Chapter 702 Who is in danger if you are not in danger!

The acquisition fund of 1.5 billion US dollars is not a small amount. According to the exchange rate at the time, it is equivalent to more than 12 billion US dollars. Of course, Li Weidong will not be stupid enough to take money from his own pocket.

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

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

This is not asking you, the God of Wealth, to borrow money! Li Weidong didn't hide anything, and directly explained his purpose of coming.

After the guest and host were seated, Li Weidong said directly: Director Sui, I have a project recently that needs financing, and I need your help.

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

Li Weidong nodded: That's right, I'm short of money to buy Jaguar Land Rover!

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

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

As more and more information was released, it was no secret that Li Weidong acquired Jaguar Land Rover. Even the Science and Technology Commission called and asked Li Weidong about it.

At that time, China's automobile manufacturing industry was still underdeveloped, and the domestic automobile market was mainly occupied by major joint venture brands. It was absolutely earth-shattering for a local Chinese enterprise, and a private enterprise, to directly acquire a foreign first-line luxury automobile brand. It is normal for major events to attract the attention of the ministries and commissions.

In the eyes of the Chinese people, the acquisition of Jaguar Land Rover by a domestic private enterprise is undoubtedly a battle of the level of a snake swallowing an elephant, and it is not an exaggeration to say that it is a bit overreaching.

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 Jetta, and the durable Santana was the first choice for the unit. .

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

The domestic self-owned brand automobile manufacturing industry is still at the stage of Chery QQ, BYD F3 and Beidouxing. Jaguar Land Rover, which is at the same level as Porsche, was acquired by a Chinese company, which really shocked everyone's jaws. The impact was even worse than Geely's acquisition of Volvo later.

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

It's true. Li Weidong nodded.

Then it was also reported that India's Tata Group offered 2 billion US dollars, but Ford didn't sell it, but instead sold it to you for 1.5 billion US dollars. This should be a smoke bomb set by the media? Director Sui continued to ask.

This is also true. Li Weidong said again.

Then Ford is stupid? Isn't it a loss of 500 million US dollars! 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 needs 1.5 billion US dollars. How far are you short? I will try my best to help you find a way.

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

RMB? Director Sui asked immediately.

U.S. dollars! Li Weidong replied.

You don't pay a penny for co-authoring! Director Sui curled his lips, and then said: My Chairman Li, you think highly of me, 1.5 billion US dollars, which is equivalent to more than 12 billion yuan. With this ability to raise so much money for you!

If it’s only a fraction of 2 billion, I might still have the ability to convert 12 billion RMB into US dollars for you. The approval from the China Banking Regulatory Commission and the Foreign Exchange Bureau is beyond my ability! How many relationships have to be dredged, how many ministries and commissions have been visited, and how many chapters have been written to get things done!

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

Nonsense, if you dare not pay the interest, we will definitely sue you in court, and we will collect your Puppy Group to pay off the debt! Director Sui said jokingly, of course he also knew that what Li Weidong said was not for nothing, of course not interest, but other benefits.

Li Weidong continued: Director Sui, I have an important piece of news about the US economy, which may help you avoid losses of hundreds of millions of dollars!

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

Li Weidong reminded Director Sui of the bankruptcy cases of Enron Company and WorldCom Company in advance, and Director Sui was still working in the bank at that time. With Li Weidong's news, he helped the bank's investment system avoid a large loss. The director was promoted to the insurance company.

Now that Li Weidong said the 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 investment as soon as possible.

Li Weidong shook his head: This time, it is not a problem of a certain company, but a problem of the overall economy.

Director Sui froze for a moment, 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, and then said: It's more serious than the Internet financial bubble!

The Asian financial crisis hit East Asia's economies hard, and even Russia and Latin America suffered.

But Wall Street not only had no losses, but made a lot of money.

At the time of the Asian financial crisis, investors from European and American countries scoured Asia at low prices and bought a lot of high-quality assets. Japan has never recovered from its fall, and South Korea has directly become a wage earner for Americans.

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

After all, the Internet industry was underdeveloped at that time, and the impact of the entire industry on the economy was limited. Internet talents were high-end talents at the time, and they didn't have to worry about finding jobs.

Therefore, when the Internet bubble burst, investors in the financial sector were mainly 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 foundation of the U.S. economy. More importantly, the subsequent impact of the subprime mortgage crisis is likely to lead to the decline of the United States. In the worst case , and even lead to the disintegration of the dollar system.

Hearing that it was worse than the Asian financial crisis, Director Sui gasped, and asked instinctively: Chairman Li, do you mean that the United States will experience an economic crisis that is more serious than the 1997 Asian financial crisis?

Yes, this may be the worst one since the oil crisis in the 1970s, and it will definitely affect the whole world. Li Weidong replied seriously.

After thinking for a while, Director Sui said, Chairman Li, I'm not a professional in this area. You may have said many things, but I don't understand them. I don't think so. Let's make another appointment. Someone from the Strategy Department invited him to talk to you?

Of course. Li Weidong continued; But I have disclosed such an important matter to you, and you have to help me with the financing of 1.5 billion U.S. dollars.

Director Sui replied without thinking, No problem. If the investment strategy department agrees with your point of view, the financing of 1.5 billion dollars will definitely be no problem!

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

...

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 meeting room, many of them were senior managers of insurance companies, and their rank and positions were above that of 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 Hangwei of our company's strategic investment department. .”

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

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

James Bond's bald man is responsible for Feiyue's operation and management in the United States, including financing of course.

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

After Li Weidong exchanged pleasantries with Director Wei, Director Sui began to introduce the next person, a man about sixty years old, with gray temples, wearing glasses, and a gentle appearance.

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

Director Sui paused, and then introduced; During the Asian financial crisis in 1997, Professor Ye once participated in the Hong Kong Dollar Defense War. He repelled Soros that year, and Professor Ye's class has made a lot of contributions!

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

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

After the two exchanged pleasantries, Director Sui began to introduce the third expert, who was a young man in his early forties, of mixed race.

This is Evans Chen, who is also a senior consultant of our company's investment strategy department. Consultant Chen once worked on Wall Street and managed many hedge funds. He is a well-known black warrior on Wall Street! Director Sui continued to introduce.

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

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

Correspondingly, there is a kind of financial white warrior, which is a group that specializes in rescuing enterprises. When enterprises encounter difficulties, they help them out, help enterprises overcome difficulties, and help enterprises pay the minimum price to make a comeback. Of course, the white samurai will be paid for this process.

Director Sui introduced several experts, and then everyone sat down, 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. Serious economic crisis, can you talk about it in detail?

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

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

Yes, it's the subprime mortgage market. Li Weidong nodded.

Chairman Li, your basis shouldn't be the bankruptcy protection of New Century Finance, right? This time it was the black samurai Chen Aisi who spoke, his tone was full of provocation, obviously he didn't 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 increase in mortgage default rates can all be used as a precursor to a full-scale crisis in the subprime mortgage market! Li Weidong answered.

New Century Finance is a well-known subprime lending institution in the United States. This company filed for bankruptcy in April 2007, which caused the US stock market to plummet.

Ordinarily, at this time, investors should be alert to the subprime mortgage crisis. However, in June, the U.S. stock market rose again, which made the majority of investors think that the market is still good, thus underestimating the subprime mortgage crisis. seriousness.

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 in the United States, even a dog can get money 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 have been rising, there should be no problem. But once house prices stop rising or even fall, then there will inevitably be a lot of bad debts in subprime loans.

If only the bad debts of subprime loans are not terrible, what is terrible 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 CDO in the U.S. financial market, once it collapses, the entire U.S. finance industry will fall like dominoes. Now that the number of housing transactions in the United States is declining, it is the first domino bone...

We all understand 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. Most of the ratings are relatively high, and since the beginning of this year, the ratings of relevant CDOs are all A or above.”

Is the rating you're looking at from Standard \u0026 Poor's 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 International Credit Rating Company. Among them, Fitch is based in the UK, while S\u0026P and Moody's are based in the US.

Chen Aisi replied, S\u0026P's and Moody's are similar!

The difference is huge! Li Weidong smiled slightly, and then said: If I, as a customer, go to S\u0026P for ratings, if they dare to give me a low rating, I will immediately switch to Moody's, and S\u0026P will never think about rating me. Here's to getting a penny in business, and the other way around!

You mean, Standard \u0026 Poor's and Moody's cheated on their ratings? Chen Aisi had just finished speaking, but realized that she was a bit sloppy.

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

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

However, whether it is S\u0026P or Moody's, they are all commercial organizations with the purpose of making profits, and the objects of their ratings are their customers.

You'd have a hard time getting a commercial for-profit organization to talk about fairness with clients.

As Li Weidong said, if Standard \u0026 Poor’s rates a certain client too low, the client will turn around and go to Moody’s. Similarly, Moody's rated customers too low, and customers turned around and went to S\u0026P.

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

Many of you here have work experience on Wall Street, and are well aware of the operations of rating agencies.

A few seconds later, Chen Aisi sighed helplessly: Well, I admit that rating agencies are likely to give customers a higher investment rating.

Li Weidong followed Chen Aisi's words and continued: I think everyone 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 erupt in the United States.

Credit rating agencies have distorted the ratings for their own interests, 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 policies.

The subprime loan market in the United States is inherently crisis-ridden. The government has not implemented strict supervision in terms of policies.