2006: School beauty loves me again
Chapter 321 Kong Yiji
Without eating, Fangyuan and Chen Wan were not hungry.
First, I ate a lot of vegetarian food, and second, my body and mind were filled with confidence.
Since the advent of currency, most human confidence has been based on having abundant money.
Where does the money come from?Fangyuan was also a member of the nipple music army in her previous life, so I don’t know much about it.
I summarized myself a while ago and became a little clearer.
After talking to Mr. Backpacker today, I have a clearer picture.
Chen Wan asked him this question in the car, but Fangyuan said he could talk to her back at the hotel and couldn't explain a sentence or two.
After arriving at the hotel, everyone was waiting for them without eating.
After circulating a heavy contract, no one was hungry anymore.
Chen Wan chattered about the magical person today and the two questions that she hadn't figured out until now, as well as...
That vegetarian meal is worth 300 million.
"300?"
"Vegetarian food?"
"The carrot from [-]?"
Looking at the stunned people with a smile, Fangyuan drank a bottle of Red Bull and sat with his legs crossed to watch.
Chen Wan was as happy as if she had been given a shot of chicken blood.
Fangyuan understood, she was happy, she was happy for Fangyuan.
In Chen Wan's eyes, money may not be that important, but at this stage, money is a tool.
It is a tool for brats to solve problems and quickly marry themselves home.
Li Muzi and Liu Jingjing recovered relatively quickly, but Liu Shaofeng was still sluggish.
He and Liu Jingjing put their heads together and flipped through the two identical eighteen-page investment and share agreements... Li Muzi raised his head and looked at Fangyuan.
US$30 million, a [-]% stake in Feichuang Technology, with an overall valuation of US$[-] billion.
Let’s not compare internationally. Take domestic Internet companies as an example. Baidu’s valuation before going public two years ago was only US$40 billion.
Feichuang is still only the A round...
"Can you tell me?
"This is beyond my understanding. Why did the valuation increase by half after you two went hiking for an afternoon?
"There is no need to even split the project team...
"Also, who is this palace? What is HT Investment Company?
"The valuation triples in one year. If you fail to do so, your shares will be gone. How dare you.
"Where did this money... come from?"
Li Muzi tried his best to suppress the restlessness in his heart and tried to keep his tone calm, but he was still trembling.
Fangyuan looked at her, at Liu Jingjing, at the stunned Liu Shaofeng, and finally at Chen Wan.
Chen Wan pursed her lips, suppressed a smile, and nodded at him.
“Where does the money come from…good question.
"You all want to know?"
Everyone nodded.
Fangyuan asked again: "Are you hungry?"
All shook their heads.
Fangyuan told Chen Wan, "I used to listen to Chen Wan's small class, but today I might as well have a class."
The valuation of RMB 228 billion in Series A shows that if Feichuang can successfully IPO in the future, everyone here will be a billionaire.
If they don't know where the money comes from, it will be difficult for them to walk in the future, life will be very difficult, and they may even be unable to keep their wealth.
"Cognition determines the direction of work, work brings harvest, and harvest transforms cognition. Money is a compensation for high cognition."
Gather around the sofa, like a simple conversation.
Fangyuan spoke calmly, and everyone listened carefully without interrupting. They were very immersed.
The eloquent tone gently and slowly polished the frosted glass in front of these people's eyes.
Fangyuan said: "If you don't plan for the world, you can't plan for a moment, and if you don't plan for the overall situation, you can't plan for a region. The law of everything is the trend."
He looked at Chen Wan: "The palace asked us today, what is the most profound event that has affected all mankind since the 20th century?"
He paused.
Li Muzi asked Chen Wan in a low voice: "What?"
Fangyuan asked her: "What do you think it is?"
Li Muzi said: "If you ask that, the answer is definitely not two wars."
Chen Wan told her that Fangyuan's answer was to decouple the U.S. dollar from gold.
Nobody understands.
Fangyuan said: "Then let me explain this issue first. I spent half a year collecting a lot of information and summarized it. I will share it with you."
He told it like a short story, with some metaphors in the story, but everyone present could understand it.
The story takes place in a village with beautiful mountains and clear waters.
The theme of the story is that the new village chief wanted to exercise his power better and decided to seize the entire village's transaction pricing power from the old village chief, that is, currency hegemony.
The story begins in the middle of the last century:
One day in May 1944.
The new village chief summoned several supporters and held a small meeting.
In order to expand his power and authority, the new village chief decided on three things at the meeting.
The first is to establish a village committee, with its office located in the courtyard of the village chief's home.
The second is to establish village-wide goods trading rules and establish a trade organization.
The third is to establish a new monetary and financial system.
The first two things went very smoothly.
The village is in a turbulent era of power transition. These two rules allow every household to sell their own souvenirs and buy back what they want at a cheap price.
As a result, countless villagers responded.
But the third thing was practiced for a period of time, probably from 1944 to 1971. After 27 years of experimentation, the new village chief found that he did not fully control the monetary hegemony.
why?Because of gold.
The third rule is that at the beginning of the establishment of the village's new monetary and financial system, the new village chief promised all villagers that villagers who join the second goods trading organization must and can only use the currency of the new village chief's family - shells to make settlements. .
"When you were trading, you locked the currency into my shells, and my shells locked up the gold. Don't worry, you can't be wrong."
How to lock? 35 shells equal one ounce of gold.
The villagers all know that gold is hard currency. The village chief's promise shows that he does not dare to go to the beach to randomly pick up shells and distribute them to everyone.
To put it simply, if the village chief distributes 35 more shells outside, he will reserve one more ounce of gold.
At that time, the village chief's family owned 80.00% of the village's gold reserves. With that promise, everyone agreed.
But in the following time, the village chief made two wrong decisions.
There is a wealthy and down-to-earth family in the village named Hua.
The village chief wanted to occupy the land of a neighbor of the Hua family. The Hua family quit, saying that if you bully my neighbor today and occupy his land, it will be easier for you to bully me tomorrow!
So the Hua family helped their neighbors resist the village chief, and the village chief lost.
Second, the village chief went to bully another neighbor to the southwest of the Hua family. Again, the Hua family intervened, and the village chief lost again.
After the two fights, the village chief spent 8000 billion shells, and the village chief couldn't live anymore.
Because according to the promise made to all the villagers that year, for every 35 shells the village chief lost, the family lost one ounce of gold.
By 1971, the village chief's family had less than 9000 tons of gold left. It was too little, and the village chief felt bad.
At the same time, several large households took the opportunity to cause trouble for the village chief. For example, across the sea from a family named Fa, the owner returned all the 22 billion shells he had saved to the village chief in exchange for gold.
As soon as the Legalists took the lead, some other villagers followed suit and went to the village chief to exchange their so-called foreign exchange, that is, shells, for gold.
It's all over now. The village chief's family's gold has bottomed out. What should we do?
Gritting his teeth and stamping his feet, the village chief immediately announced that his shells and gold were completely decoupled.
Fangyuan took a sip of water and said: "On August 1971, 8, the village chief announced the closure of the gold window, and the monetary and financial system that had been maintained for nearly 15 years began to collapse. This was a breach of trust by the village chief towards the entire village."
Chen Wan peeled an orange and fed it to Fang Yuan with a smile.
Liu Shaofeng trembled and murmured: "This is the starting point for the decoupling of the US dollar and gold, then..."
Fangyuan smiled: "Don't worry, this is just the beginning. The village chief has more fun, and the rest will be more fun."
After the village chief's decision was announced, only a handful of people actually understood it, and most people didn't understand the deep meaning behind it.
In the past 30 years, shells have become the currency of the whole village, and the villagers are accustomed to using them.
Now the shell suddenly brakes, there is no gold support behind it, the shell is just pure calcium carbonate.
What else are you using it for now?
But no, what currency is used to settle transactions between villagers?
Currency is the measure of value. If we don’t use shells, how can we trust the currency issued by other small households?
For example, at that time, the Hua family, a large and down-to-earth family, and the Russian family, the most arrogant in the whole village in the north, both had their own currency. If each other did not recognize the value of each other's currency, then the Hua family wanted to use the Russian family's currency. When buying sausages or buying small commodities from the Chinese family, you must pay with shells.
Therefore, during the gap period of only two months, the village chief...
Fangyuan sighed: "Yes, just two months later, in October 1971, the village chief took advantage of the inertia and helplessness of all the villagers to force the largest energy exporting member organization in the village to accept his conditions: energy goods for the entire village. Transactions must be settled using shells.”
Liu Shaofeng shivered again.
Liu Jingjing pursed her lips and smiled, listening and studying quietly.
Chen Wan is still eating oranges.
Li Muzi blurted out: "OPEC! Crude oil commodities?"
Fang Yuan nodded and continued telling the story.
The village chief was so smart. After the shells and gold were decoupled, they saw the biggest trend in the village for a long time to come.
He saw clearly that you may not like shells, but you must like energy. You may not use shells, but you must use buckets of black greasy goods.
Villagers used to ride horses, but now they use four-wheelers...
Every household that wants to develop must consume energy. If you need energy, you need shells.
This was a clever move made by the village chief.
Thus, Beike started a new journey with the village chief's family.
"At that time, few people in the whole village could clearly see this, including the staff of each household, economists, financial experts, etc. They could not clearly point out that the most important event of the 20th century was not at all It wasn't the two wars, or the separation of the old Su family in the north, or the decoupling of shells and gold.
“Since then, all the villagers can only watch helplessly as a financial mountain rises from the ground, gradually including the entire village into its system.
“It’s been more than 40 years since that day.
"After that day, the whole village entered the shell age. There were no precious metals behind the shells. They were completely supported by the credit of the village chief's family, and physical wealth was obtained from all the villagers."
Fangyuan took another sip of water and finished the bottle. Liu Shaofeng helped him open a new bottle.
Fangyuan shook his head in amusement: "Throughout the development history of the entire village, nothing so outrageous has ever happened.
“Historically, there were many ways to obtain wealth, either through currency exchange, real money or silver, or through war and plunder…
"The cost of fighting is too huge...
“Until that little calcium carbonate shell appeared, the cost for the village chief to make a profit could be said to be extremely low.
"Decoupled from gold, the village chief can pick up shells at will. If a large number of shells are left at the village chief's home, the family will have to bear the inflation within the compound. But exporting the shells outside means that the whole village will do it for the village." The head of the village digests inflation, so the inflation rate of the village chief's house has not been high for a long time.
“To put it simply, the village chief exports shells to the whole village, which dilutes his family’s inflation.
"But after the shells are exported to the whole village, the village chief's family will have no money. If we pick up new shells without restraint at this time, the shells will continue to depreciate, which is not good for the village chief. What should we do?"
Fangyuan said: "The most critical thing is here, the relationship between the U.S. dollar index cycle and the global economy. Keep a small book and focus on the key points."
Seeing everyone's eye rolls, Chen Wan covered her mouth and laughed, looking at Fang Yuan with admiration in her eyes.
She wished she could drive everyone away right now and pounce on the brat.
Fangyuan continued.
At this time, the village chief invented another method to solve the problem of devaluation of shells.
That is the village chief’s own family debt.
Li Muzi chuckled: "National debt is just national debt, not family debt."
"Understanding, understanding."
The village chief's family issued family bonds to allow the exported shells to return to their homes.
The three major markets that flow into your own home are the futures market, the household bond market and the securities market.
Since then, the village chief has played a game of picking up new shells and borrowing money.
You can make money by picking up shells, you can make money by borrowing money, you can make money with money, finance makes money much faster than physical money!
In this case, who is willing to work hard in the real economy such as manufacturing and processing industries with low added value?
After August 1971, 8, the village chief's family gradually gave up its physical existence and turned to the virtual economy, gradually turning into a semi-hollow... home.
As of today, the annual GDP of the village chief's family has reached 18 trillion shells, and its contribution to the real economy is less than 5 trillion.
Many people believe that since the decline of the old village head, nicknamed "The Sun Never Sets," the colonial history of the village has basically ended.
In fact, this is not the case. After the new village chief's financial mountain was formed, he began to use shells to carry out covert colonial expansion. He used shells to covertly control the economies of various countries, thereby turning every villager's home in the village into his own financial colony.
Today we see that many sovereign and independent villagers, including the Hua family, cannot live without shells.
Everything in these villagers' homes will eventually be expressed in shells in various ways.
In the end, all physical finances were exchanged with shells and entered the village chief's house.
Having said this, Fangyuan took out the thick pile of documents he brought from Binhai, found a few forms and put them on the coffee table.
"Now, look at these charts, let me talk about the key patterns and cycles, which are trends."
Everyone looked at it and then listened to Fangyuan's explanation.
“This is the U.S. dollar index cycle chart for more than 40 years, and it is clearly marked..."
Fangyuan said that from August 71, 8, shells were decoupled from gold, which meant that the village chief and his family were freed from the shackles of precious metals and could pick up shells at will.
The issuance of shells has increased significantly, and the shell index has naturally gone down.
Especially after the 73 oil crisis.
This period lasted for nearly ten years. In fact, the lower shell index is not entirely a bad thing for the village's economy.
Because this means that the supply of shells increases, it also means that the flow of capital increases. A large amount of capital does not stay in the village chief's home, but must overflow to other villagers' homes.
This time the index fell, a large number of shells went to Latin America to the south of the village chief's home, bringing investment and prosperity there.
This was the economic boom in Latin America in the 70s.
Until the ten-year shell flood discharge period ended, in 79, the village chief decided to close the flood gate. Closing the flood gate would reduce the mobility of shells.
In 79, the Shell Index began to strengthen. Latin America was prospering because it received a large amount of US dollar investment. Suddenly, investment decreased, liquidity dried up, and the capital chain was disconnected. The Latin American economy collapsed instantly.
Villagers in Latin America began to think of ways to save themselves.
For example, the family named A, whose GDP at that time had already entered the ranks of wealthy villagers, once the Latin American economic crisis broke out, the A family was the first to decline.
The solution to the recession... Unfortunately, the head of the family at that time was a soldier and lacked economic acumen.
He started a war.
He hopes to use war to free his family from poverty.
"So..." Fang Yuan said.
Liu Shaofeng interjected: "The Battle of Falklands?"
Fang Yuan nodded.
The Malvinas Islands have been ruled by the old village chief's family for 100 years, and the A family is ready to take it back.
Latin America is the new village chief's backyard. If Ajia wants to fight, he has to ask the village chief for instructions.
The village chief clearly knew that this fight would definitely lead to the old village chief's counterattack, but he still told A'jia in an understatement that this is a matter between you and the old village chief and has nothing to do with me. I remain neutral.
The A family was very happy, thinking that this was the village chief's tacit approval, go ahead!
The battle was won, and the whole family was as happy as a carnival.
However, the head of the old village chief's family was a strong woman and resolutely refused to accept this result, forcing the new village chief to express his position.
At this time, the new village chief tore off the mask of neutrality, strongly condemned the A family's aggressive behavior, and firmly stood on the side of the old village chief.
The guards of the old villagers traveled tens of thousands of miles to recapture the island.
At the same time, Beike began to strengthen, and inter-village capital returned to the village chief's home in accordance with the village chief's wishes.
Because when the Falklands War started, investors in the whole village immediately judged that a regional crisis had arisen in Latin America, and the investment environment there would deteriorate, and they withdrew their investments one after another.
A group of people collecting shells at the village chief's house saw that the time had come and immediately announced a rate hike on shells.
After the interest rate hike, Beike accelerated the withdrawal of capital from Latin America, leaving the locals starving for thousands of miles.
Where did the money that went back to the village chief's house go?Three major cities.
It brought the village chief’s family the first big bull market since it was decoupled from gold, allowing the village chief’s family to make a lot of money.
Fangyuan's short-term index chart: "At that time, the U.S. dollar index soared from more than 60 points during the weak period to more than 120 points in one breath, doubling. Guess where the money went?"
Li Muzi didn't speak, and Liu Shaofeng didn't speak.
Liu Jingjing smoothed her hair on her forehead and said, "I'm back."
Fangyuan grinned and said, "Yes, I'm back."
The capitalists raised by the village chief gave up on their three major markets after the bull market and returned to Latin America. Taking advantage of his illness to kill him, he purchased high-quality Latin American assets in large quantities that had fallen to floor prices.
Fangyuan said: "This is what happened after the U.S. dollar index strengthened for the first time. If this happens only once, then it is a small probability event, but it happens repeatedly. This is the rule."
When the Shell Index came down from the peak of the Latin American financial crisis, that is, in 1986, it began to fall again.
During this period, during the financial crisis in the small country and the currency crisis in the entire European continent, the Shell Index has been falling for ten years.
Ten years later, in 1997, it strengthened again.
Going strong, another six years.
"This rule is that if you are weak in ten years, you will be strong in six years."
Fangyuan put down the water bottle and took out a lollipop.
Chen Wan asked for one, but no one else did.
Li Muzi asked: "The specific event that occurred regularly for the second time was..."
Fangyuan's thigh felt a little itchy, so he scratched it.
Chen Wan patted him and asked him to pay attention to his image.
Looking at Li Muzi, Fangyuan replied: "Back in 1986, the shell index began to weaken for the second time, and the village chief's family reopened the floodgates to release water. The target was Asia."
In the 80s, what was the hottest concept in the economic field?
The Four Asian Tigers and the Asian Flying Geese.
At the time, many people believed that Asia's prosperity was brought about by the hard work and ingenuity of Asian villagers.
In fact, a big reason was because Asia received sufficient shells and investment at that time.
When Asia's economic prosperity reached its peak, the village chief felt that it was time to shear sheep again.
Therefore, in 1997, the tenth year after the Shell Index fell, the capital of the village chief's family reduced the money supply to Asia, causing the Shell Index to reverse and strengthen. Signs of a large-scale economic crisis and financial crisis appeared throughout Asia.
With the sugar in his mouth, Fangyuan said happily: "At this time, the pot of water has been heated to 99 degrees and is about to boil. What's left?"
The rest said nothing.
Chen Xiaowan puffed out her cute little cheeks and asked tentatively: "War?"
Fangyuan said: "Yes, but there is more than just fighting."
Chen Wan thought for a while and said: "Regional crisis!"
Fang Yuan nodded.
“The purpose of creating a regional crisis is to recover resources, and there are ways to create a regional crisis without contact.
"So, an old man named Soros showed up."
Liu Shaofeng muttered: "Financial investment master."
Fangyuan corrected: "Financial speculator."
The old man took his Quantum Fund and hundreds of hedge funds in the village and began to attack like a pack of wolves the villagers with the weakest economy in Asia and their currency, the Thai baht.
In just one week, the Thai baht crisis broke out and immediately had a transmission effect, all the way south to Malaysia, Singapore, Indonesia, and the Philippines, and then north to the Bay, to Xiangjiang, to Xiaori and South Korea, and finally to Lao's home...
The East Asian financial crisis broke out in full force!
The water boiled, and investors in the whole village judged that the investment environment in Asia had deteriorated and withdrew their capital.
At this time, the shell-picking organization of the village chief's family immediately blew the horn for raising interest rates. As the horn sounded, capital returned to the three major cities of the village chief's home.
The village chief’s second big bull market is here.
Capitalists who have once again made enough money from the virtual economy market, just like in Latin America, returned to the devastated land of Asia with the shells earned from the Asian economic crisis, and frantically acquired low-quality, high-quality assets.
No one has the power to fight back. The only lucky ones are the Hua family.
Then, as accurately as the tide rose and fell, the Shell Index strengthened for six years before weakening again in 2002.
Fangyuan looked at Chen Wan, stopped talking, and just said: "Now, we are in a ten-year period of weakness..."
Chen Wan knew that he couldn't tell others about what happened next.
Li Muzi shook his head and said, "But now, a financial crisis is breaking out in North America."
Fangyuan smiled and nodded: "Yes, the village chief played it too big this time. As soon as he raised the butcher knife, he found that his hometown was on fire.
“So my analysis is that this weakening will last for a few more years.
"And the next flood discharge area will be the Asia Huajia, not anyone else, just the Huajia."
In 2000, Huajia officially joined the new trade regulation organization formulated by the new village chief at that time. Since then, it has become the villager that attracts and receives the most investment from the whole village.
A large amount of inter-village capital is very optimistic about the Huajia economy. In terms of scale, the Huajia cannot be regarded as a single village household.
The economic scale of the Hua family is equivalent to the entire Latin America, or even larger than the total economic volume of Latin America. Compared with the East Asian economy, it can also be said that the Hua family's economy is equivalent to the entire East Asia...
Fangyuan decided to end it in front of "outsiders": "I opened up a large part of Huajia's innovation market and attracted the attention of some top speculators in the village, including Gongge and HT, that's all."
Some people suddenly understood, and everyone nodded.
Li Muzi asked again: "Then why don't we take advantage of this village chief's crisis to do something?"
Fangyuan was a little sad. He looked at Chen Wan and shook his head slowly.
“We feel that their financial crisis has just begun and is even brewing. In fact, in the village chief’s house, the hurricane of crisis has already been established.
"It will sweep the world by next year at the latest. Now our funds are too small to move, and the blood of ordinary people will be touched. It is better to do something else and wait for the storm to end and the wind will pick up again."
Li Muzi asked: "So...you are planning to transfer a large amount of funds to Li Li this time?" Fang Yuan nodded.
Li Muzi thought for a while and asked again: "How come the village chief is playing with the fire?"
Fangyuan laughed: "Combined with what I just said, the semi-hollow economy, the three major cities are eager to speculate on the air. The virtual economy is linked to real real estate, and everyone wants to own three houses. If the speculation is huge, it will explode."
No further words were said, and everyone was digesting what Fangyuan taught them like an initiation.
Chen Wan asked: "What about the second question? The first one is to acknowledge your knowledge. Why did that person say you are shameless? You can even memorize so many trees, how can you be so shameless?"
There was no need for Fangyuan to explain, Li Muzi said with a smile: "He made up the numbers, of course he was shameless."
...
We didn't get together for dinner, everyone went back to the house.
Tonight, what they need most is calmness. Whether it is the excitement brought by the $[-] million or the new perspective brought by the "regular trend" theory, they all need to calm down before they can make the next move.
After closing the door, Chen Wan hugged Fang Yuan, touched his head lovingly, and told him not to think too much.
"Can you tell me more about it? To be honest, I really feel enlightened.
"Tell me about it. The more I know, the better I can help you."
Fangyuan said: "It's very dirty and bloody. Do you want to hear it?"
Chen Wan nodded firmly: "Listen."
"Okay, let's talk among ourselves as husband and wife."
Chen Wan smiled foolishly.
Pulling Chen Wan to sit down on the sofa, Fang Yuan continued to tell the story concisely.
More than 200 prisons in the village are privately run.
The eight most famous Ivy League schools, Harvard, Yale, etc. are all private.
Even the organization that collects shells is a private organization.
There, the rich will be happy, while the poor will face the fate of being slaughtered at any time.
The village chief consortium’s most ruthless slaughter of the poor and the largest scale will be next year, 2008.
It was a storm sweeping the world, also called the subprime mortgage crisis.
As a result, millions of people in the village chief's courtyard were made homeless, and tens of millions of people in the village were laid off.
Chen Wan said in surprise: "Didn't you say next year it will be... next year this miserable?"
Fangyuan nodded: "Individuals, countries, and even civilizations all grow up after tenaciously surviving misfortunes one after another."
He continued: “What I just told Muzi Li was just superficial.
"As mentioned before, the financial system of the village chief's family is ahead of the entire village..."
But even so, the village chief's family still triggered the largest global financial crisis in the 21st century.
Overheating of real estate was only the trigger of the crisis. The deeper reason was overly loose supervision.
Why isn't it tight?It used to be very tight, but was later loosened by the Financial Widows Group.
Fangyuan winked as she spoke.
Chen Wan pinched him and called him a hooligan.
Before the financial crisis, the earliest economic crisis in the village chief's family was the Great Depression in 1929.
The village chief learned that painful lesson, and in order to prevent a recurrence of the economic crisis, he enacted the Glass-Steagall Act in 1933 to strictly separate investment banks from commercial banks.
Investment banks can only engage in securities business.
Commercial banks can only engage in savings business.
To put it simply, you cannot use savers’ money to make risky investments.
In this way, although the flow of funds has slowed down, it has greatly reduced the operational risks of commercial banks. Depositors will not lose their money in the event of a stock market crash, which greatly ensures social stability.
But with such a conservative and strict regulatory policy, money comes in too slowly.
The giants on Wall Street all dream of going back to the days of counting money crazily.
So after the leeks had rested and recuperated for a few years, the Wall Street consortium began to think about testing its cadres again.
In fact, the financial groups themselves are also cadres, because the village chief's central bank is a shell-collecting organization.
The actual controlling shareholders behind this organization are the five major banks on Wall Street.
To maintain the normal operation of the village chief's economy, it would be impossible without Wall Street.
So Wall Street giants have been involved in regulating the village head’s family economy.
Even the head of the family had to rely on the big guys on the street to raise funds every time there was a change of leadership. Over the years, supervision on this relationship became increasingly loose.
In the 80s, when Ronald Reagan was the mayor of the village, he appointed Donald, CEO of Merrill Lynch Bank, as the 66th village accountant.
Since then, a 30-year financial easing policy has been launched.
The village chief relaxed restrictions on savings and loan companies, allowing them to use savings deposits to make risky investments.
As a result, due to bad luck, it took only a few years to stumble into a big hole, and hundreds of savings and loan companies collapsed.
Countless ordinary savers lost their life savings.
Many managers of savings and loan companies were thrown into jail because of this.
But this time the problem did not cause financial regulators to tighten policies, and Wall Street bosses continued to play and dance.
In 1995, Robert Rubin, the former CEO of Goldman Sachs, the king of investment banks, was appointed as the 70th village accountant by the village chief of Kelindou.
Now the entire economic control of the village chief's family is completely in the hands of Wall Street.
By the late 90s, a monopoly pattern of several major oligarchy groups had formed.
In 98, Citibank and Travelers Group merged to form Citigroup to expand their business scope.
But this merger blatantly broke the rules prohibiting savings deposits from being used for risky investments.
But under the lobbying of Wall Street agent Robert Rubin, the inner cabinet elders of the village chief's family miraculously passed the plan to rescue Citigroup.
This is equivalent to completely overturning the Glass-Steagall Act of 1933, which is equivalent to Wall Street taking the lead in the merger of Citigroup.
The Wall Street giants in the future just need to imitate the same, and they will all become as big as the big boys.
Then came the millennium.
This year, the most painful memory for retail investors is the Internet bubble. A large number of ordinary investors were defrauded by the Wolf of Wall Street telemarketers because of their lack of financial knowledge and purchased a large number of worthless junk stocks.
In the end, the market value evaporated by 5 trillion shells out of thin air.
Although the regulatory agencies claimed to settle the score, they only fined those Wall Street investment banks that cut leeks.
During the Internet bubble, Wall Street financiers also felt that the market would bubble too easily just by selling stocks.
So he put his ingenuity into innovation and created more financial derivatives.
Unlike physical companies that earn profits from commodities, financial companies focus on selling concepts.
Anything can be sold, as long as it is a variable number, you can bet on the rise and fall of oil prices, bet on the temperature index, and even on air quality.
This is called financial derivatives!
Financial companies are frantically opening new casinos to encourage people to join the casinos and become gamblers.
This is called the new financial market!
Due to the lack of regulation, the financial derivatives market exploded in growth.
People in the entire country do not produce anything. They wait every day for the price of oil to rise or fall, and guess what the temperature will be tomorrow.
What will happen in the end?
There are still people who are concerned about the country and the people.
Ms. Guo En, Chairman of the Commodity Trading and Futures Commission, once proposed that the financial derivatives market should be restrained, otherwise there will be endless disasters!
As soon as these words came out, Ms. Bonn was immediately condemned by a number of big shots.
Among them were Lawrence Samsying, who was the village accountant at the time, and Greenspan, chairman of the shell-collecting organization.
They all accused Ms. Bonn of being alarmist.
Not long after, the village chief’s cabinet ministers passed a bill specifically for Wall Street to exempt the financial derivatives market from regulation:
Commodity Exchange Modernization Act.
To put it bluntly...whoever regulates Wall Street is breaking the law!
This will eliminate all objections from the legal level!
The oligarchic group began to grow crazily and innovate financial derivatives.
Wall Street is being deregulated step by step.
The previous overturning of the Glass-Steagall Act was equivalent to opening the ceiling for large-scale development, but this time the bill to exempt financial derivatives from regulation is equivalent to turning a bicycle into a high-speed train.
From then on, the performance growth of 100% year-on-year is a conservative development!
After 2000, the housing market continued to boom, so Wall Street bankers naturally wanted to make the cake bigger.
Before this, bank loans generally only extended to people with good and stable incomes. These were called high-quality loans.
But such high-quality people are always limited, and the poor are the majority.
If Wall Street wants to make more money, it can only reach out to the poor.
Subprime mortgages emerged.
Whether it was a black uncle from the bottom or a poor Mexican, they all applied for their own loans.
With three houses per person, the poor realized the American dream of prosperity.
Lending companies are not afraid that poor people will not be able to repay their loans because they transfer the risk to investment banks.
This is thanks to a genius named Louis on Wall Street. He securitized the mortgage contract and packaged it into a financial product, that is, mortgage bonds.
Investment banks acquire mortgage contracts from lending institutions, convert them into mortgage bonds, and then sell them to investors on the secondary market.
After this operation, the capital turnover speed of the lending institution instantly increased n times.
Thanks to this awesome innovation, everyone has made money and the risks are still controllable.
High-quality mortgage bonds are very easy to sell, and investors are not worried about the ability of the middle-class village chiefs to repay their loans.
But subprime bonds are not so easy to sell. Investors all know that the income of the black uncles is unstable, and they will be left alone if they disagree.
Therefore, how to sell the large number of subprime mortgage bonds that no one cares about is the real problem.
But what Wall Street is most indispensable for is geniuses. It didn’t take long before someone came up with a hybrid bond called CDO.
The popular explanation is to package and sell a small number of high-quality bonds and the majority of unsold own bonds.
To put it figuratively, it’s 20% chocolate mixed with 80% shit, telling you that this is a new type of chocolate.
Hey, the color matches the taste, which also means that ordinary investors can't identify it at all.
Not to mention giving you another certification from an authoritative organization!
Originally, the risk level of securities was assessed by third-party rating agencies.
There are 3 levels from 3A to 6B.
Investors still trust third-party rating agencies, but under the knife-edge offensive, all rating agencies have been bought by Wall Street investment banks.
As a result, CDO bonds mixed with a lot of shit were given the top AAA label.
As soon as the evil CDO came out, the whole Wall Street went crazy.
This innovation in financial derivatives has endless room for maneuver, and all peers are promoting CDO bonds!
Just like once promoting Internet junk stocks!
There is no doubt that this is a fundraising scam.
Someone once warned Greenspan, then chairman of the shell-picking organization, about the risks, but Greenspan ignored them.
The China Securities Regulatory Commission, as a regulatory agency, had no control during the bubble period. The most outrageous thing was that it laid off more than 100 employees in the risk management department, leaving only one employee to supervise Wall Street.
There is no way, who wants to let someone be above me?
In 2004, under the guidance of Henry Paulson, then CEO of Goldman Sachs Group, the SEC relaxed the restrictions on leverage ratios and raised the leverage ratio of investment banks to 33:1.
For ordinary people to buy a house, leverage of two or three times is already very stressful. For others, 33 times is still too little.
More dangerous signs are yet to come.
Don’t the Wall Street giants understand this unprecedented bubble?
Don’t you know that those CDOs are just rubbish subprime mortgages?
Just pretending to be stupid.
They have long been thinking about ways to hedge risks, so a financial derivative instrument came into being, CDS!
Similar to the effect of insurance, as long as the CDO plummets, the CDS agreement will pay out the insured amount.
The company that accepts this kind of insurance is called AIG, the largest insurance company in the village.
AIG sold CDS with an insured amount of up to 5000 billion!
Except for a very small number of talented investors
Most insurance is bought by Wall Street investment banks. Why?
Executives know very well that a collapse is inevitable sooner or later, and they must hurry up when trying to deceive customers!
The bigger the bubble is, the better. Anyway, the village chief’s family will get the scoop in the end!
Anyway, you are using investors' money to add leverage. If you win, you will earn commissions, and if you lose, the client will be responsible. How can you take any risks?
Are you willing to take a gamble?
People on Wall Street say: Then stud once!
He sold his investors and became rich on Wall Street. He was just a securities broker. At that time, the standard equipment was a yacht and a helicopter.
Without this combination, I would be embarrassed to say that I am a financial practitioner.
Dick Fuld, CEO of the large investment bank Lehman Brothers, even has a fleet of six aircraft.
This included a Boeing 300 carrying nearly 767 people.
The more developed the times, the more people stay drunk.
Said a well-known psychiatrist.
At that time, his clients were basically Wall Street executives, these wolves of Wall Street were addicted to excitement.
If you eat white flour as a meal, you will feel uncomfortable if you don't go to whoring for a long time.
Everyone knows that Wall Street is in chaos, but who gives people an umbrella?
In July 2006, the village chief of Obushi appointed Henry Paulson, then CEO of Goldman Sachs Group, as the village chief’s 7th village accountant.
During the entire bubble, Goldman Sachs, the king of investment banking, sold the most junk CDs.
As a result, Paulson became the highest-paid CEO on Wall Street.
Before taking office as the village accountant, Paulson cashed out 5 small targets just by clearing out stocks that had soared.
Wall Street is still partying, but the bubble can't hold on.
Suddenly shattered, crisis is coming!
In late 2007, the number of subprime loan repayments exceeded one million!
In order to earn high commissions, lending companies gave zero-down payment loans to too many poor people with no stable income.
And it’s a floating rate!
The interest rate increased year by year, and finally, the poor could not afford to pay it back.
Just be an old guy, no more fun!
The bank can only repossess the property and put it back on the market.
Supply exceeded demand, and the house price of the village chief's house collapsed rapidly.
The crisis spread in a chain, and the mortgage securities market plummeted!
Investors were panicked and cashed out frantically.
Investment banks were the first to bear the brunt of the crisis and faced bankruptcy.
The first investment bank to be listed is Bear Stearns, which ranks fifth in terms of strength on Wall Street.
The village chief's family came to an emergency rescue and provided a 300 billion guarantee, allowing JPMorgan Chase to acquire Bear Stearns.
Immediately afterwards, the giants of Fannie and Freddie were struck by thunder.
The village chief's family spent another 2000 billion of taxpayers' money to own the village.
However, the more we rescued, the bigger the hole became.
Soon, Lehman Brothers, the fourth largest investment bank, also raised a white flag.
The government doesn't dare to bail out anymore, otherwise all the banks on Wall Street will be waiting for the village chief to wipe their ass.
The result was that the century-old investment bank Lehman Brothers was destroyed.
When Lehman died, all the money of customers in the village was frozen!
Savers began to panic.
If Lehman can fail, how can we ensure that money placed in Goldman Sachs and Morgan Stanley is safe?
Customers organized groups to withdraw their funds, and the credit market was completely paralyzed.
Stocks plummeted like a cliff, and confidence collapsed!
The most terrifying thing is that even AIG has failed!
AIG is tied to almost all the village elders and even all the banks in the village.
Basically every company with investment business has purchased CDS insurance from AIG.
If AIG goes bankrupt, the whole village's financial system will collapse!
So AIG must save it!
Finally, the village chief spent another 1500 billion to take over AIG.
The largest recipient of compensation was Goldman Sachs, which paid a total of 140 billion shells.
Village accountant Paulson demanded that AIG pay Goldman Sachs priority and full compensation.
The rest of the Wall Street investment banks also received huge compensation from AIG.
But customers are in dire straits. Retirement and pension funds in many places have been almost fraudulently purchased by Wall Street investment banks in large amounts of junk CDOs.
After knowing that the investment banks had long ago bought CDS and shorted them and lost all their money, investors took Wall Street investment banks to court one after another.
A big reason why investors are generally fooled is because those junk CDOs have been given triple-A ratings.
Highly rated securities are like restaurants rated Michelin, and investors take advantage of them.
Securities without high ratings simply cannot be sold.
As a leading rating agency, Moody's profits increased 2000 times from 2007 to 400.
Rating agencies were later sued in court.
But they didn't panic at all, because they had already included word games in similar risk notifications that were dozens of pages long.
They warned investors that even if we give a 3A rating, it only represents the institution's point of view and is for reference only. Investments are risky and the consequences are at your own risk.
Although the village chief's family bravely rescued AIG, their confidence has long been shattered.
Customers withdraw money, no one invests, banks dare not lend, companies dare not expand, and the economy is like a pool of stagnant water.
In the end, it was Paulson who proposed a $7000 billion distressed asset rescue plan.
The village chief’s cabinet passed the first batch of 1250 billion, which was distributed to the big financial oligarchs on Wall Street in the form of capital injection, hoping that they would lend the money out to activate credit and rebuild confidence.
But even after spending so much money, most banks still chose to control risks and did not lend money out.
At the beginning of 2010, more than 600 million properties had been redeemed by banks, and countless people were sleeping on the streets.
Not only are the houses of the poor in ruins, but their job opportunities are also gone.
The financial crisis spread in a chain, with funds in all walks of life cut off and a large number of companies going bankrupt.
What is even more pitiful is that countless middle-class people have fallen into poverty overnight because of buying houses.
And in this era of economic globalization, it's not just the village chief's family who is suffering.
The whole village is not much better. The whole village has been dragged into the quagmire of economic recession by the subprime mortgage crisis.
When Fangyuan said this, he took a deep breath.
Chen Xiaowan, who understood, hugged her knees and frowned deeply, and asked: "What about...those bad guys? A small number of people have harmed the whole world, they should bear the consequences, right?"
Fang Yuan stroked her little head: "The palace said today that people outside the game must obey a different set of rules. Well, as you said, someone has to take the blame for things like this..."
What happened to the instigators on Wall Street?
Escaped unscathed!
Take the bankrupt Lehman Brothers as an example
Even if the company went bankrupt, the five executives still pocketed more than one billion shells by relying on laws designed for the wealthy.
As for those bank CEOs who were too big to fail and were rescued by the government, the most they could do was resign and continue to be executives elsewhere.
Moreover, every CEO who resigns will receive at least hundreds of millions in compensation.
During the subprime mortgage crisis, not a single Wall Street executive was convicted and imprisoned.
But ordinary people have fallen into dire straits.
The rich played with fire and burned down the houses, the gentlemen hid at the top of the city watching the show, and the poor fled in all directions below.
In addition to Wall Street's insatiable greed, regulators seeking power for personal gain, and peer institutions driving out good money with bad money...
There is another group of people who have also made great contributions to relaxing regulations.
That is the academic world of teaching and educating people.
A large number of sanctimonious experts and professors could not stand the temptation of shells and joined the fraud gang one after another.
There are even a bunch of specialized intermediaries that provide Wall Streeters with experts and scholars who can be hired to tell lies and serve as gunmen.
The scale of this intermediary market alone is as high as billions of shells.
Instigated by experts and scholars who have been telling lies for many years, the regulatory policy pants are so wide that they can fit in the entire Wall Street, and the room for manipulation is infinite!
"As mentioned before, in fact, since the 80s, the village economy has gradually shifted from reality to virtual reality. Manufacturing has been transferred overseas to save costs, and has been replaced by the highly profitable Internet and financial industries.
“This is equivalent to the abandonment of the bottom labor force. Perhaps the biggest role of the poor here is to serve the rich and earn cheap wages.
“Even this cheap remuneration will eventually be cut off by the rich in every possible way.
“Otherwise, the village chief’s house is a paradise for rich people.
"And the most heartbreaking truth is that the whole village is trying to be like the village chief's family."
Chen Wan asked: "Isn't there anyone who can say something fair to the people at the bottom?"
Fangyuan nodded and said yes.
"Next year, in 08, the village chief will be replaced by a black village chief. He will be filled with righteous indignation and denounce the negligence of Wall Street and regulators in his speech. If he is allowed to take office, reforms will be inevitable, and the financial industry will be restructured and regulators will be tightened.
"For example, how to ensure the neutrality of rating agencies, how to limit the huge compensation of Wall Street executives, etc."
Then... Chen Wan didn't ask "then". She understood that maybe the so-called reform would not even have a trial costume in the end.
With a pouted mouth and a silent sigh, Chen Wan said: "How can we possibly defeat those people..."
After muttering, Chen Wan threw herself into Fangyuan's arms: "It's too dangerous."
Fangyuan hugged her, looking at the dark golden pattern of the wallpaper on the wall, and said softly: "So, when Li Muzi asked me what I could do during this subprime mortgage crisis, I didn't say directly that it was okay to get some high-quality assets. But the general situation has taken hold. Individuals will be crushed to pieces if they are strung out. We have not reached the level of the palace watching the show from the front row..."
Chen Wan suddenly interrupted him: "Last time you told me on the phone that the fifth or seventh uncle of the Lin family... I also praised you as a good person. Are you... sure you are not facing the kind of person you just mentioned?"
Fangyuan laughed, shook his head and said, "It's just a few fleas in the country, and besides, I won't go against them.
"Slowly walking side by side, gradually branching off. With their wisdom, they can see that they don't need to deceive the people of their money."
Chen Wan rolled her eyes at him, smiled again, touched the stubble on his chin and said, "You, I feel so sorry for you."
"Feeling distressed?" Fangyuan asked in surprise: "Why?"
"I'm not from this era... I feel like I'm only [-]% like you, and I already feel like I don't fit in with this era."
Fangyuan picked up Chen Wan and sat beside the bed: "Take a shower and go to sleep. Let's go and meet Kong Yiji in our dreams."
Chen Wan pressed on him and asked curiously: "Kong Yiji?"
"Yes, when we see him, we will warm him four bowls of wine and ask for a plate of fennel beans.
"Then I asked him how many ways to write the word "hui".
"If he is willing to answer, you tell him: 'You actually know that there are four ways to write the word "hui". You are really awesome! You have not studied for so many years in vain. We laugh at you, not to laugh at you, but because we really need it. You, you make the whole hotel feel happy.'"
Chen Wan was stunned for a moment, then covered her mouth and kept laughing.
Holding Fang Yuan's face and squinting her eyes, Chen Wan said: "You are Fang Yiji, and I am Chen Yiji. I need you, do you need me?" (End of Chapter)
First, I ate a lot of vegetarian food, and second, my body and mind were filled with confidence.
Since the advent of currency, most human confidence has been based on having abundant money.
Where does the money come from?Fangyuan was also a member of the nipple music army in her previous life, so I don’t know much about it.
I summarized myself a while ago and became a little clearer.
After talking to Mr. Backpacker today, I have a clearer picture.
Chen Wan asked him this question in the car, but Fangyuan said he could talk to her back at the hotel and couldn't explain a sentence or two.
After arriving at the hotel, everyone was waiting for them without eating.
After circulating a heavy contract, no one was hungry anymore.
Chen Wan chattered about the magical person today and the two questions that she hadn't figured out until now, as well as...
That vegetarian meal is worth 300 million.
"300?"
"Vegetarian food?"
"The carrot from [-]?"
Looking at the stunned people with a smile, Fangyuan drank a bottle of Red Bull and sat with his legs crossed to watch.
Chen Wan was as happy as if she had been given a shot of chicken blood.
Fangyuan understood, she was happy, she was happy for Fangyuan.
In Chen Wan's eyes, money may not be that important, but at this stage, money is a tool.
It is a tool for brats to solve problems and quickly marry themselves home.
Li Muzi and Liu Jingjing recovered relatively quickly, but Liu Shaofeng was still sluggish.
He and Liu Jingjing put their heads together and flipped through the two identical eighteen-page investment and share agreements... Li Muzi raised his head and looked at Fangyuan.
US$30 million, a [-]% stake in Feichuang Technology, with an overall valuation of US$[-] billion.
Let’s not compare internationally. Take domestic Internet companies as an example. Baidu’s valuation before going public two years ago was only US$40 billion.
Feichuang is still only the A round...
"Can you tell me?
"This is beyond my understanding. Why did the valuation increase by half after you two went hiking for an afternoon?
"There is no need to even split the project team...
"Also, who is this palace? What is HT Investment Company?
"The valuation triples in one year. If you fail to do so, your shares will be gone. How dare you.
"Where did this money... come from?"
Li Muzi tried his best to suppress the restlessness in his heart and tried to keep his tone calm, but he was still trembling.
Fangyuan looked at her, at Liu Jingjing, at the stunned Liu Shaofeng, and finally at Chen Wan.
Chen Wan pursed her lips, suppressed a smile, and nodded at him.
“Where does the money come from…good question.
"You all want to know?"
Everyone nodded.
Fangyuan asked again: "Are you hungry?"
All shook their heads.
Fangyuan told Chen Wan, "I used to listen to Chen Wan's small class, but today I might as well have a class."
The valuation of RMB 228 billion in Series A shows that if Feichuang can successfully IPO in the future, everyone here will be a billionaire.
If they don't know where the money comes from, it will be difficult for them to walk in the future, life will be very difficult, and they may even be unable to keep their wealth.
"Cognition determines the direction of work, work brings harvest, and harvest transforms cognition. Money is a compensation for high cognition."
Gather around the sofa, like a simple conversation.
Fangyuan spoke calmly, and everyone listened carefully without interrupting. They were very immersed.
The eloquent tone gently and slowly polished the frosted glass in front of these people's eyes.
Fangyuan said: "If you don't plan for the world, you can't plan for a moment, and if you don't plan for the overall situation, you can't plan for a region. The law of everything is the trend."
He looked at Chen Wan: "The palace asked us today, what is the most profound event that has affected all mankind since the 20th century?"
He paused.
Li Muzi asked Chen Wan in a low voice: "What?"
Fangyuan asked her: "What do you think it is?"
Li Muzi said: "If you ask that, the answer is definitely not two wars."
Chen Wan told her that Fangyuan's answer was to decouple the U.S. dollar from gold.
Nobody understands.
Fangyuan said: "Then let me explain this issue first. I spent half a year collecting a lot of information and summarized it. I will share it with you."
He told it like a short story, with some metaphors in the story, but everyone present could understand it.
The story takes place in a village with beautiful mountains and clear waters.
The theme of the story is that the new village chief wanted to exercise his power better and decided to seize the entire village's transaction pricing power from the old village chief, that is, currency hegemony.
The story begins in the middle of the last century:
One day in May 1944.
The new village chief summoned several supporters and held a small meeting.
In order to expand his power and authority, the new village chief decided on three things at the meeting.
The first is to establish a village committee, with its office located in the courtyard of the village chief's home.
The second is to establish village-wide goods trading rules and establish a trade organization.
The third is to establish a new monetary and financial system.
The first two things went very smoothly.
The village is in a turbulent era of power transition. These two rules allow every household to sell their own souvenirs and buy back what they want at a cheap price.
As a result, countless villagers responded.
But the third thing was practiced for a period of time, probably from 1944 to 1971. After 27 years of experimentation, the new village chief found that he did not fully control the monetary hegemony.
why?Because of gold.
The third rule is that at the beginning of the establishment of the village's new monetary and financial system, the new village chief promised all villagers that villagers who join the second goods trading organization must and can only use the currency of the new village chief's family - shells to make settlements. .
"When you were trading, you locked the currency into my shells, and my shells locked up the gold. Don't worry, you can't be wrong."
How to lock? 35 shells equal one ounce of gold.
The villagers all know that gold is hard currency. The village chief's promise shows that he does not dare to go to the beach to randomly pick up shells and distribute them to everyone.
To put it simply, if the village chief distributes 35 more shells outside, he will reserve one more ounce of gold.
At that time, the village chief's family owned 80.00% of the village's gold reserves. With that promise, everyone agreed.
But in the following time, the village chief made two wrong decisions.
There is a wealthy and down-to-earth family in the village named Hua.
The village chief wanted to occupy the land of a neighbor of the Hua family. The Hua family quit, saying that if you bully my neighbor today and occupy his land, it will be easier for you to bully me tomorrow!
So the Hua family helped their neighbors resist the village chief, and the village chief lost.
Second, the village chief went to bully another neighbor to the southwest of the Hua family. Again, the Hua family intervened, and the village chief lost again.
After the two fights, the village chief spent 8000 billion shells, and the village chief couldn't live anymore.
Because according to the promise made to all the villagers that year, for every 35 shells the village chief lost, the family lost one ounce of gold.
By 1971, the village chief's family had less than 9000 tons of gold left. It was too little, and the village chief felt bad.
At the same time, several large households took the opportunity to cause trouble for the village chief. For example, across the sea from a family named Fa, the owner returned all the 22 billion shells he had saved to the village chief in exchange for gold.
As soon as the Legalists took the lead, some other villagers followed suit and went to the village chief to exchange their so-called foreign exchange, that is, shells, for gold.
It's all over now. The village chief's family's gold has bottomed out. What should we do?
Gritting his teeth and stamping his feet, the village chief immediately announced that his shells and gold were completely decoupled.
Fangyuan took a sip of water and said: "On August 1971, 8, the village chief announced the closure of the gold window, and the monetary and financial system that had been maintained for nearly 15 years began to collapse. This was a breach of trust by the village chief towards the entire village."
Chen Wan peeled an orange and fed it to Fang Yuan with a smile.
Liu Shaofeng trembled and murmured: "This is the starting point for the decoupling of the US dollar and gold, then..."
Fangyuan smiled: "Don't worry, this is just the beginning. The village chief has more fun, and the rest will be more fun."
After the village chief's decision was announced, only a handful of people actually understood it, and most people didn't understand the deep meaning behind it.
In the past 30 years, shells have become the currency of the whole village, and the villagers are accustomed to using them.
Now the shell suddenly brakes, there is no gold support behind it, the shell is just pure calcium carbonate.
What else are you using it for now?
But no, what currency is used to settle transactions between villagers?
Currency is the measure of value. If we don’t use shells, how can we trust the currency issued by other small households?
For example, at that time, the Hua family, a large and down-to-earth family, and the Russian family, the most arrogant in the whole village in the north, both had their own currency. If each other did not recognize the value of each other's currency, then the Hua family wanted to use the Russian family's currency. When buying sausages or buying small commodities from the Chinese family, you must pay with shells.
Therefore, during the gap period of only two months, the village chief...
Fangyuan sighed: "Yes, just two months later, in October 1971, the village chief took advantage of the inertia and helplessness of all the villagers to force the largest energy exporting member organization in the village to accept his conditions: energy goods for the entire village. Transactions must be settled using shells.”
Liu Shaofeng shivered again.
Liu Jingjing pursed her lips and smiled, listening and studying quietly.
Chen Wan is still eating oranges.
Li Muzi blurted out: "OPEC! Crude oil commodities?"
Fang Yuan nodded and continued telling the story.
The village chief was so smart. After the shells and gold were decoupled, they saw the biggest trend in the village for a long time to come.
He saw clearly that you may not like shells, but you must like energy. You may not use shells, but you must use buckets of black greasy goods.
Villagers used to ride horses, but now they use four-wheelers...
Every household that wants to develop must consume energy. If you need energy, you need shells.
This was a clever move made by the village chief.
Thus, Beike started a new journey with the village chief's family.
"At that time, few people in the whole village could clearly see this, including the staff of each household, economists, financial experts, etc. They could not clearly point out that the most important event of the 20th century was not at all It wasn't the two wars, or the separation of the old Su family in the north, or the decoupling of shells and gold.
“Since then, all the villagers can only watch helplessly as a financial mountain rises from the ground, gradually including the entire village into its system.
“It’s been more than 40 years since that day.
"After that day, the whole village entered the shell age. There were no precious metals behind the shells. They were completely supported by the credit of the village chief's family, and physical wealth was obtained from all the villagers."
Fangyuan took another sip of water and finished the bottle. Liu Shaofeng helped him open a new bottle.
Fangyuan shook his head in amusement: "Throughout the development history of the entire village, nothing so outrageous has ever happened.
“Historically, there were many ways to obtain wealth, either through currency exchange, real money or silver, or through war and plunder…
"The cost of fighting is too huge...
“Until that little calcium carbonate shell appeared, the cost for the village chief to make a profit could be said to be extremely low.
"Decoupled from gold, the village chief can pick up shells at will. If a large number of shells are left at the village chief's home, the family will have to bear the inflation within the compound. But exporting the shells outside means that the whole village will do it for the village." The head of the village digests inflation, so the inflation rate of the village chief's house has not been high for a long time.
“To put it simply, the village chief exports shells to the whole village, which dilutes his family’s inflation.
"But after the shells are exported to the whole village, the village chief's family will have no money. If we pick up new shells without restraint at this time, the shells will continue to depreciate, which is not good for the village chief. What should we do?"
Fangyuan said: "The most critical thing is here, the relationship between the U.S. dollar index cycle and the global economy. Keep a small book and focus on the key points."
Seeing everyone's eye rolls, Chen Wan covered her mouth and laughed, looking at Fang Yuan with admiration in her eyes.
She wished she could drive everyone away right now and pounce on the brat.
Fangyuan continued.
At this time, the village chief invented another method to solve the problem of devaluation of shells.
That is the village chief’s own family debt.
Li Muzi chuckled: "National debt is just national debt, not family debt."
"Understanding, understanding."
The village chief's family issued family bonds to allow the exported shells to return to their homes.
The three major markets that flow into your own home are the futures market, the household bond market and the securities market.
Since then, the village chief has played a game of picking up new shells and borrowing money.
You can make money by picking up shells, you can make money by borrowing money, you can make money with money, finance makes money much faster than physical money!
In this case, who is willing to work hard in the real economy such as manufacturing and processing industries with low added value?
After August 1971, 8, the village chief's family gradually gave up its physical existence and turned to the virtual economy, gradually turning into a semi-hollow... home.
As of today, the annual GDP of the village chief's family has reached 18 trillion shells, and its contribution to the real economy is less than 5 trillion.
Many people believe that since the decline of the old village head, nicknamed "The Sun Never Sets," the colonial history of the village has basically ended.
In fact, this is not the case. After the new village chief's financial mountain was formed, he began to use shells to carry out covert colonial expansion. He used shells to covertly control the economies of various countries, thereby turning every villager's home in the village into his own financial colony.
Today we see that many sovereign and independent villagers, including the Hua family, cannot live without shells.
Everything in these villagers' homes will eventually be expressed in shells in various ways.
In the end, all physical finances were exchanged with shells and entered the village chief's house.
Having said this, Fangyuan took out the thick pile of documents he brought from Binhai, found a few forms and put them on the coffee table.
"Now, look at these charts, let me talk about the key patterns and cycles, which are trends."
Everyone looked at it and then listened to Fangyuan's explanation.
“This is the U.S. dollar index cycle chart for more than 40 years, and it is clearly marked..."
Fangyuan said that from August 71, 8, shells were decoupled from gold, which meant that the village chief and his family were freed from the shackles of precious metals and could pick up shells at will.
The issuance of shells has increased significantly, and the shell index has naturally gone down.
Especially after the 73 oil crisis.
This period lasted for nearly ten years. In fact, the lower shell index is not entirely a bad thing for the village's economy.
Because this means that the supply of shells increases, it also means that the flow of capital increases. A large amount of capital does not stay in the village chief's home, but must overflow to other villagers' homes.
This time the index fell, a large number of shells went to Latin America to the south of the village chief's home, bringing investment and prosperity there.
This was the economic boom in Latin America in the 70s.
Until the ten-year shell flood discharge period ended, in 79, the village chief decided to close the flood gate. Closing the flood gate would reduce the mobility of shells.
In 79, the Shell Index began to strengthen. Latin America was prospering because it received a large amount of US dollar investment. Suddenly, investment decreased, liquidity dried up, and the capital chain was disconnected. The Latin American economy collapsed instantly.
Villagers in Latin America began to think of ways to save themselves.
For example, the family named A, whose GDP at that time had already entered the ranks of wealthy villagers, once the Latin American economic crisis broke out, the A family was the first to decline.
The solution to the recession... Unfortunately, the head of the family at that time was a soldier and lacked economic acumen.
He started a war.
He hopes to use war to free his family from poverty.
"So..." Fang Yuan said.
Liu Shaofeng interjected: "The Battle of Falklands?"
Fang Yuan nodded.
The Malvinas Islands have been ruled by the old village chief's family for 100 years, and the A family is ready to take it back.
Latin America is the new village chief's backyard. If Ajia wants to fight, he has to ask the village chief for instructions.
The village chief clearly knew that this fight would definitely lead to the old village chief's counterattack, but he still told A'jia in an understatement that this is a matter between you and the old village chief and has nothing to do with me. I remain neutral.
The A family was very happy, thinking that this was the village chief's tacit approval, go ahead!
The battle was won, and the whole family was as happy as a carnival.
However, the head of the old village chief's family was a strong woman and resolutely refused to accept this result, forcing the new village chief to express his position.
At this time, the new village chief tore off the mask of neutrality, strongly condemned the A family's aggressive behavior, and firmly stood on the side of the old village chief.
The guards of the old villagers traveled tens of thousands of miles to recapture the island.
At the same time, Beike began to strengthen, and inter-village capital returned to the village chief's home in accordance with the village chief's wishes.
Because when the Falklands War started, investors in the whole village immediately judged that a regional crisis had arisen in Latin America, and the investment environment there would deteriorate, and they withdrew their investments one after another.
A group of people collecting shells at the village chief's house saw that the time had come and immediately announced a rate hike on shells.
After the interest rate hike, Beike accelerated the withdrawal of capital from Latin America, leaving the locals starving for thousands of miles.
Where did the money that went back to the village chief's house go?Three major cities.
It brought the village chief’s family the first big bull market since it was decoupled from gold, allowing the village chief’s family to make a lot of money.
Fangyuan's short-term index chart: "At that time, the U.S. dollar index soared from more than 60 points during the weak period to more than 120 points in one breath, doubling. Guess where the money went?"
Li Muzi didn't speak, and Liu Shaofeng didn't speak.
Liu Jingjing smoothed her hair on her forehead and said, "I'm back."
Fangyuan grinned and said, "Yes, I'm back."
The capitalists raised by the village chief gave up on their three major markets after the bull market and returned to Latin America. Taking advantage of his illness to kill him, he purchased high-quality Latin American assets in large quantities that had fallen to floor prices.
Fangyuan said: "This is what happened after the U.S. dollar index strengthened for the first time. If this happens only once, then it is a small probability event, but it happens repeatedly. This is the rule."
When the Shell Index came down from the peak of the Latin American financial crisis, that is, in 1986, it began to fall again.
During this period, during the financial crisis in the small country and the currency crisis in the entire European continent, the Shell Index has been falling for ten years.
Ten years later, in 1997, it strengthened again.
Going strong, another six years.
"This rule is that if you are weak in ten years, you will be strong in six years."
Fangyuan put down the water bottle and took out a lollipop.
Chen Wan asked for one, but no one else did.
Li Muzi asked: "The specific event that occurred regularly for the second time was..."
Fangyuan's thigh felt a little itchy, so he scratched it.
Chen Wan patted him and asked him to pay attention to his image.
Looking at Li Muzi, Fangyuan replied: "Back in 1986, the shell index began to weaken for the second time, and the village chief's family reopened the floodgates to release water. The target was Asia."
In the 80s, what was the hottest concept in the economic field?
The Four Asian Tigers and the Asian Flying Geese.
At the time, many people believed that Asia's prosperity was brought about by the hard work and ingenuity of Asian villagers.
In fact, a big reason was because Asia received sufficient shells and investment at that time.
When Asia's economic prosperity reached its peak, the village chief felt that it was time to shear sheep again.
Therefore, in 1997, the tenth year after the Shell Index fell, the capital of the village chief's family reduced the money supply to Asia, causing the Shell Index to reverse and strengthen. Signs of a large-scale economic crisis and financial crisis appeared throughout Asia.
With the sugar in his mouth, Fangyuan said happily: "At this time, the pot of water has been heated to 99 degrees and is about to boil. What's left?"
The rest said nothing.
Chen Xiaowan puffed out her cute little cheeks and asked tentatively: "War?"
Fangyuan said: "Yes, but there is more than just fighting."
Chen Wan thought for a while and said: "Regional crisis!"
Fang Yuan nodded.
“The purpose of creating a regional crisis is to recover resources, and there are ways to create a regional crisis without contact.
"So, an old man named Soros showed up."
Liu Shaofeng muttered: "Financial investment master."
Fangyuan corrected: "Financial speculator."
The old man took his Quantum Fund and hundreds of hedge funds in the village and began to attack like a pack of wolves the villagers with the weakest economy in Asia and their currency, the Thai baht.
In just one week, the Thai baht crisis broke out and immediately had a transmission effect, all the way south to Malaysia, Singapore, Indonesia, and the Philippines, and then north to the Bay, to Xiangjiang, to Xiaori and South Korea, and finally to Lao's home...
The East Asian financial crisis broke out in full force!
The water boiled, and investors in the whole village judged that the investment environment in Asia had deteriorated and withdrew their capital.
At this time, the shell-picking organization of the village chief's family immediately blew the horn for raising interest rates. As the horn sounded, capital returned to the three major cities of the village chief's home.
The village chief’s second big bull market is here.
Capitalists who have once again made enough money from the virtual economy market, just like in Latin America, returned to the devastated land of Asia with the shells earned from the Asian economic crisis, and frantically acquired low-quality, high-quality assets.
No one has the power to fight back. The only lucky ones are the Hua family.
Then, as accurately as the tide rose and fell, the Shell Index strengthened for six years before weakening again in 2002.
Fangyuan looked at Chen Wan, stopped talking, and just said: "Now, we are in a ten-year period of weakness..."
Chen Wan knew that he couldn't tell others about what happened next.
Li Muzi shook his head and said, "But now, a financial crisis is breaking out in North America."
Fangyuan smiled and nodded: "Yes, the village chief played it too big this time. As soon as he raised the butcher knife, he found that his hometown was on fire.
“So my analysis is that this weakening will last for a few more years.
"And the next flood discharge area will be the Asia Huajia, not anyone else, just the Huajia."
In 2000, Huajia officially joined the new trade regulation organization formulated by the new village chief at that time. Since then, it has become the villager that attracts and receives the most investment from the whole village.
A large amount of inter-village capital is very optimistic about the Huajia economy. In terms of scale, the Huajia cannot be regarded as a single village household.
The economic scale of the Hua family is equivalent to the entire Latin America, or even larger than the total economic volume of Latin America. Compared with the East Asian economy, it can also be said that the Hua family's economy is equivalent to the entire East Asia...
Fangyuan decided to end it in front of "outsiders": "I opened up a large part of Huajia's innovation market and attracted the attention of some top speculators in the village, including Gongge and HT, that's all."
Some people suddenly understood, and everyone nodded.
Li Muzi asked again: "Then why don't we take advantage of this village chief's crisis to do something?"
Fangyuan was a little sad. He looked at Chen Wan and shook his head slowly.
“We feel that their financial crisis has just begun and is even brewing. In fact, in the village chief’s house, the hurricane of crisis has already been established.
"It will sweep the world by next year at the latest. Now our funds are too small to move, and the blood of ordinary people will be touched. It is better to do something else and wait for the storm to end and the wind will pick up again."
Li Muzi asked: "So...you are planning to transfer a large amount of funds to Li Li this time?" Fang Yuan nodded.
Li Muzi thought for a while and asked again: "How come the village chief is playing with the fire?"
Fangyuan laughed: "Combined with what I just said, the semi-hollow economy, the three major cities are eager to speculate on the air. The virtual economy is linked to real real estate, and everyone wants to own three houses. If the speculation is huge, it will explode."
No further words were said, and everyone was digesting what Fangyuan taught them like an initiation.
Chen Wan asked: "What about the second question? The first one is to acknowledge your knowledge. Why did that person say you are shameless? You can even memorize so many trees, how can you be so shameless?"
There was no need for Fangyuan to explain, Li Muzi said with a smile: "He made up the numbers, of course he was shameless."
...
We didn't get together for dinner, everyone went back to the house.
Tonight, what they need most is calmness. Whether it is the excitement brought by the $[-] million or the new perspective brought by the "regular trend" theory, they all need to calm down before they can make the next move.
After closing the door, Chen Wan hugged Fang Yuan, touched his head lovingly, and told him not to think too much.
"Can you tell me more about it? To be honest, I really feel enlightened.
"Tell me about it. The more I know, the better I can help you."
Fangyuan said: "It's very dirty and bloody. Do you want to hear it?"
Chen Wan nodded firmly: "Listen."
"Okay, let's talk among ourselves as husband and wife."
Chen Wan smiled foolishly.
Pulling Chen Wan to sit down on the sofa, Fang Yuan continued to tell the story concisely.
More than 200 prisons in the village are privately run.
The eight most famous Ivy League schools, Harvard, Yale, etc. are all private.
Even the organization that collects shells is a private organization.
There, the rich will be happy, while the poor will face the fate of being slaughtered at any time.
The village chief consortium’s most ruthless slaughter of the poor and the largest scale will be next year, 2008.
It was a storm sweeping the world, also called the subprime mortgage crisis.
As a result, millions of people in the village chief's courtyard were made homeless, and tens of millions of people in the village were laid off.
Chen Wan said in surprise: "Didn't you say next year it will be... next year this miserable?"
Fangyuan nodded: "Individuals, countries, and even civilizations all grow up after tenaciously surviving misfortunes one after another."
He continued: “What I just told Muzi Li was just superficial.
"As mentioned before, the financial system of the village chief's family is ahead of the entire village..."
But even so, the village chief's family still triggered the largest global financial crisis in the 21st century.
Overheating of real estate was only the trigger of the crisis. The deeper reason was overly loose supervision.
Why isn't it tight?It used to be very tight, but was later loosened by the Financial Widows Group.
Fangyuan winked as she spoke.
Chen Wan pinched him and called him a hooligan.
Before the financial crisis, the earliest economic crisis in the village chief's family was the Great Depression in 1929.
The village chief learned that painful lesson, and in order to prevent a recurrence of the economic crisis, he enacted the Glass-Steagall Act in 1933 to strictly separate investment banks from commercial banks.
Investment banks can only engage in securities business.
Commercial banks can only engage in savings business.
To put it simply, you cannot use savers’ money to make risky investments.
In this way, although the flow of funds has slowed down, it has greatly reduced the operational risks of commercial banks. Depositors will not lose their money in the event of a stock market crash, which greatly ensures social stability.
But with such a conservative and strict regulatory policy, money comes in too slowly.
The giants on Wall Street all dream of going back to the days of counting money crazily.
So after the leeks had rested and recuperated for a few years, the Wall Street consortium began to think about testing its cadres again.
In fact, the financial groups themselves are also cadres, because the village chief's central bank is a shell-collecting organization.
The actual controlling shareholders behind this organization are the five major banks on Wall Street.
To maintain the normal operation of the village chief's economy, it would be impossible without Wall Street.
So Wall Street giants have been involved in regulating the village head’s family economy.
Even the head of the family had to rely on the big guys on the street to raise funds every time there was a change of leadership. Over the years, supervision on this relationship became increasingly loose.
In the 80s, when Ronald Reagan was the mayor of the village, he appointed Donald, CEO of Merrill Lynch Bank, as the 66th village accountant.
Since then, a 30-year financial easing policy has been launched.
The village chief relaxed restrictions on savings and loan companies, allowing them to use savings deposits to make risky investments.
As a result, due to bad luck, it took only a few years to stumble into a big hole, and hundreds of savings and loan companies collapsed.
Countless ordinary savers lost their life savings.
Many managers of savings and loan companies were thrown into jail because of this.
But this time the problem did not cause financial regulators to tighten policies, and Wall Street bosses continued to play and dance.
In 1995, Robert Rubin, the former CEO of Goldman Sachs, the king of investment banks, was appointed as the 70th village accountant by the village chief of Kelindou.
Now the entire economic control of the village chief's family is completely in the hands of Wall Street.
By the late 90s, a monopoly pattern of several major oligarchy groups had formed.
In 98, Citibank and Travelers Group merged to form Citigroup to expand their business scope.
But this merger blatantly broke the rules prohibiting savings deposits from being used for risky investments.
But under the lobbying of Wall Street agent Robert Rubin, the inner cabinet elders of the village chief's family miraculously passed the plan to rescue Citigroup.
This is equivalent to completely overturning the Glass-Steagall Act of 1933, which is equivalent to Wall Street taking the lead in the merger of Citigroup.
The Wall Street giants in the future just need to imitate the same, and they will all become as big as the big boys.
Then came the millennium.
This year, the most painful memory for retail investors is the Internet bubble. A large number of ordinary investors were defrauded by the Wolf of Wall Street telemarketers because of their lack of financial knowledge and purchased a large number of worthless junk stocks.
In the end, the market value evaporated by 5 trillion shells out of thin air.
Although the regulatory agencies claimed to settle the score, they only fined those Wall Street investment banks that cut leeks.
During the Internet bubble, Wall Street financiers also felt that the market would bubble too easily just by selling stocks.
So he put his ingenuity into innovation and created more financial derivatives.
Unlike physical companies that earn profits from commodities, financial companies focus on selling concepts.
Anything can be sold, as long as it is a variable number, you can bet on the rise and fall of oil prices, bet on the temperature index, and even on air quality.
This is called financial derivatives!
Financial companies are frantically opening new casinos to encourage people to join the casinos and become gamblers.
This is called the new financial market!
Due to the lack of regulation, the financial derivatives market exploded in growth.
People in the entire country do not produce anything. They wait every day for the price of oil to rise or fall, and guess what the temperature will be tomorrow.
What will happen in the end?
There are still people who are concerned about the country and the people.
Ms. Guo En, Chairman of the Commodity Trading and Futures Commission, once proposed that the financial derivatives market should be restrained, otherwise there will be endless disasters!
As soon as these words came out, Ms. Bonn was immediately condemned by a number of big shots.
Among them were Lawrence Samsying, who was the village accountant at the time, and Greenspan, chairman of the shell-collecting organization.
They all accused Ms. Bonn of being alarmist.
Not long after, the village chief’s cabinet ministers passed a bill specifically for Wall Street to exempt the financial derivatives market from regulation:
Commodity Exchange Modernization Act.
To put it bluntly...whoever regulates Wall Street is breaking the law!
This will eliminate all objections from the legal level!
The oligarchic group began to grow crazily and innovate financial derivatives.
Wall Street is being deregulated step by step.
The previous overturning of the Glass-Steagall Act was equivalent to opening the ceiling for large-scale development, but this time the bill to exempt financial derivatives from regulation is equivalent to turning a bicycle into a high-speed train.
From then on, the performance growth of 100% year-on-year is a conservative development!
After 2000, the housing market continued to boom, so Wall Street bankers naturally wanted to make the cake bigger.
Before this, bank loans generally only extended to people with good and stable incomes. These were called high-quality loans.
But such high-quality people are always limited, and the poor are the majority.
If Wall Street wants to make more money, it can only reach out to the poor.
Subprime mortgages emerged.
Whether it was a black uncle from the bottom or a poor Mexican, they all applied for their own loans.
With three houses per person, the poor realized the American dream of prosperity.
Lending companies are not afraid that poor people will not be able to repay their loans because they transfer the risk to investment banks.
This is thanks to a genius named Louis on Wall Street. He securitized the mortgage contract and packaged it into a financial product, that is, mortgage bonds.
Investment banks acquire mortgage contracts from lending institutions, convert them into mortgage bonds, and then sell them to investors on the secondary market.
After this operation, the capital turnover speed of the lending institution instantly increased n times.
Thanks to this awesome innovation, everyone has made money and the risks are still controllable.
High-quality mortgage bonds are very easy to sell, and investors are not worried about the ability of the middle-class village chiefs to repay their loans.
But subprime bonds are not so easy to sell. Investors all know that the income of the black uncles is unstable, and they will be left alone if they disagree.
Therefore, how to sell the large number of subprime mortgage bonds that no one cares about is the real problem.
But what Wall Street is most indispensable for is geniuses. It didn’t take long before someone came up with a hybrid bond called CDO.
The popular explanation is to package and sell a small number of high-quality bonds and the majority of unsold own bonds.
To put it figuratively, it’s 20% chocolate mixed with 80% shit, telling you that this is a new type of chocolate.
Hey, the color matches the taste, which also means that ordinary investors can't identify it at all.
Not to mention giving you another certification from an authoritative organization!
Originally, the risk level of securities was assessed by third-party rating agencies.
There are 3 levels from 3A to 6B.
Investors still trust third-party rating agencies, but under the knife-edge offensive, all rating agencies have been bought by Wall Street investment banks.
As a result, CDO bonds mixed with a lot of shit were given the top AAA label.
As soon as the evil CDO came out, the whole Wall Street went crazy.
This innovation in financial derivatives has endless room for maneuver, and all peers are promoting CDO bonds!
Just like once promoting Internet junk stocks!
There is no doubt that this is a fundraising scam.
Someone once warned Greenspan, then chairman of the shell-picking organization, about the risks, but Greenspan ignored them.
The China Securities Regulatory Commission, as a regulatory agency, had no control during the bubble period. The most outrageous thing was that it laid off more than 100 employees in the risk management department, leaving only one employee to supervise Wall Street.
There is no way, who wants to let someone be above me?
In 2004, under the guidance of Henry Paulson, then CEO of Goldman Sachs Group, the SEC relaxed the restrictions on leverage ratios and raised the leverage ratio of investment banks to 33:1.
For ordinary people to buy a house, leverage of two or three times is already very stressful. For others, 33 times is still too little.
More dangerous signs are yet to come.
Don’t the Wall Street giants understand this unprecedented bubble?
Don’t you know that those CDOs are just rubbish subprime mortgages?
Just pretending to be stupid.
They have long been thinking about ways to hedge risks, so a financial derivative instrument came into being, CDS!
Similar to the effect of insurance, as long as the CDO plummets, the CDS agreement will pay out the insured amount.
The company that accepts this kind of insurance is called AIG, the largest insurance company in the village.
AIG sold CDS with an insured amount of up to 5000 billion!
Except for a very small number of talented investors
Most insurance is bought by Wall Street investment banks. Why?
Executives know very well that a collapse is inevitable sooner or later, and they must hurry up when trying to deceive customers!
The bigger the bubble is, the better. Anyway, the village chief’s family will get the scoop in the end!
Anyway, you are using investors' money to add leverage. If you win, you will earn commissions, and if you lose, the client will be responsible. How can you take any risks?
Are you willing to take a gamble?
People on Wall Street say: Then stud once!
He sold his investors and became rich on Wall Street. He was just a securities broker. At that time, the standard equipment was a yacht and a helicopter.
Without this combination, I would be embarrassed to say that I am a financial practitioner.
Dick Fuld, CEO of the large investment bank Lehman Brothers, even has a fleet of six aircraft.
This included a Boeing 300 carrying nearly 767 people.
The more developed the times, the more people stay drunk.
Said a well-known psychiatrist.
At that time, his clients were basically Wall Street executives, these wolves of Wall Street were addicted to excitement.
If you eat white flour as a meal, you will feel uncomfortable if you don't go to whoring for a long time.
Everyone knows that Wall Street is in chaos, but who gives people an umbrella?
In July 2006, the village chief of Obushi appointed Henry Paulson, then CEO of Goldman Sachs Group, as the village chief’s 7th village accountant.
During the entire bubble, Goldman Sachs, the king of investment banking, sold the most junk CDs.
As a result, Paulson became the highest-paid CEO on Wall Street.
Before taking office as the village accountant, Paulson cashed out 5 small targets just by clearing out stocks that had soared.
Wall Street is still partying, but the bubble can't hold on.
Suddenly shattered, crisis is coming!
In late 2007, the number of subprime loan repayments exceeded one million!
In order to earn high commissions, lending companies gave zero-down payment loans to too many poor people with no stable income.
And it’s a floating rate!
The interest rate increased year by year, and finally, the poor could not afford to pay it back.
Just be an old guy, no more fun!
The bank can only repossess the property and put it back on the market.
Supply exceeded demand, and the house price of the village chief's house collapsed rapidly.
The crisis spread in a chain, and the mortgage securities market plummeted!
Investors were panicked and cashed out frantically.
Investment banks were the first to bear the brunt of the crisis and faced bankruptcy.
The first investment bank to be listed is Bear Stearns, which ranks fifth in terms of strength on Wall Street.
The village chief's family came to an emergency rescue and provided a 300 billion guarantee, allowing JPMorgan Chase to acquire Bear Stearns.
Immediately afterwards, the giants of Fannie and Freddie were struck by thunder.
The village chief's family spent another 2000 billion of taxpayers' money to own the village.
However, the more we rescued, the bigger the hole became.
Soon, Lehman Brothers, the fourth largest investment bank, also raised a white flag.
The government doesn't dare to bail out anymore, otherwise all the banks on Wall Street will be waiting for the village chief to wipe their ass.
The result was that the century-old investment bank Lehman Brothers was destroyed.
When Lehman died, all the money of customers in the village was frozen!
Savers began to panic.
If Lehman can fail, how can we ensure that money placed in Goldman Sachs and Morgan Stanley is safe?
Customers organized groups to withdraw their funds, and the credit market was completely paralyzed.
Stocks plummeted like a cliff, and confidence collapsed!
The most terrifying thing is that even AIG has failed!
AIG is tied to almost all the village elders and even all the banks in the village.
Basically every company with investment business has purchased CDS insurance from AIG.
If AIG goes bankrupt, the whole village's financial system will collapse!
So AIG must save it!
Finally, the village chief spent another 1500 billion to take over AIG.
The largest recipient of compensation was Goldman Sachs, which paid a total of 140 billion shells.
Village accountant Paulson demanded that AIG pay Goldman Sachs priority and full compensation.
The rest of the Wall Street investment banks also received huge compensation from AIG.
But customers are in dire straits. Retirement and pension funds in many places have been almost fraudulently purchased by Wall Street investment banks in large amounts of junk CDOs.
After knowing that the investment banks had long ago bought CDS and shorted them and lost all their money, investors took Wall Street investment banks to court one after another.
A big reason why investors are generally fooled is because those junk CDOs have been given triple-A ratings.
Highly rated securities are like restaurants rated Michelin, and investors take advantage of them.
Securities without high ratings simply cannot be sold.
As a leading rating agency, Moody's profits increased 2000 times from 2007 to 400.
Rating agencies were later sued in court.
But they didn't panic at all, because they had already included word games in similar risk notifications that were dozens of pages long.
They warned investors that even if we give a 3A rating, it only represents the institution's point of view and is for reference only. Investments are risky and the consequences are at your own risk.
Although the village chief's family bravely rescued AIG, their confidence has long been shattered.
Customers withdraw money, no one invests, banks dare not lend, companies dare not expand, and the economy is like a pool of stagnant water.
In the end, it was Paulson who proposed a $7000 billion distressed asset rescue plan.
The village chief’s cabinet passed the first batch of 1250 billion, which was distributed to the big financial oligarchs on Wall Street in the form of capital injection, hoping that they would lend the money out to activate credit and rebuild confidence.
But even after spending so much money, most banks still chose to control risks and did not lend money out.
At the beginning of 2010, more than 600 million properties had been redeemed by banks, and countless people were sleeping on the streets.
Not only are the houses of the poor in ruins, but their job opportunities are also gone.
The financial crisis spread in a chain, with funds in all walks of life cut off and a large number of companies going bankrupt.
What is even more pitiful is that countless middle-class people have fallen into poverty overnight because of buying houses.
And in this era of economic globalization, it's not just the village chief's family who is suffering.
The whole village is not much better. The whole village has been dragged into the quagmire of economic recession by the subprime mortgage crisis.
When Fangyuan said this, he took a deep breath.
Chen Xiaowan, who understood, hugged her knees and frowned deeply, and asked: "What about...those bad guys? A small number of people have harmed the whole world, they should bear the consequences, right?"
Fang Yuan stroked her little head: "The palace said today that people outside the game must obey a different set of rules. Well, as you said, someone has to take the blame for things like this..."
What happened to the instigators on Wall Street?
Escaped unscathed!
Take the bankrupt Lehman Brothers as an example
Even if the company went bankrupt, the five executives still pocketed more than one billion shells by relying on laws designed for the wealthy.
As for those bank CEOs who were too big to fail and were rescued by the government, the most they could do was resign and continue to be executives elsewhere.
Moreover, every CEO who resigns will receive at least hundreds of millions in compensation.
During the subprime mortgage crisis, not a single Wall Street executive was convicted and imprisoned.
But ordinary people have fallen into dire straits.
The rich played with fire and burned down the houses, the gentlemen hid at the top of the city watching the show, and the poor fled in all directions below.
In addition to Wall Street's insatiable greed, regulators seeking power for personal gain, and peer institutions driving out good money with bad money...
There is another group of people who have also made great contributions to relaxing regulations.
That is the academic world of teaching and educating people.
A large number of sanctimonious experts and professors could not stand the temptation of shells and joined the fraud gang one after another.
There are even a bunch of specialized intermediaries that provide Wall Streeters with experts and scholars who can be hired to tell lies and serve as gunmen.
The scale of this intermediary market alone is as high as billions of shells.
Instigated by experts and scholars who have been telling lies for many years, the regulatory policy pants are so wide that they can fit in the entire Wall Street, and the room for manipulation is infinite!
"As mentioned before, in fact, since the 80s, the village economy has gradually shifted from reality to virtual reality. Manufacturing has been transferred overseas to save costs, and has been replaced by the highly profitable Internet and financial industries.
“This is equivalent to the abandonment of the bottom labor force. Perhaps the biggest role of the poor here is to serve the rich and earn cheap wages.
“Even this cheap remuneration will eventually be cut off by the rich in every possible way.
“Otherwise, the village chief’s house is a paradise for rich people.
"And the most heartbreaking truth is that the whole village is trying to be like the village chief's family."
Chen Wan asked: "Isn't there anyone who can say something fair to the people at the bottom?"
Fangyuan nodded and said yes.
"Next year, in 08, the village chief will be replaced by a black village chief. He will be filled with righteous indignation and denounce the negligence of Wall Street and regulators in his speech. If he is allowed to take office, reforms will be inevitable, and the financial industry will be restructured and regulators will be tightened.
"For example, how to ensure the neutrality of rating agencies, how to limit the huge compensation of Wall Street executives, etc."
Then... Chen Wan didn't ask "then". She understood that maybe the so-called reform would not even have a trial costume in the end.
With a pouted mouth and a silent sigh, Chen Wan said: "How can we possibly defeat those people..."
After muttering, Chen Wan threw herself into Fangyuan's arms: "It's too dangerous."
Fangyuan hugged her, looking at the dark golden pattern of the wallpaper on the wall, and said softly: "So, when Li Muzi asked me what I could do during this subprime mortgage crisis, I didn't say directly that it was okay to get some high-quality assets. But the general situation has taken hold. Individuals will be crushed to pieces if they are strung out. We have not reached the level of the palace watching the show from the front row..."
Chen Wan suddenly interrupted him: "Last time you told me on the phone that the fifth or seventh uncle of the Lin family... I also praised you as a good person. Are you... sure you are not facing the kind of person you just mentioned?"
Fangyuan laughed, shook his head and said, "It's just a few fleas in the country, and besides, I won't go against them.
"Slowly walking side by side, gradually branching off. With their wisdom, they can see that they don't need to deceive the people of their money."
Chen Wan rolled her eyes at him, smiled again, touched the stubble on his chin and said, "You, I feel so sorry for you."
"Feeling distressed?" Fangyuan asked in surprise: "Why?"
"I'm not from this era... I feel like I'm only [-]% like you, and I already feel like I don't fit in with this era."
Fangyuan picked up Chen Wan and sat beside the bed: "Take a shower and go to sleep. Let's go and meet Kong Yiji in our dreams."
Chen Wan pressed on him and asked curiously: "Kong Yiji?"
"Yes, when we see him, we will warm him four bowls of wine and ask for a plate of fennel beans.
"Then I asked him how many ways to write the word "hui".
"If he is willing to answer, you tell him: 'You actually know that there are four ways to write the word "hui". You are really awesome! You have not studied for so many years in vain. We laugh at you, not to laugh at you, but because we really need it. You, you make the whole hotel feel happy.'"
Chen Wan was stunned for a moment, then covered her mouth and kept laughing.
Holding Fang Yuan's face and squinting her eyes, Chen Wan said: "You are Fang Yiji, and I am Chen Yiji. I need you, do you need me?" (End of Chapter)
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