Chapter 686
"...If you are short-selling, how sure are you, President Chen?" Song Cailin asked subconsciously.
The young company president did not know Chen Daojun well, although he also knew that Chen Daojun was a senior executive of Goldman Sachs Group and had strong investment she has never experienced or participated in such a high-risk thing as short selling, so she is somewhat uneasy.
"...Most of you won't believe me if I say I'm [-]% sure, but I'm sure I'm [-]% sure~!" Chen Daojun said with a smile. It's impossible for any listed company to withstand the pressure under the subprime mortgage crisis. A sharp drop in stock prices is inevitable. Plunges are also normal.
As long as they follow the trend and continue to drive down those companies, wouldn't it be easy to make money? !In addition to AIG (American Asia Property & Casualty Insurance), whose market value plummeted 95%, Lehman Brothers, Bear Stearns, Citibank, and Deutsche Bank are all short-selling high-quality stocks~!
Their market value fell by more than 80-90% at one time. The first two went bankrupt due to losses, and the latter two were also dying. Although they survived, they did not have the glory of in the past 10 years or so, the stock price has not returned to its peak, and is only a little more than 2007/1 of the highest price in 10!
……
Seeing Chen Daojun so confident, others felt a lot more that they have "boarded the pirate ship", if they do not follow Chen Daojun, they will inevitably suffer huge for investing in gold or shorting those listed companies, anyway, "a dead Taoist friend is not a poor Taoist". If you can make money without losing money, it is already a great thing~!
……
After the meeting, everyone took action quickly. They also needed to mortgage the shares they held to foreign banks in exchange for funds as soon as for why not do this in Bangzi Country?
With the Bank of China's three melons and two dates, how can it release billions of dollars?A billion dollars is already a huge achievement~!
------Dividing line------
Goldman Sachs Group, Office of the CEO.
As the person in charge of the group, Paul was looking at the latest investigation report sent by his subordinates. Paul was in a good mood. Their preparation this time was really perfect~!Chen Daojun’s prediction is so accurate~!
Exactly as he expected, as time goes by, the situation in the real estate industry in Beautiful Country is getting worse and starting from August 2007, the Federal Reserve responded by injecting liquidity into the financial system to increase market confidence, the . stock market was able to maintain its high level.
But "bad news" came from within the two giants of mortgage loans in the beautiful country, Fannie Mae and Freddie Mac!
Because of the unique nature of government-sponsored enterprises, Fannie and Freddie's bondholders believe they are protected from risk by an implicit government guarantee, while shareholders insist on taking greater risks for greater the risks that highly leveraged government-sponsored enterprises take make them vulnerable to any potential subprime mortgage crisis had a disruptive impact on Freddie Mac and Fannie Mae.
In 2007, the book value of Freddie Mac and Fannie Mae's subprime mortgage-backed securities fell significantly, leading to a severe erosion of their own capital in [-], as required by the GSEs' "mark-to-market" requirement to measure assets at market prices.
If investors start refusing to refinance maturing debt, this could be enough to create a major liquidity and other Asian countries bought large amounts of government-sponsored corporate bonds and mortgage-backed securities, and they began to question the financial capabilities of Fannie Mae and Freddie Mac and wanted to know whether the guarantees would be honored.
……
These situations all reveal that the real estate industry in the beautiful country has already encountered huge problems. Once a thunderstorm occurs, the financial industry, which is deeply tied to real estate, will definitely experience an "earthquake"!
Paul called George and Eric and wanted to ask about the recent situation.
Eric said excitedly, "I am going very smoothly here. I have sold nearly 70% of many financial investment products under our group and the shares of listed companies held by BOSS!" George took over the conversation and continued, "We have encountered some small problems here. Although we have divided into hundreds of accounts to buy every day on the gold exchange, as the cumulative scale of gold we have acquired exceeds 1500 billion . dollars, the price of international gold has still increased. Big rise~! I guess many financial institutions have noticed this."
Paul thought for a while and said with certainty, "Since they may have noticed it, let the people below speed up the acquisition of gold~! As for other financial institutions, just do whatever you want~!"
"...By the way, didn't Chen say before that in addition to buying gold, he would also short-sell those companies? How is the progress in this regard?" Paul suddenly remembered another thing and asked quickly.
"Leyan's investment company has completed communication with some financial institutions and has obtained shares from Lehman Brothers, Citibank, Bear Stearns and other companies. The current borrowed shares have reached more than 800 billion US dollars. The scale of..."
"It's not enough. Let him think of ways to borrow more! The worst he can do is promise more interest to those financial institutions!" Paul sneered, "Every situation described by this guy Chen has come true. If we can't seize the opportunity, , that’s really such a waste~!”
Hearing Paul say this, George nodded CEO is much tougher than the old man James, but this is also a good thing for them~!With him on top to withstand the pressure, subordinates like them can act with confidence!
……
Morgan Bank.
Bruce, who has not yet retired, is looking a little gloomy at the looked at the information submitted by his subordinates and felt a little is already aware of the "big trouble" that has arisen in the real estate industry in the United States, but he has not yet made a decision on how to deal with it.
He pondered for a while, and then asked his subordinates, "How is the situation at Goldman Sachs Group? Is there any big move?"
"Goldman Sachs Group has not made any major moves during this period. It has just packaged and sold several 'investment projects' with low revenue over the years..."
"...But there are forces at the gold exchange that have been continuously purchasing gold for some time~!" The subordinate hesitated for a while, and then told another thing he knew.
"The Goldman Sachs Group is selling off investment projects?!...Did they notice something?" Bruce was a little suspicious, but now his old friend James has retired, and the current Goldman Sachs Group CEO Paul doesn't have much personal relationship with him, so it's impossible to get it from him. How much useful information is there.
"...Majafake~! If only I hadn't broken up with that Li Wenxuan! He must have some plan~!" Bruce couldn't help complaining in his heart~!
……
"...You will notify us to inventory the non-performing assets of our Morgan consortium, and then package and sell them~!" Bruce finally chose to temporarily copy the approach of Goldman Sachs Group. As for the other steps, we will wait and see~!
"Yes, BOSS!"
(End of this chapter)
"...If you are short-selling, how sure are you, President Chen?" Song Cailin asked subconsciously.
The young company president did not know Chen Daojun well, although he also knew that Chen Daojun was a senior executive of Goldman Sachs Group and had strong investment she has never experienced or participated in such a high-risk thing as short selling, so she is somewhat uneasy.
"...Most of you won't believe me if I say I'm [-]% sure, but I'm sure I'm [-]% sure~!" Chen Daojun said with a smile. It's impossible for any listed company to withstand the pressure under the subprime mortgage crisis. A sharp drop in stock prices is inevitable. Plunges are also normal.
As long as they follow the trend and continue to drive down those companies, wouldn't it be easy to make money? !In addition to AIG (American Asia Property & Casualty Insurance), whose market value plummeted 95%, Lehman Brothers, Bear Stearns, Citibank, and Deutsche Bank are all short-selling high-quality stocks~!
Their market value fell by more than 80-90% at one time. The first two went bankrupt due to losses, and the latter two were also dying. Although they survived, they did not have the glory of in the past 10 years or so, the stock price has not returned to its peak, and is only a little more than 2007/1 of the highest price in 10!
……
Seeing Chen Daojun so confident, others felt a lot more that they have "boarded the pirate ship", if they do not follow Chen Daojun, they will inevitably suffer huge for investing in gold or shorting those listed companies, anyway, "a dead Taoist friend is not a poor Taoist". If you can make money without losing money, it is already a great thing~!
……
After the meeting, everyone took action quickly. They also needed to mortgage the shares they held to foreign banks in exchange for funds as soon as for why not do this in Bangzi Country?
With the Bank of China's three melons and two dates, how can it release billions of dollars?A billion dollars is already a huge achievement~!
------Dividing line------
Goldman Sachs Group, Office of the CEO.
As the person in charge of the group, Paul was looking at the latest investigation report sent by his subordinates. Paul was in a good mood. Their preparation this time was really perfect~!Chen Daojun’s prediction is so accurate~!
Exactly as he expected, as time goes by, the situation in the real estate industry in Beautiful Country is getting worse and starting from August 2007, the Federal Reserve responded by injecting liquidity into the financial system to increase market confidence, the . stock market was able to maintain its high level.
But "bad news" came from within the two giants of mortgage loans in the beautiful country, Fannie Mae and Freddie Mac!
Because of the unique nature of government-sponsored enterprises, Fannie and Freddie's bondholders believe they are protected from risk by an implicit government guarantee, while shareholders insist on taking greater risks for greater the risks that highly leveraged government-sponsored enterprises take make them vulnerable to any potential subprime mortgage crisis had a disruptive impact on Freddie Mac and Fannie Mae.
In 2007, the book value of Freddie Mac and Fannie Mae's subprime mortgage-backed securities fell significantly, leading to a severe erosion of their own capital in [-], as required by the GSEs' "mark-to-market" requirement to measure assets at market prices.
If investors start refusing to refinance maturing debt, this could be enough to create a major liquidity and other Asian countries bought large amounts of government-sponsored corporate bonds and mortgage-backed securities, and they began to question the financial capabilities of Fannie Mae and Freddie Mac and wanted to know whether the guarantees would be honored.
……
These situations all reveal that the real estate industry in the beautiful country has already encountered huge problems. Once a thunderstorm occurs, the financial industry, which is deeply tied to real estate, will definitely experience an "earthquake"!
Paul called George and Eric and wanted to ask about the recent situation.
Eric said excitedly, "I am going very smoothly here. I have sold nearly 70% of many financial investment products under our group and the shares of listed companies held by BOSS!" George took over the conversation and continued, "We have encountered some small problems here. Although we have divided into hundreds of accounts to buy every day on the gold exchange, as the cumulative scale of gold we have acquired exceeds 1500 billion . dollars, the price of international gold has still increased. Big rise~! I guess many financial institutions have noticed this."
Paul thought for a while and said with certainty, "Since they may have noticed it, let the people below speed up the acquisition of gold~! As for other financial institutions, just do whatever you want~!"
"...By the way, didn't Chen say before that in addition to buying gold, he would also short-sell those companies? How is the progress in this regard?" Paul suddenly remembered another thing and asked quickly.
"Leyan's investment company has completed communication with some financial institutions and has obtained shares from Lehman Brothers, Citibank, Bear Stearns and other companies. The current borrowed shares have reached more than 800 billion US dollars. The scale of..."
"It's not enough. Let him think of ways to borrow more! The worst he can do is promise more interest to those financial institutions!" Paul sneered, "Every situation described by this guy Chen has come true. If we can't seize the opportunity, , that’s really such a waste~!”
Hearing Paul say this, George nodded CEO is much tougher than the old man James, but this is also a good thing for them~!With him on top to withstand the pressure, subordinates like them can act with confidence!
……
Morgan Bank.
Bruce, who has not yet retired, is looking a little gloomy at the looked at the information submitted by his subordinates and felt a little is already aware of the "big trouble" that has arisen in the real estate industry in the United States, but he has not yet made a decision on how to deal with it.
He pondered for a while, and then asked his subordinates, "How is the situation at Goldman Sachs Group? Is there any big move?"
"Goldman Sachs Group has not made any major moves during this period. It has just packaged and sold several 'investment projects' with low revenue over the years..."
"...But there are forces at the gold exchange that have been continuously purchasing gold for some time~!" The subordinate hesitated for a while, and then told another thing he knew.
"The Goldman Sachs Group is selling off investment projects?!...Did they notice something?" Bruce was a little suspicious, but now his old friend James has retired, and the current Goldman Sachs Group CEO Paul doesn't have much personal relationship with him, so it's impossible to get it from him. How much useful information is there.
"...Majafake~! If only I hadn't broken up with that Li Wenxuan! He must have some plan~!" Bruce couldn't help complaining in his heart~!
……
"...You will notify us to inventory the non-performing assets of our Morgan consortium, and then package and sell them~!" Bruce finally chose to temporarily copy the approach of Goldman Sachs Group. As for the other steps, we will wait and see~!
"Yes, BOSS!"
(End of this chapter)
