Wall Street Financial Truth

Chapter 3 The Truth About Wall Street (1)
The dignitaries of the financial institutions involved in the "creation of wealth" built a debt pyramid with financial assets, magically transformed the "wealth", and then charged super high management fees with virtual excess profits, creating a Perfect Ponzi schemes one after another—continuously using the money of those who came later to fill the holes in the front.When borrowers start defaulting on their debts or failing to pay their loans, the bubble bursts and "wealth disappears" into the pockets of the wealthy.

1. How do America's "smartest people" make money?

Who in America earns over a million dollars a year?In addition to CEOs and big bosses, lawyers and bankers (collectively referred to as financial services such as transactions and fund management on Wall Street).What is intriguing is that neither of these two professions themselves created a penny of wealth, but only redistributed existing wealth.Then they don't produce wealth, so why should they take so much?It starts with what happened to a friend.

A few years ago, my friend Lucy was involved in a car accident in New York and injured her neck.The insurance company is willing to pay $2 in compensation after evaluation.Lucy went to consult a lawyer to see if the amount of compensation was reasonable.Who would have thought that the lawyer volunteered to take the case, and vowed that at least $20 in compensation would be guaranteed, and she would not need to spend a penny before the matter was completed.Lucy thought she had encountered a "living Lei Feng".

This lawsuit lasted for 5 years, and finally won, and received a compensation of 20 US dollars.Lucy was very happy, but she didn't expect that the amount of compensation would be 8 to 500, and the lawyer took 250 US dollars first, and the lawyer's fee was not included.Lucy was shocked when she received a thick pile of bills from the law firm: the court fee was $200 per hour, the interview was $10 per hour, and the daily desk work was $2 per hour, totaling $[-] in legal fees!In the end, it was still a check for $[-] in her hands.The lawyer was still "polite" and didn't let her post back.As you can see, the lawyers got the most money in the whole incident.

Here are two more pieces of news for your reference.

The first big news: The Canadian government took several major tobacco companies to court, claiming 3500 billion Canadian dollars!The reason for the claim is that the tobacco company deliberately concealed and destroyed scientific research reports, which caused the Canadian government to spend tens of billions of Canadian dollars in medical expenses every year.The destroyed report pointed out that smoking is as harmful to the human body as heroin. It not only damages the lungs, but also makes it easier to get heart disease. Big!
This reminds me of the "Century Lawsuit" that the U.S. government hired a team of lawyers to sue a tobacco company a few years ago, involving an amount of US$6000 billion, which shocked the world.People thought that the U.S. government really wanted to show some color to the tobacco companies.But tobacco companies are not fuel-efficient lamps, and they will not wait to be slaughtered. They have spent huge sums of money to hire a strong team of barristers to "fight hard" with the US government.Obviously, the tobacco company is better. As a result, just like the case of OJ Simpson, the lawyer's ability to reverse black and white made this big case smaller and smaller. warnings, and an increase in tobacco taxes.The wool always comes from the sheep, the government's legal fees are paid by the taxpayers, the tobacco company's legal fees and tobacco tax, through cigarette price increases, and finally borne by consumers.And lawyers just pocketed tens of millions of dollars in legal fees.This time the Canadian government is prosecuting the tobacco company, presumably it is like this again.In any case, the biggest winner is definitely the lawyer who counts the money and gets weak.

The second piece of news is an interview with Blank Fein, CEO and chairman of Goldman Sachs. In 2009, when the financial crisis in the United States was still raging, tens of billions of dollars evaporated overnight, but Goldman Sachs announced that it was expected to become the "most profitable year" in that year, and the amount of bonuses would hit a record high, with an average of 70 dollars per employee. Red envelope.In this regard, all walks of life in the United States reacted strongly and expressed dissatisfaction.Blankfein defended the bonus issue on TV, saying that "genius" cannot be retained without a high salary.Even when the financial crisis is far from over and most people's investment has shrunk sharply, Wall Street can still draw higher salaries than at the peak of the US economy in 2007.

Everyone knows that American lawyers are money-making machines, but compared with Wall Street bankers, they are really nothing.After this financial crisis, people have finally seen the power of wealth distribution by big and small astoria.Over the years, as the U.S. regulators have lifted restrictions on banking operations, various increasingly complex financial instruments have emerged one after another, and wealth has become more and more easily "distributed" from the pockets of the public to the pockets of Wall Street bankers.

Such a wealth distribution mechanism has formed a vicious circle. Groups of "smartest people" are attracted by the huge income of Wall Street, and participate in creating amazing bubbles, which in turn harms the real economy and the general public.I don't know when such a drama will end?
There is a saying that gets to the point: Ordinary people are sheep, and Wall Street is a wolf!I hope that the "wealthy wolves" on Wall Street will stop in moderation. If the growth rate of the sheep cannot catch up with the growth of the wolves, they will have to eat wolves in the end.

Many people want to make money in the stock market, and some even go to Wall Street.It’s better to save yourself, if you don’t have a special background, it’s best not to think about it, there is no way, who makes those “wealthy wolves” on Wall Street the smartest people.When you come home naked, the bankers are excitedly pointing to the money they've ripped from your pocket.

2. The financial brains of Wall Street - Jews
Let me guess a riddle first: there is a Jewish-American who turned a spinning mill into a huge investment and financial group. His company’s stock has risen by more than 30 times in 2000 years, and the price of the A shares he owns as early as 2 Years ago it exceeded 10 yuan per share.The latest transaction price of a meal with him is 211 million yuan.So far, he still retains many characteristics of the Jewish people: live, learn, and work; good at calculation, pay attention to value; hardworking and frugal, actively participate in charity, etc.who is he? ——He is the "stock god" worshiped by countless Chinese people——Buffett!

I once had a Jewish colleague, Youni, who was a professor at Harvard University and was invited by the investment bank I was working as a senior consultant for financial products.Although I only worked with him for a few months, I learned the most essential things about finance from him.He told me a little story that I will never forget!
"Let's say there is a billionaire whose family is going on vacation for a week. Before going out, he went to the bank to borrow $5000. The bank clerk asked him what he was going to take as collateral. He said he had a Rolls-Royce and didn't know how to do it. No? Rolls-Royce? 'Of course!' the salesman blurted out. So the deal was made on the spot."

Hearing this, I couldn't help asking: "He is so rich, why does he still need to borrow 5000 US dollars, and he has to pay interest on borrowing money." Youni said with a smile: "Got you! (Stuck you! )”

It turned out that they would have to pay at least $50 if the Rolls-Royce was handed over to the insurance company for a family trip.And he borrowed 5000 US dollars from the bank. At that time, the short-term interest rate of the loan was 18% per year, which was equivalent to only paying 20 US dollars in premium (interest); and the bank's garage was more insured than the garage of general insurance companies.I have to obey, this Jew is really shrewd!
After hearing this story, I paid special attention to the Jews around me.Sometimes, at noon, I walked around the company alone and found that Jews are also a big sight on Wall Street, especially around the New York Stock Exchange.They were in groups, wearing black tall hats, a pigtail hanging from each ear, and wearing black coats, with black eyes, black hair, and fair skin.

Later, I gradually realized that the Jews are 'The Brain of the Wall Street' (the brain of Wall Street).More than 80% of the investment products on Wall Street were invented by Jews.Looking at the world, it is no exaggeration to say that the Jews almost control most of the world's financial lifelines!

Mr. Rockefeller, the founder of Mobil Corporation, the first capitalist with a total asset value of more than 10 billion US dollars, and the world's oil tycoon, is also a Jew.Rockefeller's entrepreneurial history is quite representative among the early rich in the United States. He is unusually calm, shrewd, and visionary. With his unique courage and means, he built a huge business empire step by step. This is a typical Jewish character.Rockefeller said: "If I were stripped penniless and thrown in the middle of the desert, a caravan of camels would pass by and I could rebuild a whole dynasty."

And, of course, our former Fed chair Alan Greenspan and current Fed chair Bernanke.These two people who dominate the US central bank and even the financial destiny of the entire US are both Jewish.It is not too much to say that both of them are affecting the financial order of the world at the same time.When is the interest rate change in the United States not a weather vane for central banks around the world?

If you have read "Currency War", a book that caused great controversy once it was published and revealed countless true or false secrets, the protagonist in the book is a legend who claims to have controlled the world's gold market and the financial lifeline of Europe and even Wall Street for 200 years The family—the Rothschilds.

They are known as the world's richest man with "the invisible road", claiming to have a wealth of more than 50 trillion yuan. "Strict family control, completely opaque black-box operations, clock-like precision, information acquisition that is always ahead of the market, downright ruthless rationality, never-ending desire for money and power, and a deep insight into money and wealth based on all of these With the foresight and genius, the Rothschild family has been invincible in the cruel vortex of finance, politics and war in the world for more than 200 years, and established the largest financial empire in human history.” This description in the book seems to be It is also the most explicit description of the characteristics of Jewish people.

There are also some names that we are quite familiar with, such as the Morgan family, the Lehman Brothers family, etc., all of them embody the common characteristics of the Jews.In fact, the Jews are a nation with a small population. The population of this nation has never exceeded 2000 million. What makes a nation with such a small population have such a great impact on the changes in the world pattern?How is the Jewish spirit passed down?

My conclusion is that the secret of the Jewish family - education first.

The Chinese often say that "wealth cannot last for three generations." However, the Rockefeller family has been in existence for six generations and has not shown signs of decline. This is closely related to their concept of wealth and the education of their children since childhood.Their family values ​​frugality and a passion for wealth creation.

The reason why the descendants of the Rockefeller family can achieve extraordinary achievements in the future has a lot to do with the family education they received since childhood.In order to prevent their children from being spoiled by the aura of the family, whether it is John Rockefeller Sr. or John Rockefeller Jr., they took great care in raising their children and had a set of ancestral education plans.For example, a father encourages his children to do housework to earn money: for every 100 flies caught in the hallway, a dime is awarded; for every mouse caught in the attic, 5 cents are paid, and there is also a price for carrying firewood and chopping firewood.Lawrence, the third-generation successor, and his elder brother Nelson obtained the franchise to polish the family's leather shoes when they were 7 and 9 years old respectively, with 2 cents for each pair of leather shoes and 1 cent for each pair of boots.

John D. Rockefeller is one of the most controversial figures in modern business history.On the one hand, the Mobil Oil Company he founded monopolized 80% of the oil refining industry and 90% of the oil pipeline business in the United States at its peak.On the other hand, Rockefeller believes in Christianity. The foundation named after him adheres to the purpose of "benefiting mankind all over the world", with a total donation of more than 5 million US dollars.

In 1882, he created an unprecedented joint venture - the trust.This extremely easy-to-accumulate wealth structure enabled Standard Oil (later Mobil Oil) to become the world's largest oil conglomerate two years later.Rockefeller has also become the "Oil King" known both at home and abroad. In 1910, Rockefeller's wealth had reached 10 billion US dollars.

He was also one of the most hated men of his time.The tabloids are constantly attacking Standard Oil's operations, accusing it of committing many crimes, including murder, and relentlessly eliminating all competitive forces to consolidate its monopoly in the oil industry. The most criticized place.

Marcus Samuel, one of the founders of the British Shell Company, was also of Jewish descent.He was originally a transporter in London, and later entered the oil industry, became the boss of the British Shell Transport and Trading Company, and later became the mayor of London.

In 1891, he secured a contract with the Rothschild Bank allowing his company to operate the Caspian and Black Sea Oil Company's kerosene exclusively for nine years in the area east of the Suez Canal.The oil tanker he ordered has made significant technological progress and many new safety measures have been added. For example, the oil tanker has the characteristics of adapting to the expansion and contraction of kerosene at different temperatures, which minimizes the risk of explosion and fire.This is different from the Mobil oil tanker sailing between the east coast of the United States and Europe at that time.

Marcus' Jewishness didn't do him any favors. In the summer of 1891, a European newspaper reported cryptically that a powerful group of financiers and merchants under "Hebrew influence" was trying to move oil tankers through the Suez Canal.His move caused quite a stir in Europe at the time.

The Jews have deeply realized from their history that knowledge is wealth, and it is a wealth that cannot be taken away by others.Historically, they have been persecuted and deported many times, their properties have been confiscated, and their tangible wealth has been lost overnight. "Knowledge will not be robbed and can be taken away with you. Education is the most important thing." Jews do not burn books, even if it is a book that attacks Jews.The Jewish tradition of loving books has a long history and is deeply rooted in the hearts of the people.Israel ranks first in the world in terms of per capita possession of books, publishing houses and reading volume.

Strict family education and systematic wealth education have created generations of Jews.No matter which country they are in or what kind of occupation they are engaged in, they are all engaged in the activities of creating wealth, accumulating wealth, and controlling wealth.When a nation can control the global oil price, the currency policies of major countries, and thus affect the development of the world economy, who can ignore this nation that was ridiculed, squeezed out, oppressed, and even almost perished?
3. Traits of a Billionaire

Wall Street is really like a rich mine for gold diggers. Most people enter Wall Street with the dream of becoming a billionaire, hoping to turn over overnight.However, those on Wall Street who are sitting on millions of dollars belong to the middle class, and those who have accumulated tens of millions of dollars are countless, but only one percent of those who can eventually be worth hundreds of millions of dollars.what reason?Are these rich people particularly high in IQ?no!After all, those who can enter Wall Street are not fuel-efficient lamps.Looking particularly beautiful?No!Run faster, jump higher?Not to mention!Is it because they have backgrounds and backers?Not at all!The vast majority of them succeeded by fighting alone.

A sensible person will tell you that there is only one prerequisite for becoming a rich man on Wall Street, you must be more "Mean" (mean, mean) than others. Of course, this refers to business.

The first mean person I encountered on Wall Street was in an interview before knocking on this "door".It was a big investment bank on Wall Street, and I had successfully passed two rounds of interviews (the first round with my direct supervisor, and the second round with my future team members).At 04:30 on Friday afternoon, the headhunter arranged for me to meet Leonard, the boss of the department. As long as he said "OK", I could successfully break in and become a member of this big investment bank.

(End of this chapter)