Chapter 2252 Sky God Chen Mo
House prices in Baguo have increased by nearly 2000% since 200, and finally started to fall in the past two days.
Most subprime mortgage users also took out the terrifying "balloon loans."
Coupled with the news about Chen Mo's "Emperor's Community", "Professional Debtor" and the video evidence found by Trevor, the panic was heightened.
Countless people began to sell their properties to stop losses, or cut off their property supply and ran away.
Chen Mo's short selling of the stock prices of Bells and others was not actually a fatal blow, but the straw that broke the camel's back.
Different from ordinary commercial banks, Bells and others do not have the ability to absorb deposits. The housing loans they issue are obtained from financing and selling subprime mortgage bonds.
Now, subprime mortgages cannot be issued and CDOs cannot be sold. Companies such as Bells have no income and have to pay off debts. The capital chain was broken overnight.
Capital chain training is a very, very scary thing.
Many large companies with a market value of hundreds of billions are likely to go bankrupt because they cannot raise billions in cash flow, causing their capital chain to break.
At this time, Jims had no ability to care about the stock price.
He personally went to Mogen Chase and found its CEO Jimmy Dimon to borrow money.
"Jimmy, you must help me this time. If you don't help me, we will probably go bankrupt!"
"Brother, I am willing to help you, but you are borrowing money too quickly. With such a large amount of money, it is not safe for you to ask me to make such a major financial commitment in a hurry with just a few hours of research.
Well, let me help you seek help from the Federal Reserve Board of Governors, which can provide emergency loans. "
Jims reluctantly agreed, because he knew Jimmy was telling the truth.
For such a large loan, according to normal procedures, Mogen Chase will need to conduct asset evaluation, risk assessment and other processes for several weeks or even months.
Jimmy Dimon was quite loyal and drove James to the Federal Reserve Bank of China.
To be honest, Jimmy really hopes to get this loan.
If Bells and other companies went bankrupt and triggered the subprime mortgage crisis, then none of these financial institutions would be able to escape, they would all be involved!
The Fed seemed to have expected Jims to come back for help.
Because just now, the stock prices of Bells and other companies fell 36% in just half a day after being shorted by Chen Mo.
The most frightening thing is that the decline in the stock prices of companies such as Bells has dragged down the real estate sector.
The ABX index fell 5 points in response!
The ABX index, which had never fallen from 2000 to 2008, was finally suppressed by a white dragon from Daxia and was unable to lift its head!
For the first time, the market felt the chill from subprime mortgages.
The people at the Federal Reserve calculated that Chen Mo currently holds close to 3 trillion CDS, and the ABX index fell by 5 points, allowing him to make a profit of 1500 billion in one day!
Chen Mo's performance in one morning was several times greater than Soros' short selling of the Sunset Empire currency back then! ! !
The news sent shockwaves through Wall Street.
CDS, which no one paid much attention to in the past and was even ridiculed for buying, has begun to be wildly pursued by Wall Street elites and investors.
The telephone numbers of all the major CDS selling institutions have been flooded with calls.
Everyone is asking how CDS works.
There is a wave of short selling subprime mortgages using CDS in the market.
If this wave cannot be stopped, the ABX index will fall further, further promoting the outbreak of the subprime mortgage crisis.
Although the official of the hegemonic country has repeatedly condemned the purchase of CDS, saying that buying CDS will cause extreme deterioration of the hegemonic country's economy, and in the end, everyone will not have an easy life.
But... no one listened!
Today, the wave of short selling real estate has been successfully gathered by Chen Mo. Investors all over the world are like sharks smelling blood. They have gone crazy and are terrifyingly greedy!
People who dominate the Federal Reserve have also seen that many people believe that giving Chen Mo the name "Big Short" can no longer describe his crazy short selling behavior this time.
Netizens gave Chen Mo a new nickname - "Sky God"!
And those who are shorting subprime mortgages and shorting Hegemonic real estate all claim that they have joined the "Sky God Camp"!
They called the moment when Chen Mo shorted the stock price of Bells and others the "Bells and others moment", and they all recognized this moment as "the beginning of the subprime mortgage crisis."
“In the beginning, Chen Mo wanted to short Baguo Real Estate, and the whole world laughed at him.
But now...hey...did he really do it? "
Gass, the top executive of the Federal Reserve Bank, murmured with emotion and shock.
At this time, Jimmy found him with Jims and began several hours of intense negotiations.
"Our company may face a cash crisis this time. We only have three to four billion hegemonic dollars in cash on hand. If we have no choice, we have no choice but to apply."
By "filing," Jims means filing for bankruptcy protection.
This isn't a threat, it's just telling the truth.
Gass was silent for a while and asked: "The most critical question now is not how much liquidity you still have, but how long it can last in the current market situation that is on the verge of collapse even if I lend you money."
His guess is: it won't last long.
Jims knew it well, but he could only bite the bullet and said: "I don't think housing prices will continue to fall. As long as this period of time lasts, the situation will definitely get better."
Gass wanted to taunt him, but after thinking for a moment, he only said: "I can't make a decision immediately after I report it to the boss."
Gass himself was extremely reluctant to lend money to Bells and other companies because he knew it was likely to be a bottomless pit.
But the person who can really call the shots at the Overlord Fed is not even the person in charge of the Overlord Fed, but the foundation!
Gass soon passed the news to Solomon.
"Mr. Rothschild, Bells and others are the fifth largest investment bank in the hegemonic country. If it goes bankrupt, I am worried that the market will cause a chain reaction.
But if I lend it money, I'm afraid that the meat bun will beat the dog.
Therefore, I have to ask you to make up your mind on this matter. "
Solomon took a deep breath: "Once Bells and other companies collapse, the chain reaction will be terrible."
In fact, Solomon himself did not want to spend the money.
But it’s impossible not to get out! ! !
"When you come up with a safe plan, you must think carefully."
"Ok."
After Gass left, Solomon smashed the water glass on the table.
"Okay, okay! Chen Mo, you've started, right?!!"
"Then I will let you know the true terrifying power of the Foundation!!!"
"Michelle, give the order and start buying the bottom of the ABX index for him from tomorrow. We are going to knock Chen Mo down on the ABX index!!!"
