Perfection of Rebirth

Chapter 663 The Fermenting Subprime Mortgage Crisis

July 2007, 7 was an ordinary day, but also an extraordinary day.

The 2008 financial crisis can basically be regarded as the first time that the subprime mortgage crisis caused the global stock market to plummet.

As investors' concerns about the subprime mortgage crisis and the real estate market swept Wall Street, the US stock index closed sharply on the 26th, and the Dow Jones Industrial Average fell by more than 300 points. The weekly decline even created a new high in four years.

Affected by this, the Asia-Pacific stock markets fell one after another on the 27th, and the Nikkei index fell sharply, while Australia, South Korea and other stock indexes created the largest single-day declines this year.

Even the Chinese stock market, which performed very eye-catchingly, was inevitably affected.The Shanghai stock market closed at 4345.36 points, down 1.10 points; the Shenzhen Component Index closed at 14614.10 points, down 5.64 points.

In the next few days, global stock markets generally fell and fell, showing no signs of rising at all.

Correspondingly, since July, international oil prices have accelerated.

Although the U.S. economy has slowed down, the economic growth of Europe and island countries is significantly better than expected, especially the economic growth of China, India and other countries, and the global oil market demand is strong.

Affected by factors such as the Iranian nuclear issue and the intensified tension in Nigeria, oil pipeline leaks in the Gulf of New York and the United States, the international oil price showed a fluctuating upward trend. It was close to 6 US dollars in late June and reached 70 US dollars per barrel on July 7, breaking through the upper limit. record high for the year.

Brilliant Investment Finance Department took advantage of this trend and made a lot of money.

"Mr. Jiang, is it true that all employees of the Financial Department of Guanghui Investment will be given a holiday for the entire month of August?" Guan Weidong asked in surprise.

Early this morning, Jiang Hui called Guan Weidong to his office, and asked him to arrange for all the staff in the financial department to take a one-month vacation this month, and the salary will be paid as usual.

Jiang Hui also saw the news of the stock market plummeting everywhere on several major portal websites and Guanghui Weibo in the past few days, so he remembered that July and August this year were the time when the subprime mortgage crisis officially broke out.

It can be said that throughout August 2007, there was nothing to play in the financial market, whether it was stocks, futures, foreign exchange or whatever, it was too difficult to make money.

On the contrary, the possibility of losing money is very high.

Of course, Jiang Hui can also use Sang Guanghui's investment in the financial department to short the stock market and crude oil. If he does well, he may be able to make a lot of money when others are bleeding in August.

However, recently, the outbreak of the subprime mortgage crisis and its increasing impact on the global financial market have also made governments feel the crisis.

All kinds of stimulus policies are pouring out, you can't expect it at all.

In this case, the risk of oil futures is too high.

Crude oil may still fall sharply this morning, and the downward trend will not change. Maybe some country announces a certain policy in the afternoon, and the oil price will suddenly come and rebound.

In this case, the position will be liquidated accidentally.

Although the Guanghui Investment and Finance Department has made a lot of money in the past two years, it is basically a smooth money. It really does not mean that there are many world-leading traders in it.

Jiang Hui has no confidence that in this market environment, these people can continue to make a lot of money for themselves, so why not take the opportunity to take a vacation, which can be regarded as a commendation for everyone's outstanding performance this year.

"That's right, the financial department's achievements and money earned this year are more than all other departments and all brothers and companies combined, so they should be rewarded." Jiang Hui knew that after he told Guan Weidong about this decision, he would definitely Very surprised.

"But all the staff are on vacation and all positions are cleared. This is too exaggerated. Although the global stock market has plummeted in the past few days, the price of oil is rising." As for the entire Brilliant Investment, Jiang Hui is most concerned about the financial department, and so is Guan Weidong. Did a lot of work.

"This round of crisis may be more violent than everyone imagined. Of course, you are right. Oil prices are still rising. The fundamentals of the global economy as a whole have not seen any obvious changes. Oil prices are definitely still there. It will continue to rise, but such a sharp stock market decline has not been seen for many years, and it does no harm for us to avoid the limelight."

"Mr. Jiang, you asked our finance department to withdraw from the domestic stock market investment last month, and now you are planning to give all the staff of the finance department a one-month holiday. Is the financial market really so bad now?".

"Old Guan, have you noticed that in recent decades, basically every ten years, the global economy will usher in a twists and turns?"

Jiang Hui's words are really not casual. Many economists believe that there will be a financial crisis every ten years or so.

From 1987 to 1988, the stock market ushered in a global crash, and its symbolic event was "Black Monday".

October 1987, 10, is also known as "Black Monday" in financial history.On the same day, the Dow fell 19%, the Nikkei fell 22.6%, the London Financial Times fell 15%, Paris, France fell 10.8%, the Australian stock market fell 9.7%, and Singapore fell 25%.

In addition, the Hong Kong-Hong Kong Hang Seng Index announced a 10-day suspension of trading after a drop of more than 4%, but on the day it reopened on October 10, it directly fell 26 points to 1120 points, a drop of more than 2241%.

In this financial crisis, the entire market value of the global stock market lost more than 4000 trillion U.S. dollars, more than three times the total loss of World War I!
Ten years later, in 1997-1998, the Asian financial crisis broke out.

This crisis includes the Asian financial crisis, the Russian financial crisis, the Hong Kong financial defense war, and the Wall Street crisis.

This crisis started from Thailand on July 1997, 7, when the Thai baht devalued; it further affected the currencies, stock markets and other asset values ​​of neighboring Asian countries Malaysia, Singapore, Japan and South Korea, breaking the rapid economic development of Asia. scene.

After another ten years, time entered 2007.

也许几年以后，2007年7月27日的这场由次贷危机引起的首次全球股市大跌，将会是2007～2008年金融危机的开端吧。

Now that international financial activities are becoming more and more closely connected, various financial markets are interconnected, and the outbreak of a crisis in one local market will often involve the linkage of multiple markets, thus triggering a global financial turmoil.

The subprime mortgage crisis is a typical example.

Originally, this problem mainly existed in the United States, and other countries were not serious.

However, with the acceleration of globalization, the connection between various financial markets has become closer and closer, and the United States is a well-deserved number one power in the world.They had a crisis, how could other countries be spared?

"Mr. Jiang, do you mean that the Yankee's subprime mortgage crisis will become bigger this time?" Guan Weidong said in surprise. Under Jiang Hui's reminder, he probably understood what Jiang Hui was worried about.

"Every typhoon has its eye; every financial storm has its own eye. The so-called eye of the storm is the cause of the financial storm and the fuse that detonates the financial crisis. In my opinion, the United States The subprime mortgage crisis is the fuse of a new round of financial crisis.”

Jiang Hui said firmly.

They all say don't pretend to be coercive, and get struck by lightning.

However, Jiang Hui has even experienced such a thing as rebirth, so what is he afraid of being struck by lightning?
(End of this chapter)