Perfection of Rebirth

Chapter 721 This is just the beginning

2007年10月23日，美国破产协会公布9月申请破产的消费者人数同比增加了23%，接近6.9万人。

These bankrupt people are basically the so-called middle class, or even the small rich.

2007年10月24日，受次贷危机影响，全球顶级券商美林公布07年第三季度亏损79亿美元，此前的一天日本最大的券商野村证券也宣布当季亏损6.2亿美元。

The financial industry, which has been prosperous for nearly ten years, has ushered in its biggest round of adjustments. However, until now, no one believes that the impact of this round of crisis on the US financial industry will exceed that of the Great Depression in 1929 .

On October 2007, 10, the Swiss bank with the largest asset scale in Europe announced that it had its first quarterly loss in nearly five years in the third quarter, reaching 30 million Swiss francs due to the loss of subprime-related assets.

In today's global economic integration, the subprime mortgage crisis originated in the United States has begun to have an increasingly obvious impact on countries all over the world.

"Mr. Guan, our funds have entered Nasdaq and the New York Stock Exchange one after another through multiple accounts."

"The first wave of funds shorted those blue-chip stocks. In addition to Ford Motor, they targeted big banks such as Citigroup and Bank of Merrill Lynch." Guan Weidong began to lay out the general direction of investment.

"Is Ford going to deal with them specifically?"

"Well, let their stock price fluctuate as much as possible, go down, and let the Ford people feel the tension."

"If this is the case, you may not necessarily be able to earn much money."

"It doesn't matter. In order to make their stock prices more volatile, we can arrange some people to short and long Ford at the same time. In short, we can toss Ford as much as possible without losing money."

"Mr. Guan, there is a conflict between Ford Motor and our group? It seems a bit thankless for us to do this. Normally, we may not be able to achieve our goals well, but now that the subprime mortgage crisis is intensifying, the financial market has already It's a bit jittery, but it's convenient for us to copy it."

"Don't ask if you shouldn't ask. This is a task personally arranged by Mr. Jiang, and everyone can follow the instructions."

"Okay, resolutely implement the instructions of the big boss, Mr. Guan, just watch the show from the sidelines, and make sure that those people in Ford's financial department want to live and die."

……

Office of the President of Fannie Mae.

Fannie Mae was founded in 1938 at a time when millions of households in the United States were unable to own their homes or were at risk of losing them due to a lack of a consistent supply of mortgage funding.

The purpose of the US government to establish Fannie Mae is to increase the liquidity of mortgage funds and reduce the cost of buying houses.

Originally, Fannie Mae, as a government agency, was only authorized to purchase mortgages that were insured by the Federal Housing Administration.

In 1968, Fannie Mae became a private company, and its powers were extended to purchase mortgages not insured by the FHA.

Fannie Mae, an integral part of the US housing industry, operates in the US secondary mortgage credit market, ensuring that mortgage banks and other lenders have sufficient funds to lend to home buyers at low interest rates.

Fannie Mae, while not directly lending to homebuyers, backs home loan financing by purchasing home mortgages from various lenders that lend directly to homebuyers.

Lenders that do business with Fannie Mae are part of the primary mortgage market.

Primary market lenders include mortgage companies, savings and loan institutions, commercial banks, credit unions, and state and local housing credit agencies.

These lenders sell mortgages in the secondary market.

"President, we have to ask Congress to support home ownership for low- and middle-income Americans, which is what they expect us to do, but now this area has become the hardest hit area for default."

"Has the finance department calculated the profitability of this year?"

"It has been calculated several times, and it is conservatively estimated that it will lose 50 billion US dollars this year."

"So much? This will eat up our profits from previous years."

"This is not the most important thing. The biggest problem now is that many of the mortgages we bought have defaulted, and it will definitely become more serious in the future. Without the support of follow-up funds, we may default soon."

"How about talking to several major banks to see if they can borrow a batch of funds for emergency."

"We've already talked about it, and now there are many institutions in the stock market that are shorting us. Our stock has fluctuated violently recently."

"The wall is falling and everyone is pushing it."

……

Goldman Sachs.

"Dear partners, the theme of our meeting today is to discuss how our company survives under the current subprime mortgage crisis."

The partnership system has a very old tradition on Wall Street. Many international investment banks originated from this system, including Goldman Sachs, Merrill Lynch, Morgan Stanley, etc. Among them, the partnership system of Goldman Sachs is the most famous.

On Wall Street, becoming a partner of Goldman Sachs can be compared with the Zhongda lottery, not only because partner status means a generous salary and a step up to the top position of the company, but also because of the probability of becoming a partner extremely low.

Interestingly, in the tradition of Goldman Sachs, newly promoted partners will get a personal call from the CEO of Goldman Sachs, so many people will anxiously wait for that call before and after the real list is announced.

A former Goldman Sachs partner said getting that call was the best feeling of his life.

After all, Goldman Sachs has about 3.5 employees, but only 300-400 partners.

"President, judging from the current analysis of the Securities Investment Department, we believe that this crisis is only the beginning so far, and it is far from the time when the worst harm has occurred. I think our company needs to further improve the emergency plan to face the continuous crisis. deteriorating financial markets".

"President, from the perspective of bulk commodity transactions, we feel that the subprime mortgage crisis is just a minor disturbance in economic development, and will not have much impact on the economic development of the United States or the world. The current oil prices, iron ore Prices of commodities such as stones are still strong, and we have reason to believe that the market is still booming."

"President, according to the analysis of our investment banking department, the impact of this crisis on the financial industry should be very strong. At present, major banks in the world have been affected by the subprime mortgage crisis. Citigroup, Merrill Lynch, and UBS have all announced A historic large loss occurred in the quarter, and it is hard for us to believe that this loss can be greatly improved immediately in the next quarter."

"President...".

"President...".

Staff from various departments of Goldman Sachs expressed their views one after another.

However, no matter how they look at it, they cannot stop the wheel of history.

(End of this chapter)