Reborn Millennial Gamer

Chapter 541 Lehman Raid, Shorting Penguins (4K)

new work time.

On the pedestrian street, people came and went, Zeng Li was wrapped in a thick down jacket, holding Lu Fei's arm, walking through the shopping malls and shops.

The bodyguards in front and behind are always on guard.

"It's noon, let's find a restaurant for dinner."

Zeng Li looked sideways with a bright smile on her face.

Lu Fei nodded, without saying a word, his attention was deeply attracted by the subtitles on the LED scrolling screen at the entrance of the investment bank——

"Fox Business News: Mortgage delinquencies hit record high of 110 million."

"The interest rate of P2P online lending hits a new low, only 8.46%, and the turnover in 06 hit a new high."

"..."

Wang Ben followed closely, and saw Lu Fei suddenly hand over the shopping bag, and then took out the vibrating mobile phone.

The call notes read: John Paulson.

"Hey, John, when you call at this time, do you have good news or bad news?" Lu Fei smiled playfully.

"The good news is that the mortgage default rate continues to rise, from 4.5% to 4.6%, which is a step closer to the 8% that the subprime mortgage collapsed completely." John Paulson did not have the slightest joy in his tone.

"What about the bad news?" Lu Fei restrained his smile.

"The bad news is that no one jumped off the building. What the hell, the subprime bonds are obviously plummeting, but the CDOs packed with junk bonds are getting more and more valuable!"

John Paulson gradually lost his composure.

Lu Fei was extremely calm, "Did they lower the rating of CDO or mortgage bonds?"

"No, they're all the same, they're all 3A!"

John Paulson said angrily: "Moody's, S&P, and Fitch have all fallen, and they are all in collusion with them. Lu, we must find a way to expose the involvement of rating agencies in fraud and let the media expose this scandal. Fully exposed!"

"No, John, have you contacted the media yet?"

Lu Fei walked into a Chinese restaurant and sat down alone.

"Yes, I found my friend who is an editor at the Wall Street Journal, but he told me that he wouldn't bet his career on this fake news."

John Paulson emphatically said: "Huh, fake news."

Pointing to the menu to order, Lu Fei said, "It's normal for him to refuse."

"It's not normal, it's so abnormal. I even showed him the tapes of the conversations investigated by the rating agencies, but he still thinks it's fake news." John Paulson dissatisfied: "Lu, I need your help, you There must be media resources for this, right?"

"Calm down, John, calm down."

Lu Fei hurriedly comforted him: "You might as well think about it, just as no rating agency dares to rate Wall Street's bonds below A grade, naturally no media dares to report and offend Wall Street as a whole."

"What do you mean, the media has also followed the capital?" John Paulson immediately understood.

"uh-huh."

Lu Fei smacked his lips. The entire subprime mortgage bundled thousands of companies such as Freddie Mac and Fannie Mae, the five major investment banks, private securities, the three major rating agencies, various credit companies, hedge funds, private equity funds, pension funds, etc. into one. group.

Naturally, do everything possible to cover the lid.

Now they are dealing with such a behemoth.

"Those bastards, bastards!"

John Paulson was pacing back and forth, and he scanned the ABX market from the corner of his eye. Lehman and Merlin frantically swept up the goods before the market closed, and took another 390 million collateral.

In the morning alone, the ABX index rose by 0.2 points.

For CBS alone, the floating loss on the fund's books has reached 5000 million US dollars, not including the loss of the bearish position of the index.

Obviously housing prices began to fall, and obviously the default rate began to rise, but John Paulson didn't make a penny, and he lost money.

What kind of shit is this!
"Don't worry, hold your breath, I will do it when it's time to do it." Lu Fei knocked on the table disapprovingly.

Wall Street thinks that it is in control of the public opinion, but it does not know that the times have changed, and YouTube, Facebook, Twitter and other forces have sprung up. Obviously, they have greatly underestimated the influence of new media.

"But the worst thing now is that the risk assessors from Bear Stearns came to my fund, and the leader was James Cain." John Paulson couldn't help but said, "They are trying to persuade, no, to persuade the fund to make other investments. Put pressure on me to sell at least half of our CDS."

(PS: In reality, hedge funds hold CDS with a paper value of $250 billion.)
"Kane's idea is quite beautiful. It can be worth 200 billion US dollars, which will completely unbalance the entire ABX and even the long and short sides of the subprime bond. Those who are long can make a lot of money."

Lu Fei smiled coldly.

"Yes, they not only want our insurance premiums, but also want to take all of us." John Paulson turned his head and looked at the people in suits and ties through the glass window.

"John, if you stick to it, there will be a turnaround."

Lu Fei said seriously: "Do you dare to continue to carry the order?"

"Of course, I've been carrying it for more than a year, and it's not bad for another year or two." John Paulson gritted his teeth. Carrying orders is a kind of mental torture, let alone resisting pressure under a disadvantage.

Lu Fei smiled and said, "Great, then I hope you can turn around and go to the meeting room calmly, and politely say to Kane, 'No, fuck you, get out'!"

"Snapped."

John Paulson's confidence increased greatly, he put down the receiver heavily, and then turned back to the conference room. He saw James Cain and others chatting and laughing. It seemed that they had a chance to win, and he felt instantly upset.

"John, how did my suggestion go?"

James Caan took a sip of his coffee.

"If you do what you say, what will happen to the fund's losses?" John Paulson took out a tissue and spit out the gum.

"Haha, I've already thought about this question for you."

James Kane said darkly: "When Lu Fei trusts you unsuspectingly, you can resell all the CDS in your fund to Lu, and give all the losses and risks to Three Body Fund. Since he is short on subprime mortgages , leave him alone..."

"You asked me to betray Lu?"

John Paulson sneered angrily.

"John, do you want to die with Lu? It's still too late for you to get away. Even if Lu wins the bet in the end, your fund can still charge fees. Isn't it great!"

James Caan shrugged.

"Shut up, Kane!"

There was a murderous look in John Paulson's eyes, "I just want to say, No, Falk Squid!"

"John, you know who you're talking to!"

James Kane slapped the table, and Huo Di stood up.

In 06 alone, I brought Bear Stearns a profit of US$21 billion, a record high, just like Richard Fuld's position in Bear Stearns. Death, power monstrous.

At this time, how dare to contradict the gold master's father?
"I've already chatted with the fund's largest investor, Lu, and he said, 'Asshole, Kane'!" John Paulson swears, and almost raised his middle finger to provoke him fiercely.

Seeing that he was determined to follow Lu Fei all the way to the dark, James Kane snorted coldly: "For some insurance compensation, you hope that the housing market or even the entire subprime mortgage market will collapse, you are simply crazy, you will not Know the consequences, the fund suffered a huge loss, can you handle it?"

"Don't worry, Lu Neng and I will stand up."

There was determination in John Paulson's eyes.

"I didn't mention Lu. He has so many assets. He is the second richest man in China. I'm talking about you. How can you stand up?"

"I can handle it."

"You can't stand it."

"It's worth it."

John Paulson's tone was firm.

"You can't stand it!"

James Kane slapped the table and yelled again.

The risk assessor of Bear Stearns threatened: "John, don't forget, the fund exceeds the limit of the stop loss, and we have the right to disqualify you as the fund manager. Don't forget that."

"I didn't ask!"

John Paulson didn't want to say more, he opened the door of the meeting room, and said without a doubt: Get out of here!
"John, do yourself a favor!"

James Cain glared angrily, shook his head and walked away.

Leaving hedge funds, he went straight to the Metropolitan Club on Fifth Avenue in New York, founded by the famous JP Morgan.

Only the established political and business families of Zhengxing Banner are eligible to join.

Like Master Lu, he couldn't get in no matter what.

James Kane met Richard Fowles and Sny O'Neal in a small box specially arranged by Damo.

"You came just in time."

Richard Fowles took out his cards, "How about we play bridge and chat?"

"no problem!"

As soon as James Cain heard about bridge, he immediately became interested.

"You may not know, Kane is a world-class bridge player, 10 domestic championship champions..."

Snyoneal took a wad of cash from his pocket.

"11, hey, I got another one last year."

After James Cain sat down, the four of them were like the "Landlords' Association" on Wall Street, and their words were all about subprime mortgages.

"Paulson didn't agree?"

Richard Fowles couldn't help being surprised.

"Now we have to redo the plan."

James Kane shook his head and laughed. According to the original plan, he persuaded John Paulson to act as an internal response, and then Merrill Lynch placed inside the Three-Body Fund and other internal ghosts to work together to cheat Master Lu's money.

"No, without Paulson, the plan can still be implemented." Richard Fowles looked left and right, "How many penguin goods have you bought from several brokerages?"

Sny O'Neill said the number with reservations, but bluntly pointed out that the shipment was taken from Goldman Sachs.

"As expected of Goldman Sachs."

Richard Fowles snorted, "Lu put on such a big show at Christmas, and used an insurance policy that is impossible to default as a settlement fee. Unexpectedly, Goldman Sachs still can't be fed."

"The gold futures account, how could it be forgotten!"

James Cain was livid.

Sny O'Neil and others deeply believed that the loss of more than one billion dollars must be doubled from Master Lu.

In any case, this battle is between the 5 giants of Wall Street and 2 funds, and I have the advantage!

They even opened champagne to celebrate in advance, and after the victory, they organized a golf game at the Hollywood Golf Club.

In the next few days, the subprime bond market was extremely hot in the cold winter. The stock prices of giants such as Lehman, Bear Stearns, and Merrill Lynch were all bullish, and the highest was the subprime mortgage.

Lehman once rushed to a historical high of 71.3 US dollars.

The reason why the capital market reacted so violently was that every investment bank released its annual reports one after another, and there will be even greater moves on commercial real estate and subordinated bonds in the next year.

Driven Fannie Mae, Freddie Mac stock prices soared all the way.

A piece of snow-covered America is booming.

Looking at the flying snow outside the floor-to-ceiling windows, Lu Fei sat back on the chair, looked at the computer, and browsed the domestic information. Although he was in the United States, he did not slack off Huaxia's business at all——

"Ali Baba will go public in Hong Kong this year."

"In order to ensure the food safety of the people, special rectification will be carried out in 2007."

"'Panda Burning Incense' ravages the Internet in China, and many antivirus software companies jointly encircled and suppressed it. Penguin and Qihoo successively announced that their antivirus software is completely free, causing shocks in the antivirus market."

"Dongfang Weidian was framed, and the real culprit is suspected to be Rising."

"Domestic e-commerce is developing rapidly. Enterprises such as Feigou, Ari, and Amazon are actively deploying logistics and warehousing. Zhongtong takes the lead and cooperates with YTO, Shentong, Yunda, Shunfeng and other companies to formally establish the 'Kuaima Alliance'. Huaxia's private logistics has entered the 2.0 era. "

"........."

Lu Fei watched for a while, his eyes slightly sore.

While rubbing the Qingming acupoint, he picked up the landline and was about to call Lu Huateng to learn about the deployment of Penguin Games and cloud computing, as well as the general strategic direction for the next year. At this moment, Carlson Bullock rang loudly. The door seemed extremely urgent.

"It's not time for the annual meeting now."

Lu Fei raised his hand and looked at his watch.

"It's not this, it's a big deal, a big deal!"

Carlson Brock swallowed and said that Lehman had released a 54-page short-selling report aimed at penguins.

Damn it, Xu Xin really got it right!

Lu Fei was already prepared in his heart. Instead of panicking, he wanted to laugh, "Where's Lehman's report?"

"The electronic version has been sent to your mailbox."

Carlson Bullock submitted the typescript, and we are also analyzing, should we postpone the annual meeting for an hour or two? "

"No, Penguin and I should worry about this matter. The Three-Body Fund cannot be distracted. For the past two years, I have been focusing on gold, subprime mortgages, and semiconductors."

Lu Fei flipped through it hastily, just like what Xu Xin expected, he was holding on to the game business and online videos tightly.

Carlson Bullock urged him not to take it lightly. After all, the penguin stocks pledged by part of the funds of the Three-Body Fund will affect the whole body. It is clearly aimed at Penguin, but in fact it is aimed at Three-Body.

Xiangzhuang's sword dance is intended for Peigong.

Apparently, Lehman's move was determined.

To make matters worse, Merrill Lynch, Merck Bank, and UBS joined the ranks of shorting penguins as if they had negotiated with Lehman.

Such a menacing attack must have been premeditated!

I don't know how many Wall Street crocodiles are lurking underwater, staring at the penguins and Trisolarans that have been surrounded.

"How much did the stock price drop?"

Lu Fei smiled and showed no anger.

"At present, it is only fluctuating slightly, falling by 1.2%, but there will definitely be bigger moves in the future, and it may be sold off, causing panic." Carlson Bullock answered truthfully.

"How about the two inner ghosts?" Lu Fei said.

Carlson Bullock said: "Well, they didn't realize that they had been exposed at all. This time they shorted the penguins, they must not escape the relationship."

"Send that George to my office tomorrow."

Lu Fei reached out and grabbed the back of his head, and pulled his head directly in front of his face, his face was frosty:

"And tell Friedman, I want to write a book."

(End of this chapter)