Vol 6 Chapter 176: Note

Feng Yiping wants to ask for help, but frankly speaking, the situation he is facing is purely self-evident and does not deserve sympathy.

Not only is it not worthy of sympathy, but if you talk about the current situation, many people will immediately say, "Can you stop showing off?" Or, "Let me go!"

However, another person who is a little like asking for help at this time is really worthy of sympathy.

At this time, early last year, he replaced Greenspan as Ben Bernanke, chairman of the Federal Reserve.

Before he became the head of the Federal Reserve, he had actually served in the Federal Reserve Bank of many cities in the United States. At the same time, he had been teaching economics at Princeton University until 2002. Before leaving, he was the dean of the Department of Economics at Princeton University.

Of course, the Fed chairman who was born as a scholar, the situation encountered at this time is still somewhat similar to Feng Yiping. Both of them, it can be said that they both have a good old age.

Because throughout Bernanke's academic career, it is not difficult to find that his research direction is mainly focused on the Great Depression.

In 2000, he published an academic monograph called "The Great Depression" through Princeton University Press. The book included nine papers he co-authored from 1983 to 1996.

As the name suggests, these papers are all related to the "Great Depression". Therefore, in the American civil and academic circles, the Great Depression and inflation, as well as the masters of monetary economics, are steadfast.

The so-called "Great Depression" is what the United States called the great capitalist economic crisis of the 1930s.

What is very useful for reference is that the crisis not only announced the end of liberal capitalism, but also demonstrated for the first time that the planned economy pursued by the Soviet Union, the only socialist country at the time, was more powerful than unregulated liberal capitalism. A financial crisis of certain superiority.

In that crisis, the New Deal of Roosevelt in the United States borrowed some practices of the socialist planned economy, adjusted and adjusted the American economy, and formed an intervening capitalist economic system that has continued to this day.

In short, in the eyes of the outside world, letting Bernanke serve as the current chairman of the Federal Reserve is like letting some guys who like Japan serve as an appraiser. It is really appropriate.

Because they finally found a job that suits their interests very well.

But for Bernanke at this time, he didn't finally have a chance to apply what he learned, and he was very happy to feel it.

He only felt aggrieved, very aggrieved.

Everything was done by the old guy Greenspan who could only cut interest rates or raise interest rates.

In the two years after the dot-com bubble burst in 2000, he cut interest rates 27 times in a row, lowering the interest rate to 1%. It is this low interest rate that gave the real estate market an upward momentum and ultimately promoted the US real estate market. Prosperity.

Then, given the overheating of the real estate market, he felt that such an extraordinary housing boom was undoubtedly unsustainable. Therefore, starting in 2003, he used one of his only two tactics. Another trick is to raise interest rates.

From 2003 to 2006, he raised interest rates 17 times in a row, and finally raised the benchmark interest rate from 1% to 525%.

But what this nameless guy did not expect is that the sharp rise in interest rates has increased the burden on home buyers to repay the mortgage, and mortgage defaults have continued to occur, which in turn accelerated the bursting of the US housing bubble. It makes him very heady.

So, why did the old guy who caused this situation now, wearing all kinds of laurels, enjoy his comfortable retirement life, and let me clean up the mess he left behind?

The key is that he is still praised by others, and now he is being scolded everywhere?

Bernanke has wanted to ask aloud many times recently, is there any reason for this?

And because of his professionalism, this time, the pressure he faced is actually twofold. If he fails to deal with this seemingly difficult crisis, people will not only question his ability to control the Fed, but also deny it. His academic achievements.

A master who studies the "Great Depression" but cannot solve similar crises is as ironic as a well-known general who can't win a battle.

To put it straightforwardly, if he didn't deal with this crisis properly, then not only would the Fed not stay longer, but he wanted to retreat to the network and develop in academia, it would not be possible, that is, this time, he has no way out at all. .

Looking at the various news gathered up by his staff, none of them made him feel optimistic. He took care of the beard that was originally very smooth but has always been messy recently. "Contact Paulson and Geithner. (Chairman of the Federal Reserve Bank of New York), it seems we have to prepare to inject capital into the financial system again,"

…………

Paulson, who is regarded as an old friend with Feng Yiping, and now the Secretary of the Treasury of the United States, would be surprised if he appeared in front of Feng Yiping.

This former Wall Street emperor, who is known for his vigor, now looks like his eyes are bloodshot, and the dark circles under his eyes are really comparable to our national treasure.

After receiving Bernanke's call, Paulson's face became colder again.

He already had the answer in his mind. If the capital injection this time is less than 20 billion US dollars, it will not have any effect at all.

These days, he always remembered how he attended the meeting at Camp David as an important member of the Bush administration’s economic team in July last year after taking over his current post.

He remembered that he talked a lot at the time, from welfare reforms to economic surplus, and the opacity of financial derivatives, as well as the size of hedge funds, but he did not talk about the real estate market.

What impressed him most was the question asked by the president at the end of the conversation, "Hank (Paulson's full name is Henry "Hank" Merritt Paulson Jr.), what can cause a financial crisis?"

He still remembers his answer at the time, "I don't know, sir, but when it happens, everything will be clear."

Now it happened!

But it seems that everything is not clear.

As for the extent of the subsequent development of the crisis, he still has no definite view until now.

However, it is clear that some people have a better understanding of this issue than everyone.

He looked at a magazine on the table. Some pages in that magazine looked very different in color from those on the side. They were much deeper and had burrs.

That's because, in the recent period, he always involuntarily turned over those pages.

That magazine is exactly the January issue of Frontier magazine this year, and those pages are exactly the signed article published by Feng Yiping.

Feng Yiping!

Paulson remembered several meetings between himself and Feng Yiping, as well as some exchanges between Goldman Sachs and his company. He had to say that he was really a surprising young man. Goldman Sachs served as a financial advisor to his US company several times to assist him The completion of the several acquisition plans was very amazing. Moreover, his several acquisitions were all serving his existing long-term plans.

His vision is truly unmatched.

Wait, thinking about this, and looking at the magazine again, Paulson suddenly felt that when he was at Goldman Sachs, he might have made a serious mistake.

It is precisely because Feng Yiping’s vision is no one can match ~www.wuxiaspot.com~ So, at the beginning, he so readily agreed to accept the shares of Ali held by Goldman Sachs, and later heard that he simply acquired Ali, so the future development of Ali, Will it be very strong?

Yes, it can't be wrong!

So... Paulson's head hurt suddenly. He felt that the original proposal to transfer the shares of Ali to Feng Yiping might be the worst decision in his entire career.

…………

At the same time, in the place where Paulson once fought and worked, on Wall Street in New York, there was a man who was also worried about Feng Yiping at this time.

He is the co-founder and person-in-charge of Blackstone. In China, there is a very Chinese name named Su Shimin.

Today, he finally knows who was behind the deal with China’s sovereign fund and his $3 billion deal.

"Yiping Feng!" At this time, because of the crisis, Mr. Su, who was also a little confused, even gritted his teeth when he mentioned Feng Yiping's name.