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Chapter 1807 Crazy Fall

Upon hearing this news, Xiao Bushi had no intention of accepting an interview. He hurriedly asked someone to send the reporters and immediately summoned their think tank.

Those people from the think tanks also knew the news and were shocked. In fact, they didn't know the problem of this fake account.

They have analyzed that from a technical perspective, both house groups are on the verge of bankruptcy, but it is not irrescue. After all, the house groups have gone bankrupt, but have risen again?

Even those banking institutions believe that the two-bedroom group will definitely not go bankrupt because the United States cannot afford it and other countries cannot afford it.

Once the two-bedroom group goes bankrupt, the bonds they guarantee will depreciate significantly, and many of them will even become junk bonds. Then investors and financial institutions holding these bonds will be hit hard.

This includes many European Union, many commercial banks and other financial institutions in many Asian countries, and they cannot watch the two-bedroom group go bankrupt.

Moreover, once the two-bedroom group goes bankrupt, the mortgage interest rate will inevitably soar again, and the subprime mortgage crisis that has just been suppressed will explode again, even unstoppable, causing a serious financial crisis.

The influence of these two companies is too great, and the US government must not let them go bankrupt. And those financial investment institutions cannot let them go bankrupt, and they will also suffer heavy losses.

For example, the United States issued a treasury bond at this time, but the two-bedroom group issued more than $5 trillion in bonds!

The foreign exchange reserves of many countries will be seriously affected. Therefore, those countries cannot let the two companies go bankrupt and must help save them.

When the two-bedroom group goes bankrupt, not only will these bonds have big problems, but the outbreak of the US financial crisis is inevitable, and countries that purchase US government bonds will also suffer losses.

For example, although Huaxia has polished the bonds of the two-bedroom group, it still holds some US government bonds. Although Huaxia is different from its previous life and is no longer the largest creditor country of the United States, it is also ranked very high.

The main thing is foreign exchange reserve investment, which is the investment method that all countries will choose. There are also many countries that have invested in the government bonds issued by China.

Now the largest countries holding US Treasury bonds and two-bedroom group bonds are island countries, followed by the EU, Canada, Australia, etc.

The United States suddenly discovered that no wonder China is so tough that it just doesn't help the United States. It turns out that the American government bonds they hold are only a few tens of billions of dollars.

Tens of billions of dollars are still treasury bonds, so they will definitely not turn into waste paper. Even if there is a little loss, it will not be big. After all, treasury bonds also have interest.

Xiao Bushi once asked someone to analyze that these two groups can overcome difficulties. As long as the EU and Asian banks provide assistance, they really have to provide a large amount of cash.

But unexpectedly, the two-bedroom group actually made financial fraud, which caused serious deviations in their analysis!

Two-bedroom Group has been continuously financing bonds for more than a year and has obtained more cash in hopes of turning around. However, if you want to raise bonds, you must give investors a high return.

Therefore, the two-bedroom group continues to increase their yields, that is, issuing bonds at higher interest rates for financing, thus making their debts increasingly serious.

The rise in interest rates also brings them an increasing burden. The value of the bonds they once issued will continue to decline, and their stock prices will continue to fall. This is a vicious cycle.

Of course, if the money they raise funds can make enough profits, these are not a problem. Unfortunately, not only did they fail to make profits, but they instead made continuous investment losses.

The two-bedroom group itself also believes that after their provisions exceed 77 billion US dollars, Zhengfu had to intervene. Just like Zhengfu helped sell Bear Stearns, he would definitely be worried that the two-bedroom group would drag down the entire US financial market after bankruptcy.

Like Bear Stearns, Rayman Brothers Bank, Merrill Lynch Bank and other banks went bankrupt, and many shareholders became nothing and they were cheated.

But the people who are really standing behind the scenes have successfully escaped. When withdrawing investment through entrusted investments, these behind-the-scenes bosses took the lead in withdrawing their investments, ensuring that their property was not lost or too much loss.

Many people are saying that the coercive means of the United States government are clearly a shareholder trap, which has deceived them and investors.

However, these people who were cheated had no influence, and the influential people successfully escaped. This is the investment environment in the United States.

Seeing the current situation, Xiao Bushi felt that it would be impossible not to help the two-bedroom group. He had to give them sufficient funds and stabilize their stock prices and not let them fall wildly.

So Bushi contacted the Federal Reserve and the US Securities and Exchange Commission and asked them to take effective rescue measures for the affairs of the two-bedroom group.

Feng Yu originally planned to borrow some stocks from two-bedroom groups, and then took advantage of the scandal and the stock price plummeted to make up for his losses in the US dollar trading market, but he found that no financial company was willing to lend them stocks from two-bedroom groups.

To put it bluntly, all financial companies are no longer optimistic that the stock prices of the two-bedroom group will rebound. The more they borrow, the more they will lose.

Although it is impossible to short-sell the two-house group's stocks to make a profit, the US stock index will definitely fall a little. Short-selling stock index futures can also allow Feng Yu and others to make up for the losses and even make a small profit.

The next day, the stock market began, and the two-bedroom group's stocks ushered in a selling trend. When the concentrated selling was sold, many of them could not be sold at all, but the stock prices were still falling wildly.

The stock price of the two-bedroom group soon fell below the dollar line and became a completely high-risk junk stock.

At this time, the Federal Reserve and the US Securities and Exchange Commission took action. While exempting some interest from the two-bedroom group, they once again provided an interest-free loan to allow the two-bedroom group to have enough cash turnover, and then restricted the trading of the two-bedroom group's shares, thus stopping the stock price plummeting.

Even so, the stocks of the two-bedroom group still fell by more than 20%.

Affected by the scandal of the two-bedroom group and the decline in stock prices, investors no longer trust many American companies. Giants like the two-bedroom group will commit financial fraud, so won’t other companies?

If other companies are also financially fraudulent, wouldn’t it be very dangerous and could collapse at any time?

So on this day, the entire US stock market was falling, and the indexes of the New York Stock Exchange and Nasdaq fell by more than five percent, which can be said to be another plunge.

Feng Yu looked at the gains in stock index futures and thought to himself that things were not over yet!

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Chapter completed!
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