Chapter 412: National hardship!
As many expected, before the market opened, the Federal Reserve teamed up with the European Central Bank to cut interest rates by 0.5% each to reassure people.
At the same time, the Federal Reserve will provide no less than 60 billion US dollars of funds to participate in the rescue.
At 9:30 on September 17th, the US stock market opens!
European stock markets have rebounded, rising by about 3% overall, but European investors, after all, do not live in the United States.
As soon as U.S. stocks opened, investors began to sell stocks in panic, and the stock market plummeted. Almost instantly, the Dow Jones index fell 7.1%.
Among them, stocks in the insurance, tourism and aviation industries saw the highest declines.
On the first day of trading, the Dow Jones fell 14.3%, the Nasdaq fell 16.1%, and the S&P fell 11.6%!
The mere $60 billion in rescue funds is a drop in the bucket.
In just one day, the US stock market has evaporated more than 1.1 trillion US dollars!
The major stock indexes continued to fall, comparable to last year when the bubble burst.
Microsoft's stock price fell from $30 to $26, or 13.3%;
Disney's stock price fell from $23 to $18, or 21.8%;
General Electric shares fell 15% from $40 to $34;
Goldman Sachs shares fell from $76 to $69, or 9.2%;
Ford Motor shares fell from $19 to $16, or 15.8%;
Lockheed Martin shares rose 13.1% from $38 to $43...well, a company that makes fighter jets.
People generally have a herd mentality. When investors see others selling, many people will be unable to hold back and sell frantically.
But after a long time, seeing the determination of the government to save the city, it will calm down.
Especially many large institutions on Wall Street, when they see such an opportunity to buy a bargain, they will not miss it!
Dunn and Scott Swift have discussed this matter many times in advance, and the cash out cannot wait, cannot be delayed, and must be as soon as possible!
Try to close all short positions within this week!
Action, from September 18th.
On this day, Dunn Capital closed 128 stocks with an average drop of 15.8% and a gain of $3.51 billion!
On September 19, 107 stocks were closed, with an average drop of 14.5% and a gain of $2.69 billion!
On September 20, 42 stocks were closed. These are the aviation, travel and insurance stocks with the worst declines, with an average decline of 29.3% and a gain of $2.13 billion!
Friday, September 21, is the last day of the week for the stock market.
Dunn Capital unwinded the remaining 30 stocks, which were more stable, with an average loss of 5.4% and a gain of $280 million.
After 3 months of financial operations, Dunn Capital made a gross profit of US$8.61 billion in this crazy short-selling operation!
After deducting a short-term interest expense, handling fee, and capital gains tax that must be paid in the future, then deducting the $850 million in short-selling losses in the first half of the year...
This year, Dunn Capital made a net profit of 5.82 billion US dollars in the financial market with a total investment of 3 billion US dollars, and the profit rate of return was 194%!
Even if the tax is removed, there is still a huge amount of more than 9 billion US dollars on the books of Dunn Capital!
Generally speaking, the decline is smaller than that when the bubble burst. Fortunately, Dunn can call more principal this time.
With this wealth, and the assets of Dunn Pictures, it is enough to make Dunn the top 20 super rich in the "Forbes" rich list!
...
Of course, people couldn't see the **** storm of Dunn Capital in the stock market, but they couldn't escape the eyes of major Wall Street institutions.
When Dunn made a lot of money in the bubble crisis last time, the news came out quickly, which put him under a lot of pressure. This time around, though, Wall Street was more silent.
On the one hand, it was because they were completely slapped in the face. In the summer, Dunn made high-profile negative remarks, and as a result, the whole Wall Street sneered at the joke.
At this time, how could he still have the face to report on Dunn's news? Quietly pretending not to know. It is unreasonable for so many financial elites to be slapped in the face by a film director.
More importantly, Wall Street is making a fortune collectively, who has the heart to focus on others?
A few days ago, the major investment banks and foundations on Wall Street collectively sold shorts and made a lot of money in the country. As a result, the market value of the New York Stock Exchange and Nasdaq evaporated by 1.4 trillion US dollars in just one week!
Now, it's the weekend again.
The Federal Reserve and the Treasury Department, in order to solve the dilemma, will definitely come up with more favorable and strong measures.
Coincidentally, 90% of the senior officials of the Federal Reserve and the Treasury Department are from the major investment banks on Wall Street, especially Goldman Sachs.
The stock price has fallen to a bottom, and it is time to start buying the bottom. Of course, Wall Street must concentrate on researching countermeasures, and use the most effective means to earn the most benefits!
As for Dunn's matter... Who cares?
Compared with the major investment banks on Wall Street, the amount of money that Tang En earned was too great.
It's just that Tang En's money belongs to him. The money earned by investment banks and private equity funds belongs to collective shareholders, and Tang En's per capita income is more.
Tang En made a fortune in a muffled voice and did not appear in the economic page, but it did not mean that he disappeared from the media reports.
His donation of 50 million US dollars is still reported in the entertainment page.
Such charitable activities are not the same as the donations in the past, but they have been recognized by many psychological counseling agencies. They cooperated with Dunn Films and Universal Pictures, and called on many suffering people to go to the theater to watch "Unsinkable".
Mental illness is also a disease.
In particular, the United States is a country that attaches great importance to mental health. Almost everyone has the experience of consulting a psychiatrist. Dunn's actions cater to the national conditions and the people's hearts.
Word of mouth and praise come naturally.
Especially this weekend, he made a special trip to New York. After fully cashing out from the stock market, he attended the charity gala that five celebrities were about to have.
In the name of "Dawn Walker", he also donated money to a number of charitable funds.
In short, he spent 48 million US dollars, and gave all the spare money of Dunn Capital to the society, and was highly praised.
Donations from the rich are very common, but donations by young people are still large and rare.
For Dunn, this is to buy a psychological comfort.
But this is the case, and he dare not do it again. In the two stock market crises, he has sold a lot of shorts one after another, earning a fortune of more than 10 billion US dollars crazily!
Even the top financial predators, such as Soros and Rogers, have never done such a feat.
Enough is enough.
Time to stop!
It is conceivable that in the future, the funds of Dunn Capital will be subject to strict federal supervision!
It's like Soros is on the financial blacklist of many countries.
"Scott, it's time for our behavior in the financial market to end." Dunn stood at the window of Scott Swift's office, looking at the still brilliant Manhattan Street outside, and sighed a long time.
Scott Swift frowned, "Are you going to fire me?"
"Ah?" Dunn laughed suddenly, "Why do you think so? I'm not going to act like this."
Scott Swift shook his head and frowned: "But what can I do if I don't operate the stock market? My job is to be a stockbroker."
Tang En gave him a deep look, "But you are a financial investment major. Stock investment is also investment, isn't it?"
"Oh?"
Scott Swift sensed something in his words.
Tang En said: "Our two waves of operations are too conspicuous, Wall Street will definitely be vigilant, and even... will send commercial spies, not to mention the pressure of the federal government, the stock market must be withdrawn! I have already thought about the trust fund money. Part of it will be invested in Dunn Pictures, and next year...there will be a big acquisition."
"how should I do?"
"Hehe, in the past two years, Dunn Capital has not only made gains in the stock market, but also invested in many companies. Including Google, Apple, Hasbro, Pixar, mga, etc., your communication with the boards of directors of major companies is very good. nice."
Scott Swift waved his hand and said disapprovingly: "If you have money, you are an uncle. If I invest money, of course they welcome it with both hands. Such communication is of course simple."
Tang En said with a smile: "That's enough!"
Scott Swift suddenly realized, "Dawn, you mean... The main direction of Dunn Capital in the future is venture capital?"
"That's right!"
"But Americans are panicking right now, and VCs ... are not a good direction."
"You can go abroad."
"Foreign countries... have also been seriously affected by the '911 Incident'."
Tang En said: "Not necessarily ~www.wuxiaspot.com~ Highly market-oriented countries must be subject to great fluctuations, but well... some countries adopt market-led semi-market-oriented policies, which have little impact."
Scott Swift's eyes lit up, "You mean... the populous country on the other side?"
Tang En smiled, "I plan to spend 500 million US dollars to set up a venture capital fund, with Tang En Capital owning 80% of the shares and you owning 20%. You are the general manager, responsible for all investment business, and can focus on the direction. Put it there. Of course, Korea and Japan are also good."
Instead of enjoying 20% of profits, owning 20% of the stock is a completely different concept.
In other words, Scott Swift doesn't have to do anything, he's already a billionaire as soon as this VC fund is set up!
"But I'm really unfamiliar with the investment field."
"You can learn it slowly." Tang En smiled slightly, "Besides, in the United States, you have also participated in investing in several high-tech companies. If you have experience, I will give you a few more suggestions. You invest while exploring. I can make a career out there.”
"Do you have a suggestion? Which direction?"
"The Internet of course!"
"Oh……"
In the past six months, Scott Swift has seen all kinds of human feelings on Wall Street.
When Tang En Capital suffered a huge loss, everyone laughed at him, and there were many disrespectful and sneering words in his words. Now, Tang En Capital, which he operates, is making a lot of money, and it has immediately become the focus of attention.
He had had enough of this kind of intrigue, falsehood, and hypocrisy.
Maybe……
It's also a good challenge to change places.
"Can this venture capital fund use my name? Scott Swift Venture Capital Fund."
"no problem!"
Tang En waved his hand, showing his pride.
(Sanqi Chinese)
