Chapter 2258 200 basis points! An unprecedented interest rate cut!
The investors who had just seen the K-line chart showing a flat area suddenly felt their mood plummet into the abyss!
"Oh, my-God! I thought the air force had already released all its energy, why is it coming again?"
"It's over, it's over, I bought the bargain halfway up the mountain!"
"I'm afraid it's copied on your heels!"
"Sell them quickly!!! Subprime-related bonds, real estate-related stocks, and ABX-related stock indices, all sell them the fucking way!!!"
"The short-selling camp is still doing its best to short sell!!! The small wave of smooth operations just now was to lure us into the market so that they can cut our leeks!!!"
"..."
Within ten minutes, one trillion yuan was dumped like a storm, which immediately triggered a new round of panic selling.
The abx index once again entered a violent decline mode!!!
-14%
-15%
-16%
-17%…
The decline of the ABX index has led to a sharp drop in all real estate-related financial products!
House prices, CDOs, real estate company stocks, real estate sector indexes...
Anyone who has anything to do with real estate will have only one outcome – a sharp drop in prices!!!
Some international capital, like sharks smelling blood, have also begun to join the short-selling camp, following the trend to short the ABX index and real estate-related financial products.
The world's largest economy and hegemonic country seem to have become a delicacy in the mouths of many international capitals and international financial tycoons at this moment.
……
……
Foundation headquarters.
Looking at the crazy decline of the ABX index, Michelle was sweating profusely and couldn't help but remind:
"Mr. Rothschild, the ABX index has fallen by 20 points!
This is the largest and fastest single drop in the ABX index since the founding of the country! "
"If we don't stop it, the entire real estate industry and the banking industry will be doomed!!"
Solomon seemed not to have heard Michelle's words. He looked at the big screen with a gloomy face and murmured:
"Impossible! Most of Chen Mo's funds should have been used to buy CDs. How dare he do this?"
"Where did he get his money from? Could it be that the information the 'children' collected was wrong?"
Obviously, Solomon didn't know that Chen Mo was looking for some tycoons in Baguo and wealthy families in Daxia to raise money.
Of course, Solomon quickly realized that now was not the time to dwell on this issue.
No matter what Chen Mo thinks, whether he has real money or fake money, he must hedge.
Solomon turned around suddenly and shouted to the nearly 100 traders behind him: "Everyone listen, sell your shorts and buy up the ABX index in large quantities! Move faster!"
The black trader asked, "Sir, how much is the appropriate amount to buy?"
Solomon pondered for a moment and said calmly, "10 minutes, hedge 2 trillion, whatever Chen Mo sells, we'll take!"
"Also, hurry up and have the Federal Reserve prepare for a substantial rate cut. At the same time, get the news of the successful assistance from Bear St. and others out as soon as possible!!!"
Hannibal and the others felt much more relaxed after hearing this.
This is the operation they can understand.
But Solomon actually knew that the Federal Reserve's tactic of lowering interest rates would not be used many times.
Every time it is used, the pace of severe inflation or even stagflation will come faster.
This sharp blade hangs over the heads of the Foundation and the Hegemony, and may fall at any time.
Now it depends on who dies faster between him and Chen Mo.
"Daxia people are best at using tricks. Chen Mo's operation this time may not have much real strength, but it is mostly a gimmick.
He bet that I dared not follow, but I insisted on following!
Chen Mo, you have far fewer bullets than I do. No matter how big your show is, I can still follow you!"
……
……
Merdeka Building.
Chen Mo looked at the computer screen and smiled faintly: "If I'm not mistaken, the foundation should be unable to resist hedging."
As soon as Chen Mo finished speaking, Han Li exclaimed:
"Mr. Chen, Solomon has taken action!"
“All our short orders have been eaten up!!!”
“The buying is huge!!! They are investing huge amounts of money to go long on the ABX index!!!”
He Chaoling looked at Chen Mo with her beautiful eyes: "Boss, you are really amazing. You have calculated this accurately."
Chen Mo said calmly: "This is not calculated, but it is written in the script I wrote, and this is how the plot goes.
According to the foundation’s routine, if they dare to spend so much money to rescue the market, it should usually be accompanied by the good news of the Federal Reserve’s interest rate cut.”
As soon as he finished speaking, a headline news pushed across the entire network popped up on his phone.
"The latest announcement from the Federal Reserve announced a 200 basis point interest rate cut. This rate cut is the largest single rate cut in the history of the Federal Reserve, and it also represents the official attitude towards rescuing the market..."
When seeing this news, He Chaoling took a breath.
Normally, when the Federal Reserve raises or lowers interest rates, it will affect the global economy, so the unit of interest rate cuts is usually basis points, and 1% is equal to 100 basis points.
Under normal circumstances, the regulation would only increase or decrease the basis points by a single digit. Only when the economic risks are particularly high would the regulation increase or decrease the basis points by dozens.
2001年互联网泡沫破裂导致的金融危机那次，霸联储从2001年1月3日开始降息，至2003年6月25日结束，总计降息13次，累计降息幅度达550个基点（从6.5%降至1%）。
然后往前追溯95年到98年的金融风暴那次，至1998年11月17日结束，总计降息6次，累计降息幅度为125个基点（从6%降至4.75%）。
It can be seen that in the previous financial crisis, even if the Federal Reserve lowered the interest rate by 1%, the cycle was calculated in months or even years!
But this time, the Federal Reserve cut interest rates three times within this week!
The minimum is 50 basis points each time!
Today, it dropped 200 basis points at one time!
In just one day, the rate dropped by a number of basis points comparable to the three-year drop during the 98 financial crisis!!!
Such a terrible interest rate cut indirectly proves how much the foundation is terrified by the subprime mortgage crisis caused by Chen Mo.
"What is the current interest rate of the Federal Reserve?"
Chen Mo asked.
"It's only 1.5% left, a historic low."
He Chaoling said with surging emotions.
"It's not the lowest point." Chen Mo said with a smile.
“It’s already 1.5%, can it drop below 1%?”
He Chaoling felt her scalp tingling.
If that really happened, I guess no one would save any money, and everyone would have to spend it.
When all the hot money comes in, I don’t know how high the prices will rise!!!
"1%? Haha, do you believe that the foundation dares to reduce it to 0 in order to save the market?"
