American Fortune Life

The current U.S. stock market is becoming more and more weird, with ups and downs, and there is no rule to follow. A rumor on Wall Street may even bring about turmoil in the stock market.

Bardstone is very clear that this is caused by the general anxiety of the market. Everyone feels that there is something wrong, but they all find out what went wrong. That's why this kind of worry and anxiety, or suspiciousness, is more appropriate. .

"Boss, our purchase of a large number of cheap CDS on the market has attracted the attention of some people. Some people even went to the company to inquire about the news. , that is, the index needs to plummet) is still stable, Standard \u0026 Poor’s has not lowered the rating of CDO, and the price of CDS is also very cheap now, but there are already some concerns in the market.”

After Bardstone finished telling the latest situation, Andy looked at the detailed data on the table, CDO and CDS. The relationship between these two products is that the higher the risk of a CDO, the higher the value of the CDS guaranteed for it. But during the real estate boom, CDS were very cheap because most people didn't think CDOs were any risk.

And what Andy is doing now is shorting dangerous CDOs while buying cheap CDS.

Andy closed the document, with the corners of his mouth upturned, with a hint of a smile, which seemed to be sarcasm and joy, "The whole world is in a false carnival, and a few outsiders and geniuses may be discerning. Investors are greedy, bankers Greed, once sitting on Wall Street, greed becomes a due, almost an obligation.

Are there really no smart people here? No, it's a strange circle, and the closer you get to the market, the harder it is to spot its stupidity!

What we do now is we gamble on bond trading, and the line between gambling and investing is artificial and very thin. The most sound investment also has a certain gambling character, and the most daring speculation also has obvious investment characteristics. Perhaps the best definition of "investing" is "a gamble where the odds are in your favor."

"Hehe, boss, the scale of our investment this time is not smaller than some Wall Street investment banks. Even Facebook shares have been mortgaged for 200 million U.S. dollars. We now hold 700 million U.S. dollars in CDS and 200 million U.S. dollars. Short CDO, deposit 150 million margin in JPMorgan Chase, use the interest generated to fill the loss, once the real estate collapses, boss, you will create a new wealth myth!" Alvitelli's courage for Andy is from the heart Admiration, this is a big gamble that bet almost all of his wealth.

Al's words made everyone in the conference room cast their fiery eyes on Andy. After all, everyone sitting here has been busy with research around the real estate market, and they are all convinced of the collapse of the real estate market. Undoubtedly, it is only a matter of time before the boss creates the myth of wealth.

"Hehe, this is also inseparable from the work you have done during this time. I am not a stingy person. You will get good bonuses and plenty of vacation time for your hard work during this time." Andy said to his subordinates The idea is very clear, and he is indeed not a stingy person. Isn't it just a generous bonus to go to Wall Street? The annual salary standard is not very high in order to avoid the government's attention.

The rigorous and reserved Wall Street elites didn't have chaotic cheers or whistles, but just clapped vigorously with joyful faces.

"Hehe, why does everyone give me the feeling that the winner seems to be in my hands? If everything goes smoothly, you need to work hard in the future. I hope everyone can cheer up. For a period of time in the future, even a few years Here, we will witness miracles and changes in the world economy, I hope you will not fall behind, because this is my opportunity, and it is also your opportunity to realize your self-worth!" Andy took no time to draw a bright future for everyone, everyone is profit-seeking of,

On Wall Street, it is undoubtedly the most appropriate to drive them with interests.

Waiting for the happy people to leave, only Bardstone, Alvetrie, and Li Xiaoying, who was called down by Andy, were left in the meeting room.

"Al, when does your think tank expect the first domino to fall?" Andy asked Al with a more casual sitting posture, turning the pen in his hand.

"The most ideal situation is for the three major rating agencies to lower the rating of MBS (mortgage loan securities). Unfortunately, this situation is very difficult to happen, triple A!" Al had a mocking smile on his face and shook his head again and again.

"Can the three major rating agencies really fail to see the risk of the real estate bubble?" Andy frowned slightly, really wondering how the three major rating agencies, which are very famous and powerful all over the world, would not be able to understand market changes Well, there is Standard \u0026 Poor's here, and even ordinary people in Rabbit Country have heard of the name of this professional company.

"Actually, the three major rating agencies have also been deceived. The ratings they give are based entirely on the materials traders want to show them and their own common sense." Budstone smiled and gave Andy puzzled.

"How?" Andy was a little curious.

"The bond traders at the Wall Street investment banks are seven-figure guys, and they're telling the five-figure guys (the ratings employees) that they have more than enough. In fact, the best employees at the ratings companies are all over the place. He jumped to an investment bank to help his new boss deal with his old boss.” Bardstone saw that the boss didn’t seem to believe this reason, so he gave the boss another simple example of deception.

To put it simply, half of the borrowers who can get high-scoring ratings and the other half of low-scoring borrowers are purposely put into one MBS. There is a very, very high possibility that the borrowers who have divided the loan will cut off the payment.

"There is another most important reason, which is that their biggest basis is that since the Great Depression, the United States has never seen a nationwide decline in housing prices. They feel that borrowers can't pay off their loans, and they will have to take over the house at that time , For MBS, they are so relieved to give a AAA rating."

Andy's brows stretched out. This reason is very reliable, "Since we can't count on the rating agency, where will the first domino start to fall?"

"After our think tank has analyzed all the information that can be collected publicly, the second quarter will usher in a loan repayment peak, and large-scale supply cuts will occur. That is to say, in April, a loan from a certain loan company When bankruptcy starts, the domino effect will start to detonate the real estate bubble in the United States. At that time, our CDS can start to make profits. As for the short selling of CDOs, we still need to face the dying struggle of our opponents. However, it will not take long. . .”

Alvetrie spread his arms out, casually placed them on the conference table, and confidently and calmly gave the answer the boss needed. This is also the value of their think tank. Otherwise, why would the boss spend money to support them.

Andy smiled in satisfaction, and leaned his tall and strong body against the boss chair. He really couldn't wait for April to come.

"By the way, Al, there is one more thing that you need to allocate some people to cooperate with Emily. Immediately, Emily will be in charge of contacting the Graham family to complete the acquisition of "Newsweek."

"God! This is simply unbelievable, boss, you actually want to buy "Newsweek"?" Al said in surprise.

Bardstone and Li Xiaoying also looked at Andy in surprise. After all, the influence of "Newsweek" is too great, and it is by no means comparable to the previous regional weekly "The Observer".

"Yes, it's almost certain that I'll own the weekly magazine, and the purchase price will be a dollar..."

. . . . . .

Andy had a smug smile on his face, and his footsteps became light and light. Thinking of the dumbfounded expressions of the three people in the meeting room just now, he couldn't help feeling refreshed. worship.

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