Rebirth of Hong Kong's tycoons, shorting Eagle Sauce

The Secretary of Finance was a little anxious. He couldn't imagine the consequences of the collapse of Universal Real Estate.

It would directly lead to an earthquake in the real estate industry. The five major investment banks would probably collapse as a result. The bad subprime loans would trigger a financial tsunami. Not only would the United States be devastated, but the entire world economy would be greatly affected.

This situation was something Burkeland didn't want to see either. The assets of his masters behind him were almost tied to the United States.

If the United States economy declined, his master's money would also depreciate.

The most important thing was that his masters had recently bought a huge stake in Universal Real Estate. The one who was most reluctant to see Universal fall was actually him, the head of the Federal Reserve.

Everyone looked at Burkeland.

Now the only one who could save Universal Real Estate was the Federal Reserve.

"Okay, I will issue a large loan to major banks, about 300 billion US dollars, and this money must be used to rescue Universal Real Estate!"

One of the missions of the Federal Reserve is to rescue commercial banks that have been run on.

Burkeland felt that the current situation of major banks was in line with the run.

Granting loans to major banks was justified.

What he didn't know was that the bankers of major banks all had flickering eyes and were harboring ulterior motives.

How much money could actually fall into the hands of Universal Real Estate was completely unknown.

After the meeting, Burkeland met with the Secretary of Finance.

"Secretary, this won't work. Our banks, investment banks, and real estate are all in crisis. This has never happened before. If any one of them falls, the other two will collapse. If we want to save them all, we must print money at full speed..."

The Federal Reserve has the power to apply for printing money, but whether it can print money requires permission from the Ministry of Finance. On the one hand, it must provide something as collateral, and on the other hand, what to use as collateral is determined by the Ministry of Finance.

The Secretary of Finance agreed with this and suggested:

"I find that some people are confident and hope that we can print money to tide over the difficulties. It is OK for the government to rescue a few big banks or investment banks.

If everyone takes this as a routine, it will not be a good thing?"

"If everyone holds the idea that big is too big to fail, and they do something wrong in the future, we will have to pay for it all?"

Berkeland understood the Secretary's meaning in an instant. He wanted to kill a chicken to show his respect and let some people know who their real master is.

Why does a new official have to make three big changes when he takes office? It is to establish his authority.

This is very consistent with the situation of Berkeland who has just taken office. He nodded and said:

"Secretary, if you have any suggestions, just say it directly."

"Let's each pick a few institutions that are in very bad conditions."

He made a gesture of wiping his neck.

Berkeland couldn't help but smile knowingly and nodded.

Lehman Brothers Fuld, who had always been unruly, naturally appeared on the list.

But neither of them realized the consequences of doing so, and the subsequent development of the matter was out of their control under the arrangement of some people.

The first to encounter problems was Universal Real Estate.

The Federal Reserve announced that it would issue 300 billion US dollars to major banks to deal with the short-selling crisis.

After receiving the instructions, the president of Universal began to run around to raise funds to solve some overseas debts.

But what made him very speechless was that only 30 billion US dollars were left in his hands out of the 300 billion aid funds.

30 billion US dollars wanted to pry 3 trillion debts, even if he was God, he couldn't save it.

As a result, Universal Real Estate began to stop work on a large scale in the United States.

The workers began to miss the days when Wang Group was still in control, at least their salaries would be paid normally, and there would be additional overtime subsidies every month.

The workers who were owed wages for several months, led by the trade union, began to take to the streets to protest.

Things got to this point, and the fact that Universal Real Estate owed huge debts and was unable to repay them was completely exposed by some self-media.

The media controlled by the short sellers began to exert their strength.

The debt of 3 trillion US dollars made the headlines of the Wall Street Journal.

The stock price of Universal Real Estate fell by 95% overnight, and the market value fell to only tens of billions of US dollars.

The president of Universal Real Estate, who had just raised tens of billions of funds again, was in tears. You know, the fixed assets of Universal Real Estate are worth more than tens of billions.

It seems that at this moment Universal Real Estate has been sentenced to death, and people all over the world are waiting for Universal to fall.

The public on the Internet are talking about the wind, gloating and wishing the end of the world.

The shareholders who bought pre-sale houses and Universal Real Estate are all fed up.

They also started to take to the streets with signs and make trouble.

But at this moment, the senior management of Universal Real Estate really couldn't stand it. Originally, they still pinned their hopes on Universal to issue new shares to raise money in the stock market.

But the current situationUnder such circumstances, the issuance of new shares would never be approved.

The exposed Huanyu became a hot potato, and shareholders felt that it was hopeless and it was better to stop losses in time.

Even the strongest shareholders blacklisted them.

The Secretary of the Treasury and the Federal Reserve also ignored them and regarded them as a burden.

They felt that they had become abandoned children despised by the public.

They could feel that the public had no expectations for Huanyu Real Estate.

Under various pressures, Huanyu Real Estate filed for bankruptcy protection in October 2007!