Extraordinary Genius

1668. 1668 chapters and back pots (5/10)

“Send someone to contact us to see if you can invite Feng Yu to visit the White Palace.” George Bush said.

“President, this is not very good, Feng Yu is a Chinese person after all. We will think that we will further strengthen our economic and trade relations with China.”

Hearing this, George Bush didn’t say anything. This matter is obviously not something that he can decide alone, although he feels that there is nothing wrong with this. It seems that this position is very good, but there are too many restrictions on words and deeds.

“Then you want to find a way for me to meet Feng Yu. What should I do? How much do you know?”

Feng Yu I don’t know, George Bush has decided to meet him, he is still looking at the stockmarket market.

For two consecutive days, the share price of the New Century Financial Corporation has fallen by 15%, and the decline is not limited, it is estimated that it will continue to fall, as long as they can not explain the media’s broke.

As for some small real estate finance companies, the decline is even more fierce, generally more than 18 percent, and even two companies have directly announced that they want to file for bankruptcy protection.

This application for bankruptcy protection is even worse, making investors more distrustful of the real estate industry’s Corporation.

“Boss, the stocks of these companies are really falling, can we make a lot of money by selling short?”

Wind & Rain Consultation borrowed a lot of stocks from these financial institutions from a number of financial institutions, and then sold them in large quantities, and with the help of the news, the shares of these companies plummeted, which means that Wind & Rain Consultation can make a lot of money. money.

Selling stocks is a loss on the books, but short selling can make more.

“In fact, I didn’t make much money. The stock of these Corporations is not the direction of our main investment.”

The decline in the share price of these Corporations is not small, but the plates are too small and the number of shares that can be borrowed is not large. Moreover, Feng Yu only allowed the Wind & Rain Consultation to operate the New Century Financial Corporation, and the others were only a little bit.

These are just an experiment. Going back to the two-room group is the main direction.

“Boss, then why do you think that these organizations will not necessarily go bankrupt? It seems that these organizations are definitely finished?” Ralph humbly asked for advice.

“Because the Government of the United States, or George Bush, can’t watch these companies go bankrupt, they will definitely find a way to save it.”

“Guess, what will they do?” Feng Yu asked with a smile.

Ralph thought for a moment: “Looking for other Corporations?”

“Correct!” Feng Yu snapped his fingers. “For the sake of the present, they can only find other companies to take over. Take over the business of these Corporations and take over the debt of these organizations!”

“But this is not enough. These organizations will cause a large number of people to lose their jobs. This is not a small problem. What is more serious is that there are too many companies in bankruptcy, which they can’t imagine!”

If only one or two Corporations go bankrupt, then it is really only a small matter. Anyway, if they are now bankrupt, even in the new century financial organization, the market value will be less than three One billion dollars.

On the scale of the two-room group, a one-month loss of three One billion dollars may not be able to hurt. Of course, if you lose so much every month, it will be different.

In the eyes of Feng Yu, the two-room group is simply two pick-ups, and the ultimate back-pot man!

In the past life, the two-room group filed for bankruptcy, which led to the real collapse of US Stockmarket. At least it was possible to survive and survive.

The main reason for the bankruptcy of the two-room group was that they became the pick-up man and eventually turned down the black pot of the bad luck.

In fact, the subprime mortgage crisis is mainly caused by these small real estate financial Corporations. The two-room group is a back-to-back. But in the end, everyone generally believes that this is the cause of the two-room group.

Of course, the collapse of the two-room group is also the reason why this matter has become more serious.

The two-room group is mainly to take-out these loans, issue bonds, and sell the bonds to investors. Under normal circumstances, the risk of such a bond is very low, because at the beginning, the person who can borrow, the credit and repayment ability are very trustworthy.

Therefore, the bonds issued by the two-room group have been sought after by many investors, including the former Chinese state capital. Even to some extent, some people have interpreted this as the national debt of the country, and completely forgot that this is two private enterprises.

Through this operation, they completed the process of asset securitization.

At that time, the two-room group was very strict with the mortgage review of the purchase, and those sub-loans, they simply did not buy.

However, there were more and more financial institutions for subprime loans. At the request of the George Bush Government, the two-room group also began to buy these higher-risk subprime loans.

Then, the interest rate mortgage loan can be adjusted to rampage, and the low interest rate induces people to borrow money to buy a house. Many ordinary people also live in very good houses. But then with interest rate adjustments, the loans they had to repay were recalculated, and many families who could have repaid their loans could not afford it.

These are all those small organizations. The two-room group really didn’t do this. They didn’t need to do this. After their high-quality loans were made into bonds, they were enough to make money.

But now it’s not working. The little Corporation is going to be finished. George Bush asked the two-room group for assistance.

How to help, is not to eat the mortgage of the small Corporation, and then sell it as a bond.

At this time, the bonds of the two-room group will begin to deteriorate. From low-risk, low-yield bonds to high-risk, high-yield bonds, the original intention of many people investing is completely different.

Everyone is used to the low-risk bond of the two-room group, which is an inherent impression. When these high-risk bonds are issued, many people will also have the purchase of the slightest hesitation, and then it will be equivalent to getting on the boat, and then want to disembark, it will be difficult!

These small financial organizations, because those who did not repay the loans dragged down, they have to repay the loans to banks and other institutions, so they can only find ways to borrow money.

Yes, there are a lot of mortgages for them, but this is not easy to cash out first, and it has already been devalued. They can only borrow the East Wall to make up the Western Wall.

The financial leverage of some financial organizations has begun to become particularly high. Many products that are normally only ten times more financial leverage, in their Corporation, can have twenty times the financial leverage, even twenty-five times, thirty times.

What does this mean that they use a little margin to manipulate a large amount of money, and how much risk should it be? How fragile is the capital structure?

At this time, they still can’t do anything, they can only hide some situations, and even make some small financial means.

When these people were exposed by Feng Yu, their Corporation had to go bankrupt. In order to prevent the situation from deteriorating, the two-room group can only become this pick-up man, thus becoming the back pot man!

……