Archived Financial Talent

Chapter 479 Short Selling Action
The old Morgan never imagined that their family would become the "sweet pastry" in the eyes of the entire Wall Street short sellers.

The first problem occurred was the Morgan family's Stanley Company. After all, the stock price of this company had fallen by 70.00% in just a few days on the secondary market. It was hard for no one to notice this company.

Although country M is currently in a financial crisis moment, there are often companies whose stock prices can crash in just a few minutes, just like the AIG company a few days ago. It has fallen by 10%, and the company with a market value of [-] billion yuan is currently only [-] billion US dollars left, and because the company's debt is as high as [-] billion US dollars, it is very likely that it will declare bankruptcy in the near future.

In the past, in the capital market of country M, even if a company had a lot of debt, it would not declare bankruptcy casually. After all, what about high debt? The country can’t just watch a big company go bankrupt like this, and hundreds of thousands of people lose their jobs. Bar?
However, as the domestic real estate company declared bankruptcy before, everyone suddenly realized at this time that in the case of the financial crisis, the country will no longer go to the bottom line to save those indebted companies because of the unemployment of the people. Many investors will buy the bottom of the collapsed stock and bet on its rebound, but under the current situation, few people buy the bottom.

Under the current market conditions, many people think that once a company's stock price falls, it is bound to be difficult to rebound, so shorting stocks that have fallen sharply seems to have become a very low-risk investment.

However, many companies with relatively small market capitalizations have too few stocks in circulation. If there are too many short-selling funds, once there are not enough stocks in the market to close their positions, the short-selling funds will be devastated, just like before. The same goes for Volkswagen stock in Europe.

At the beginning, in order to acquire Volkswagen, Porsche Corporation kept buying the circulating shares of Volkswagen in the market, and those short-selling institutions were betting that Porsche Corporation would never be acquired by Porsche, so they boldly entered the market and shorted , to make a century gamble with Porsche.

But the ideal is beautiful, but the reality is cruel.

Porsche not only purchased Volkswagen shares in the secondary market, but also purchased Volkswagen shares through various financial institutions using various financial derivatives. In this way, once the time comes to exercise the rights, those financial institutions will also be bound to enter the stock market. The stock of Volkswagen is purchased in the secondary market to exercise the rights of Porsche AG.

So when Porsche announced that they directly and indirectly controlled 60.00% of Volkswagen shares, short-selling institutions in the entire market panicked.

After all, if the shares of Porsche and the German government are removed, the remaining shares in the market will not be able to make all the short-selling institutions in the market close their positions and leave, so the institutions that were originally determined to be short-selling were not allowed to mobilize a large amount of funds to enter the market Buying Volkswagen's stock, the result is that Volkswagen's stock price has risen more than dozens of times in one day.

Old Morgan is currently very irritable, he never imagined that one day he himself would be caught in such a dilemma.

Looking at the stock price trend of Stanley Company displayed on the computer, the old Morgan knew that shorting Stanley Company has gradually become a trend. At present, the main short sellers in the market are still short-selling institutions with sensitive information. Once the retail investors behind know the news , will also join this short-selling army.

Although the Morgan family has a history of hundreds of years, he is not arrogant enough to be an enemy of the entire market, but according to the trend of Stanley's stock price, he will soon be an enemy of the entire Wall Street.

"Boss, something serious happened."

Just as old Morgan was walking back and forth in the living room, thinking about countermeasures, a middle-aged white man rushed in with a panicked expression.

"Why is it you again? Didn't I say it many times?"

"Our Morgan family are nobles, so don't panic even if we encounter big things."

Old Morgan wasn't in a good mood at first, but seeing that the person rushing in with a panicked look was the same person as last time, it seemed that he had found an outlet for the suppressed emotions in his heart.

"Boss, I'm sorry, but this news is really important."

Old Morgan stared at the man standing in front of him with a stern face, and finally sighed slightly. No matter what, the other party has followed him so much, and there is no credit but hard work.

"Tell me what happened to make you foul again."

Old Morgan walked slowly to the sofa and sat down, then reached out to pick up the cigar and lighter next to him, while waiting for the other party to give him an explanation.

"I just received the news that the old Luo Er, the former spokesman of the Luo Er family in Europe, passed away in the hospital."

The middle-aged white man stood next to old Morgan, hurriedly dodged the lighter in old Morgan's hand, and reported the situation while lighting a cigar for old Morgan.

But just as he finished speaking, the cigar in Old Morgan's hand suddenly loosened, fell to the ground, and rolled slipperily under the table.

When the white man looked up suspiciously at the old Morgan next to him, he saw that the old Morgan's face was pale, without a trace of blood, his mouth grew slightly, and his eyes were round, as if he had heard something incredible.

"Boss, are you okay?"

The man asked in a low voice, but his words didn't get a reply from old Morgan. Old Morgan didn't move at all, as if his acupuncture points had been tapped by those ancient heroes.

The middle-aged man took courage, stretched out his hand and gently pushed the old Morgan, only to see that the old Morgan fell straight to the back of the sofa.

"Come on, something happened to the boss, hurry up and call the doctor."

Seeing old Morgan like this, the middle-aged man didn't know that something happened to Old Morgan, so he quickly sent a signal to the people outside, telling them to rush over to the boss's personal doctor.

Within a few minutes, the figure of old Morgan's personal doctor appeared at the door, but after he gave old Morgan a brief examination, he hurriedly sent old Morgan to the hospital. In the current situation of old Morgan, It is no longer something he can easily solve here, he needs to perform surgery on old Morgan immediately.

The news that old Morgan was admitted to the hospital spread quickly, so various news media began to report on the situation of old Morgan. After all, old Morgan was the talker of the Morgan family. If something really happened, the Morgan family Who will be in charge of the future of the behemoth is a matter of great concern to all forces.

Although the Morgan family's investment bank, bank, and Stanley Corporation do not seem to be very big, these three companies are just the tip of the iceberg of the Morgan family's industry.

When these three companies were not split up, they were all owned by the Morgan family group. Later, the authorities were afraid that the power of this family would grow, so they forced the Morgan family to split up the company. The three companies we have seen so far.

But no matter how powerful the Morgan family is, in the event of a financial crisis, those who should be in debt will still be in debt, and those who should have a sharp drop in stock prices will still have to fall sharply, regardless of how awesome your background is.

After the news that the old Morgan was admitted to the hospital was revealed, more and more people in the market began to short-sell Morgan Stanley.

Zou Ming also soon received the news that old Morgan was admitted to the hospital.

At the beginning, he couldn't believe it. After all, big bosses like old Morgan are surrounded by private doctors, and their bodies are often checked. How can they be sick when they say they are sick?
However, as the news from over there became more and more detailed, Zou Ming's original doubts gradually disappeared. According to the information obtained so far, it seems that old Morgan is really sick.

Zou Ming quickly reported the situation here to Lin Feng. After all, no matter whether Old Morgan was pretending to be ill to lure him into action, he still needed to say hello to Lin Feng first.

After Lin Feng heard Zou Ming's words, he was also very surprised. It was not a good situation for old Morgan to be admitted to the hospital suddenly at this critical time. If old Morgan was really sick, then for Lin Feng's side In other words, it is simply a good opportunity, but if old Morgan is pretending to be sick just to hide behind and see who jumps out first, it may be a bit tricky.

However, Lin Feng quickly dismissed the second possibility. After all, for the Morgan family, there was no need for this at all, so it is very possible that the old Morgan is really sick now.

"Zou Ming, you will immediately use half of the funds on your side to start shorting. If you notice any abnormalities on the Morgan family's side, you will withdraw in time. If there is nothing abnormal on the other side, you will use all the funds to start shorting. , and at the same time spread the news and bring in all the short sellers on Wall Street.”

Lin Feng is not a timid person either, if Old Luo Er is really pretending to be sick, then he has to teach him a lesson he will never forget.

When Zou Ming heard Lin Feng's words, he thought about it for a while, and then quickly understood the mystery.

Regardless of whether the old Morgan is really sick or pretending to be sick this time, as long as he brings in the short-selling power of the entire Wall Street to convince everyone that the old Morgan is really sick. Even if there is a 90.00% chance of winning here.

At that time, even if the old Morgan stood up to refute the rumors, so what?

So a mighty short-selling operation against the Morgan family began.

(End of this chapter)