Mediterranean hegemon

Regarding the announcements from Standard and Moody's, Livermore just shrugged and did not show any abnormality. It was just an unspoken rule. What's the fuss? Only small investors who know nothing think that it is fair, fair and open. Whoever believes it is stupid. fork! The United States is pretty good. The major conglomerates check and balance each other. Small companies dare not act arbitrarily. The large consortiums must also consider the social impact and not act too wantonly. The credibility of some countries is much lower. Official divisions They want to uproot the leeks, but they also call it protecting the interests of small and medium investors...

At 3:38, the stock index tenaciously recovered 400 points. It seemed like it was about to undergo an intraday V-shaped reversal as before. However, Livermore discovered an unusual situation: as the stock index rebounded, the buy orders did not synchronize. On the contrary, some selling orders were pouring out one after another, which showed that today's decline had a great impact on the market. After thinking about it for a while, he understood the reason.

United Bank has withdrawn nearly 500 million from the stock market. These 500 million stocks must be taken over by someone to maintain continued circulation. And at a time like today when the maximum decline is as high as 14-15%, let alone 10 times or 8 times, it is 6 times leverage. All of them will be liquidated, so the 500 million will require at least an additional US$100 million in margin. Among those following the trend in the morning, those investors who sold their stocks have automatically settled their previous financing purchase agreements. If they want to buy again, it will be a new position and structure. In other words, the leverage ratio will decrease and the interest rate will increase. The Fed's most popular term for this state of large-scale adjustment is "deleveraging and risk reduction," which is nothing more than forced reduction.

Even if the points rebound, small tickets with poor liquidity are different from blue chips with good liquidity. Blue chips rebound much, while small tickets, especially stocks with theme and concept speculation, rebound less. After figuring this out, Livermore then Notify the trader: "Adjust the rhythm, close out more small ticket positions, and wait until they rebound tomorrow before going short! Before the close, the focus is still on shorting blue chips!"

At the closing time, the stock market points were still slowly rising, and United Trust's overall book floating profit shrank to less than 400 million. However, if the 90 million already secured were included, today's floating profit was still nearly 500 million, although it was slightly less than At its peak, there was a floating profit of more than 700 million, but now the position structure is very reasonable and we have taken the initiative.

The closing bell rang, and the Dow Jones finally closed at 406 points. This not only meant that the day's decline exceeded 7%, but also meant that the entire month-and-a-half-long rise in August and September was wiped out today.

The news of the stock market's decline alarmed Hoover. In the afternoon, he addressed the public through the press at the White House, saying: "...The business foundation of the United States is sound, and production and distribution have not lost their previous balance. Even if there are some problems, they will not be detrimental to the public." The national economy has caused fatal damage, but our finance, industry, trade and finance are generally relatively healthy..."

This speech was delivered at the moment when Livermore closed one-eighth of its position, so what was finally displayed to the majority of investors was an icon with a gap and a lower opening and a lower shadow line. After delivering his speech, Mellon told him that there was a run on Union Bank today. Hoover had no choice but to call Contini again to ask how the situation was and whether he needed other support.

Contini's reply was very interesting: "Thank you for your concern. We don't need support yet, but one thing must be paid attention to. Whether we can withstand it and whether we need to apply for external assistance needs to be kept confidential. I can't guarantee it if the news leaks again." There will be no cascading effects..."

Hoover nodded: "This is natural. We must strictly adhere to the bottom line of preventing systemic risks..."

"Actually, the gas in the stock market has begun to leak. We are ventilating it. Now I just hope that the Federal Reserve will not be so stupid. If they know the leak, they dare to put a candle in it. It will really blow people to pieces!"

Hoover was speechless, and after a moment he said: "At least it fell a little today, which is in line with their expectations. These boring bankers should be satisfied, right? Aren't they clamoring to reduce leverage every day to reduce risks? A lot of risks have been released today."

At 7 o'clock in the evening, countless reporters crowded into the press conference on time, wanting to hear what Contini and United Group had to say, but as usual they had to report some news.

"... From the opening of Union Bank today to 6 p.m., except for two 20-minute lunch breaks, all branches and counters will operate at full speed to cope with the withdrawal requests of depositors. So far, the bank has received The amount withdrawn is nearly 65 million yuan, which is in line with expectations; we will maintain 24-hour operation until all customers can get their deposits back." Alessandro glanced at the venue, "To ensure that United Bank survives the difficulties, The Bank has taken the following measures today: First, it has sold off more than US$500 million in stocks held by the Bank and has now completed all reductions..."

There was a "buzz", and the venue immediately started whispering to each other. Everyone was very excited: It seems that the source of today's sharp drop has been found. It turned out to be the United Bank's big sell-off! However, it is also people's right to sell. When they first rescued the market, they said that they would not reduce holdings below 350 points. What is the current point? 450 points have passed!

"Second, United Group will find a way to pay United Bank; third, a strictly limited withdrawal process will be adopted. Each customer can only withdraw up to 1,000 US dollars per queue to show fairness. Okay, now enter the free question time ”

"Your Excellency, President, is today's stock market crash caused by the selling of Union Bank?"

"I don't think so. What is the trading volume of the stock market today? 17.9 billion! How much did Union Bank sell? It's only 500 million. Use 500 million to affect 17.9 billion? I don't think I have such strong ability." Contini said with a smile, "Stock market adjustment is an internal law, not something I can promote alone. If I can, then it would be too easy to make a fortune. If I want the stock market to rise, it will rise, and if I want it to fall, it will fall. Then I am God..."

Everyone laughed.

"Do you think the stock market will rebound tomorrow? We heard that several large banks represented by Citibank have announced that they will set up a stock market stabilization fund..."

"I just said that I can't! Since the president of United Group, which is larger than Citibank, said that he can't, I believe no one dares to say that I can! Maybe you can go to Mr. Rockefeller and Mr. Morgan and ask them if they have the ability to stabilize it." Contini joked, "Mr. Mitchell's words only show his confidence and attitude. If he can, I don't mind doing a business with him. United Group has nearly 1.7 billion in stock market value. If he wants it, I will give him 1.6 billion now. Does anyone want it? I have clearly stated my views at the summit forum last week. If you think that the US stock supply is insufficient, it's easy. I have a 30 billion Italian heavy industry asset package that can be listed. Does anyone want it?"

Many reporters whispered to each other. It seems that the president's attitude is still very clear and he is not optimistic about the future market.

"Will you continue to sell off your shares?"

"There is no need for the time being. It depends on the bank run situation. I just sold off $500 million, which can support the bank for a long time." Contini smiled, "But this sentence does not apply to ordinary investors. My leverage is very low, and the highest is no more than 3 times. Many of them have leverage as high as 5-6 times. I think everyone needs a determination to reduce leverage actively. Active reduction is much better than passive reduction!"

The reporters immediately calculated: 65 million was sold in one day, 130 million in 24 hours, and 500 million can only last for 4 days? Someone immediately raised this question.

"This is a good question, but there is a premise that there will be such a large amount of withdrawals in the next four days! As far as I know, many New York citizens have withdrawn their deposits, and there is no chance of another round tomorrow. Of course, I need the press to convey confidence, just like you helped Mr. Mitchell convey confidence to tell the public that there is no problem with United Bank, otherwise all banks will be affected."

"Will you transfer the positions transferred to Europe back?"

Francisco took the microphone: "We will strictly fulfill the contract, respect every customer, not collect loans in advance, and open withdrawals. This is the only way to rebuild confidence. There is no other way!"

"If your bank's cash flow can't support it..."

Contini emphasized categorically: "It won't support it. United Bank is the core asset of United Group and the company's corporate image. For someone like me who regards reputation as life, I will protect it at all costs. United Group will use the last dollar to defend United Bank!"

Everyone applauded: This is the strongest statement made by the president about the run so far.

"Mr. President, we got the news that another investor just jumped off the building. It is said that he has always been famous. This is the seventh investor to jump off the building today. What do you think about this?"

"I express my condolences for their unfortunate death. I am very sad to hear such news..." Contini paused, and then his face was full of anger, "Everyone must be very clear about the root cause of the death of these investors, because some institutions have repeatedly talked about deleveraging and reducing risks, which led to today's tragedy. If they adopt my suggestions, relax the money supply, and slowly and gradually increase the margin requirements, all this could have been avoided..."

"Excuse me, are some institutions..."

Contini interrupted the reporter's questioning: "I promised the president not to blame others for the time being, reflect on myself more, say more words that are beneficial to the overall situation and the market, and say less words that are not conducive to unity and stability... Uh, and don't say swear words! At least don't say them while in the United States."

"Ha!" The whole venue laughed, and everyone was amused by Contini's black humor. The president obviously said everything, and finally said "speak more, speak less, and don't speak at all", which is really interesting. No, such an interesting press conference will come tomorrow! Don't miss it! With the president here, there is no shortage of news.