Extraordinary Genius

1712. Chapter 1712 is in a tough situation

When the global financial market was severely oscillated, stocks, futures, bonds and so on fell, but many people found that the prices of crude oil and gold fluctuated constantly, and even said that they did not fall at all, but rose slightly.

First of all, the hot money that fled from the bond and stock markets has entered the futures market. The futures are also goods, which can be regarded as physical.

Originally, they could also realize what the bonds were realized and what they saved into dollars. But the dollar is depreciating, and they are also losing money.

The fall in stockmarket, coupled with the emergence of various bad news, caused a large number of investors to flee. Of course, there are also some investment funds that take the opportunity to short the stockmarket and reverse the profit.

It is a pity that this can’t be done very quickly. It’s not Government. What is not allowed, but no financial Corporation will lend you the stock.

Everyone knows that stockmarket is falling, why should you lend you stock?

Previously, many of the investment’s financial leverage multiples have been rising, from five times to ten times, to thirty times, and even to the Corporation, which has produced fifty times the ultra-high multiple of the financial leverage.

Don’t think that these investment organizations are silly ×, the financial multiplier of this high multiple is courting death. They can buy insurance, a type of credit default swap insurance.

Bank can’t use these high-powered financial leverage, but what about the Fund Corporation? They use high-cost financial leverage to invest. What if the risk is too great?

Buy insurance. Of course, this is not insurance in the traditional sense, but the actual effect is the same as insurance.

Fund Corporation looking for bank said that my investment risk is very high here, how about you doing loan default insurance for me? In ten years, I pay you a hundred million yuan a year, which is ten billion dollars.

If I didn’t default, then you will get this premium, and if you take my premium investment, you can definitely make another profit.

If I breach the contract, then you have to help me lose money.

What Party A wants is that I use financial leverage to invest, the profit itself is several times, and I have to buy out one billion yuan to buy insurance. I still have a profit.

After analysis, Party B believes that Party A’s risk of default is extremely low, and may be 1%. Then this insurance can be done and the profit is not low.

If there is only one, then the profit is not particularly large, but if you can pull the same 100 customers? Is there a 100 billion insurance premium?

So even if one of them really bad luck loses money, I can afford it. Paying insurance premiums with the premiums of other policyholders is in itself a normal means of operation for insurance organizations.

So the bank sold the insurance contract for the credit default swap to the major fund companies, and charged more of the Corporation’s premium, they were safe.

But this profit will take ten years to get it completely, too slow, right?

So they talked to a third party. I have a contract worth $100 billion, but it will take ten years to get it. Now I will sell you $50 billion. Do you want it?

After bargaining, the third party bought the 100 billion dollar contract at a price of 40 billion US dollars, and Party B directly sold a profit of 40 billion US dollars.

The third party also feels that there are too many ten years, so he also listed the price after the listing, four hundred and five One billion dollars, to attract the fourth party to buy, a change, they easily pocket five One billion dollar profits.

After such a layer of change, coupled with the appeal of this model, the market for such insurance contracts has become extremely large, totaling more than sixty trillion US dollars.

All of the above-mentioned financial institutions have made money. They are basically profitable from the subprime bonds that the original Corporation operated with financial leverage, and these loans were eventually put on the credit institutions and lenders. on.

So only credit institutions and lenders are losing money, and everyone else can make money. It is said that the bank will not lose anything, but the bank is also a credit institution, and even the fund Corporation under the bank, it also invests in subprime bonds or something.

When the lender defaults, the company that holds the insurance contract pays.

Then the last one is bad luck, they have to pay for this insurance. If only one or two defaults don’t matter, they can afford it. But they couldn’t think of it, and the default rate would be so high.

From a few percent to a hundred percent, the insurance premiums are so high, not to mention that they are still changing hands.

The last one can’t help but go bankrupt, it will spread upwards, and then step by step spread the entire chain.

At this time, everyone started looking for the government. We are going bankrupt, government no matter what?

But you think about it, how much insurance was collected at the beginning, but the money paid for it was more than a hundred times or more higher than the insurance premium.

The country does not have so much money to do, simple, they have a giant of the two-room group, so the two-room group was forced to swallow this bad contract.

Government take action, then those fund companies that can’t hold back, more began to declare bankruptcy. Originally they had some parent companies belonging to some big consortia, and these losses are not untenable.

But now that the Government has taken over, it’s better to throw the baggage directly. Their consortiums are still taking care of their own interests first.

The bankruptcy situation is getting worse and worse, the company is bankrupt, and the individual is bankrupt. This number is soaring.

It was also at this time that Oba announced a series of measures aimed at the poor, which attracted too many people to vote for him.

He also claimed that it was a mistake for the country to launch a war against Afghanistan. If it is as fast as they expected, the battle will be solved quickly, but it has dragged on for so long and directly dragged down the economy of the country.

Anyway, George Bush is about to step down. At this time, what is the scorpion, it is buckled on his head. Many policies are decided by the country, and George Bush’s power is far less.

The people of the George Bush family are also working hard behind them, trying to drag on desperately, at least let George Bush step down and then trouble to the successor to prevent their family from appearing again. Attack.

The economic situation in the country is getting more and more serious, and the European side has also been seriously affected. Even UBS has lost money.

At this time, many funds simply escaped from the rice market and turned to the European market. In fact, this is also the reason why the European side has greatly rescued the market, attracting these hot money to join and make their economy better.

The economic situation in the country is very good, and it is also related to their ability to attract the most foreign investment in the world.

Those funds went to Europe, and as Feng Yuan expected, they joined the futures market, and the most invested were crude oil and gold.

Feng Yu After they saw the news, they all relaxed a lot. It seems that the crude oil has risen to about one hundred dollars, which is no problem!

At Feng Yu Lehehe, the business of an important partner of Feng Yu had serious problems.

……