Font
Large
Medium
Small
Night
Prev Index    Favorite Next

Chapter 1673 The Pan Man and The Back Pot Man (5/10)

"Send someone to contact us to see if you can invite Feng Yu to Bai~gong as a guest." Xiao Bushi said.

"President, this is not good. Feng Yu is Chinese after all. If we do this, people will think that we will further strengthen economic and trade exchanges with China."

When Xiao Bu Shi heard this, he didn't say anything. Obviously, this matter was not something he could decide alone. Although he felt that there was nothing wrong with it. It seemed that this position was beautiful, but every word and action would be subject to too many restrictions.

"Then you can find a way to let me meet Feng Yu. Do you know what to do specifically?"

Feng Yu didn't know that Xiao Bushi had decided to meet him and talk, and he was still looking at the stock market.

For two consecutive days, the stock price of New Century Financial Company has fallen by 15% and the decline continues. It is estimated that it will continue to fall as long as they cannot explain the media's revelations clearly.

As for some small real estate and financial companies, the decline was even stronger, generally exceeding 18%. Two companies have even announced that they are going to file for bankruptcy protection.

This filing for bankruptcy protection is even worse, making investors more distrustful of companies in the real estate industry.

"Boss, the stocks of these companies have indeed plummeted. We can make a lot of money by short selling operations, right?"

Fengyu Consulting borrowed a lot of stocks from these real estate companies from some financial institutions, and then sold them in large quantities, coupled with the help of news, causing the stock prices of these companies to plummet, which means Fengyu Consulting can make a lot of money.

Selling stocks will make a loss on the books, but short selling can make more money.

"In fact, I didn't make much money. The stocks of these companies are not the main investment direction at all."

Although the stock prices of these companies have fallen quite a bit, the plate is too small and there are not many stocks that can be borrowed. Moreover, Feng Yu only asked Fengyu Consulting to mainly operate the New Century Financial Company, and the others are only a little bit.

These are just an experiment. Looking back at the two-bedroom group, the main focus is.

"Boss, then why do you think that these companies may not all go bankrupt? Now it seems that these companies are definitely finished?" Ralph humbly asked for advice.

"Because the US government axe, or Xiao Bushi, we must not see that these companies have gone bankrupt. They will definitely find a way to save them."

"Guess what will they do?" Feng Yu asked with a smile.

Ralph thought for a while: "Let's find another company to take over?"

"Correct!" Feng Yu snapped his fingers, "For the sake of this, they can only find other companies to take over. Take over the business of these companies, and also take over the debts of these companies!"

"But this is far from enough. These companies will cause a large number of people to lose their jobs, which is not a small problem. At the same time, what's 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's really just a small matter. Anyway, even New Century Financial Company has a market value of less than 3 billion US dollars.

With the size of the two-bedroom group, a loss of $3 billion per month may not be a big deal. Of course, if you lose so much every month, it would be different.

In Feng Yu's eyes, the two-bedroom group is simply two takeovers, and the ultimate scapegoat!

In his previous life, the two-bedroom group filed for bankruptcy, which led to the real collapse of the US stock market. At least they could survive before, and there was still some rescue.

The main reason why the two-bedroom group went bankrupt was that they became the takeovers and eventually took the blame for this unlucky one.

In fact, the subprime mortgage crisis was mainly caused by these small real estate financial companies, and the two-bedroom group was the blame. But in the end, everyone generally believed that it was the two-bedroom group that caused this.

Of course, the collapse of the two-bedroom group is also the reason why this matter has become more serious.

The two-bedroom group mainly packages these loans, issues bonds, and sells the bonds to investors. Under normal circumstances, the risk of such bonds is very low, because at the beginning, the credit and repayment ability of those who can borrow are very trustworthy.

Therefore, the bonds issued by the two houses are sought after by many investors, including the Chinese state-owned assets in their previous lives. To a certain extent, some people have even understood this as the US government bond and have completely forgotten that these are two private companies.

Through this operation, they completed the process of asset securitization.

At that time, the two-bedroom group had very strict reviews on the mortgage loans they purchased, and they didn't buy those subprime loans at all.

However, later, more and more financial companies were engaged in subprime loans, and under the request of Xiao Bu Shizhengfu, the two-bedroom group also began to buy these subprime loans with higher risks.

Then the interest rate can be adjusted and mortgage loans are rampant, using low interest rates to induce people to buy houses. Many people with ordinary income also live in very good houses. However, the interest rate will be adjusted, and the loans they want to repay are recalculated, and many families who could have repaid the loans can no longer afford them.

These are all done by those small companies. The two-bedroom group really didn't do this at the beginning, and they didn't need to do this. After their high-quality loans were made into bonds, it would be enough to make money.

But it's not possible now. Those small companies are going to be over. Xiao Bushi asked for assistance from the two-bedroom group.

How to help is not to take the mortgage loans from those small companies and sell them in the form of bonds.

At this time, the bonds of the two-bedroom group will begin to deteriorate. From low-risk and low-yield bonds to high-risk and high-yield bonds, the original intention of many people to invest is completely different.

Everyone is used to the low-risk bonds of two-bedroom groups, which is an inherent impression. When these high-risk bonds are issued, many people will buy them without hesitation, and then it is equivalent to getting on the boat. If you want to get off the boat, it will be extremely difficult!

These small financial companies have to find ways to borrow money because they have not repaid their loans.

Yes, there are many real estate mortgages for them, but not only that is not easy to cash out, but has depreciated. They can only borrow money to break up the east wall and repair the west wall.

The leverage of some financial companies begins to become particularly high. Many products that normally only have ten times leverage can have twenty times leverage, or even twenty-five times or thirty times in their companies.

What does this mean? It means that they manipulate a large amount of funds with a little margin. How much risk should be? How fragile should the capital structure be?

At this time, they still couldn't do what to do, so they could only hide some situations and even make some small financial measures.

When Feng Yu found someone to reveal these things, their company had to go bankrupt. In order to prevent the situation from worsening, the two-bedroom group could only be the buyer, thus becoming the scapegoat!
Chapter completed!
Prev Index    Favorite Next