Chapter 1673: Pinman and Back Man (5/10)

"Send someone to contact us to see if you can invite Feng Yu to the White Palace to be a guest." Xiaobu said.
"Total ~ unified, this is not very good, Feng Yu is Huaxia. After all, we will think that we have to further strengthen economic and trade relations with China."
Hearing this, Xiaobu did not say anything. This matter is obviously not something that he can decide alone, although he feels that there is nothing wrong with this. It seems that this position is very good, but there are too many restrictions on words and deeds.
"Then you want to find a way for me to see Feng Yu, how do you do it, do you have a heart?"
Feng Yu did not know, Xiaobu 10 has decided to meet with him, he is still watching the stock market.
For two consecutive days, the share price of New Century Financial Corporation has fallen by 15%, and the decline is not limited, it is estimated that it will continue to fall, as long as they can not explain the media's broke.
As for some small real estate finance companies, the decline has been even more fierce, generally exceeding 18%. Even two companies have announced that they are going to file for bankruptcy protection.
This application for bankruptcy protection is even worse, making investors more distrustful of companies in the real estate industry.
"Boss, the stocks of these companies are really falling, can we make a lot of money by selling short?"
After the wind and rain consultation, I borrowed a lot of stocks from these real estate companies from a number of financial institutions, and then sold them in large quantities. With the help of the news, the stock prices of these companies plummeted, which means that wind and rain consultation can make a lot of money.
Selling stocks is a loss on the books, but short selling can make more.

In fact, I didn’t make much money. The stocks of these companies are not the direction of our main investment.

The decline in the stock prices of these companies is not small, but the plates are too small and the number of shares that can be borrowed is not large. Moreover, Feng Yu only allowed the wind and rain consultation to operate the new century financial company, and the others were only a little bit.
These are just an experiment. Going back to the two-room group is the main direction.
"Boss, then why do you think that these companies are not necessarily going bankrupt? It seems that these companies are definitely finished?" Ralph humbly asked for advice.
"Because the country's political axe, or Xiaobu 10, can't watch these companies go bankrupt, they will definitely find a way to save it."
"Guess, what will they do?" Feng Yu asked with a smile.
Ralph thought for a moment: "Looking for other companies to pick up?"
"Correct!" Feng Yu made a snap. "For the sake of the present, they can only find other companies to pick up. Take over the business of these companies, but also take over the debt of these companies!"
"But this is not enough. These companies will cause a large number of people to lose their jobs. This is not a small problem. What is more serious is that there are too many bankrupt companies, which they can't imagine!"
If only one or two companies go bankrupt, then it is really only a small matter. Anyway, if it is bankrupt, the financial market of the new century will be less than three billion dollars.
With the size of the two-room group, a loss of three billion dollars a month may not be able to hurt. Of course, if you lose so much every month, it will be different.
In Feng Yu's eyes, the two-room group is simply two squadrons, and the ultimate back-pot man!
In the past life, the two-room group filed for bankruptcy, which led to the real collapse of the US stock market. At least it was possible to survive and survive.
The main reason for the bankruptcy of the two-room group was that they became the pick-up man and eventually turned down the unfortunate black pot.
In fact, the subprime mortgage crisis is mainly caused by these small real estate finance companies. The two-room group is a back-to-back. But in the end, everyone generally believes that this is the cause of the two-room group.
Of course, the collapse of the two-room group is also the reason why this matter has become more serious.
The two-room group is mainly to package these loans, issue bonds, and sell the bonds to investors. Under normal circumstances, the risk of such a bond is very low, because at the beginning, the person who can borrow, the credit and repayment ability are very trustworthy.
Therefore, the bonds issued by the two-room group have been sought after by many investors, including the former Chinese capital of China. To some extent, some people have interpreted this as the national debt of the country, and completely forgot that this is two private enterprises.
Through this operation, they completed the process of asset securitization.
At that time, the two-room group was very strict with the mortgage review of the purchase, and those sub-loans, they simply did not buy.
However, more and more financial companies have made subprime loans. The two-room group also began to buy these higher-risk subprime loans at the request of Xiaobu.
Then, the interest rate mortgage loan can be adjusted to rampage, and the low interest rate induces people to borrow money to buy a house. Many ordinary people also live in very good houses. But then with interest rate adjustments, the loans they had to repay were recalculated, and many families who could have repaid their loans could not afford it.
These are the small companies that do, the two-room group really did not do this, they do not need to do this, their high-quality loans made of bonds, it is enough to make money.
But now it’s not okay, those small companies are going to die, and Xiaobu 10 asks for assistance from the two-room group.
How to help, is not to eat the mortgage of small companies, and then sell them in the form of bonds.
At this time, the bonds of the two-room group will begin to deteriorate. From low-risk, low-yield bonds to high-risk, high-yield bonds, the original intention of many people investing is completely different.
Everyone is used to the low-risk bond of the two-room group, which is an inherent impression. When these high-risk bonds are issued, many people will not hesitate to buy them, and then it is equivalent to getting on the boat, and then want to disembark, it is difficult!
These small financial companies, because they are dragged down by those who have not repaid their loans, they have to repay the loans to banks and other institutions, so they can only find ways to borrow money.
Yes, there are a lot of mortgages for them, but this is not easy to cash out first, and it has already been devalued. They can only borrow the East Wall to make up the Western Wall.
The leverage of some financial companies has begun to become particularly high. Many products that normally only have ten times leverage can have twenty times leverage, or even twenty-five times, thirty times in their company.
What does this mean that they use a little margin to manipulate a large amount of money, and how much risk should it be? How fragile is the capital structure?
At this time, they still can't do anything, they can only hide some situations, and even make some small financial means.
When these were exposed by Feng Yu, their company had to embark on the road to bankruptcy. In order to prevent the situation from deteriorating, the two-room group can only become this pick-up man, thus becoming the back pot man!
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