Reborn Millennial Gamer

On February 2th, the gloomy sky was filled with flying snow.

In the Lehman Building, Richard Fuld slammed his palm on the table, cursing and saying, "What the hell is Goldman Sachs doing! We are only one home run away from giving Lu a home run. Why is it suddenly Stop shorting Penguin's securities lending!"

"David said that the crude oil market has recently entered an inflection point of low oil prices, and Goldman Sachs needs to move money to cover its positions."

James Cain chuckled and said, "We even sold a lot of CDOs above grade A to insurance companies and pension funds, and even sold them to European funds and banks. It is said that they are [-]% off."

"[-]% off?!"

Richard Fuld couldn't help laughing.

Back then, I personally pulled Goldman Sachs from the third place on Wall Street. I didn't expect to see it in a few years, but it was pulled to this point.
If Henry Paulson knew, he wouldn't be so mad!

"I bought 33 grade 2A collateral. Does Lehman have an appetite for some?" James Kane laughed.

"Buy! I'll send someone to contact Goldman Sachs now!"

Richard Fuld hung up the phone and immediately told the secretary.

Lehman eats as much as Goldman Sachs sells.

There are cheap but not the bastard!

For two hours, the good news continued.

Not only did they swallow Goldman Sachs’ 9.4 collateral with tears at a discount of 50%, but Penguin’s share price, even with the blessing of Buffett and Lu Fei’s stock god halo, still fell by 1.21%.

In front of Wall Street giants, stock gods have to kneel!

According to such a downward trend, sooner or later the warning line of stock pledge will be touched, and even the liquidation line. Banks such as Deutsche Bank and Credit Suisse have long been eager to "extort" more mortgages.

One knife at a time, gouging out Lu Fei's flesh!

Richard Fuld was complacent. The only thing that made him unhappy was that the ABX index was like glue stuck to it today. It remained motionless at 105 points.

Not even the decimal point moved.

Indistinctly, there is an unfathomable weirdness.

"what happened?"

Richard Fuld, restless, asked people to buy five long positions, just like pebbles, to test the water.

Unexpectedly, instead of rising, the ABX index suddenly went down, falling by 1 point in the blink of an eye.

"Why did it fall, how could it fall!"

Richard Fuld's heart skipped a beat, and he immediately checked the prices of derivatives such as MBS (mortgage-backed bonds) and CDOs. They were more or less falling, and there were even signs of a plunge.

Looking back at the ABX index, it fell another 0.7 points.

"Impossible, absolutely impossible!"

He couldn't calm down anymore, stood up suddenly, picked up the landline, and ordered the secretary to find the research department immediately, "Check it out for me right away, whether there is a problem with the link, or some bad news just came out, go check it out right away, right away! "

"Understood, Richard."

The secretary answered on the phone.

"Don't panic, maybe it's just a technical adjustment."

Richard Fuld stared at the computer screen in a daze, as if turning on the water, the ABX index that had been raised so hard plummeted, and his heart was beating wildly, as if it had reached his throat.

"Richard, watch TV!"

The secretary pushed the door open, "Look at Fox News!"

Seeing his flustered look, Richard Fuld hastily turned on the TV. As soon as the channel was locked on Fox, he saw the female anchor of the business news and reported in a serious manner:

"Today, the country's second largest sub-prime mortgage company, New Century Company, issued an announcement announcing that due to the underestimation of the severity of the losses suffered in the first three quarters of 06 in default and arrears of housing loans, it led to a pre-loss in the fourth quarter.

According to estimates, it almost ate up the profit for the whole year of 06, and now it has officially issued a profit warning for the fourth quarter...

As of the time of reporting, New Century's share price has plummeted 4.6%, and some Wall Street analysts have lowered their ratings on the stock. "

"Richard, did the subprime mortgages really collapse?"

The secretary spoke hesitantly, with a trill.

"Impossible, absolutely impossible!"

Richard Fuld glared angrily, and directly denied Sanlian, "Don't panic, New Century Company may just be mismanaged."

The voice fell, and the entire office fell silent.

Outside the frosty window, snowflakes are fluttering~
Accompanied by the bitter cold wind, the bustling subprime mortgage industry felt the chill for the first time. On the day when New Century Company released the announcement, its stock price fell by more than 35% at the close.

The ABX index even fell by 5 points.

It is equivalent to wasting the more than 20 days of bulls such as Lehman and Merrill Lynch. John Paulson's fund relied on holding CDS and short positions worth nearly 400 billion dollars. In just one day, the floating profit on the book directly reached a terrifying level. Extremely——

20 million dollars!

Here, more than 72.5% of the funds came directly from Lu Fei, or were raised by him, not to mention that the Three-body Fund also held CDS and short positions worth $200 billion.

The one-day record of the two is 20 billion more than Soros's shorting of the British pound, which is exactly twice the difference.

The "God of Short Selling" has changed hands from now on!

John Paulson and Mr. Lu, who had been ridiculed for almost two years, had their word-of-mouth overturned overnight and became famous throughout Wall Street.

Citigroup, Merrill Lynch, UBS, and various funds that were slapped in the face, how tough they were to short penguins before, how humble they are now: I admit that my voice was a little louder just now.

One by one, the phones of Lu Fei and the two of them exploded!
Meanwhile, the Goldman Sachs conference room was in turmoil.

"Quickly, let someone f*ck inform New Century Company immediately, and tell them that the money that was previously borrowed from us must be paid back in advance, and it must be paid back immediately, right now, right now!"

"How much is the CDO dumped now?"

"..."

The high-level executives sitting around the round table yelled loudly, some yelled at the top of their throats, some cursed at their mobile phones, and some were so anxious that they were sweating. Under the tense atmosphere, they were all anxious and manic.

David Solomon seemed to be out of it, standing alone in front of the floor-to-ceiling windows, looking at the heavy snow in the sky silently.

Suddenly, John Warrendel's voice came from behind:

"Are you saying this is a coincidence? Or..."

"Do you think there is such a coincidence?"

"Perhaps New Century Company was just too aggressive in the fourth quarter and made some mistakes in its operations?"

"Does it matter? We are not the only ones urging New Century Company to pay back the money. Even ordinary medium-sized banks cannot bear such a run. What's more, New Century Company, if I remember correctly, has more than 170 yuan in debt. Billion?"

"173 billion."

John Warrendel couldn't help but have a headache, New Century Company was doomed to go bankrupt, once the first domino fell, the subprime mortgage would be...

"Lost, lost."

David Solomon was unwilling and reluctant.

After repeatedly studying George's business intelligence, he still chose to believe in Lu Fei in doubt, because he always felt that God was protecting him in the dark, so he resisted all opinions and ordered to forcibly liquidate all long positions.

Moreover, all traders were fully armed and tried every means to package and fool a large number of CDOs to unsuspecting investors.

Even sell these junk bonds to market idiots such as retirees and civil servants who don't understand anything.

It seemed that Goldman Sachs narrowly escaped death and won.

But in fact, he lost solidly, lost word of mouth, lost reputation, especially lost to Lu Fei.

"Fake, watching this bastard make money is more uncomfortable than us losing money. The floating profit is nearly 30 billion dollars, 30 billion dollars!"

John Warrendel was jealous and resentful, "Why does God always favor this Chinese man? Could it be that he is God's illegitimate child!"

"I don't know, John, I don't know..."

David Solomon's eyes were full of loneliness. Looking around, New York City was vast and covered with snow.

He clenched his fist tightly and smashed the glass hard: "We won, but we also lost, completely lost to Lu!"

"But at least we survived."

John Warrendel urged: "We must meet at once and find a way to get rid of all this damned junk bonds in secret."

"How much is processed now?" David Solomon asked.

"Throwing a third of it already."

"What about the position?"

"We are now net-short. Like Lu and Paulson's funds, they are the main short sellers."

"What about CDS?"

"I have already bought 22 billion US dollars of CDS from AIG. Once these CDS depreciate, I can probably get about 120 billion US dollars in compensation. AIG still doesn't know anything, and foolishly jumped into our well-designed trap."

John Warrendel showed a smile of the rest of his life, "David, I think there is still a chance now, Xuelu and John are shorting subprime mortgages, but the biggest problem now is..."

"How exactly are their portfolios matched?"

David Solomon looked sideways.

"That's right, John's line has been busy all the time, why don't we start with Lu and let George find a way to get the investment portfolio of the Three-Body Fund?" John Warrendel suggested.

"No, George's value is too great."

David Solomon was reluctant to put the undercover agent in danger, "After Christmas, we should reconcile with Lu Zhong, and ask him directly how to operate it."

John Warrendel nodded, and changed the topic:
"What about the CDS between us and Lu? If all claims are settled, at least $155 billion in compensation will be paid, not including the Paulson Fund's swap contract..."

"how do you want to do it?"

"Can we inform Lu that Goldman Sachs' system has been hacked and malfunctioned, and some important documents such as CDS have been lost. It's not all because of it, but half of it?"

"Do you think you can get away with it? Don't forget that these contracts involve Buffett, Bill Gates, Walton..."

David Solomon said fiercely, "With so many families, can Goldman Sachs offend them?"

"Fake, Lu has long been on guard against our repudiation!"

John Warrendel scolded: "This Chinese man, I feel more like a Jew than I am a Jew."

"Well, let's sell the CDS that we underwrite to AIG, so that the CDS that needs to be compensated by Goldman Sachs will be compensated by AIG." David Solomon laughed.

"Great idea, CDS can hedge insurance and earn premiums, AIG fools will definitely agree."

John Warrendel snapped his fingers: "However, all of them? I think we can keep some high-quality ones, such as the settlement fee that Lu gave us. After all, Lehman cannot go bankrupt."

"Just do it."

David Solomon smiled wryly.

When will I beat Lu Fei once!
…………

Nine days later, it was New Year's Eve.

Just in these days, the ABX index dropped directly from 105 to 75, and shorting subprime mortgage projects made a lot of money!
Lu Fei and John Paulson have a floating profit of 180 billion on their books!
Not RMB, but US, Dao Le.

Master Lu once again became a god in a battle, and he was promoted from the godhead of "China Stock God" to "Investment God" in one fell swoop.

Buffett?That's all for American Lu Fei.

Previously, the voices in newspapers, TV stations, and the Internet clamoring to question Lu Fei's disapproval of subprime mortgages came to an abrupt end, and the fan circle fans who steadfastly supported him blew the clarion call to fight back.

Facebook, Line, YouTube, Twitter...

Wherever he goes, nothing grows.

Especially Richard Fuld, who is flying a dragon and riding a face, the comment section on Facebook has been completely smashed, and the previous rebellious appearance, please return to the same.

However, Richard Fuld has not been on the account for a long time.

New Century Company disrupted the entire subprime mortgage market, and also completely disrupted the short-selling plan of Lehman and other Wall Street giants.

Penguin lost the pressure, and the stock price rebounded rapidly, and even accompanied by another myth of the "Lu Stock God", it even tended to be higher than before short selling.

"Hey, Lu, I want to talk to you about the price tag of your three bodies, make sure the price tag is reasonable."

Listening to John Warrendel's voice on the phone, Lu Fei interrupted without hesitation: "You can price my CDS accurately, and doing so now is beneficial to Goldman Sachs."

"Lu, I don't know what you want me to say?"

"Do I have to make it clear, is Goldman Sachs also shorting?"

"Do not……"

John Warrendel was terrified. How did he know that Goldman Sachs had turned from long to short? Could it be that George had been discovered?

"Do you have to play dumb? Do you want me to announce to the public that Goldman Sachs is coaxing others to buy CDOs while backhanding short positions, and it is likely to be a net short position? Do you want to say? The media are now ringing up my phone calls and asking me out. Talk about subprime."

Lu Fei's threatening tone was full of murderous intent.

Damn, at this time, they are still yelling and coaxing me to close the position!
"No, no, Lu, hehe, you are Goldman Sachs' best friend, we will definitely give you a very satisfactory price for your CDS, but can you reveal a little bit about the short-selling combination of you and John? Please! "

John Warrendel's tone softened: "It's because David and I have been begging you hard these days."

"Wait a little longer, I'm worrying about Penguin's share price now, and I'm still short of $4.9 before returning to the price before shorting."

Lu Fei secretly poked and said, "I heard that Goldman Sachs also participated in Lehman's short selling of penguins. Is there such a thing?"

"No, absolutely not! We are friends!"

John Warrendel played the emotional card and vowed to guarantee that the price of Penguin will increase. Goldman Sachs is obliged to do so, and I will do it!
"That's so embarrassing, it's about the same if you pull 3%."

Lu Fei couldn't hold back his laughter. When the Penguin stock was sold off, almost all of it was bought by his own Three-body Fund, buying low and selling high, rounding up, which was equivalent to making a fortune for Wall Street giants.

It is worthy of being the eagle sauce who supports the captain of the transportation team!
"First go to Xianyang to be king, then go to Xianyang..."

Just as he was shaking his head and humming, Xu Xin barged in angrily: "These people on Wall Street are really shameless. Bank of America called to say that they had a power outage, and Deutsche Bank said that the server crashed. In short, we are doing CDS one by one. No one wants to admit it."

"It's not that they don't want to admit it, they just want to redeem the CDS from us at a low price, and even want to buy other CDS."

Lu Fei grabbed a banana from the fruit plate.

"Fei, you're right."

Xu Xin smiled coldly, "They're just daydreaming, they don't want to buy a CDS from us."

"No, sell them."

"What! Why, Hobby?"

"Sister Xin, have you ever thought about these questions?"

Lu Fei said solemnly: "Who will compensate these CDS? Is the compensation really ready?"

"Of course those insurance companies, banks and investment banks."

Xu Xin frowned, puzzled.

"That's the truth, but everyone who buys CDS ignores one question, can CDS really be cashed?"

Lu Fei said with a straight face: "Let's take Lehman for example. The scale of CDS is 4400 billion U.S. dollars. If you want to pay back trillions of dollars, do you think Lehman can take it out? [-]% will go bankrupt."

In fact, it was not the CDO that toppled the last domino of the subprime mortgage, but the CDS, which completely blocked all escape routes.

"Yup!"

Xu Xin suddenly realized that once Lehman goes bankrupt, even if it is acquired and reorganized and these CDS are still recognized, the value will definitely be greatly depreciated.

"So what we have to do is to wait until the big Wall Street banks and investment banks want to buy CDS for hedging because of panic, and we will sell all of them for cash, and we will get all the fucking cash."

Lu Fei made a "pocket is safe" gesture.

"And we can also give favors to Wall Street and even the world's financial institutions by selling CDS."

Xu Xin took a deep breath, "A Fei, you throw chicken, my God, didn't you really travel from the future?"

Lu Fei smiled but did not answer, half-jokingly said: "Sister Xin, your husband is still working at Bear Stearns, right? I think he can find a new job now. If he wants to start a business, I will do it to save your face. I am very sorry." Willing to invest in an angel round."

"I'll ask him during the New Year's Eve dinner."

Xu Xin said: "By the way, Soros also called, and I want to invite you to his house as a guest, and ask you in person how to short sell CDS."

"Let him find John, I'm not free, and now Buffett has to make an appointment in advance to find me."

Lu Fei raised his chin proudly, "Besides, I'm not going anywhere today, and no one can delay my going home to eat dumplings."

"Haha, we don't eat dumplings in the south."

Xu Xin smiled and said: "But there is also a New Year's Eve dinner, but I always feel that it is a little bit less of a New Year's flavor. Obviously there is a family, and there is a Spring Festival Gala. Hey, do you think it's strange?"

"It's not surprising at all, there are a lot of fireworks here!"

"I said, that's right! It's just that there are no fireworks. It's a pity that these places in New York are strictly prohibited."

"What's so difficult about this? Isn't the Empire State Building allowed to set off fireworks? Sister Xin, you can call and ask how much it costs to set off a cannon." Lu Fei patted his chest, "I'll take the money, just as a celebration of this time Shorting subprime mortgages, let’s get rich.”

"Success, but let's keep a low profile." Xu Xin said.

"Then in the name of John, let him become famous again." Lu Fei waved his hand and looked ahead.

This fireworks is just the beginning.

The splendid climax must be in the subprime mortgage crisis.

In the dark of night, landmarks like the Empire State Building are suddenly illuminated with blue and gold lights, instantly attracting the attention of passers-by.

Immediately afterwards, clusters of fireworks exploded from all sides.

One, two, three, burst, scattered, and soon the dark night sky was as bright as day, but it was a bit hasty——

Otherwise, it's not the entire Huaxia Dragon, volleying over America!

Thanks to Yao for his big 500 starting coins.