Reborn Millennial Gamer

Chapter 536 A conspiracy comparable to a nine-turn large intestine (4k)

The dinner ended successfully. Except for Goldman Sachs, Lehman, Merrill Lynch, Morgan Stanley, Bear Stearns, Citigroup and other Wall Street financial gangs, everyone had a share, and everyone got a Christmas gift wrapped in CDS. Satisfied.

The Three Body Fund has also received a lot of investment and investment intentions.

However, the old money’s family fund and the fund with a hidden funder are still on the sidelines. Although Mr. Lu’s image is very solid, "Chinese stock god", "Silicon Valley Chinese hero", countless halos can blind everyone's eyes, you can be short Subprime mortgages are really shocking.

Even old friends like Buffett and Bill Gates are hesitating, hoping to make a case they can't refuse.

So the next day, Lu Fei hurriedly got out of Ivanka's top-notch car and rushed to Paulson's hedge fund.

After all, there are at least two ghosts in my fund.

One Merrill Lynch, one Goldman Sachs, it is still useful to keep it!

"Where's my McDonald's?"

Lu Fei came out of the elevator, and ran into Xu Xin, Carlson Bullock and other reliable confidants who had been waiting for a long time.

"It's here."

Xu Xin handed it over with her own hands: "Let's drink milk. I specially prepared it. Coke is not suitable for drinking early in the morning."

"Who makes Buffett and Gates like to drink?"

Lu Fei took a bite of the cheeseburger: "I'm a gentleman who sacrificed my stomach, have they all arrived?"

"It's all inside, drinking Coke."

Xu Xin shook his head and laughed, and walked to the door.

I saw John Paulson strangling, taking a deep breath.

"Why are you so nervous, didn't you handle yesterday's banquet well?" Lu Fei stared into his eyes in surprise.

"Didn't you stand in front of it!"

John Paulson smiled bitterly and said, "How about it be like a banquet where you lead and I cooperate?"

"No, you are the protagonist of this subprime mortgage. It is because of your keen sense of smell and tenacious perseverance that you have persuaded the Three-body Fund to invest, including me as a supporting role for you!"

Lu Fei patted him on the shoulder, "Remember, you must say this to people or the media."

John Paulson said: "But for you..."

"I don't need this fame, and the future of your fund needs you to become famous. Do you understand what I mean, John?"

Lu Fei waved his hand, but there was a deep meaning behind it.

Once the subprime shorting is successful, the profit will be earth-shattering. If it is known that it is me who is behind the scenes, it will do no harm. Instead of being burdened by false fame, it is better to push John Paulson out. He is a real seed The red positive star flag is Jewish.

All over the United States, he will only be deified as a "empty god".

In this way, you can also land smoothly.

"Lu, I, I really don't know what to say..."

John Paulson couldn't help being moved and gave him a hug.

"Remember, I'm just a benefactor who has been completely convinced by your charisma and amazing eloquence, and I'm willing to provide you with all help including money."

Lu Fei repeatedly warned: "It's just my good vision and the luck bestowed by God to bet on you."

"I see, Lu."

John Paulson nodded solemnly: "But is it too wasteful for us to do CDS with Goldman Sachs for Lehman's bankruptcy?"

"You think Lehman won't go bankrupt?"

"But with the Federal Reserve and the Ministry of Finance around, they won't die, right?"

"I just bought an insurance by the way. The insurance premium is mainly for reconciliation fees with Goldman Sachs." Lu Fei raised a smile and told the whole story of the excuses he had prepared.

John Paulson didn't dig too deep. After all, the premium was paid for by the Three-Body Fund. Following him into the meeting room, he saw Buffett and Bill Gates sitting on the sofa, chatting and laughing.

"Hey Gates, Warren, good morning."

Lu Fei said hello, "Do you mind if I chat while eating?"

"Do you have sirloin burgers?"

Buffett smiled and said, "If you have, give it to me, I don't mind."

Bill Gates reminded: "Hey, Warren, you have been diagnosed with prostate cancer. The doctor told you to either exercise or quit Coke burgers. Don't joke about your life."

"No, it's impossible not to drink Coke, and it's impossible not to drink it in this life, so I choose damn sports."

Buffett took the burger and excitedly unwrapped it.

"Me too, I can't do without Coke!"

Lu Fei put the milk in front of Bill Gates, "How about Gates, you drink this, or coffee?"

"Of course I also drink Coke!"

Bill Gates rolled his eyes: "By the way, Lu, how long are you going to stay in the United States this time? Why don't you stay a little longer? Apple's press conference will be held in January. I heard that Jobs, like you, will announce a new Apple smartphone."

"Of course, I plan to celebrate the New Year in the United States this year."

After talking politely with them, Lu Fei introduced John Paulson, bragging and saying: "All of this today is from the hand of this short-selling genius, John Paulson, maybe as soon as Wall Street mentioned 'Paul Sen', only Henry Paulson comes to mind, but I can guarantee that, without accident, he will soon be famous on Wall Street, and even in the United States, and when he mentions 'Paulson', he will only mention John Paulson. "

John Paulson has thicker skin and can't help but blush.

"Stand up straight."

Lu Fei cast a look, please start your performance.

John Paulson breathed out, picked up a foam box on the table, and a tall building made of building blocks immediately appeared in everyone's sight, with labels attached layer by layer——

3A, 2A, A, 3B, 2B, B...

"This is our entire subprime bond infrastructure. The B-grade bond is the foundation of the entire subprime mortgage, and it also has the highest interest rate. Obviously, buying it will definitely earn the most, but it has high risks, and may even default and collapse."

Talking about pulling away a building block from the B-level, the whole high-rise building shook slightly, "But I don't know when, people who have no income and no stable job can apply for 3B-level bonds, and in the end because they can't repay the loan, they all change. It's a pile of rubbish, where is the trash can?"

"Do you have any basis or evidence?"

Buffett saw the blocks draw a parabola in mid-air, and fell into the trash can with precision.

John Paulson and Lu Fei glanced at each other, played the investigation video that he had seen before, and said like Jiazhen:
"According to our investigation, subprime mortgage companies have seriously violated regulations. In order to pass the loan review, they will help people with low income or even no stable income to pretend to be high-income lawyers and doctors.

Among them, the proportion of loans with incomplete or no supporting documents is 52.1%, and now even the loan review is exempted.

More than 6% of the newly added subprime loans have no documents to prove. You only need to go to the intermediary to register your name and you can apply for a loan. Even those who already have a subprime mortgage will buy a second and a third with nothing. Set, the fourth set..."

“That is, these B-rated bonds all fell to zero.”

Lu Fei wiped his mouth with a tissue, "Even A-level and above, it's the same, it's a pile of beautifully packaged garbage."

"No way?"

Bill Gates listened to the whole process of package forgery, and could not help frowning: "After packaging a bunch of junk subprime mortgages, they can turn into 3A-level financial derivatives that are not inferior to national debt. Don't you think there is some very logical logic in this?" Weird question?"

"It's not difficult to say, as long as the rating agencies are dragged into the water, this operation can be completed."

Lu Fei crossed his hands: "Actually, according to John's investigation, Moody's, S&P and Fitch are all doing this."

"why?"

Buffett lays down tempting burgers.

"Because if the ratings of subprime mortgage bonds are not rated higher, the business will be willing to give high ratings, even 3A rating agencies. In order not to lose customers and income, they have to collude and help customers deceive customers. client."

Lu Fei picked up the page presenter and flipped through the PPT on the TV, which clearly showed the ratio of subordinated bonds at all levels.

"Three Body has also done CDO, we have never done this before, but we have seen it. It can be said that 65% of 3A CDOs on the market seem to be safe and risk-free. In fact, it is estimated that at least 90% of them are filthy. Unsmelly garbage."

A frightening and alarming stream of information to digest.

Although Lu Fei and John Paulson spoke clearly and well-founded, they still remained silent.

"If it is as you said, what is the current default rate?" Buffett narrowed his eyes into a line.

"It's already more than 4.5%, and when it reaches 8%, the entire building is likely to..."

John Paulson pushed lightly, and with a crash, the entire block building collapsed instantly, leaving chicken feathers all over the place.

"Why didn't so many people find out?"

Bill Gates couldn't help but shivered.

"Some people can't see it, because the categories involved are too complicated. Bubbles generate bubbles within bubbles. The entire subprime mortgage is hidden at the bottom. Even Wall Street elites can't tell the truth from the fake, let alone Not to mention even more ignorant investors, some of them see it but don’t believe it, people always believe what they see before their eyes, or they are just gambling like us.”

Lu Fei laughed and said, "But the bet is that the subprime mortgage won't collapse."

"How big is the whole bubble?"

Buffett felt dry mouth and took a big gulp of Coke.

“看上去次贷量不过1.5万亿，但其实围绕次贷的衍生品市场超过450万亿，CDS就占了72万亿……P2P也占了大概1.3万亿。”

Lu Fei would never have imagined that the mine he planted in "The World Is Flat" would only be worth $5000 billion, but he never expected Wall Street to be so insane.

One must know that in the 7 years of the previous life, Huaxia only had 2 trillion RMB!
In just three years, it has already reached the total amount of funds in the "3 trillion stimulus plan". Sure enough, if you want to play, you have to be an American.

This mine, if it doesn't explode, it will be fine.

Once it explodes, it will shake the sky, shake the ground, and weep ghosts and gods!

After a long question and answer, Buffett showed a hint of shrewdness in his silly smile: "That's why Lu, you did that at the Christmas banquet yesterday, haha, what you gave was not a Christmas present, but a mine, but you accidentally gave it to me. Lehman, or did you intend to give it to Goldman Sachs on purpose?"

"It's me who insists on giving Lehman..."

John Paulson said ahead of Lu Fei: "Lehman has invested a lot of energy in the CDO market, completely ignoring the risks brought by subprime mortgages. CDS alone has 4300 billion US dollars, not to mention the scale of CDOs, and even created synthetics. CDO, the CDS sold to us, together with P2P and CDO that cannot be sold, are packaged into a new CDO."

"So you are not optimistic about Lehman, you want to short Lehman."

Buffett guessed the root knot at once.

"Not only Lehman, but also Merrill Lynch and Bear Stearns." Lu Fei looked straight at them, "I originally planned to enjoy this project exclusively, but I can't eat such a big hamburger, so I would like to ask you guys My best friend is open, but the amount cannot be less than $3000 million."

"Warren, what do you think?"

Bill Gates was heartbroken, but he still asked for advice humbly, and Buffett had to make up his mind.

Lu Fei said quietly: "Even if you guess wrong, you will only lose part of the insurance premium, but if you hit it..."

As if Satan was whispering, Buffett's cloudy eyes burst into light, and then he said kindly: "Lu, Gates told me that you have always wanted to join my Berkshire Hathaway?"

"That's right, but to be honest, the circulation in the secondary market is too small and the price is expensive. Warren, can you give me a friendly price?"

Lu Fei blinked and smiled hippie.

"If it's what you said, Lu, I welcome you as an independent director of Berkshire Hathaway."

Buffett smiled without answering, holding up the Coke.

"cheers!"

When Bill Gates saw Lu Fei raise his glass, he also clinked his glass in a hurry.

Soon, the three agreed to take the lead of the Three Body Fund and form a joint family office with the Bill Gates Family Fund and the Buffett Family Fund, starting with a big cooperation.

From this moment on, the three companies were connected online.

In the future, with a sum of investment, it is destined to form an inextricably linked community of interests.

"By the way, Lu, why did you give Goldman Sachs such a strange CDS? Is there some secret hidden in it?"

Bill Gates was curious.

"Huaxia has a trick called the aggressive method. If I fall to Goldman Sachs, Lehman may not ignore it. Does Richard have a history of attacking Goldman Sachs partners? Maybe now, Lehman is going to fight against me. I am short, Richard Germany wants to do more."

Lu Fei had a mysterious smile on his face.

Of course he won't say, there is still a trick in this trick.

In his previous life, it was because of Goldman Sachs' retaliation that he deliberately blocked any way out for Lehman, which made Lehman go bankrupt.

Now, Goldman Sachs is the insurer of Lehman's bankruptcy CDS. If Goldman Sachs does not rescue, Lehman needs to pay compensation to Mr. Lu, and Goldman Sachs must bear billions of dollars.

If Goldman Sachs chooses La Lehman, wouldn't it be worse than losing billions of dollars? Killing people will kill them!
In other words, if Goldman Sachs does not save it, it will lose money!

Goldman Sachs saved it, and fell into my trap!
In short, regardless of whether it can be saved or not, Goldman Sachs will definitely eat the nine-turn large intestine cooked by Mr. Lu.

Buffett and Bill Gates don't understand this method, they just spend money, and with their endorsement, a bunch of old money families who were still waiting and watching finally couldn't sit still.

Even if you know that shorting subprime mortgages is a fantasy, but the combination of Lu Fei and Buffett, the two investment gods, will make it difficult for people not to have confidence in the three-body fund. What if it is true?

Confidence and image are the most important indicators of investment!
As a result, a lot of green dollars flowed into the joint fund jointly established by the three companies, and a full $10.5 billion was raised in just one week.

In addition to China's domestic 5 million US dollars, John Paulson decisively divided the two halves, established two brand new short-selling funds, and bought all short-selling products such as subprime mortgage bonds, ABX index, CDO, and synthetic CDO. Shorting CDS, you only need to wait until the moment when real estate turns from boom to bust.

While Lu Fei was very busy and the Gulfstream G450 was flying around the United States, Merrill Lynch was not idle either.

"In the proposed CDS contract, we found that Lu set up a hidden clause that if Merrill Lynch's rating is downgraded, a certain amount of collateral must be paid to the Three Body Fund."

Michael Bloom presented the papers.

"What collateral?"

Snyonier frowned.

"It's nothing more than the superhero IP mortgaged to us by Marvel. Lu is really an out-and-out Marvel super fan."

Michael Bloom sneered.

"Is this clause available only to Merrill Lynch, or to Bear Stearns and Lehman?" Sny O'Neill asked.

"Both." Michael Bloom said.

"What's the attitude of those families?"

Sny O'Neill was expressionless, and specifically asked Lehman's Richard Fuld, did he agree or disagree?

"Should I make a phone call to find out?"

Michael Bloom rolled his eyes.

Snyonier remained silent, just pushed the landline in front of him, and watched him dial a number quietly.

"Beep, beep..."

As soon as the phone was connected, Michael Bloom only asked two sentences, and the third sentence stuck in his throat, his eyes widened, and his expression was astonished.

"What's the matter, didn't ask, or refused to say?"

Sny O'Neill looked serious.

"No, Richard answered the phone himself."

Michael Bloom's eyes were dull: "He asked me to ask you, do you want to join forces with Lehman and Bear Stearns to bet with Lu Lai, short the ABX index, and earn him a lot of money?"

"Hehe, it seems that Lu asked Goldman Sachs to do the 'Lehman bankruptcy' CDS, which angered this Wall Street bulldog."

Sny O'Neill laughed and said, "The mad dog is about to bite!"

　Thanks to Fushen Doudou for the 100 starting coins.

　　
　
(End of this chapter)