1928: The Rise of Giants

The Fed's move has been a devastating blow to the current U.S. stock market.

If the stock financing interest rate increases by 5%, it is equivalent to paying an additional US$1 for every US$500 in interest. Don’t underestimate this US$500. Those retail investors with small purchase amounts will not make a profit of US$500 per day in the bull market. US dollars are not even enough to pay the increased interest, so how can we continue to lend money?

The same goes for those big customers. If your loan amount is high, the interest will be high, and part of the profit will be shared equally, making it less profitable.

Sure enough, when the market opened in the morning, the stock market was green, with few stocks rising.

Not to mention the Dow Jones Index. It was much lower than yesterday when the market opened. It looks like it will only continue to fall without any sign of rising.

This time it was the turn of leading companies such as U.S. Steel to panic.

With such a stock market situation, they knew that Huixin would not give up short selling easily. In just one morning, the stock price of U.S. Steel fell from 77.4 U.S. dollars to 68.7 U.S. dollars. It is obvious that the drop may reach an astonishing 20 U.S. dollars today. Steel executives were the first to be unable to sit still. At noon, they convened a large number of shareholders for a brief board meeting and decided to increase the withdrawal funds provided to Huixin to US$150 million.

Benjamin returned to the VIP room with the good news, and happened to see Huixin and others dining elegantly.

It was not very peaceful outside today, so Huixin did not take Shi Jianqiao and the others to a high-end western restaurant to spend the activity funds provided by Ye Luo. Instead, she changed to "ordering takeout" and directly called the chef to cook.

Without exception, the companies belonging to the six high-priced stocks have increased their withdrawal funds to US$150 million.

In other words, just from the evacuation funds they provided, Ye Luo earned US$900 million at no cost!

Converted into oceans, it's nearly 4500 million, which has already exceeded the entire scale of Ye's previous investment!

This is the current economic gap between powerful and weak countries in the world.

Even though the domestic warlords are fighting vigorously, the warlord leaders are all fat and fat, but they are asked to spend 40 to 50 million yuan to provide disaster relief. Each one is scratching his head and scratching his head, which seems to cost his life.

Don't they have money?

No, they were the richest group of people during the Republic of China.

Do they have money?

No, they were the poorest group of people during the Republic of China.

This sounds awkward, but it is what it is.

When there is no war, the warlords have gold and silver in their homes and countless deposits in various foreign-funded banks. But when they go to war, military expenditures often reach hundreds of millions, and even if they drain their wealth, it is not enough to support a half-year war. They all rely on the support of businessmen and people across the country.

Take the Jinling National Government as an example. When a war breaks out, the first person to have a headache is the Minister of Finance Song Ziwen, the second person to have a headache is the Minister of Industry and Commerce Kong Xiangxi, and the one who has no headache but aches all over the body is the principal.

His Central People's Army was the largest, and the disarmament was deliberately omitted last time. As a result, wars were raging at this time, and the principal had to borrow money, equipment, and people from the great powers.

The Americans were rich and well-mannered, and they were the first country among the great powers to support tariff independence. They did their part to support the Nationalist Government's military expenditures and supplies.

Where does the Yankee money come from?

Did the White House give birth to itself?

Of course, this group of large companies and chaebols pooled their funds.

Top companies like U.S. Steel control 95% of the wealth in the United States. This is no joke.

"I'll think about it carefully, don't be in a hurry." Huixin still had that attitude.

Benjamin didn't dare to rush, but the pressure on his head was already as big as a mountain.

Now it is not a question of how much money he makes from Huixin, but that once companies such as U.S. Steel encounter a short-selling crisis, the assets they will lose will start in the tens of millions. After all the bad debts are calculated, he, the trader who provides short-selling services for Huixin, will also escape. No.

If you have money to make, you also have to have life to spend it.

The problem is that the lady in front of me is not someone to be trifled with. Her subsidiary Hongxing United Group is now the most famous among the securities firms. She controls 80% of the penny stocks in the United States and tens of millions of people. Ordinary people depended on her for food.

What happened to her, and who will bear the responsibility? Moreover, it seems that there are some political bigwigs supporting her.

Benjamin didn't need to think about it to know that there would be some battles between politicians later on, and this was beyond the control of his small deputy director of the trading department.

He could only pray to God now, hoping that this crazy woman would stop as soon as she saw the light of day and not end up dead.

Not only him, Shi Jianqiao and others were also very anxious, wondering how the second young master wanted Huixin to end up.

She could clearly feel the difference in the atmosphere around her. If something happened, she was really not sure that she could safely bring Huixin out of the New York Stock Exchange.

When the market opened in the afternoon, the stock price was still falling wildly.

This time, not only high-priced stocks and mid-priced stocks, but also low-priced stocks will not be spared.

They didn't inquire about the situation at Amax, but they estimated that the penny stocks would not be having an easy time either. Hundreds of penny stocks might have been delisted overnight.

Huixin was holding her breath, thinking about her words, and also paying close attention to the rise and fall of the stock price.

If the stock price showed a slight upward trend, she would decisively buy it back in advance and pocket the funds withdrawn from six high-priced stocks.

But the stock price has been plummeting and there is no upward trend at all.

Seeing that the last hour was coming, she gritted her teeth and couldn't wait any longer. The second young master's order must not be violated, so she waved to Benjamin.

Benjamin rushed over quickly. As soon as he heard that she was going to buy back the stocks she had sold before from the market, he immediately ran to call U.S. Steel and others, and then asked Kardashian and others to quickly help Huixin close the position.

As long as she buys back the stocks she sold before, and then pays back the stocks she borrowed from brokers, a short-term short-selling operation is completed.

Benjamin and others are extremely efficient in their work, and companies such as U.S. Steel are eagerly waiting to take back their stocks, eager to complete the transaction in one second, and the withdrawn funds arrive almost instantly.

Huixin's heart was pounding when an extra US$900 million suddenly appeared in her credit account.

"Madam, all positions have been closed. Do you want to check the results now?" Benjamin was sweating profusely and rushed into the VIP room with a stack of information, his hands trembling.

This is the biggest deal he has made since joining the industry.

The amount even exceeded the total of all previous transactions he had made.

"Well, let's talk about it." Huixin pretended to be calm and sat on the sofa, while the others were also holding their breath and concentrating.

"By the time the position was closed, the average decline of the seventeen stocks you purchased was US$29.86. After deducting commission fees, your net profit was US$2667.9 million."

Benjamin spoke in a low voice, but the VIP room was even quieter.

They didn't even dare to breathe.

Then came Kardashian and others’ “oh, my god!”

Including the principal of US$300 million and the withdrawn funds of US$900 million, she now has a total of US$3867.9 million in her credit account.

Huixin did some mental calculations and found that it would be about 1.85 million if replaced by Dayang, which is commonly used in China. (End of chapter)