Chapter 702 You are not in crisis, who is in crisis!

Fall in love with youkanshu.com, a reborn industrial tycoon

The acquisition capital of 1.5 billion US dollars is not a small amount. According to the exchange rate at the time, it was equivalent to more than 12 billion US dollars. Of course, Li Weidong would not be stupid enough to pay from his own pockets.

With so much money, Li Weidong naturally had to rely on financing. So Li Weidong went to the insurance company again and found the familiar Director Sui.

Chairman Li, what brought you here! Director Sui greeted him with a smile.

I'm not looking for you, the God of Wealth, to borrow money! Li Weidong didn't hide it, and directly explained his purpose.

After the guests and the host were seated, Li Weidong said directly, Director Sui, I have a project recently and I need financing. I have to ask you for help.

Is it about the acquisition of Jaguar Land Rover? Director Sui asked directly.

Li Weidong nodded: Yes, I'm running out of money to buy Jaguar Land Rover!

It seems that the news is true! Director Sui sighed in surprise, and then said, Chairman Li, you are really generous! Others build cars from light cars, and you are Jaguar Land Rover!

I also want to overtake a corner! Li Weidong said with a smile.

As more and more information is released, it is no secret that Li Weidong's acquisition of Jaguar Land Rover has even been called by the Science and Technology Commission to ask Li Weidong about the matter.

At that time, China's automobile manufacturing industry was not yet developed, and the domestic automobile market was mainly occupied by major joint venture brands. It was absolutely earth-shattering for Chinese local enterprises, and private enterprises, to directly acquire foreign first-tier luxury automobile brands. It is normal for major events to arouse the attention of ministries and commissions.

In the eyes of the Chinese, the acquisition of Jaguar Land Rover by a domestic private enterprise is undoubtedly a battle at the level of a snake swallowing an elephant.

After all, in that era, ordinary Chinese families still mainly bought A-class cars and B-class cars. At that time, the national car sales champion was still the Jetta. The durable Santana was the first choice for units. .

Many wealthy families may choose Honda Accord, Toyota Camry and Volkswagen Passat, but bba is still too far away for ordinary wealthy families.

The auto manufacturing industry of domestic independent brands is still at the stage of Chery QQ, BYD F3 and Big Dipper. Jaguar Land Rover, which is on the same level as Porsche, was to be acquired by a Chinese company. It really shocked everyone's jaws. The impact was even greater than that of Geely's acquisition of Volvo.

After Director Sui was surprised, he asked, I saw reports that the acquisition of Jaguar Land Rover would cost US$1.5 billion. Is this amount true or false?

It's true. Li Weidong nodded.

There is also a report that India's Tata Group paid $2 billion, but Ford didn't sell it, but sold it to you for $1.5 billion. This should be a smoke bomb thrown by the media? Director Sui then asked.

This is also true. Li Weidong said again.

Then Ford is stupid? Isn't this a loss of $500 million! Director Sui said immediately.

Of course I gave Ford some extra benefits. In general, Ford still makes money! Li Weidong stopped talking when he said this.

Director Sui nodded suddenly: I understand, business secrets!

Then he changed his voice and asked, The acquisition of Jaguar Land Rover costs US$1.5 billion, how much are you missing? I will try my best to help you find a way.

It's still 1.5 billion. Li Weidong replied with a smile.

RMB? Director Sui immediately asked.

Dollar! Li Weidong replied.

You can't get a penny together! Director Sui pouted,

Then he said: My Chairman Li, you look down on me too much. US$1.5 billion is equivalent to more than 12 billion RMB. How can I have the ability to raise so much money for you!

If it is only a fraction of 2 billion, I may still have the ability, 12 billion yuan, and then exchange it into US dollars for you, the approval from the CBRC and the foreign exchange bureau is not something I can handle! How many relationships, how many ministries, and how many chapters it takes to get things done!

Li Weidong smiled calmly: Director Sui, don't worry! I didn't borrow these 1.5 billion dollars for nothing!

Nonsense, if you dare not pay the interest, we will definitely go to the court to sue you, and then we will collect your puppy group to repay the debt! Director Sui said jokingly, of course he also knew that what Li Weidong said was not a free loan, naturally not interest, but other benefits.

Li Weidong went on to say, Director Sui, I have important news about the U.S. economy. Maybe it can help you avoid hundreds of millions of dollars in losses!

Director Sui came to his senses immediately, and he hurriedly asked, Which American company is going to go bankrupt?

Li Weidong reminded Director Sui in advance of the bankruptcy cases of Enron and Shitong. At that time, Director Sui was still working in the bank. With the news of Li Weidong, he helped the bank's investment system to avoid a lot of losses. Therefore, Sui The director was promoted to the insurance company's side.

Now that Li Weidong said important news that losses could be avoided, Director Sui's first reaction was that another company was about to go bankrupt and he had to withdraw his investment quickly.

Li Weidong shook his head: This time, it's not the problem of one company, but the problem of the whole economy.

Director Sui was stunned for a while, his expression became solemn, and then he asked, Similar to the Asian financial crisis?

It's more serious than the Asian financial crisis! Li Weidong paused before saying, It's even more serious than the Internet financial bubble!

The Asian financial crisis hit the economies of East Asia hard, and even brought Russia and Latin America to its knees.

But Wall Street not only did not lose, but made a lot of money.

At the time of the Asian Financial Crisis, investors from European and American countries swept goods in Asia at low prices and bought a lot of high-quality assets. Since then, Japan has been stagnant, and South Korea has become a working man of Americans.

In the Internet bubble in 2000, American investors suffered heavy losses, but they did not hurt the fundamentals of the American economy.

After all, the Internet industry was underdeveloped at that time, and the entire industry had a limited impact on the economy. Internet talents belonged to high-end talents at that time, and they did not worry about finding jobs.

Therefore, when the Internet bubble burst, it was mainly investors in the financial sector who were injured. The real economy was not affected, and even the unemployment rate did not increase significantly.

But the subprime mortgage crisis in 2008 was different. This crisis directly hurt the fundamentals of the U.S. economy. More importantly, the follow-up impact of the subprime mortgage crisis is likely to lead to the decline of the United States. , and even lead to the collapse of the dollar system.

Hearing that it was even more serious than the Asian financial crisis, Director Sui suddenly took a breath and asked instinctively, Chairman Li, do you mean that the United States is going to have an economic crisis that is more serious than the 1997 Asian financial crisis?

Yes, this may be the most serious one since the oil crisis in the 1970s, and it will definitely affect the world. Li Weidong replied with a serious look.

Director Sui thought for a moment, and then said, Chairman Li, I'm not a professional in this regard, and I may not understand many things you said, but I don't think so, let's make an appointment, and I will invest in the group. Someone from the Strategy Department invites him to chat with you?

Of course you can. Li Weidong continued; But I am revealing such an important matter to you, and you have to help me get this $1.5 billion financing.

Director Sui replied without thinking: No problem, if the investment strategy department also agrees with your point of view, there will be no problem with the financing of 1.5 billion US dollars!

It is even more serious than the Asian financial crisis, and it will even affect the global economic crisis. In exchange for financing of US$1.5 billion, any financial institution will rush to do such a cost-effective transaction.

...

Two days later, Li Weidong came to the insurance company again and was invited to a conference room.

There were more than a dozen people in the conference room, many of whom were senior executives of insurance companies, whose rank and position were above Director Sui.

Of course, the most important thing is several economic experts.

Director Sui pointed to a somewhat bald man and introduced; This is Director Wei Hang Wei, the director of our company's strategic investment department. Director Wei has worked in Merrill Lynch, Deutsche Bank, and **** as the director of the investment department. .

Chairman Li, hello! Director Wei shook hands with Li Weidong and said with a smile: I have heard Chairman Li's name for a long time, and we finally meet today.

Then Director Wei lowered his voice and said, Chairman Li, we have a long history. When I was in ****, I also invested in your Feiyue brand.

The operation and management of Feiyue in the United States are all in charge of the bald head of James Bond, including financing of course.

As an emerging sports brand with several top stars as endorsements behind it, Feiyue is naturally the sweet potato in the eyes of many investors. Therefore, in the process of Feiyue financing, many investment banks participated.

After Li Weidong and Director Wei exchanged a few words, Director Sui began to introduce the next one. This is a man of about sixty years old, with gray temples, glasses, and a gentle appearance.

This is Professor Ye Yi. Professor Ye used to be a professor in the Department of Finance at Princeton University. He also served as an investment advisor to Goldman Sachs and Citigroup. Now he is a senior investment advisor in the investment strategy department of our company.

Director Sui paused, then introduced: During the Asian Financial Crisis in 1997, Professor Ye participated in the battle to defend the Hong Kong dollar, and in defeating Soros back then, Professor Ye made a great contribution to his class!

I saw Professor Ye looked at Li Weidong up and down, and then said: Chairman Li, I have heard your name for a long time. Before the Hong Kong dollar defense war, Professor Situjian once showed me your share of the Asian financial crisis. The analysis report is really insightful! At that time, I wondered when there was such a powerful economist in China!

That was Zhuge Liang's analysis after the fact, isn't it insightful! Li Weidong thought to himself.

After a little chat between the two, Director Sui began to introduce the third expert, a young man in his early 40s who was of mixed race.

This is Evans-Chen, who is also a senior consultant of our company's investment strategy department. Consultant Chen used to work on Wall Street and managed several hedge funds. He is a well-known Darth Vader on Wall Street! Director Sui continued.

My Chinese name is Chen Aisi. Evans-Chen's Mandarin still has some foreign flavor.

Li Weidong knows that the black warriors in the financial field are those who specialize in financial sniping and then profit from them. .

Correspondingly, there is a kind of financial white warrior, which is a group that specializes in saving companies. When companies encounter difficulties, they help them, help them get through the difficulties, and help companies make a comeback at the minimum cost. Of course, the white warriors will be charged for this process.

Director Sui introduced several experts, and then everyone took their seats, and the meeting officially started.

Director Wei was the first to speak, and he said, Chairman Li, I know that you have predicted the Asian financial crisis and the bankruptcy of Enron and WorldCom, and this time you have predicted that the United States will usher in an extraordinary Serious economic crisis, can you talk about it in detail?

Okay, let me say the conclusion first. According to my observation, a subprime mortgage crisis is about to break out in the United States. And it will affect the whole world and eventually cause an economic crisis in the whole world. Li Weidong replied.

Subprime mortgage crisis? Is it the subprime mortgage market in the United States? Professor Ye asked.

Yes, it is the subprime mortgage market. Li Weidong nodded.

Chairman Li, your basis, shouldn't it be the bankruptcy protection of the financial affairs of the new century? This time, the black warrior Chen Aisi was speaking. His tone was full of provocation, and he obviously did not agree with Li Weidong's point of view. .

New Century Finance is just one of the indicators. In addition, the decline in housing transactions in the United States and the rise in mortgage default rates can be used as a precursor to a full-scale crisis in the subprime mortgage market! Li Weidong replied.

New Century Financial is a well-known subprime lender in the United States. The company filed for bankruptcy in April 2007, which caused the US stock market to plummet.

It is said that at this time, investors should be alert to the subprime mortgage crisis. However, in June, the US stock market rose again, which made the majority of investors believe that the market is still good, thus underestimating the subprime mortgage crisis. severity.

Li Weidong went on to say: The loan policy in the United States is too loose, especially the threshold for subprime loans is very low, and the supervision is very unfavorable. It is no exaggeration to say that now in the United States, even a dog can get it from the bank. to the loan!

What Li Weidong said is really not an exaggeration. In the United States at that time, someone really got a loan from a bank in the name of a dog.

Li Weidong continued: Subprime loans are mainly used in the housing loan market. If house prices keep rising, there should be no problem, but once house prices stop rising, or even fall, there will inevitably be a lot of bad debts in subprime loans.

If only the bad debts of subprime loans are not terrible, the terrible thing is that other markets derived from subprime loans, such as cds, cdo and other financial products, will collapse.

With the current volume of CDs and CDOs in the U.S. financial market, once it collapses, the entire U.S. financial sector will fall like dominoes. Now that US home sales are down, it's the first domino bone...

We all know the basic financial knowledge you mentioned! Chen Aisi interrupted Li Weidong impatiently, and he continued: I have been paying attention to the CDO situation in the United States, CDOs related to the subprime loan market, Most of the ratings are relatively high, and since the beginning of this year, the ratings of the relevant CDOs are all A or above.”

The rating you are looking at, is it S\u0026P or Moody's? Li Weidong asked immediately.

There are three major rating agencies in the world, namely Standard \u0026 Poor's, Moody's Investors Service, and Fitch Ratings. Among them, Fitch is in the United Kingdom, and S\u0026P and Moody's are in the United States.

Chen Aisi replied, S\u0026P's and Moody's are almost the same!

The difference is huge! Li Weidong smiled slightly, and then said: If I, as a client, go to S\u0026P for rating, if they dare to give me a low rating, I will immediately switch to Moody's, and S\u0026P will never think about me Here's a penny business, and vice versa!

What do you mean, S\u0026P and Moody's have faked their ratings? Chen Aisi just said what he said, but found that he was a little sloppy.

As a former black warrior of Wall Street, how could he not know the way of S\u0026P and Moody's in terms of ratings!

A rating company should not only be professional enough, but also be fair.

However, whether it is Standard \u0026 Poor's or Moody's, they are commercial organizations, for the purpose of profit, and the objects of their ratings are their customers.

You might have a hard time getting a commercial for-profit organization to talk about fairness when it comes to customers.

As Li Weidong said, if S\u0026P rates a client too low, the client turns to Moody's. The same Moody's rated the client too low, and the client turned to S\u0026P.

The elites on Wall Street naturally knew about this situation, but everyone pretended to be confused and didn't pierce that layer of window paper.

Many of the people present here have work experience on Wall Street and are well aware of the operation of rating agencies.

A few seconds later, Chen Aisi sighed helplessly: Okay, I admit that the rating agency is likely to give clients a higher investment rating.

Li Weidong followed Chen Aisi's words and continued: I think everyone sitting here knows that even S\u0026P or Moody's are unreliable, and this is another basis for my belief that the subprime mortgage crisis will inevitably break out in the United States.

Credit rating agencies have distorted ratings for their own benefit, and it has become the norm, which means that the United States is extremely relaxed or even weak in the supervision of financial and monetary policy.

The subprime loan market in the United States is already full of crises, and the government has not carried out strict supervision on policies.