Vol 6 Chapter 29: Challenge Wall Street

"It is these additional factors that caused securities that should have fallen, but continue to rise?" Jobs asked solemnly.

"Yes," Feng Yiping replied concisely and certainly.

"What you mean is that, including the three major rating agencies of Moody's, Standard & Poor's, and Fitch, the securities that can be invested in the level of investment are actually a bunch of...," Jobs moved several times, and finally said The word was replaced with "garbage,"

But everyone understands that what he wants to say is, shit.

"You are actually right, but it's not just those securities, including those rating agencies, which was originally shit," Feng Yiping said the word Jobs wanted to say.

At least for many Chinese, the so-called three major rating agencies are a mess because they have downgraded China's sovereign debt rating more than once.

But the facts have proved that when they lowered our rating, our national economy was still running smoothly and very well, still maintaining rapid growth.

"If we look at their financial reports, we can find some problems. For example, Moody's, in 2006, the revenue of the institutionalized financial business unit accounted for 44% of its total revenue, and the profit margin continued to exceed 50%. "

"In other words, the big banks on Wall Street are their real food and clothing parents. In many cases, they will have to become tools in the hands of Wall Street."

"In fact, since its establishment, the relationship between those rating agencies and investment banks has been very ambiguous. Many employees of rating agencies will yearn to work in investment banks because they will earn more."

"Under such a premise, they sometimes even take the initiative to cooperate with investment banks, letting some risky products pass the pass..."

"Wait," Page interrupted them, "that is, we can make an analogy. The situation we are facing now is similar to that all stocks are falling, but the Dow Jones index is rising. ?"

He asked with a question he was fairly familiar with.

Feng Yiping nodded, "Yes, we are now facing such a situation,"

"That is, this additional factor actually includes...," Jobs glanced at Brin and them, and then at Feng Yiping.

Because they don't understand these expertise, the main reason is that even for them, the guess is too amazing, so they are very uncertain.

"Including all the investment banks on Wall Street, including those rating agencies, and even the Federal Reserve. Together, they have caused the current situation that is deviating from the actual situation," Feng Yiping said again what they did not say.

Brin raised his hand like an elementary school student at this time, "Is it possible to say that the entire US financial community has joined forces to cause such an abnormal situation?"

Feng Yiping spread his hands.

Jobs patted on the table, "This is not an abnormal state, this is fraud,"

"It is indeed a fraud. Of course, although these guys are aware of it now, they may not know the seriousness of the matter."

If these organizations all know how serious this matter will be, then companies like Lehman Brothers will definitely launch them with all their strength and do everything possible to recoup their losses. Next year, at best, they will suffer a serious injury and will never go bankrupt. .

This method was also discussed in American movies later, which is to sell all the trash in your hands while other colleagues are still not clear.

At the same time, they can also go short, like Feng Yiping and others.

"Furthermore, when the entire Wall Street, including the Federal Reserve, did this, I thought, that obviously isn't fraud, is it?"

This is similar to the so-called punishers who steal hooks and those who steal the country.

The basket smashed by Wall Street is too big. It can be said that they have successfully kidnapped the entire US government and the entire US economy. Under such circumstances, what they did is obviously not a fraud.

"But no matter how they conceal it, this problem is always inconceivable. In fact, the market has already reacted. The CDS we invest in is the mortgage securities credit default swap product, of which the lower level , Such as Class B, the market price is already rising,"

"What does this mean?" Peppa asked without understanding.

"This means that more and more people are not optimistic about Class B mortgage securities, and more and more people believe that under the current situation, there will be large-scale defaults on Class B mortgage securities, and they will not be able to invest. Value, it has short value,"

"Because the purchase of B-grade CDS is essentially shorting B-grade mortgage securities,"

These words were very difficult for Feng Yiping to say, and they were also very difficult for them to hear, because those guys on Wall Street have created too many professional jargons that sound like Feng Yiping.

Not to mention the three of them.

"To make an inappropriate analogy, the product we invested in is equivalent to," Feng Yiping thought for a moment. "It is equivalent to buying an accident insurance for a neighbor next door. Of course, the beneficiary is yourself. "

"Or put it another way,"

Such a statement is like an inexplicable dispute with a neighbor.

Moreover, in the eyes of many people, he and his neighbor named Alba on Beverly Hills were a little unclear at first.

"It's equivalent to buying an insurance for the neighbor's car next door. Of course, the beneficiaries are still ourselves,"

"In the current situation, the neighbor’s car has already had a problem, but he said no, the insurance company said no, and the police station said no. Even the victim of his accident said no. I was fine. "

"The problem is that a neighbor can say that if all of our neighbors’ cars have accidents, then obviously we can’t cover them up,"

"The development trend is that all neighbors' cars will really have accidents," Jobs said.

"Yes," Feng Yiping answered in the affirmative again.

The three suddenly let out a sigh of relief. It was not to relax, it was surprise.

They still don't understand those technical terms, but just think about it, all neighbors' cars will have accidents, then they can understand very intuitively how big an accident will be.

They don't understand the economy anymore, and at this time they will understand how big challenges the entire American economic system will face when that happens.

"Our economy will die?" Brin asked.

"This should be a financial crisis with huge losses. Many companies will go bankrupt and many people will go bankrupt. But in the end, the government will definitely bail out the market."

"So, it won't be finished, but it will be badly injured,"

"Will the stock price fall?" Page asked.

"It will definitely fall,"

During the financial crisis, the company's revenue will definitely fall, or at least not grow as fast as it is now.

"So, this time, we are also involved in stock index futures. We will explain these situations to you in detail in the future."

They don’t understand it, and they only increase their worries~www.wuxiaspot.com~ I heard that the stock price will fall, and their faces are even more ugly, because that means that the company’s market value will fall next year and their wealth Will shrink.

"That is, we are equivalent to confronting the entire American financial system?" Jobs's question is from another angle.

"You can say that," Feng Yiping nodded.

Only then did Jobs understand why Feng Yiping said that his nationality might affect the project when he found him.

Why do you want to get rewards smoothly, you may rely on someone like him who is influential and famous in the business world.

Because obviously, it is obviously not an easy task to get the rewards that might make their company fail from the hands of those Wall Street guys.

Of course, he is confident.

If anyone on Wall Street dares to do that, he will let them learn their own strength.

"Actually, it is not just a few of us who are against Wall Street. There are many other investors. I can be sure that even some banks are making the same investment as us at this time to offset their losses."

"That is, they themselves will be against themselves,"

"Yes, they only have money in their eyes," Brin gulped his tea.

They have always had a bad impression of Wall Street.

"Then what shall we do now, wait?" Page asked.

"No, we can't be so negative. We will continue to increase investment. Moreover, this time we will invest in those A-grade credit default swaps that are rated higher, that is, everyone believes that the risk is the least and the return is higher."

"Since they are bound to be offended, then just be cruel."

Such Feng Yiping surprised Jobs and the others. Is this still not enough for the future conflict with Wall Street?

However, such courage, they like it! 8)