Blackstone Code

Short selling is a common financial trading behavior.

Bupen's stock brokers use a simple and intuitive way like "buy big or small" to explain what long and short are to customers who don't know anything. This simple and direct statement makes it easier for customers to understand what they are facing. What.

To be more specific, the price of a financial product is one hundred yuan each. At this time, A borrows one from B and sells it to other buyers. A has one hundred yuan in his hand.

After a while, when the product dropped to 50 yuan apiece, A spent 50 yuan to buy back the product and gave it back to B.

In this transaction, A made a profit of 50 yuan by taking advantage of the price difference due to the decline in the commodity. This is the process of short selling profit.

If the commodity does not fall but rises, you will lose as much as it rises.

Of course, this is just a simple overview. In fact, there are some other factors that need to be added to the calculation of the overall profit and loss, but in general, this is the principle of short selling.

Lynch wants to lend money to Mr. Herbers, and Mr. Herbers will take out the money and exchange it for other currencies. When Galil becomes worthless, he will spend the money to buy the waste paper. Return it to Lynch, and what's left in his pocket is his profit.

But could Lynch be such a kind person?

This is a problem, a big problem.

Mr. Herbers didn't think Lynch was a good person. The reason was simple. He had just stated that his purpose of doing this was to get revenge for a harmless joke two years ago.

So what he said now, could it be true?

Is it really because of a matter of principle that you want to help him, or is it a new trap?

Mr. Herbers's mood swings at this time were very complicated. It was difficult for him to concentrate on thinking. The impending bankruptcy made him feel the urge to urinate. He put his legs together and asked a question, "How many?"

What he asked was how much money Lynch could lend him and how many Galils he could lend him. If Lynch had enough cash in hand, then he might not be unable to recover his losses.

He briefly thought about it, just like the previous business, he didn't find any problems, but at this moment he was no longer allowed to have too many trade-offs, and he had to find a way to solve these problems as soon as possible.

Once Galil collapsed completely, he wouldn't even have the last chance.

Lynch looked at Mr. Herbers' unwilling expression and smiled happily. "Wait a moment..." He motioned to Mr. Herbers to sit down for a while while he entered the back room and picked up the phone.

The sound of his conversation faintly penetrated the unclosed door and reached Mr. Herbers's ears. Lynch seemed to be asking these questions.

Thinking of this, he began to think again, had Lynch also laid a trap for him this time?

On the other side, Lynch was on the phone with Lem, "Do we and our customers still have Galil in stock?"

"Our hands have been emptied, but there are still many in the hands of our customers..." Lem couldn't help but sneered as he spoke, "At least about ten to two billion are in the hands of our customers."

"I have informed all our clients as you said before that Galil has huge risks and is not recommended for them to hold, but as you know, Galil has been rising and there has been a big increase recently, so they Actively asked to use their entrusted account to follow the trend and enter the market, so..."

Lime stopped talking at this point, and was followed by his brisk laughter. Lynch knew what he was going to say, and he also knew that Lynch could guess it.

When people face problems they don't understand, they often become polarized.

In the first state, individual knowledge, status, wealth, and power belong to the middle and lower classes of society. They lack a distinctive independent thought and have not achieved any successful results. These people are often persuaded by those who are more professional than them. .

Being persuaded does not mean that they are soft-hearted, but that they really have little confidence in these things that they do not understand. They can only rely on professional people to provide professional opinions. This is why Bupen’s stock brokers often work in the legal field. Appear as negative teaching materials in programs or publications.

Individuals in the second state may not be very knowledgeable, but they are all successful people.

They have sufficient social status, wealth or power. To put it in simpler terms, these people are successful. Successful people have their own judgment and are not easily persuaded by others. They believe in their own judgment more.

When there is an obvious conflict between their judgment and Lem's prompts, Lem, who has not yet thoroughly proven himself in front of people, does not have the ability to convince these people. They do not believe in Lem's judgment, but they believe in their own consistent behavior. experience and feelings of success.

This also led to the slightly poorer customers in Lime's hands (this part is actually at least the middle class, much richer than the civilian class) who were very obedient and did not invest money in Galil's operation. Those who Big accounts with money are buying Galil one after another.

About 20% of the Galil in Lynch's hands was eaten by them, and the remaining part was eaten by all parties through various means. After all, it was spot goods!

Not long ago, these people who made money with good news were discussing Lime's ability behind their backs, but as soon as bad news came out frequently, Galil also turned sharply, and many people lost a lot of money.

Lime didn't feel any uneasiness, but instead felt a little happy. Watching these disobedient people suffer seemed to be a very satisfying thing. When he talked about this matter with Lynch, his tone was full of happiness.

"Well done, much better than I expected..."

He originally thought that the Galil in his hand was not completely disposed of. After all, if the spot of 10 billion Galil was to be disposed of in a short period of time, the volume of the market must also be taken into consideration.

Before making the call, he thought there might be about three to four billion left, and then he took some back from the customer at a very low price, put together a relatively round number and lent it to Mr. Herbers.

It's just that he didn't expect that Lem had completed the task so well and actually sold them all. Of course, this was also related to the fact that international speculators began to speculate on Galil.

The market fever is not going away, and all the participants are going crazy. At this time, let alone 10 billion in spot, if it is several times more, as long as Lynch has it, the market will dare to eat it!

After praising Lem for a few words, Lynch hung up the phone. After a short pause, he called Mr. Trueman's desk.

"Are you in trouble?" Lynch heard Mr. Trueman's characteristic laughter the moment the call was connected.

At this time, international calls were still manually forwarded, so Mr. Trueman already knew who the caller was before he answered the call. There was only one possibility for Lynch to call him at this time: he was in trouble.

Mr. Trueman was very interested in the trouble that caused Lynch to call for help. He wanted to know who had such great ability to stop Lynch.

Lynch also laughed twice, "Yes, I have encountered some troubles. I need the right to mobilize 10 billion Galils in cash. After thinking about it, the only one that can come up with it now is the federal government."

This request was not within the scope of Mr. Trueman's prediction. He was a little curious, "Where is your ten billion?"

"I've already sold them all out when I was almost at a high point..."

Even if Mr. Trueman doesn't know much about economics and finance, he knows what this means. Lynch at least made tens of millions in profit from this transaction.

This also reminded Mr. Trueman of Lynch's resistance every time he persuaded Lynch to work with him. Maybe he is really suitable for doing these things. Over the years, no one can make money anymore. , a little more relaxed than Lynch.

After a brief absence, his mood showed a hint of envy, and then turned into curiosity, "So what do you want the money for now?"

"You know, I have a friend, Mr. Herbers, who plans to borrow a sum of money from me, ten billion Galiles."

"I thought it was okay to just keep the federal money, so it would be better to use it for business."

"In three months, the rate of return will be no less than 4.5% of the total borrowing, and it will be settled in federal sol. Anyway, it's almost the same..." Lynch quickly calculated the current exchange rate, " With at least over three million in benefits, this deal is very profitable."

Mr. Trueman's curiosity clearly didn't lie here. "So how much can you make?"

"It's almost the same number..."

“Will this money leave the Commonwealth?”

"of course not!"

"When will you come to complete the formalities?"

"soon!"

…

Lynch came out of the room and sat back on the sofa with a smile, "I have negotiated for you, ten billion Galils in spot, a return rate of 9.5 when repaying, settled in federal sol, if No problem, you can ask your people to go through the formalities now."

Seeing how Lynch casually came up with "10 billion" again, Mr. Herbers wanted to ask a question at this time - "Is the 10 billion you mentioned my 10 billion?"

But he didn't speak. He didn't dare to offend Lynch at this time, and this was also his last chance.

If he now exchanges the money he owes others and disposes of the other money at the same time, he figures it out, he can still make money!

The reason for making money is that he has no intention of informing others, and he intends to monopolize the profits from the money from short selling, so that he can probably still make some.

It only takes a moment from hell to heaven. At this time, he is not in the mood to care about the life and death of others, he only cares about himself.

Not to mention the total interest rate of 9.5%, he is willing to take it even if it is 15 points!

"There's no problem, Mr. Lynch, so how do we proceed with the procedure?" He couldn't wait to do it, and there was a smile on his face.

Lynch wrote a number to Mr. Herbers, "This is the phone number of the director of the loan business department of Jinhui Bank's head office. You need to provide collateral. You know, I can't lend you 10 billion Galli for nothing." Hey, after you have enough things, you can see the money..."

After watching Mr. Herbers leave, Lynch dialed the number he gave Mr. Herbers, "Hello...yes, someone will be at your place in the next two days..."