Perfection of Rebirth

Chapter 896
In May in the imperial capital, the weather has begun to heat up, and the poplar trees on the side of the road have all turned green unconsciously.

Standing on the top floor of Guanghui Building, overlooking Zhongguancun through the glass window, it gives people a vigorous momentum.

After Jiang Hui had been busy in the island country for a month, and basically dealt with the acquisition of Sanyo by the Guanghui Group, he finally returned to the Guanghui Building.

At this time, the financial crisis caused by the subprime mortgage crisis in the United States began to show signs of improvement, and many people began to breathe a sigh of relief.

On April 2008, 4, the Federal Reserve cut interest rates by 30 basis points and removed the wording "economic growth is still at risk" in its post-meeting statement.The U.S. GDP grew by 25% in the first quarter, but Credit Suisse believes that it is mainly achieved by increasing inventories, which is not good for future development.British HBOS (Halifax Bank of Scotland, the largest financial insurance and mortgage bank in the UK) issued an additional 0.6 billion pounds of equity to increase capital scale and resist the deteriorating market environment.

On May 2008, 5, the Bank of England pointed out in its financial stability report that the subprime mortgage losses may only be 1 billion US dollars; major banks agreed to retain a minimum amount of assets in the special liquidity plan.

The Federal Deposit Insurance Corporation of the United States believes that the market is about to pass the credit crunch; Federal Reserve Chairman Bernanke believes that the problem of the US student loan market is not limited to liquidity issues; Paulson thinks the credit crisis is half over.

2008年5月2日，美国4月非农就业人数仅仅减少2万，失业率降至5.0%，结果好于预期。不过IMF主席卡恩担心美国4月就业报告的好局面昙花一现，认为2008年经济不会复苏。

The Federal Reserve expanded the size of the TAF from US$500 billion to US$750 billion, while expanding the amount of currency swaps with the European Central Bank and the Swiss National Bank.The White House said the U.S. economy has so far shown no signs of recession.

……

While drinking the latest West Lake Longjing tea this year, Jiang Hui looked at various materials compiled by Liao Yun.

"Mr. Jiang, in the last week, the financial market seems to have stabilized. Should we control the pace a little bit? If the subprime mortgage crisis is really over, if we continue to use such a large leverage to sell short, it is likely to eat up our previous Most of the profits earned."

Like most people, Guan Weidong was obviously confused by the appearance of the international financial market during this period.

"Old Guan, although many institutions are now advocating that the most dangerous moment has passed, but in my opinion, what happened in the past is just an appetizer, and the good show is yet to come."

As a reborn person, Jiang Hui knows best when the financial crisis will pass.

Throughout 2008, it can be said that in recent decades, the financial market was the most chaotic, and of course it was also the time with the most opportunities.

Not to mention GM and Lehman Brothers, which will go bankrupt in the future, even the famous Citibank has also set a record-the stock price fell below $1 per share.

When it fell to $36, a certain boss said that it was time to buy the bottom;
When it fell to 18 yuan, a certain boss said he was going to buy it;
When it fell to 8 yuan at that time, a certain boss happily said that he bought it so cheap;
When it fell to 3 yuan, a certain boss cried;
When it fell to 0.97 yuan, a certain boss died.

This is a joke that everyone ridiculed Citibank at that time, which vividly explained the performance of Citibank in 2008.

This multinational bank with operations in more than 100 countries around the world was once the bank with the largest assets in the world. At the beginning of 2007, the market value was still around 2700 billion US dollars. By the time of the lowest stock price in 2008, only a few billion US dollars were left .

Citigroup's disaster line was buried in 1998. After Citigroup completed its merger with Travelers Group, it began to participate in lobbying and successfully persuaded Congress to abolish the Gersh Law enacted during the Great Depression, allowing commercial banks to re-enter the investment banking business , and then Citigroup took this kind of business to the extreme, getting involved in high-risk loans and bonds, and finally led to the current disaster.

Of course, although Citigroup's stock price was only a few billion dollars when it was at its lowest point, Guanghui Group was completely acquired by funds, but the US government obviously would not sell such an influential bank to Tianchao Enterprise.

The Guanghui Group can only eat porridge and drink soup during this feast, and buy a few points of Citigroup shares through the open market.

However, before that, there is no problem at all in short selling Citibank stock in the financial market. Once out and in, it is absolutely no problem for Guanghui Group to gnaw billions of dollars in profits from the elephant of Citigroup.

"Mr. Jiang, although some experts say that the crisis has not passed, but now various funds and financial institutions have slowed down their investment. We may not relax completely, but it should be safer to reduce the leverage ratio appropriately?" Guan Weidong put forward a suggestion that seemed more reliable.

"In the face of this once-in-a-lifetime opportunity, any insurance measures are a waste of time. Whether Guanghui Group can truly stand on the top of the world for a long time depends on its performance this year. Mr. Guan, believe me, the subprime mortgage crisis is far away." It is far from the past, and those so-called experts and scholars are too optimistic. This will be a crisis with an impact comparable to the world financial crisis in 1929, and more exciting things are yet to come." Jiang Hui resolutely refused Accepted Guan Weidong's proposal.

It's not that Guan Weidong's proposal is unreasonable, it's just that Jiang Hui, who has a golden finger, is almost 100% sure that the crisis is just the beginning. When others start to stop, it is the moment for Guanghui Group to move forward. Why should it stop? ?
Western countries have plundered China for more than 100 years through various means, and it is time to collect some interest and come back.

"Mr. Jiang, if this is the case, then I suggest that the group borrow as much as possible in the country and put a batch of funds on the account to prevent the cash flow from breaking. After all, once all the funds of the Guanghui Investment and Finance Department enter the market with leverage, it will be short-term. It will be much more difficult to realize it in time.”

Realizing that Jiang Hui had made up his mind, Guan Weidong did not stick to his position, but began to consider issues from a new perspective. This is one of the reasons why Jiang Hui admired Guan Weidong more.

As a subordinate, it is very necessary to give advice to the leader in time when he realizes the risk, but once the leader has made a decision, it is not very meaningful to continue to insist on his opinion at this time.

On the contrary, it is the most correct choice to quickly adapt to the new situation and start thinking about problems from the new scene.

(End of this chapter)