The Son of Finance of the Great Age

  Chapter 613 Subsequent effects

  The most difficult day is finally over. The Dow Jones Industrial Average fell 128 points, or 1.14%. It once plunged below 11,000 points during the session, breaking through the watershed in the recent market. Nasdaq, which is dominated by technology stocks, fell 18.7 points, or 0.83%. The S&P index fell 13.9 points, or 1.11%. Although on the surface, these are some insignificant figures. But only those who have really experienced today's market know that the roller coaster market has scared most investors out of their wits.

  Although the daytime trading is over, the follow-up impact of these events is far from over, and the response to these news or events is in full swing.

"The data of new housing construction is declining, and the number of newly sold houses is declining, but the default rate of loans continues to rise. I have already reported the relevant data. Maybe you have more accurate data on hand. It should not be It would be better than what I could get. So what’s happening now is that the market, especially the housing market, has deteriorated, and the financial market has deteriorated. In this case, we have to sell.”

  Greenspan's voice is very weak, he may be the first person to appear in the meeting of the House of Representatives via video call, and the audience is listening to him quietly. Because of his outstanding performance as the chairman of the Federal Reserve, everyone respects him, and all the representatives present attach great importance to his views, even though he is no longer the chairman of the Federal Reserve.

  Greenspan participated in the meeting of the House of Representatives as an expert under the persuasion of Bernanke with the theme of "Restructuring Financial Market Supervision". It was Paulson who actually briefed these members of Congress so that, if necessary, he could quickly obtain their authorization to take over Fannie Mae and Freddie Mac.

  In order to be able to persuade these lay members of Congress, Paulson and Bernanke not only went into battle in person, but also persuaded big shots like Greenspan to join the ranks of convincing members of Congress.

"Do you think these types of government-sponsored enterprises will amplify the systemic risk in the market?" A Republican congressman asked with a frown, "Or, if the government really takes over these two enterprises, the related system will Sexual risk will disappear? And all this is good for stabilizing the market?"

"Yes, Mr. Congressman, I do think so." Greenspan replied calmly, "Because of their particularity, Fannie Mae and Freddie Mac are responsible for the real estate market in the United States to a certain extent. stability. In fact, every financial institution cannot escape systemic risks. We are discussing Freddie Mac and Fannie Mae here. The relevant policies may also be applied to investment banks, insurance and other industries. Because they may also be Victims of this economic crisis, the government must help when necessary."

"What? Are you joking, Mr. Greenspan?" Another Republican congressman stood up and asked with surprise on his face, "If I remember correctly, Mr. It has always been an opposition position, so why did it suddenly become a supporter of these companies today? This is really strange!"

   These words were very heartbreaking, and soon the audience looked at Greenspan's eyes, and there was something more inexplicable.

  Received the public relations of the lobby group, which is a situation that every member of Congress will encounter. For example, in some industries and certain enterprises, they will hire public relations groups to conduct public relations with members of Congress who are in charge of making policies in these industries. Of course, it is not the kind of public relations that take benefits in private, but analyzes the pros and cons to the point. After all, if you bribe, both the risk and the price are extremely heavy.

  Although it is said that there are public relations of lobby groups, the basic positions of congressmen or important officials of each party are clear. Just like Greenspan, when he was in office, he repeatedly declared that government-sponsored enterprises interfered with the market economy and constituted serious unfair competition. But now the attitude has taken a 180-degree turn, which puzzles everyone.

  If a person's position changes frequently, then this person is unreliable, as the Western proverb tells them. So the whole venue fell silent immediately, and they were all quietly waiting for Greenspan's explanation.

"I have already discussed this with Secretary Paulson and Chairman Bernanke!" Greenspan's expression was very indifferent, and there was no fluctuation in his voice, but his words still surprised everyone. "If I say that Freddie Mac and Fannie Mae are the Fed of the US real estate market, I'm afraid you will disagree with me. But it is true. If the Fed has a problem, I ask you gentlemen here, it will not rescue it. Is this company?"

"If we choose not to rescue Freddie Mac and Fannie Mae, the real estate market will be illiquid, with no lender or bank willing to pay a mortgage with a repayment period of 20 or 30 years. The market It will go back to 1929, and the chain reaction of the entire real estate crash is unimaginable, and the entire economy will also collapse. At that time, maybe you will realize how important the decision to save the real estate market was.”

"What I want to say is that this is not just a problem of two companies, but a problem of the entire American economy. Yes, we are not facing a depression, we are not facing a regression, but a crisis, a complete crisis, a crisis that has never been seen before. , a once-in-a-century crisis. If it is handled properly, the United States may be able to embark on the road to recovery in the next three to five years. But if it is not handled properly, or if there is no way to control the situation, then it is difficult for me to estimate How long will it take to get out of this quagmire."

   After saying so much in one breath, Greenspan finally stopped, his expression still calm, but anyone could hear the strong intention in his words.

  The venue fell into silence again. It took three full minutes before someone continued to ask: "So, Secretary Paulson, according to your views and ideas, when is the right time to take over the two rooms?"

"At least not now!" Paulson, who was left on the sidelines, finally had a chance to speak, but this question made him a little embarrassed. After touching the tip of his nose, he replied with an unnatural expression, "I just issued a statement, Claiming that they will not take over the 'two rooms' in the near future, so we have to think of something else."

  …

   Just when Greenspan was convincing many congressmen with the "once-in-a-century crisis" at the meeting of the House of Representatives, a person far away in Yanjing also used the same word, but he was justifying himself.

   "This is an economic crisis in the history of the United States. It happens once in a hundred years. I can't help it." Zhang Hang's face was flushed, his veins were raised, and his expression was slightly grim. Just now at Huatou's regular monthly meeting, a group of people criticized him for investing in "two rooms" stocks, which made him lose face.

  If it wasn't for dragging Gao Dongfang into the water, Zhang Hang would have slammed the door and left. At this moment, he suppressed the shame and indignation in his heart, and pricked his neck to quibble: "We still have time, God knows whether the stock prices of Freddie Mac and Fannie Mae will continue to rise? Also, it is still too early to tell the winner, now It's not fair to criticize our strategy. In addition, look at your income, I don't see much better, it's just a little bit higher than the interest rate of the US dollar time deposit, such income can also be regarded as an investment ?"

  The team led by Gao Dongfang didn’t make too many moves in the market, but just invested part of the funds in a monetary fund, which was regarded as cash management. Naturally, the rate of return is also so-so, only about 2.3%, and it is still an annualized rate of return.

  But these gains, compared with Zhang Hang's losses that have plummeted by more than 30%, are simply in the sky and the other is underground. No, not underground, but in hell.

"You're wrong!" Facing Zhang Hang's nonsense, Gao Dongfang didn't panic at all, and he reprimanded righteously, "Although there is still some time before the end of the competition, Deputy General Manager Zhang, please don't forget, What you are taking taxpayer money is squandering. Please note that I am not using the word investment, but squandering. It is irresponsible for you to do no due diligence beforehand and refuse to admit your mistakes afterwards. You appointed Director, have you given timely feedback on the huge amount of core capital that the 'F&F' needs to pay? How much do you know about their contacts and negotiations with the government? How will the U.S. Treasury and the Federal Reserve deal with the 'F&F' in the end? ', will it be taken over as rumored in the market? Do you know this?"

  Gao Dongfang's questions were like a cannonball, directly leaving Zhang Hang speechless.

  Zhang Hang was also very speechless. After learning that "F&F" had injected new capital of US$100 billion, he thought it was time to buy the bottom. Who wouldn't want to be completely dumbfounded after more information was disclosed. It turns out that these capitals are not enough to solve the current crisis that the "two rooms" are facing. Now they are more likely to encounter bankruptcy, and if they do, every penny they have invested may be wiped out.

Naturally, he was absolutely unwilling to admit defeat in front of Gao Dongfang. After sneering for a long while, he said disdainfully, "It's as if I'm going to die tomorrow. Don't forget, when the stock market goes down, it goes up. Maybe I will be able to rise back tomorrow. Again, before the final outcome is decided, don't put on a winning posture. Also, your currency fund holds the bonds of Raymond Brothers. At that time, if Leimen Brothers also go bankrupt, then your income will also become negative. I remind you kindly!"

"Hmph, thank you for your concern!" Gao Dongfang chuckled, dismissing the other party's "kindness", "Don't worry, I have already found the investment target, so you can wait and see it with peace of mind." .”

   "Have a target?" Zhang Hang's eyes immediately rolled up, thinking to himself, "Now that the market is so chaotic, he actually found a corresponding investment target? No, I have to ask."

After he had a trick in his mind, he said in a strange manner: "Really? That's really congratulations. But here is my lesson from the past. I hope you don't follow in my footsteps. By the way, everyone is doing things for the country. Since You have a goal, don’t bother to say it and let everyone discuss and discuss, see if there is anything that needs attention, and everyone brainstorms, it can be regarded as a manifestation of unity.”

  Although Zhang Hang had known for a long time that he was very brazen, this was the first time he had encountered such a cheeky Gao Dongfang. He was trembling with anger, but there was nothing he could do. Because Zhang Hang occupies great righteousness, in this case, if Gao Dongfang cherishes himself with his broom, it is easy to give others a handle.

"Europe, Dazhong shares!" Looking at the expectant eyes of the room, Gao Dongfang really wanted to slam the door and leave, but he couldn't. After replying angrily, he sat down angrily, turned his head away, and didn't look at Zhang Take a look.

   "Public shares?"

  Zhang Hang's expression was a little confused, but an analyst quickly stood up and whispered in his ear for a long time. Then Zhang Hang laughed, "It turns out that they are being acquired by Porsche, and the stock price has risen abnormally. It's amazing, it's amazing, General Manager Gao, this is the first time I really admire you."

"It goes without saying if you admire it, as long as you don't make a move!" Gao Dongfang's mood has returned to calm, and he said emotionlessly, "This company is full of uncertainties now, so I haven't made a move until now. Remember, the risks involved are great, so you and your team should not get involved, otherwise our bet will be canceled immediately."

   "Of course, of course!" Zhang Hang smiled and readily agreed.

  In just a blink of an eye, he quickly put his words behind him, called his confidants into his office, and began to seriously discuss matters related to Dazhong shares.

"Because of the publicity of the Porsche family, the current Volkswagen shares have risen to more than 300 euros. This has seriously deviated from its value, and there are still uncertain factors in the acquisition, so it is not a wise choice to enter the market now .” The analyst who reminded Zhang Hang in the conference room warned. His name is Liu Lei, and he is in charge of the German capital market. He is naturally familiar with the hottest topics in the German stock market.

"That's not the problem!" Zhang Hang shook his head, "But if the acquisition is successful, how will the new giant change the world's automobile structure?" , is the price of 300 euros per share high or low?"

   Thanks to book friends Europe 56, Xiaoqi Civilization Miracle, Sky_Sword, and yuerwa for voting monthly! Thank you for your support, the author is very grateful~

  (end of this chapter)