The rise of nanometers

Currently, my cash has reached 120 million.

According to his judgment, the alligators on Wall Street will definitely not let Bear Stearns' stock price continue to rise. At 71 yuan per share, it is almost reaching its limit.

Decisively doubled the leverage, held 240 million funds, and shorted Bear Stearns in a diversified manner.

At 1:30 p.m., news came out on Wall Street that a bank had rejected a normal transaction from Bear Stearns.

As a result, the rumors became well-founded, and Goldman Sachs issued an urgent notice stating that it had confirmed Bear Stearns' credit rating, that it would not support normal transactions for the time being, and that the repurchase market was closed to Bear Stearns.

The news exploded instantly.

Coupled with another news, the hedge funds managed by Bear Stearns currently have less than 5 billion available funds, compared with the previous 18 billion, 13 billion in funds have been lost.

Frightened investors voted directly with their feet and frantically sold their long orders. Investors with margin accounts began to short Bear Stearns.

The stampede-like chaos caused Bear Stearns' stock price to plummet. Before the market closed, it triggered two circuit breakers in succession, closing at -8.1%.

Before the market closed, Huang Xiuyuan placed a short order of 240 million and directly harvested 86 million.

The cash flow that will be held will reach 203 million at the same time.

At this point, he gave up the leverage operation and chose to purchase directly with cash to reduce the risk brought by leverage.

100 million in cash continued to short Bear Stearns, and the remaining money was transferred through various offshore accounts, and after a 15% capital income tax was deducted, 75 million yuan was transferred back to Huang International.

Bear Stearns, which had been ravaged by Wall Street, became increasingly precarious. In less than a week, the hedge fund's cash reserves dropped to 2 billion, and Bear Stearns lost almost all of its cash.

New York.

Goldman Sachs headquarters.

In the president's office, the sharp-eyed middle-aged white man reported his work to the old Mediterranean man:

"President Lauder, today's hunting was very successful. Many small fish have been eliminated."

"Well, very good."

“One more thing, the Federal Reserve is very worried that Bell will go bankrupt as a result, and is discussing how to save the market.”

The old Mediterranean man closed his eyes and meditated. After two or three minutes, he opened his eyes and ordered: "Continue with the previous plan and keep an eye on the others."

"OK."

March 13th.

Bear Stearns, which was running out of cash, had only 2 billion in liquidity left. The stock price plummeted again, and the market panic spread further.

Inside Bear Stearns, they were as anxious as ants on a hot pot, constantly asking for help from the Federal Reserve Bank of America, hoping to obtain a sum of funds to stabilize the basic market.

Huang Xiuyuan, who was holding cash, followed other financial giants and made another harvest.

Bear Stearns fell into despair. Whether he could see the sun tomorrow, his only hope was the Federal Reserve Bank of America.

That night, the regulatory authorities headed by the Federal Reserve Bank of America and the Ministry of Finance held emergency consultations. The first question they needed to solve was not how to save, but whether to save.

It's not that Bernanke, Paulson and others don't want to see Bear Stearns, although he is indeed annoying, but it is because official participation in market behavior seriously violates the free market spirit of the United States.

The last time someone did this was the Zipper King when he dealt with LCTM (Long-Term Capital Asset Management) in 1998, and he was scolded as a result.

In the conference room.

Everyone here is weighing the pros and cons, whether it is necessary to risk the power of the world and their own shame to save such a company that no one wants to see.

Paul, the former Goldman Sachs president, said seriously: "If Bear Stearns collapsed, hundreds or even thousands of counterparties would no longer hold on to their collateral but would try to sell it. Collateral, driving down prices, which will cause greater losses.”

Oh my God! LCTM's coffin was about to collapse. This was exactly why the Federal Reserve arranged for private institutions to rescue LCTM 10 years ago, and Bear Stearns refused to participate in this rescue operation.

"Okay! I agree, but how to save it?" another senior person participating in the meeting asked.

Because this involves a difficult problem: Although the Federal Reserve assumes the role of lender of last resort, Bear Stearns is not a bank and is not under their supervision in principle.

Bernanke, who specializes in finance, dug out the Federal Reserve Act and pointed to the little-known Section 13, Section 3, which allows the Federal Reserve to provide financial assistance to "individuals, partnership or corporation" to provide funding.

This provision gives the agency extraordinary powers, even beyond those authorized by Congress.

After a whole night of preparation, the next day (March 14), the Federal Reserve issued an announcement before the market opened on Friday.

The general meaning of the content is: The Federal Reserve Bank of America will use Morgan Stanley as a medium to provide Bear Stearns with a temporary loan to help it tide over the difficulties.

Huang Xiuyuan, who was far away, saw the news and knew that today was definitely the darkest moment for Bear Stearns. He used the 100 million short orders he held to quickly raise funds from securities companies and obtained 300 million funds.

As soon as the stock market opened, Bear Stearns felt like it had eaten a croton, and its stock price plummeted. The drop reached 48.7% that day, which was even more terrifying than the 45.9% in Huang Xiuyuan's memory.

After completing the harvest again, he dispersed the profit of 190 million yuan and paid a 15% capital income tax. The funds returned to Xiangjiang Huangshi International were 161.5 million yuan.

The remaining 100 million funds will continue to be retained in various accounts. In this year's financial market, if you don't use leverage and short-sell desperately, you will basically make a profit without losing money.

Looking at the 236.5 million rice yuan lying quietly on Huang's International account, the current rice dollar to Chinese dollar is about 7.11.

Through the Bank of China in Hong Kong, 230 million yuan of this fund was converted into Chinese yuan and remitted to the account of Suiren Company, totaling 1.6353 billion yuan.

After finishing this job, he took a shower and went to bed.

On March 15, Li Ce, the leader of the financial team of Suiren Company, and several colleagues came to the office for a routine check of the company's account funds.

After he opened his account information, he couldn't help but take off his glasses, wipe them, and put them on again.

The fund balance clearly displayed: 16 4367 3671 yuan. Li Ce turned around and said, "Xiao Li, check the company's remittance records."

"No problem." Xiaoli also hurriedly rummaged around and confirmed with the bank again before she said with a slightly excited tone: "Team leader, it's true. The remittance from Xiangjiang was credited to my account around 5:30 this morning. 1.6353 billion.”

After receiving the news, Lin Baijie was about to call the chairman to confirm, but stopped because he remembered Huang Xiuyuan's recent habits. He was probably sleeping now, and it would not be too late to ask again in the afternoon.

Coupled with Huang Xiuyuan's previous words, Lin Baijie guessed that it was the capital injection from the "parent company". With this money, his uneasy mood was finally settled.

The internal affairs of Suiren Company have also become more stable due to the injection of this money. After all, they have food in hand and don't feel panic.

Woke up at noon, Huang Xiuyuan stood quietly in front of the window. His series of preparations finally had a preliminary foundation, and he could let go of the financial market matters.

The two investment companies in Xiangjiang can almost enter normal operations.