Age of Dreams

Xiao Qi chose to set off on the evening of April 2nd, which has a deep meaning.

In the previous life, April 2nd, Eastern Time, was when the subprime mortgage crisis broke out.

Due to the time difference, when Xiao Qi arrived in the United States, it was already late at night on April 2, Eastern Time.

When Xiao Qi left China, the subprime mortgage crisis had not yet erupted. When he set foot in the United States, the subprime mortgage crisis had already exploded with amazing destructive power for the first time. It can even be said that the spring of subprime mortgage is over!

There is no difference from the previous life. The "profit warning" of New Century Financial Corporation in February did not attract too many people's attention.

However, on April 2, New Century Financial Corporation, which was unable to repay the US$17.4 billion of debts from five Wall Street trust funds and was denied extension, announced its application for bankruptcy protection and had to cut its employees significantly.

The news came out at 8:01 in the morning, immediately causing the Nasdaq Index to plummet by 3%, and the chain caused a sharp drop in subprime mortgage companies. The overall decline was more than 8%, and the highest even dropped by 18%. After the trading of the three major U.S. stock indexes that day, losses evaporated more than 160 billion U.S. dollars in market value.

This is just a storm for subprime mortgage finance companies, and their most closely related investment funds have been unable to sit still since the morning.

The large number of subordinated debt financial products they hold is simply extremely dangerous. They can boast of “dancing on the tip of the knife” on weekdays, but once the subprime mortgage company goes bankrupt, they have subordinated debt. Financial products will be worthless. And it will pay a large amount of liquidated damages, which is for investment funds. It is absolutely fatal.

More than half of investment funds are listed institutions, and even they themselves come from the subsidiaries of investment banking giants such as Morgan, Merrill Lynch, and Goldman Sachs. The business of these investment funds is subject to stock market supervision.

Although through various means, they postponed the notification of the loss of the subordinated debt on hand, when the market closed in the afternoon, there were still some small and medium investment funds that broke out in a huge loss scandal, and finally lost 160 billion US dollars in market value. At least one-third of it comes from small and medium investors’ panic predictions about investment funds.

Fortunately, it is only small and medium investors who panic. If the big guys can't stand it, the panic shouldn't be so little.

The subprime bond market in the United States is a very large market, with about 1.3 trillion U.S. dollars, but I am afraid that it is not only subprime debt that will be affected, but also the 1.5 trillion subprime bond market. Because disasters are generally panic, investors and the stock market will not care about the risk difference between subprime debt and subprime debt, and will only panic more because of the sheer scale of the debt.

Ok.

The subprime bond market is big enough, right?

But do you know how huge the investment fund market in the United States is?

At least more than 5 trillion U.S. dollars!

It's just that it is included in the supervision of the stock market on the surface. Private equity funds, etc., can only be more than it. It can't be less!

You know, it doesn't mean that if you hold one dollar of subprime financial products, you will lose one dollar in the end.

If it were really that simple, the German Industrial Bank, Royal Dutch Bank, Mizuho Bank, etc., which only bought hundreds of millions of US dollars in subordinated debt products in the previous life, would lose even their pants. A group of senior executives almost staged a trapeze repertoire collectively!

Therefore, if even the collapse of the US$1.3 trillion subprime mortgage market would trigger a violent tsunami. So if investment funds of 5 trillion or more have huge losses, what kind of shocking storm will it cause?

It is conceivable that due to the globalization of financial products, even the local tyrants of China have bought a lot, so the impact of this financial turmoil is not only the United States, but will soon spread to Europe and Asia... All over the world, countless investors will cry endlessly, and thousands of people will have nothing.

However, the financial world is so cruel.

If you come in and participate, you have to take risks and responsibilities.

So, on the other hand, everything has two aspects, and those who lose money will make money.

It is the practice of many fund managers to bet on the collapse of subordinated debt in advance. Of course, many people bet that subordinated debt will not collapse, and whoever loses will be eaten by the other party.

Xiao Qi naturally made a lot of money among them!

Tong Wencong has been in New York and Wall Street for this period of time. To this day, all his hard work has paid off the most.

Although many people are speculating, the US government will definitely rescue subprime debt, rescue investment funds, and rescue the stock market.

But the power of capital is simply beyond the control of the government. This time, the three major chain trouble brethren above will definitely not escape being tortured to death!

Xiao Qi looked at the time, it was already one o'clock in the morning, "Call Tong Wencong over, let's find a place to eat something."

"it is good!"

Anthony smiled and dialed the phone.

When he put down the phone, he found that Xiao Qi was not excited at all. Instead, he picked up the recent Mario Law Firm information he had compiled just now, and looked at it very seriously. It seemed that he hadn't accounted for at least $500 million. Average profit!

The profit of 500 million US dollars is only today!

When the entire profit is harvested, Anthony is sure that Xiao Qi can earn at least $15 billion in subordinated debt operations!

In other words, an investment activity that Xiao Qi downplayed earned 60 Mario law firms, but even so, he still reads the law firm’s business reports seriously, a little bit of pride and impatience. No.

Sure enough, it is a wizard of Tianzong!

Anthony thought admiringly.

The lawyer industry in the United States has developed to this day, and it has become an extremely mature industry. It can be said that there is no second country in the world for the lawyer industry, which can be as mature and regulated as the United States. U U Reading www.uukanshu.cóm

To be funny, even if it is a crime, the criminal can lie to his parents, but he will never hide from the lawyer, because only a lawyer will help him find loopholes in the law and get rid of legal sanctions.

What lawyers care about is not the law at all, but the person who entrusts them.

In a sense, lawyers are specifically against the law.

In all the business that Xiao Qi did in the United States, he did not conceal the Mario Law Firm. The contract signed with Tong Wencong was also drafted by Mario and Anthony.

Because of this, Anthony understands the entire investment process.

I deeply know what great vision the little boss has in this understatement.

Decision-makers with outstanding vision are the core figures of a group. Anthony has long believed that Xiao Qi is the soul of the fairy faction, and now he has strengthened his idea of ​​following. (To be continued. If you like this work, you are welcome to come to the starting point (m) to vote for recommendation votes and monthly tickets. Your support is my biggest motivation. For mobile phone users, please go to m to read.)