The Son of Finance of the Great Age

  Chapter 780 The Situation Reversal

   At noon on the 7th, the Spanish Ministry of Finance urgently issued a statement, declaring that the Spanish government did not apply to the IMF or the European Commission for rescue. At present, the Spanish government's financial situation is stable, and it has sufficient economic capacity to deal with internal economic problems, and to pay investors the interest and principal of the national debt.

  On the afternoon of the 7th European time, the European Commission, the Bank of Japan, and the Federal Reserve issued statements one after another. Although the contents were different, they had only one purpose, that is, to take active measures to deal with the impact of the Greek debt crisis.

  First of all, the Bank of Japan, because for them the influence of Europe is quite limited, so the time of decision-making is also very fast. On the same day, BOJ announced that it would inject around US$21.6 billion of liquidity into the market within the next week to cope with the impact of the Greek debt crisis on Japan's finances.

   Immediately afterwards, the Federal Reserve issued a statement overnight that it would launch a temporary currency swap mechanism with the European Central Bank, the Bank of Canada, the Swiss National Bank, and the Bank of England two days later to help the other party ease the pressure on liquidity in the international financial market.

  According to public reports, the period of these temporary currency swaps is about half a year, and the amount will depend on the situation, which is expected to be as high as hundreds of billions of dollars.

These two news, together with the holding of the European summit in Brussels, greatly encouraged the confidence of the European capital market. Soon the stock market declines in various countries began to narrow, and confidence was slowly recovering. Everyone is waiting for the meeting published results.

  In Brussels, foreign ministers and finance ministers are anxiously waiting for news from Germany.

  The good news finally came in the evening. The results of the vote of the German House of Commons were announced. 390 members of the parliament passed the bill on stabilizing the European Monetary Union, 72 opposed it, and 139 abstained. Although this bill still needs to be submitted to Germany's upper house for trial, it is certain that Germany has basically agreed to provide Greece with a 22.4 billion euro aid plan.

  The news quickly spread all over the world, including Brussels.

Immediately afterwards, a more advanced meeting than the current summit meeting was held in Brussels. Although most of the participants were unable to attend the meeting, this did not affect the holding of the meeting at all. The finance ministers of most European countries participated in various ways into this meeting.

   The final negotiations on the euro bailout mechanism have finally begun.

  After obtaining the consent of the national parliaments of the euro zone, the focus of discussions among countries shifted to the rescue mechanism itself. For example, the amount of the permanent rescue fund, the specific figure of the rescue amount, the role played by the ECB in the rescue mechanism, and whether the UK needs to participate in heated discussions.

   After more than ten hours of discussion, the EU finally reached a historic agreement.

In the early hours of the morning, they jointly issued a statement announcing that the national finance ministers of the euro zone had finally reached a rescue mechanism with a total of 750 billion euros to help euro zone member states that may be in debt crisis and prevent the recurrence of Greece. type of debt crisis.

The largest bailout mechanism in history consists of three parts, of which 440 billion euros will be provided by euro zone countries in accordance with mutual agreements for a period of three years, and 60 billion euros will be based on the relevant provisions of the EU's "Lisbon Treaty" and will be provided by the European Commission. Raised from the financial market, this part of the funds will be used as a permanent rescue fund. In addition, the International Monetary Fund will provide 250 billion euros.

  According to this mechanism, if any euro zone country falls into a debt crisis, it will be able to apply for financial support, and the additional conditions will refer to the regulations of the International Monetary Fund, similar to Greece.

  In a statement issued after the meeting, the participating finance ministers promised to accelerate the pace of deficit reduction and structural reforms as much as possible to achieve fiscal stability and economic growth. As members of the euro zone most likely to follow in the footsteps of Greece, Portugal and Spain also promised to step up efforts to reduce deficits this year and next, and will submit specific measures to the EU finance ministers on the 18th of this month to avoid deterioration of the situation.

  At the same time, the ECB European Central Bank also issued a statement at the same time, declaring that it will purchase government and private bonds in the euro zone, but the scale of the purchase is still under discussion.

  IMF also issued a statement at the same time that the first tranche of aid to Greece will be in place no later than the 11th. It is estimated that there will be as much as 20 billion euros, of which 5.5 billion euros will immediately and unconditionally go to the account of the Greek government. A total of 110 billion euros will be released to Greece over the next three years.

  With the announcement of this mechanism, market confidence was instantly restored. Although no one knows what will happen in the future, the combined power of the European Commission is enough to stabilize the current turbulent market. In the next few days, major capital markets in Europe have seen retaliatory rises, and Gold futures, a safe-haven indicator, have plummeted for three consecutive days.

  …

   “The current market turmoil highlights the need for greater regulation of financial markets, with a focus on improving the transparency and regulation of financial derivatives markets and reviewing the role played by credit rating agencies.”

  Hong Kong, Tianyu Fund.

  Zhong Shi and Jiang Shan have been waiting for the news from Europe and have stayed up all night. But for them, the "good news" that comes frequently in the market is downright bad news for them.

At this time, Jiang Shan was shaking his head while reading the news from Europe, "Uh... this is the statement issued by their summit meeting. The French president and the German Chancellor also said the same thing two days ago. And the French The president also said today that speculators in financial markets will 'pay their dues'."

   "Are they serious?"

After reading it, Jiang Shan showed a look of disdain, and said mockingly, "It's not just them, the Prime Minister of Spain also made remarks with similar meanings. It's funny, do they think that strengthening supervision can cover up their current problems? ?”

   "Small society and big government have always been their goals!"

Zhong Shi also sneered at the remarks of these leaders. Although he did not dare to underestimate the determination of these leaders to promote the implementation of the bill, it is basically certain that even if their opinions can be turned into bills and passed, at least It took years.

   "I'm afraid that Goodman Company will become a target again!"

  After thinking about it, Zhong Shi frowned and said, "This time it can be said that Europe has won the defense battle for the second time, but it will be hard to say next time."

   "Is there a next time?"

  Jiang Shan turned his face, his eyes were wide open, and he looked at Zhong Shi with shock in his eyes, "We have made it to this point, do you mean we have another move?"

  This time the strength of the European Commission can be regarded as unprecedented. Not only the European Central Bank, but even the German Chancellor ignored the opposition of the people and forced the members of the CDU to pass the aid bill for Greece. As a result, her poll among voters has dropped sharply. lost in the election.

   Europe made such a big sacrifice, naturally wanting to solve the debt crisis once and for all, but even so, Zhong Shi actually said "next time", which shocked Jiangshan.

   "Don't you really think that one bailout can eliminate the worries of the entire market?"

Zhong Shi also stared back at Jiangshan, speechless for a while, then chuckled, and said slowly, "Look, this can only be regarded as a short-term morphine effect at best. After the relevant stimulus passes, the fundamentals of the market still cannot be achieved. If there is any improvement, the market will continue to slump.”

  Jiangshan was speechless.

   He naturally thought of what Zhong Shi said. But he firmly believes that relying on the power of the government can turn the tide. On this point, he is completely opposite to Zhong Shi. Zhong Shi believes that even if the government invests huge financial and material resources, but the fundamentals of the economy cannot be improved, the situation will eventually lead to trouble.

  Of course, these are two different views, and no one can convince the other.

   "My God, look, things have changed!"

  For this kind of debate, neither side continued, after all, this is not a question with absolute standards. As long as the goals of both parties are consistent, it doesn't matter how to do it.

   At this moment, Jiang Shan glanced across the screen from the corner of his eye, and a piece of news surprised him immediately, and he couldn't help shouting out.

   "Uh... what happened?"

  Zhong Shi frowned, walked two steps quickly, and looked towards the computer. He hadn't read a few sentences yet, and he also showed a look of surprise on his face.

   "Moody's managing director Alex Catteldo said today that the Italian banking system, despite its many weaknesses and flaws, still retains considerable strengths."

   "The Italian banking system is not currently under great pressure. Moody's report released yesterday cannot fully explain the current situation in the Italian banking system. He apologized to the Italian government and investors for the impreciseness of this report."

"At the same time, Alex Cataldo also said that although the current situation is still optimistic, Moody's will continue to pay close attention to the pressure on Italy's economy and its banking system, and make timely and accurate announcements to the outside world to allow investors A better understanding of the economic situation in Italy."

   "Are they slapping themselves in the face?"

  For international rating agencies, the most valuable thing is the authority of their reports, and a few days ago, Moody's just announced that the banking systems of Italy, Spain and other countries are at great risk. Now they are jumping out and punching themselves in the face. This inconsistency will greatly damage their credibility.

   Jiangshan couldn't understand this.

   "Maybe they heard something!"

Completely different from Jiang Shan’s considerations, Zhong Shi immediately figured out the ins and outs of the matter, and said sharply, “After experiencing frequent provocations from rating agencies, it is difficult for Europe not to respond to these guys who disturb the market. Maybe Moody’s I have received relevant information, so I don't care about damaging my reputation, and I want to show my favor as soon as possible!"

"if…"

  Hearing Zhong Shi's words, Jiang Shan's heart tightened. So far, rating agencies are almost the only weapon to cause the debt crisis. If Europe will target them, it will be difficult to continue to short Europe.

  Zhong Shi naturally understood this truth, and his face gradually became solemn.

  …

   Half a month later, the European media began to criticize the rating agencies in the United States, including Standard & Poor's, Fitch and Moody's.

   Soon, European officials stood up and expressed their position. European Central Bank President Jean-Claude Trichet publicly declared that he particularly hopes to establish Europe's own credit rating agency next to the European Central Bank building.

   Immediately afterwards, his statement was supported by the European Commissioner. Barroso publicly announced that the EU is considering setting up its own credit rating agency in Europe to counter the three major credit rating agencies in the United States. In addition to establishing its own rating system, the European Commission also announced a new plan to strengthen the supervision of US credit rating agencies, trying to make them afraid to make waves on the European continent.

  Naturally, these moves were generally supported by the vast majority of European countries.

  The real counterattack begins.

   Thank you book friends ling for voting for the monthly ticket! PS: Chinese New Year is coming soon, and I have to go home. It will be difficult to code words in the future, but the author will do his best to update and try not to let everyone down. I also hope that all book lovers can continue to actively support this book. After finally recovering a little bit, we must not let the gloomy situation continue, so the author will do his best, and everyone should not forget to vote for it, and recommendation votes are no exception~ This difficult period I need everyone's support even more, the author expresses his gratitude~

  (end of this chapter)