how recourse to the table it

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asset securitization product design, sales, management, outside in the table, then why the United States five major investment banks, while the collapse of the three implicated the other two properties can change corporate restructuring. Sheet responsibility, how recourse to the table it?
Subordinated debt is now regarded as derivative financial products, but what kind of subprime derivative products? In what sense it is original products? If the derivative expansion of the lever, as long as you can control the size of derivatives, so why confuse the product with the original it? Careful study of these problems, of course, is not personal or preference theory, but because these instruments can be used by us.
Third, the choice of China's response to the Great Depression
Use of new financial instruments to do? Talk about some examples here.
1
dispose of bad assets
Suppose a bank worth 10 billion auction block, the amount was too high to be only a handful, so trust involved, the proposed 5 million to the buyer's financial support, on condition that all state assets into the trust, the borrower (ie the buyer) If you can not repayable on demand 5 million loan, then the buyer to pay 5 million in the implementation of the penalties,Provide comprehensive [link widoczny dla zalogowanych], until the abolition of the management of the buyer, so the buyer out. At the same time, trust, first find the losers in the bid, the buyer if that is not according to the agreed arrangements for repayment, places the total value of 8 billion acquisition of all of the assets, as an external guarantor. Finally, the trust will be 5 million of receivables sold, which make the difference.
Obviously, such an arrangement, the parties have enough acceptable reasons. The original purchaser of land has been acceptable financial support to undertake the failure to perform a fine only when the loss occurred; guarantor price of 10 billion bid failed, but received a guarantee fee, also retained the price by 2 million (800 million ) access to land options; 500 million debt to the purchaser of the land purchase, guarantor all failed, land prices fell below 500 million, only the principal risks. This arrangement, unfortunately, any of them bankrupt, the contract will not be significantly affected, apparently quite safe. This is a typical trust financing arrangements. Transactions can be the key to success is to trust to enter into a receivables financial products, along with the success of credit enhancement trading arrangements (external security), if an ordinary business, no assets independent of credit, accounts receivable section rarely transactions.
When the recession, the banks need to deal with a large number of real estate collateral, if the specialized agencies to help the bank to more easily off the hook. So long as the Trust be successful, you can set up a dedicated fund to the banks bad debt service. Japan suffered a nearly 18-year economic slump, bad loans need to be addressed later, mostly in response to pre-recession loans, so the Japanese bitter experience, lessons learned now that in the relationship between relief and development, should not be too short to accommodate pressure, and should put more attention on the revitalization of business and industry.
The above method of pleading, in essence, is to support good business, the use of economic recession, the optimal allocation of resources to develop to deal with short-term and long-term problems. Of course, the above model is not limited to real estate. Industry Promotion Fund, can be real estate-based (MBS),Provide comprehensive [link widoczny dla zalogowanych], can enter the other areas (ABS).
2, transfer to the west, an increase of 44% of the national agricultural
South of the program has two directions, first,Provide comprehensive [link widoczny dla zalogowanych], the water flows east, two west flow of water. West water transfer scheme, the volume of water side 60 billion per year, equivalent to a half of the Yellow River's flow into the budget 8,000 million, an increase of 8 million acres of farmland in China can, an increase of 44.4% of the original 18 million hectares, and comparable year to buy U.S. Louisiana and Alaska.
Assuming an increase of 25% to invest 1 trillion, 5% cost of capital of 500 billion / year, first to repay the Government's commitment to increase all of the 8 million acres of agricultural land into trust,Provide comprehensive [link widoczny dla zalogowanych], trust, sale of management rights and beneficial, on the one hand to attract further investment, the other receiving repayment of government spending 50 billion a year, until the Government all get out. 50 billion divided by 8 million hectares of land rent balance of 62.5 yuan / mu; 500 billion divided by 60 billion square, water balance 0.833 yuan / square; take into account tax, agricultural tax revenue increased 44.4% efficiency , by no means a mere 500 billion a year to comparable, they do not calculate. All in all, this is not much financial obstacles.
West water transfer program as director of the Yangtze River Water Resources Commission for many years Mr. Lin Yishan's, Mr. Deng Yingtao old died in the forest before and after a lot of work to do. Of course, on land improvement, China and many other items to choose from.
America's \Japan's international competitiveness. China only started the right financial tools,Provide comprehensive [link widoczny dla zalogowanych], selected projects, there is no pressure on the financial and banking, but also the same result.
Insurance for the land, winning the \
China's agricultural labor force more than 400 million, most of them migrant workers, at least 1.5 million or more will not return to rural areas to continue farming, so you can imagine, so do not give up the return of migrant workers contracted land and homestead, in exchange for insurance and real estate down payment. This replacement of migrant definitely benefit, equivalent to completely change the identity, the lifting of the worries; for enabling farmers to continue farming, because farming can expand the scale and increase revenue. Agricultural development, farmers increase their income, the whole community can benefit.
From a financial point of view, China's total insurance funds, but more than 30,000 million, covering 230 million people, that is, whether life insurance or property insurance, per capita of about 1.5 million farmers to give up land compensation clearly exceeds this number, so the insurance for the Land , the financial balance without major problems. But the insurance needs of cash income, so there is a land trust of which the link. Farmers to hand over the land, to be held by the Trust on behalf of,Provide comprehensive [link widoczny dla zalogowanych], the basis for the formation of asset securitization. Then trust land management organizations, and financing of additional insurance discount, the formation of closed-loop.
China's rural population is less than 2 acres of arable land per capita,Provide comprehensive [link widoczny dla zalogowanych], so the scale can not be achieved in agriculture science and technology, modernization, and if 150 million farmers to achieve the insurance for the land, it means that more than one third of China's land into the scale, China agricultural modernization will appear a new pattern. One-third of farmers formally into the city, the city is to promote, a greater impact on the rural socialist new agricultural building will highlight a new round of investment, access to insurance, there will be spending the climax of farmers, the emergence of these two high tide, will enable farmers out of recession in China make a decisive contribution.
\However, further breakdown reveals that farmers lost the land surface is lost, the actual loss of the security, if they have insurance, the situation then? City people do not have land, can the root causes of social unrest is it?
China's insurance penetration, insurance density are seriously low, threatening the stability is a major risk. Now a large number of urban \So how insurance and asset securitization linkage? We really need to deal with work, the insurance should be stable, is the direction of our work.
For the \For land improvement, the more number of programs to choose from. I want to say here is that if a new financial instruments, all parties can bold imagination, but also large-scale innovation.
Why China's foreign exchange reserves can only buy financial products created by the West? Indochina have our close, if issued by the China-led reconstruction of infrastructure funds in U.S. dollars investment in RMB-denominated, to subscribe for 30% of China, and other opportunities to give international investors, certain to be welcomed internationally. So we get the Indian Ocean to the sea in China, Indochina countries to share China's economic boom, international investors can share the benefits created by China.
With imagination, there is financial innovation, we are not too far away from it all.
Fourth, with the financial, banking, securities
comparison of means
Out of recession, can use financial means to play the role of banks and the stock market to take some new action. In contrast, trust and asset securitization what advantage?
Finance: increase in recent years China's financial year after year, but the situation is likely to change. In the economic recession, revenue growth will slow or even negative growth, while expenditures will greatly increase the pressure, so the financial means to be a last resort, even if the use should Kuaijinkuaichu, do not have long-term burden. Financial credit damage, credit market also finished, so not a last resort and should not be lightly finances.
Bank: build a house, the stress distributed to defuse the risks, stress concentration is equivalent to set fire to their own house. China's share of financial assets in the banking system, a large share of the absolute stress has been too concentrated, if not then the risk to the bank to focus on market diversification, it is very dangerous. Bank of Japan's financial focus on indirect financing, the bank of a problem is the long-term depression; the United States made use of direct financing market, with the market to resolve problems, so the shock will soon be over. We Chinese in the past, the Trustee sales can not be using the bank's business premises, is justified, and banks issued their own financial products, in the end is the indirect financing or direct financing of the fuzzy boundaries, it should be questionable. We emphasize market-based financial instruments is to first spread the risk, again resolve risks.
Securities: China's securities excitement over a decade, how to solve any problems, made any contributions? Now have a project on the trillions, the securities settlement 3,000 million of capital, 7,000 million bank loan to solve, can be done down? So we hope to play the role of the market,[link widoczny dla zalogowanych], but not blind faith in the existing stock. Trust and asset securitization primarily to private equity financing, in China's OTC market, trading on the main body to financial institutions, including financial enterprises. Chinese financial system ten trillion dollars of difference in terms of deposits, has a great space. This approach uses the market to avoid a simple administrative action, on the open market stability and development advantageously, it is not seen as rejection of the stock market.
V. Prospects and path
Cope with economic recession, the real competition is the continuation of the international nation. National competition have a military, cultural and economic different areas. Military competition, early in the land, then gradually developed into the ocean, sky and space. Finance and financial products now dispute the economic area of the sky and the space battle, China has not the truth without a fight.
Today, although the United States subprime harm to the world, but the U.S. is likely through financial innovation, the disaster into an opportunity to further enhance their status. Relative to developed countries, China's financial rather backward, but subordinated debt and foreign investment in China also shows the frustration, China should learn the advanced international experience,Provide comprehensive [link widoczny dla zalogowanych], but we also need the original type of exploration, from the principles and needs of establish a system to improve the structure of simple imitation and China is almost coming to an end.
Optimization of China's financial structure, asset securitization is not open around the. The issues raised with U.S. subprime, China should focus on building financial firewall, as well as the standardization of information disclosure. In China, trust products operation, credit rating, little access to,Provide comprehensive [link widoczny dla zalogowanych], the risk prompted a bureaucratic, relevant institutions and personnel have neither special interests, there is no special responsibility, and even can be said that the trust property registration system has not been established, all which established the \All these will affect China's financial innovation, but there is no demand, these problems difficult to solve.
\China, only a total of more than fifty trust, just imagine those subject to strict regulatory bodies can not fully play its role,Provide comprehensive [link widoczny dla zalogowanych], China's asset securitization how can it develop?
Future can not be completely known, especially the future of the world, but China's reform and opening up three decades, has to cope with this situation has accumulated rich experience, as long as we follow this path, to play with extinction, more trial and error, control risk, the future path of China's financial development should be much flatter than in the past.