Age of Dreams

In September, the most talked about by the Chinese people was the Fairy Bank, but in the world, everyone's eyes were still fixed on Wall Street.

Perhaps it is because Xiao Qi stirred up this time and space. In August, after China conducted a double-reverse investigation and monopoly investigation against the three major U.S. car companies, it triggered large-scale demonstrations by U.S. car companies.

These have not had much to do with Wall Street, but the current economic situation in the United States is very unoptimistic, and the economy and finance are closely related, so this turmoil directly affected Wall Street.

Because of concerns about the work of auto workers, several major auto unions in the United States directly demanded the redemption of their bonds in Fannie Mae and Freddie Mac.

At this time, Fannie and Freddie were killed.

They are already on the verge of faltering, and they are exhausted with all kinds of bonds that require payment, etc., they can drag on, and they can shame on shame, desperately trying to keep themselves.

But this time is different. The major auto unions in the United States cover millions of workers. These people are the backbone of the manufacturing industry and the foundation of American workers.

The money used by the auto union to buy bond investment is the capital of their auto workers.

Once Fannie Mae and Freddie Mac refused to redeem them and promised to redeem them, the auto workers who had no savings would be more than just traveling. It was as simple as protesting!

Maybe there will be riots.

But Fannie Mae and Freddie Mae really can't help it. They have a lot of bad debts, but it is absolutely impossible for them to pay tens of billions of dollars in bonds of several major auto unions.

but. Such a dilemma is not without benefits.

At least the federal government panicked.

Before, they were still holding it, but now they can’t. Fannie and Freddie can’t pay the bonds of several major auto unions. That would be fatal!

So the federal government hastily announced. Taking over Fannie Mae and Freddie Mac will actively evaluate their bonds and risks, and ensure a satisfactory answer to the majority of investors.

Hearing this, the stocks of Fannie Mae and Freddie Mac plunged more than 10% again, not giving the federal government any face.

Everyone is not a fool. Who doesn't know that Fannie and Freddie have become a mess. 2.2 trillion US dollars in housing loans, 5.3 trillion US dollars in bonds and other trillions of non-performing assets, even all the banks and fund companies on Wall Street can't save it.

In the past, everyone was still looking at whether Fannie Mae and Freddie Mac could support it, but now the federal government has come forward to take over. Obviously, they just can’t do it.

The federal government is a poor ghost. Isn’t it an international joke that they often get into the closed position and ask them to spend close to 10 trillion US dollars to rescue Fannie and Freddie?

The government financial institutions, major banks, investment funds, etc. of various countries are all crying and crying to the US federal government, and they must not let Fannie and Freddie collapse. Even if they are half dead, they are still there. A hope, if you go bankrupt and delist. That is really nowhere to go!

Unfortunately, anyone who is sane knows that Fannie Mae and Freddie Mac went bankrupt and delisted. It's already irreversible.

For the first time, the US federal government squeezed more than 20 billion into Fannie Mae and Freddie Mac. It also repaid the bonds of several major auto unions, which disappointed investors and let Fannie Mae. The stock price of Mei and Fannie Mae is so low that it plunged 13% this time.

The bond market and housing loan market in the United States. It is completely the most important part of American finance.

Fannie Mae and Freddie Mac, which represent them, have fallen on the brink of bankruptcy. So those banks and companies involved in derivative financial products such as subordinated debt will naturally feel more sad.

Xiao Qi's investment bank in the United States. They have never had a good impression, so they added fuel to the fire.

On Tuesday, September 5th, the British Financial Times broke a breaking news.

Lehman Brothers Investment Bank, which is in a deep subprime mortgage crisis, was originally negotiating with Barclays Bank, the third largest in the UK.

Lehman Brothers has more than 600 billion U.S. dollars in debt, but their various assets add up to almost more than 300 billion, and the overall negative equity exceeds 300 billion U.S. dollars.

But if you look carefully, you will know that many of Lehman Brothers' assets have now fallen below their net worth. Once this financial winter has passed, it is not a problem for more than 400 billion to become more than 600 billion.

However, such a large sum of funds will still need to survive for several years, and a very powerful bank must take over in order to have this opportunity to survive, otherwise not only will it not save others, but it will also take it in.

Barclays Bank’s debt assets of Lehman Brothers, at most, rely on three years and five years to survive, just as long as the debt is wiped out.

What they value is the network of Lehman Brothers in various countries and the various elite talents they have, which is very good for the globalization of Barclays Bank.

Faced with Barclays Bank’s entire plan to "save Lehman Brothers", that is, to acquire Lehman Brothers, whose market value fell 94% by 1.7 billion U.S. dollars, the executives of Lehman Brothers have no objection, but the key is they The eight senior executives in China actually demanded 2.5 billion US dollars of "golden parachute" severance conditions before agreeing to this acquisition.

Hearing such unreasonable and absurd conditions, Barclays Bank retreated, and negotiations between the two banks were about to break down.

Ok.

The financial industry in the United States was already in the midst of wind and rain. Hearing such a superb news, there was a strong earthquake immediately.

Originally, the news was revealed only a few months later. The senior executives of Lehman Brothers were cast aside by the American people and became synonymous with shameless greed.

This is how people reacted a few months after the collapse of Lehman Brothers.

Now that it is revealed at this critical juncture of the negotiation, the reaction of the United States up and down will become even more intense.

"I can't believe that these people have **** in their heads? It is definitely a good thing that someone takes over the mess of Lehman Brothers and avoids the destruction of this century-old store! These stupid executives, aren't they? Would you like Lehman Brothers to fall?"

"It is these incompetent guys that brought Lehman Brothers to the brink of bankruptcy. And now these guys, facing the company they work for, not only do not seek to rescue it, but instead ignore the company for their own benefit. Interests are really shameful and hateful!"

"Oh my God, I'm not mistaken, right? They only invested 1.7 billion US dollars to buy Lehman Brothers. These high-level executives actually demanded 2.5 billion US dollars in severance fees for the "golden parachute". Dare to fire them more expensive than Lehman Brothers?"

"Bah! Look, Wall Street is the kind of people in charge. These **** really want money!!"

"They are a disgrace to the United States. People who live to their level are simply superb scumbags! Go out and be careful of being struck by lightning!"

"..."

Countless people have expressed their anger on various occasions, including ordinary people, government officials, senators, movie stars... etc.

Even the various elites on Wall Street dared not say sympathy for them in the face of interviews. Many people hurried past with their faces covered.

The most angry people are actually the low- and middle-level employees of Lehman Brothers.

The treatment of Lehman Brothers is actually very good. They are all afraid that after the collapse of Lehman Brothers, they will be in a situation where they are not in the pot, so they hope to be acquired by Barclays Bank.

Now that such a big scandal broke out, the employees of Lehman Brothers were so angry that they went to the offices of the eight executives of the board of directors to swear, and it was said that they almost caused physical conflict.

Under this circumstance, Barclays Bank of the United Kingdom immediately held a press conference and announced that it had abandoned its acquisition plan to "save Lehman Brothers" because of "certain conditions that could not be reached."

The top of Lehman Brothers also announced the next morning that they would file an application for bankruptcy protection today. The 158-year-old Lehman Brothers has finally come to an end.

As soon as this news came out, the U.S. dollar and the three major U.S. stock indexes all fell, and the market entered panic again.

Lehman Brothers is the second of the top five investment banks on Wall Street to go bankrupt.

But in the eyes of investors, this is not the end.

Because there is another one of the five major investment banks, Merrill Lynch, which is also in the midst of the subprime mortgage crisis, and the severity of its losses is no less than that of Lehman Brothers.

Now that Lehman Brothers can't hold it down, will it be Merrill Lynch next?

If Merrill Lynch goes bankrupt, will the following giants such as Washington Mutual Bank, American International Group, Citibank, etc. also declare bankruptcy?

With so many giants crashing down, what serious consequences will the triggered dominoes have? Will the US financial economy never recover?

Wait a minute~www.readwn.com~ Huge pressure and depression are like mountains, pressing on the hearts of almost every American.

Do not!

The source of the financial turmoil in the United States this time is the subprime loans they made themselves.

But the problem is that the subprime debt crisis is not just popular in the United States. American financial giants have sold subprime bonds all over the world. If all subprime debts of up to hundreds of billions of dollars break out, it will be triggered. The leverage of trillions of dollars is a huge trauma to financial institutions all over the world.

The United States has collapsed, and everyone will be hit hard.

Such a severe situation is undoubtedly the biggest global crisis since the Great Depression of the 1930s.

And what is terrifying is that it seems that this kind of global financial crisis cannot be avoided at all.

The violent financial tsunami is coming! ! To be continued