn't a secret in the mortgage industry. Everyone's doing it. Would you hide whether you ate bread or bacon for breakfast?" Zhang Yu said unhurriedly. "Maybe these two crooks are just an isolated case." "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. He stormed toward the parking lot, and Zhang Yu followed. "Almost all of them," the white man replied. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "The two of them have lost their jobs," Laura said. "I noticed there don't seem to be many residents here. Is that right?" Zhang Yu asked. "Ten? Or fifteen?" The two men followed Laura to the sales office and boarded a sightseeing cart. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "Hahaha..." "Less than half of them," Laura smiled. Markbaum spun around a few times, looking frantic. He lowered his voice and yelled, "Almost all of them," the white man replied. "I love this green beauty! No problem, ask whatever you like." Markbaum spun around a few times, looking frantic. He lowered his voice and yelled, "Buying a house?" Markbaum asked in confusion. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. "Does the company check their applications?" Markbaum asked, unable to believe it. Laura smiled. Markbaum spun around a few times, looking frantic. He lowered his voice and yelled, "The two of them have lost their jobs," Laura said. Then Laura led the two men back to the sales office. "Hello, we'd like to look at some houses." Zhang Yu entered the lobby, spotted a nearby blonde woman in uniform, and walked straight over to her. "Almost all of them," the white man replied. "Looks like she really likes you," Zhang Yu said with a smile. "The two of them have lost their jobs," Laura said. Then Laura led the two men back to the sales office. "Fuck!" Markbaum leaned back against his chair and muttered under his breath. Laura smiled. "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. The white man smiled teasingly. "Of course. This girl's made a lot of money for me." The white man ogled Laura as she walked away, then laughed. Laura smiled. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. Then Laura led the two men back to the sales office. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "Four years ago?" Markbaum was about to speak, but Zhang Yu tugged at his sleeve. He changed tack and said, "After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "Does anyone ever get denied a mortgage?" Markbaum couldn't help asking. "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" "Hahaha..." "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura complained. "The housing market won't fall. Everyone's just a little panicked..." She glanced at the house. "Do you have your eye on anything?" "Do they know that subprime adjustable-rate loans mean they'll have to pay more? Once the introductory rate period ends, their monthly payments will double or triple!" Markbaum exclaimed in surprise. The two men got into the Ford Mustang. Zhang Yu opened his briefcase, took out a thick stack of documents, and handed them to Markbaum. "Ten? Or fifteen?" "I don't understand. Has the mortgage market gotten this bad? Why are they so open about it?" "All right, I get it." Markbaum nodded, looking a little impatient. "Why would he sell if home prices are rising so fast?" Markbaum asked. She waved to the man, who paused his work and smiled back. In less than half an hour, they arrived at the LaSalle Community on Roosevelt Avenue. Markbaum parked the car, and the two got out. "Could you wait a moment?" "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "Even too many people are in a hurry to sell?" Markbaum asked with a frown. "Four years ago?" After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "He says he appreciates the information. We have somewhere else to be, so we'll be going," Zhang Yu said with a smile, pulling Markbaum toward the lobby's exit. "Buying a house?" Markbaum asked in confusion. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" Markbaum frowned at the documents, focusing on the chart showing the U.S. housing price index. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" Zhang Yu said slowly. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" "All right, I get it." Markbaum nodded, looking a little impatient. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "All right, I get it." Markbaum nodded, looking a little impatient. "So they're in a hurry to sell, right?" Zhang Yu asked. Zhang Yu didn't mind. He led the way, and the two of them headed for the sales office. "Does the loan go through even if the borrower has no money?" Markbaum asked, eyes wide. Markbaum shot him a sideways glance. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "This operation obviously isn't a secret in the mortgage industry. Everyone's doing it. Would you hide whether you ate bread or bacon for breakfast?" Zhang Yu said unhurriedly. "Maybe these two crooks are just an isolated case." "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. He stormed toward the parking lot, and Zhang Yu followed. "Almost all of them," the white man replied. "I only care about returns. If I write a good fixed-rate loan, I'll make only two thousand dollars. But if I write a subprime adjustable-rate loan, I can make ten thousand! If those bimbos didn't take out loans, I couldn't afford a Mercedes. Their credit is terrible, but they have plenty of money for down payments, and every one of them has bought more than one house." "You can send people to investigate all over the U.S. and see if things are the same elsewhere. In Los Angeles, New York, Miami, and San Francisco, this happens every day. Banks hand out huge loans to bimbos and illegal immigrants, then bundle those loans into securities and put them on the financial market with an 'A' rating to attract hedge funds. But those bonds are worthless garbage!" Zhang Yu said. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "Looks like she really likes you," Zhang Yu said with a smile. "Could you wait a moment?" Laura smiled. Markbaum was about to speak, but Zhang Yu tugged at his sleeve. He changed tack and said, The white man's eyes lit up. He set down his glass, accepted the money, and whistled: The white man burst into laughter: "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" The white man smiled teasingly. In the corner of the lobby, there was a liquor cabinet full of bottles. A Black man and a white man were drinking and chatting, already a little tipsy. "Come with me, you two. I'm Laura, a real estate agent." The blonde woman smiled professionally and gestured for them to follow. Markbaum nodded without a word and looked around. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "Could you wait a moment?" "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. In the corner of the lobby, there was a liquor cabinet full of bottles. A Black man and a white man were drinking and chatting, already a little tipsy. He stormed toward the parking lot, and Zhang Yu followed. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" Laura walked over, introduced Zhang Yu and Markbaum to the two men, then ran a hand over the white man's bare chest and gave him a flirtatious look before smiling and leaving. "Does the loan go through even if the borrower has no money?" Markbaum asked, eyes wide. "The two of them have lost their jobs," Laura said. "Ten? Or fifteen?" Then Laura led the two men back to the sales office. "The two of them have lost their jobs," Laura said. "Hello, we'd like to look at some houses." Zhang Yu entered the lobby, spotted a nearby blonde woman in uniform, and walked straight over to her. "Almost all of them," the white man replied. "Looks like she really likes you," Zhang Yu said with a smile. "The two of them have lost their jobs," Laura said. Then Laura led the two men back to the sales office. "Fuck!" Markbaum leaned back against his chair and muttered under his breath. Laura smiled. "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. The white man smiled teasingly. "Of course. This girl's made a lot of money for me." The white man ogled Laura as she walked away, then laughed. Laura smiled. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. Then Laura led the two men back to the sales office. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "Four years ago?" Markbaum was about to speak, but Zhang Yu tugged at his sleeve. He changed tack and said, After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "Does the loan application ever get rejected?" Markbaum couldn't help asking. "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" "Hahaha..." "He says he appreciates the information. We have somewhere else to be, so we'll be going," Zhang Yu said with a smile, pulling Markbaum toward the lobby's exit. "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Ten? Or fifteen?" They hadn't noticed that Markbaum's face had darkened. "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "Immigrants have credit that's too good for him," the Black man said with a loud laugh. Zhang Yu and Markbaum followed Laura to the sales office and boarded a sightseeing cart. The white man's eyes lit up. He set down his glass, accepted the money, and whistled. "All right, I get it." Markbaum nodded, looking a little impatient. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "Almost all of them," the white man replied. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Come with me, you two. I'm Laura, a real estate agent." The blonde woman smiled professionally and gestured for them to follow. "The two of them have lost their jobs," Laura said. "Aren't a lot of people in a hurry to sell?" Markbaum asked with a frown. "Buying a house?" Markbaum asked in confusion. "That's right, about ninety percent. Mortgage commissions have been very lucrative these past few years. That's what we're all counting on to make money," the Black man added. "You can send people to investigate all over the U.S. and see if things are the same elsewhere. In Los Angeles, New York, Miami, and San Francisco, this happens every day. Banks hand out huge loans to bimbos and illegal immigrants, then bundle those loans into securities and put them on the financial market with an 'A' rating to attract hedge funds. But those bonds are worthless garbage!" Zhang Yu said. Markbaum nodded without a word and looked around. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" Zhang Yu and Markbaum followed Laura to the sales office and boarded a sightseeing cart. "Hahaha..." In less than half an hour, they arrived at the LaSalle Community on Roosevelt Avenue. Markbaum parked the car, and the two got out. "The two of them have lost their jobs," Laura said. "Buying a house?" Markbaum asked in confusion. "I noticed there don't seem to be many residents here. Is that right?" Zhang Yu asked. "Ten? Or fifteen?" The white man smiled teasingly. "Almost all of them," the white man replied. After leaving the sales office, Markbaum looked over the desolate neighborhood and growled, "Do you both want to buy a house?" Laura asked. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. Markbaum spun around a few times, looking frantic. He lowered his voice and yelled, The two men laughed together, as though they'd heard an especially hilarious joke. The white man's vigorous laughter even sent a little liquor sloshing out of his glass. "Wow, sounds great," Zhang Yu said with a smile. Then he asked, "How many of those are subprime adjustable-rate loans?" "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "Immigrants have credit that's too good for him," the Black man said with a loud laugh. Zhang Yu and Markbaum followed Laura to the sales office and boarded a sightseeing cart. The white man's eyes lit up. He set down his glass, accepted the money, and whistled: "All right, I get it." Markbaum nodded, looking a little impatient. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "Almost all of them," the white man replied. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "I love this green beauty! No problem, ask whatever you like." "Do you both want to buy a house?" Laura asked. "Everyone in this area is in a hurry to sell. See that house? The owner's even willing to lower the price," Laura said, pointing to another home. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "Buddy, are you kidding? Those big-breasted airheads don't know what an adjustable-rate loan is. They think 'adjustable rate' means they can choose their monthly interest rate themselves!" Markbaum kicked an empty soda can away and swore. After leaving the sales office, Markbaum looked over the desolate neighborhood and growled, "How many loans can you process a month?" Zhang Yu asked. "Our company offers a loan product called 'NINJA loans.' No income or job required. If you want, you can leave the income field blank," the Black man explained smugly. "The company doesn't care. These people just want a home. Why shouldn't we help them?" "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. "About sixty," Laura smiled. Markbaum spun around a few times, looking frantic. He lowered his voice and yelled: Markbaum kicked an empty soda can away and swore, "Of course. This girl's made a lot of money for me." The white man ogled Laura as she walked away, then laughed. The white man smiled teasingly. "Four years ago?" "I think I've seen this chart before." "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "How could that be?" The white man laughed and shook his head. "If they were rejected, I'd be in serious trouble at work." "So they're in a hurry to sell, right?" Zhang Yu asked. "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. "Looks like she really likes you," Zhang Yu said with a smile. "Could you wait a moment?" Laura smiled. Markbaum was about to speak, but Zhang Yu tugged at his sleeve. He changed tack and said: The white man's eyes lit up. He set down his glass, accepted the money, and whistled: The white man burst into laughter. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" The white man smiled teasingly. At the corner of the lobby, there was a liquor cabinet full of bottles. A Black man and a white man were drinking and chatting, already a little tipsy. "Come with me, you two. I'm Laura, a real estate agent." The blonde woman smiled professionally and gestured for them to follow. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "You can send people to investigate all over the U.S. and see if things are the same elsewhere. In Los Angeles, New York, Miami, and San Francisco, this happens every day. Banks hand out huge loans to bimbos and illegal immigrants, then bundle those loans into securities and put them on the financial market with an 'A' rating to attract hedge funds. But those bonds are worthless garbage!" Zhang Yu said. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "Looks like she really likes you," Zhang Yu said with a smile. "Could you wait a moment?" Laura smiled. Markbaum was about to speak, but Zhang Yu tugged at his sleeve. He changed tack and said: The white man's eyes lit up. He set down his glass, accepted the money, and whistled: "Does the loan application ever get rejected?" Markbaum couldn't help asking. "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" "Hahaha..." "He says he appreciates the information. We have somewhere else to be, so we'll be going," Zhang Yu said with a smile, pulling Markbaum toward the lobby's exit. "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Ten? Or fifteen?" They hadn't noticed that Markbaum's face had darkened. "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "Immigrants have credit that's too good for him," the Black man said with a loud laugh. Zhang Yu and Markbaum followed Laura to the sales office and boarded a sightseeing cart. The white man's eyes lit up. He set down his glass, accepted the money, and whistled. "All right, I get it." Markbaum nodded, looking a little impatient. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "Almost all of them," the white man replied. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Come with me, you two. I'm Laura, a real estate agent." The blonde woman smiled professionally and gestured for them to follow. "Buddy, are you kidding? Those big-breasted airheads don't know what an adjustable-rate loan is. They think 'adjustable rate' means they can choose their monthly interest rate themselves!" "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. The two men got into the Ford Mustang. Zhang Yu opened his briefcase, took out a thick stack of documents, and handed them to Markbaum. "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "Fuck!" Markbaum leaned back against his chair and muttered under his breath. "We're from an investment firm. We're here to learn about the mortgage industry, and we hope you'll answer honestly." "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" At the corner of the lobby, there was a liquor cabinet full of bottles. A Black man and a white man were drinking and chatting, already a little tipsy. He started the car. The Ford Mustang's engine rumbled low as the car slowly picked up speed. "Maybe these two crooks are just an isolated case." "What are you talking about?" the white man asked with a frown. Laura walked over, introduced Zhang Yu and Markbaum to the two men, then ran a hand over the white man's bare chest and gave him a flirtatious look before smiling and leaving. "He says he appreciates the information. We have somewhere else to be, so we'll be going," Zhang Yu said with a smile, pulling Markbaum toward the lobby's exit. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "Hahaha..." "If I issue a loan on Saturday, a big bank will buy it on Monday. Do you understand?" "Four years ago?" After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "He says he appreciates the information. We have somewhere else to be, so we'll be going," Zhang Yu said with a smile, pulling Markbaum toward the lobby's exit. "Buying a house?" Markbaum asked in confusion. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" Markbaum frowned at the documents, focusing on the chart showing the U.S. housing price index. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" Zhang Yu said slowly. "This is criminal! They're creating a bubble. People like this are going to destroy the U.S. real estate market!" "All right, I get it." Markbaum nodded, looking a little impatient. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "All right, I get it." Markbaum nodded, looking a little impatient. "So they're in a hurry to sell, right?" Zhang Yu asked. Zhang Yu didn't mind. He led the way, and the two of them headed for the sales office. "Does the loan go through even if the borrower has no money?" Markbaum asked, eyes wide. Markbaum shot him a sideways glance. After waiting a while for Laura to walk away, Zhang Yu glanced around, pulled two thousand dollars from his bag, and handed it to the two men: "This operation obviously isn't a secret in the mortgage industry. Everyone's doing it. Would you hide whether you ate bread or bacon for breakfast?" Zhang Yu said unhurriedly. "Maybe these two crooks are just an isolated case." "I want to see what you're really up to..." Markbaum muttered, then slammed his foot on the gas. The engine roared, and the Ford Mustang sped away. "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. He stormed toward the parking lot, and Zhang Yu followed. "Almost all of them," the white man replied. "I only care about returns. If I write a good fixed-rate loan, I'll make only two thousand dollars. But if I write a subprime adjustable-rate loan, I can make ten thousand! If those bimbos didn't take out loans, I couldn't afford a Mercedes. Their credit is terrible, but they have plenty of money for down payments, and every one of them has bought more than one house." "You can send people to investigate all over the U.S. and see if things are the same elsewhere. In Los Angeles, New York, Miami, and San Francisco, this happens every day. Banks hand out huge loans to bimbos and illegal immigrants, then bundle those loans into securities and put them on the financial market with an 'A' rating to attract hedge funds. But those bonds are worthless garbage!" Zhang Yu said. Markbaum shook his head helplessly, then returned with Zhang Yu to the two men. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "There are a lot of people moving away, but it's nothing. The mortgage market is just in a small slump," Laura said casually. Then she pointed to a house on the left, where a man was trimming the lawn. "When that house was first built, I sold it for $250,000. Two years later, it was worth $330,000. A year and a half ago, it was worth $380,000. Last year, this couple bought it for $420,000. Now he's willing to sell it for the same price. He's not happy about it, but he'll still sell... Hi, Jack!" Markbaum kicked an empty soda can away and swore, "A few?" Laura smiled. Markbaum spun around a few times, looking frantic. He lowered his voice and yelled, Markbaum kicked an empty soda can away and swore, "Of course. This girl's made a lot of money for me." The white man ogled Laura as she walked away, then laughed. The white man smiled teasingly. The two men got into the Ford Mustang. Zhang Yu opened his briefcase, took out a thick stack of documents, and handed them to Markbaum. "If I issue a loan on Saturday, a big bank will buy it on Monday. Do you understand?" "Maybe these two crooks are just an isolated case." "Fuck, you bastards!" "No, he's the one buying. I'm just here with him," Zhang Yu said, pointing at Markbaum. "I don't understand. Has the mortgage market gotten this bad? Why are they so open about it?" "More accurately, we're here to learn how the mortgage industry really works. Of course, if you actually want to buy, I won't stop you," Zhang Yu explained. Zhang Yu didn't mind. He led the way, and the two of them headed for the sales office. "I used to be a bartender, but now I have my own boat," the Black man interjected. "Could you wait a moment?" "...Do you have children? Cress Private Middle School is very close by, so buying a house here would make it convenient for your children to get to school." Laura enthusiastically showed them the houses, but Zhang Yu and Markbaum weren't very interested. "I need to go back and talk it over with my wife... Do you know any mortgage brokers you'd recommend? I don't have enough cash on hand." Markbaum frowned at the documents, focusing on the chart showing the U.S. housing price index. "Ten? Or fifteen?" "What are you talking about?" the white man asked with a frown. "Mr. Baum, do you believe me now?" Zhang Yu asked slowly. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" "Come with me, you two. I'm Laura, a real estate agent." The blonde woman smiled professionally and gestured for them to follow. "Immigrants have credit that's too good for him," the Black man said with a loud laugh. "If I issue a loan on Saturday, a big bank will buy it on Monday. Do you understand?" The white man's eyes lit up. He set down his glass, accepted the money, and whistled: "Does the loan application ever get rejected?" Markbaum couldn't help asking. "I've been studying the U.S. housing price index since 1975. After adjusting for inflation, annual home price growth nationwide was only 1.4 percent from 1975 to 2000. But since 2000, prices have been rising by as much as 7 percent a year! If prices returned to the trend line, they could fall by as much as 40 percent! Mr. Baum, you should understand that this abnormal trend represents a huge bubble!" Zhang Yu said slowly. He got up and pulled Zhang Yu aside, leaving the two mortgage brokers to divide the dollars between them.