Chapter 202: [Unexpected change, investor mentality exploded in situ]

, The latest chapter in the latest global monopoly of technology!
February 13, 2007.
New Century Financial Corporation, North America ’s second-largest subprime mortgage company, issued a profit warning for the fourth quarter of 2006, and immediately followed the announcement by the Bank of America that the North American home loan mortgage business suffered huge losses, writing down $ 10.8 billion of related assets.
At the same time, major investment banks in North America, including Bear Stearns, Citi, Merrill Lynch, Morrison Chase, and Reagan, have all generated huge losses that have not been disclosed.
As the second largest subprime mortgage company in North America, New Century Finance is about to face a forced debt of up to $ 17.4 billion from Wall Street.
The news immediately cast a shadow on this company. Such a high amount of debt was simply unable to be repaid. Even before the bankruptcy had entered the countdown period, investor panic began to spread. The fuse of the first detonator had been ignited. The prelude to the crisis thus began.
Behind the tranquility of Wall Street, there is an undercurrent, but Luo Sheng is happy to spend the New Year.
Work as usual overseas.
In March, domestic employees also returned to work one after another.
...
On the afternoon of Wednesday, March 14, Blue Star's Luo Sheng's office.
"Don't forget tomorrow morning."
Irene, who walked to the door of the office, did not forget to look back to remind Luo Sheng. When the eyes of the two sides looked at each other, Irene threw a charming look and then left contentedly.
The first shot that was fired this week has just ended, Ming Jing retired, Luo Sheng lost the best at home, but as a strategy master, he never cared about the gains and losses of a soldier, but only the final victory. the result of.
Taking a break after the war, Luo Sheng poured a cup of tea and sat back at his desk for a while, glanced at the computer, and saw a signal asking for access from the screen interface.
It was his private anonymous contact account with Paulson's hedge fund and successor fund, which was separated and Luo Sheng wrote a cryptographic security system himself.
It's impossible to make international calls, the lines are not secure at all, and they are tapped by the CIA in minutes.
Luo Sheng quickly operated on the keyboard for a while, then brought a Bluetooth headset and leaned back on the chair.
"Michael."
"Mr. Luo, the number of mortgage default cases reached another record high. Almost two million homes have defaulted."
"Two million?"
Luo Sheng immediately put his hands on the table and folded his fingers, saying: "Are there any brokers jumping off the building?
At the same time, as far away as the Shepherd's Fund Office in Manhattan Island, North America, Michael stayed all night in his office and didn't go home. Now it's almost dawn. He heard what Luo Sheng said and responded:
"Mr. Luo, the market operation has derailed. It should have collapsed in February, but Standard & Poor's did not reduce the value of mortgage bonds. The mortgage bond market was manipulated by people with intentions. Almost at the same time, Goldman Sachs's system went down. No, the Bank of America also lost power, and the Morgan Stanley server failed.
Hearing Luo Sheng asked: "What is the current market value of my credit default swap?"
Michael: "According to the policy agreement, more than 30 million monthly premiums are paid to the bank, and the current loss has reached about 9%."
Luo Sheng: "Well, in other words, hundreds of millions of dollars are gone ..."
After a while, Michael heard a voice again: "I know the reason. Although I have no evidence, the big banks are busy passing on the crisis. Goldman Sachs, Citi, Morgan Stanley, JPMorgan Chase, Merrill Lynch ... Now every time Almost all banks are frantically selling junk bonds to unsuspecting consumers, then paying for their greed, and waiting for the sell-off to reduce the value of bonds. This is the unprecedented scale of crime on Wall Street and should be exposed. "
Hearing that Luo Sheng could not help but remind: "No bank or credit rating agency will confirm such news, Michael, you better not do this, or you will be immediately interrogated by the FBI."
On the other side, Michael walked back and forth in his office barefoot with his hands on his hips, took a deep breath, and said afterwards, "Yes!"
He counted countlessly, but did not count to this level.
Luo Sheng said lightly: "Michael, if this is a protracted battle to fight a hundred battles, you can lose the first ninety-nine times, but the last time you want to win back for me, the last laugh is The real winner. I don't care about short-term losses, not even long-term losses. I only care about the end result. "
Michael: "God! Thank you, thank you, thank you very much!"
He found that this is the most tolerant investor he has encountered since his career, and other investors are now exploding. It is obvious what kind of dilemma Michael is facing now.
Luo Sheng laughed: "Go to fight."
The call ended, and at this moment, after the communication was ended in Michael, New York, he also took off the Bluetooth headset, and lay down on the spot and stared at the lights on the ceiling for a long time.
As if seeing a ray of hope.
In February, the subprime mortgage bond did not collapse as he expected. Michael's mentality was almost on the verge of explosion. He was convinced that the derailment of the market operation was being manipulated by interested people, because the default rate was skyrocketing.
The monthly premium amount of the credit default swap purchased by the successor fund is as high as 66.8 million US dollars, which means that the fund will lose 19% in just one year. If it exceeds 600 million US dollars, it will be gone. Heir to the fund.
The 4.2 billion funds under management will be put into operation in about six years.
It can be imagined how much pressure Michael had, but after speaking with Luo Sheng, he gave him great confidence. As the largest investor of the successor fund, Luo Sheng did not ask to redeem the fund, and he did not even have such a big thing Take the initiative.
Other investors in the successor fund are constantly asking how their money is going.
Michael, who had been lying on the floor for a few minutes, suddenly turned over and sat back in front of the computer to start editing a mass mailing in the internal mail:
[To all investors, our contract allows me to take extraordinary measures to deal with the derailed market. At present, I have reasons to believe that the mortgage bond market has been manipulated by interested people. In order to protect investors from it, I decided to ban investors Redeem the fund unless I issue a new notice. 】
After editing this message, Michael was struggling before clicking to send. Clicking to send meant betting on his career and everything, and he might face lawsuits or even jail time.
"Win the last time ..."
Michael murmured to himself, thinking of Luo Sheng's words before, finally, his finger clicked lightly on the mouse.
It was late at night and less than a minute after he sent it, his mailbox exploded.
Almost all investors are extremely angry, this kind of anger seems to want to wait for him to come down the network cable to hack him and sack him.
Michael fully understands his investors, and many people even take care of him.
Less than three minutes later, his phone rang and Michael was connected.
Investor: "Holyshit, Michael, what have you done? What have you done? Ah?"
Michael: "Eddie, I already said in the email."
Investor: "How much money did the successor fund invest in the e-mail?"
Michael: "Only $ 4.2 billion."
Investor: "What about premiums? How much do we have each year?"
Michael: "It's about 700 million dollars a year, which is quite a lot, but I'm one step ahead and I will make money."
Investors: "Hahaha will make money? Dog corpse rice! The fund you manage will return to zero in 6 years. You make a bet, and Yumade sends Michael, I want to redeem my funds."
Michael: "Too stupid Eddie, if you now redeem the fund is suicide, the fund drops 17% to ... if the fund's capital falls too much, according to the agreement, the credit default swap will be invalidated, and then those banks will take Take all the collateral ... "
Investor: "What? Do you mean that the contract will lapse? Will it lapse? Oh, No, Martha made Michael, pay me back. If you hear nothing, pay me back, I will sue you!"
Michael: "If you only make the capital of the fund fall even more crazy, the bank will take all the collateral ..."
Investor: "Holyshit! Michael, if I go to the rooftop I will pull you back, I swear! I swear to God!"
Michael: "Thank you Eddie. I'm honored, but I don't think it's necessary. I might jump ahead of you, and I swear to God."
Investor: "Yomad Law Class Michael! Toot ... Toot ... Toot ... Toot ..."
The call was angrily hung by investors as a series of roars beginning with the F letter, at this moment, Michael put down his phone and smirked on the desktop.
The phone just hung up and rang, but he didn't connect.
He knows that at this moment all investors except Luo Sheng, an investor, can't wait to bring him with a big knife and have his heart cut off ~ EbookFREE.me ~ Absolutely.
Michael put on headphones, drove the music to its fullest, and then banged on the drums next to the office frantically to release the pressure in this way.
At the same time, John Paulson's pressure is also the same, he may be even greater, because Paulson's hedge fund is several times the successor.
At this moment, North America is gradually dawning, and John Paulson is running in the morning at Zhongyang Park in New York to release the tremendous pressure in his heart.
However, at the same time, Luo Sheng, who is far away from the ocean, has no pressure, and even he is now playing a happy chicken game with Irene.
For Luo Sheng, the biggest difference between him and other investors is that even if all his 6.2 billion US dollars have been drained, he will not hurt his bones. He is still the top ten richest people in the world and will not What negative effects does your own business have.
However, if you make money, it's not a little bit of money.
Then of course happiness is over.
...