Wall Street Legend

Ye Dongqing took the time to complete the estimate and asked his think tank members to help estimate the impact.

The conclusion is that the damage is relatively large, but it is not uncontrollable yet. After all, there are not many real estate buyers who have defaulted on subprime mortgages. People are still immersed in the dream that housing prices will continue to rise, and they are willing to repay even if they borrow money. Home loan.

This is probably relatively good news. His goal is to prevent further expansion of risks without causing a small economic crisis. He doesn't care whether those big companies are dead or alive. Don't waste the money of innocent middle class and poor people. Just sweep it away.

Speaking of the harm of subprime loans, in addition to the subprime loans themselves, they are also mainly reflected in the CDS market. CDS is the abbreviation of "credit default swap".

The reason why many people called him anxiously to inquire about the specific situation is that subprime loans have such a wide impact on the CDS market. Once risks arise, they will suffer heavy losses, and many companies in banking, securities, insurance and other industries will collapse. Big mold.

Speaking of harm, even if the fire is lit by the United States, there is a high probability that the whole world will pay for it in the end. The influence of the U.S. dollar is not a vegetarian. If it really causes losses of trillions of dollars, the United States will probably let India The money machines kept spinning and the crazy money printing mode started. In the end, it was the weaker developing countries that were unlucky.

Ye Dongqing remembered that in his previous life, when the subprime mortgage crisis swept across the world, it directly led some countries to adopt flood-like financial stimulus measures. There was too much money and nowhere to go, which later pushed up housing prices. The most unlucky people were ordinary people.

It seems that many people around the world should be grateful to him for coming forward.

It's not just the United States. With the acceleration of economic globalization, the economic crisis can no longer affect just one or a few individuals. Especially the United States, which occupies a dominant position in the global economy, has already "kidnapped" the world. economy.

It has been turned off. After lighting the fire, it starts to disappear.

The specific impact is not expected to be apparent until tomorrow. Tomorrow is Sunday in the United States and the market is still closed. However, it is already Monday in Asia. It depends on whether the fire can reach the Asian market. The approximate loss can be calculated based on market conditions. scale.

This has nothing to do with Ye Dongqing, because Ye Dongqing does not hold any CDS contracts in the subprime mortgage market. Whether it is hedge funds or Tamsui Investment Group, they have already begun activities and are ready to enter the market to make money. preparation.

The water was muddied by Ye Dongqing, and there were more big fish. In addition to the three credit rating agencies, a series of related companies were also targeted by him.

It is a pity that the current subprime mortgage CDS market has not yet reached its peak, and the panic caused by it will probably not be too great, so it is certain that you can make money. The key lies in how much you can make...

I went to Tamsui Investment Group and personally communicated with members of a working group to ensure that there would be no mistakes at every step.

They are trying to attack the subprime mortgage market and credit rating agencies, and so are the hedge funds. In fact, they really want to swallow all the cake, but they have to deal with the investors of hedge fund companies. If they look too ugly, they will cause trouble.

By trying to contain the crisis before it gets more serious, the impact of subprime mortgages this time will certainly not be as great as it was in the previous life.

Due to the butterfly effect, many things have already changed, so Ye Dongqing is not worried that this will affect his business. He just needs to keep an eye on it and don't let the companies he invests in go astray.

In the beginning, you could invest according to the memories of your previous life, but now you can't. The current world has been affected by him and has taken a different path, so that you can no longer be blind before making decisions, and you must use your brain more.

The public relations speed of those credit rating companies was much faster than Ye Dongqing imagined.

At this moment, I was giving a speech to dozens of traders, telling them their trading targets and precautions for the next week, when I suddenly received a message from William's assistant, saying that the CEOs of Standard \u0026 Poor's and Moody's were visiting at the same time.

He just glanced at them and continued to say what he wanted to say before going to receive these two people.

To be honest, Ye Dongqing was a little confused and couldn't figure out why they came to find him.

If it is a question, then in the end you will only lose face and take the initiative to come to the door and slap Ye Dongqing, because this group has been recognized by the Securities and Exchange Commission as a "Nationally Recognized Rating Organization (NRSRO)" and does have many irregular flaws. Falling into the eyes of money.

If it was an apology, it would make even less sense.

This time Ye Dongqing has offended these credit rating giants severely. Even if it is only a conservative estimate, they will lose about 20% of their market value on Monday. What is more serious is that the negative impact will continue to be far-reaching. A group of shareholders If you don't beat him up, you're already showing some restraint.

Wearing a black suit, he returned to his office unhurriedly. After greeting each other, he only heard Sharma, the CEO of Standard \u0026 Poor's, say: "Leo, I used to admire you very much, and even let you My son is learning from you, but what you did this time is so infuriating. We have always treated every business with a fair attitude. Maybe there is some misunderstanding? As far as I know, we all give Give your company a high rating, especially the Internet company Facebook."

I didn't hear any apology from this sentence. Just like all big companies, they are stubborn and unwilling to bear any negative impact until the last moment.

With no personal acquaintance or friends, Ye Dongqing’s answer was straightforward: “Are you overestimating subprime housing loans and other financial products? I think you know better than me, don’t you? In the past four years, Because of subprime mortgage CDOs, your performance has increased year after year and you have made enough money. You have almost forgotten what is the most important thing for a credit rating company. If you are not impartial and objective, you are playing with fire. You believe in a street girl, Can a housewife who works part-time at a convenience store afford a high-interest mortgage loan for a long time? Currently, interest rates are constantly rising. They are bearing higher and higher subprime housing interest rates. Your responsibility is to inform investors in advance. They understand their potential risks, rather than just promoting the development of the subprime CDO market just to make money."

There is a strange phenomenon in the global economy. Central banks of various countries are unwilling to raise interest rates.

There are many reasons. The first is that people's expectations for inflation are not high, so the central bank does not want to raise interest rates too quickly, bursting the real estate bubble and causing the economy to collapse.

Secondly, in the context of economic globalization, central banks of various countries are playing a game of kicking the ball. That is, if the United States raises interest rates significantly, other central banks will not have to raise interest rates, because after U.S. demand is controlled, world demand will be suppressed, which will have a negative impact on global inflation. There is an inhibitory effect and vice versa.

This round of interest rate hikes started in June last year and has been raised six times so far. The overheating economy has caused housing prices and the stock market to rise. It is currently in a false prosperity. The signs of crisis have gradually emerged, especially in the subprime housing market, defaults and defaults. The proportion continues to increase, and it is not yet above the warning level, but it is getting closer...