giants of the era

Chapter 499 The Subprime Mortgage Crisis Breaks Out!

One trillion US dollars is a lot, and it is difficult to digest in the global financial market.

Li Zetian had no choice but to take advantage of the months before the subprime mortgage crisis fully broke out to boil frogs in warm water and take his time.However, Li Zetian believed that even if the financial crisis broke out, they would not see the seriousness of the situation, and there would still be many gamblers.

The plan to short stock index futures is slowly progressing.

Li Zetian lived a very comfortable life in Hangzhou, growing flowers, watering them, and enjoying himself every day.

In the blink of an eye, more than four months have passed.

2007年8月2日，德国工业银行宣布盈利预警, 后来更估计出现了82亿欧元的亏损，因为旗下的一个规模为127亿欧元为“莱茵兰基金”以及银行本身少量的参与了美国房地产次级抵押贷款市场业务而遭到巨大损失。德国央行召集全国银行同业商讨拯救德国工业银行的一揽子计划。

After Li Zetian heard the news, he smiled, don't be afraid of Germany, Japan's banks are the ones who are losing money!

The original U.S. Wells Fargo Bank also engaged in the U.S. real estate subprime mortgage market business, but afterward, Li Zetian ordered that all the business be sold to Japanese banks.In other words, the Japanese banks acted as takers, so it is certain that the Japanese banks will suffer huge losses.

Right now, even the German Industrial Bank has announced a profit warning. It seems that the real estate in the United States has completely collapsed, and the subprime mortgage crisis has begun to spread to the world!
Only a few days later, news came again from the United States that the American Home Mortgage Investment Corporation formally filed for bankruptcy protection with the court on August 8, becoming another large mortgage lender in the United States to file for bankruptcy after New Century Financial Corporation .

As soon as this news came out, one stone caused a thousand waves, causing a huge shock in the United States, and the US stock market plummeted!
On the second day, Bear Stearns, the fifth largest investment bank in the United States, announced that two of its funds had closed down, also because of the subprime crisis.

This time, the entire U.S. stock market plummeted, and stockholders across the U.S. collectively panicked!

"It's over, I bought so many funds and stocks, and now I'm losing a lot!"

"Oh, God, the real estate bubble burst and the subprime mortgage crisis came. Didn't my previous investments go to waste?!! I'm going to become a pauper overnight!"

"It's over, I'm completely over, I owe so many debts, how can I pay them off?"

Many people fell to the ground when they heard the bad news.

This is not the most desperate time, bad news is coming one after another! ! !

On the third day, France's largest bank, BNP Paribas, announced that it would freeze three of its funds, which also suffered huge losses from investing in US subprime mortgage bonds.This move could not help but lead to a sharp drop in European stock markets, and most stock indexes in the world fell!Metal crude oil futures and spot gold prices plummeted!
Central banks around the world injected more than US$48 billion to rescue the market within 5000 hours, and the Federal Reserve injected US$600 billion into banks three times a day to stabilize the stock market.

This rescue effort is not insignificant, but unfortunately, it did not play a role in saving the market.

A few days later, Japanese and Korean banks also incurred losses due to the US subprime mortgage crisis.Among them, twelve banks, including Mizuho Bank, Japan's second largest bank, lost more than US$250 billion.In addition, five Korean banks, including Woori, invested a total of US$50 billion in secured debt obligations (CDOs), which also suffered heavy losses!
The next day, the three major central banks of the United States, Europe, and Japan injected more than 1000 billion US dollars to rescue the market again.

Central banks in the Asia-Pacific have also re-injected into the banking system.

However, it is still unable to contain the subprime mortgage crisis.

On August 8, the stock price of the largest commercial mortgage loan company in the United States plummeted and faced bankruptcy!The US subprime debt crisis worsened, and the Asia-Pacific stock market suffered the worst decline since 16!

Li Zetian watched the fire from the other side of Hangzhou, and watched the flowers in the courtyard, so he had to say "wonderful".

However, this subprime mortgage crisis is not so easy to save the market, not to mention that I have shorted so many stock index futures... especially Japan!

A sneer appeared on Li Zetian's face.

Japan is indeed very miserable, almost being played to death by Li Zetian.

On August 8, the Bank of Japan injected another 20 trillion yen into the banking system.

The next day, the Japanese stock market crisis was still unresolved, and the Bank of Japan had to inject another 1 trillion yen into the banking system.

When Li Zetian saw that the Bank of Japan had injected capital into the banking system again, he couldn't help being surprised and said: "Hey, the Japanese government is awesome, so rich! Is it because my brother is not cruel enough?!"

Li Zetian suddenly blamed himself.

The Japanese government has been exhausted physically and mentally, and the suffering is unspeakable. The old bottom of the government's financial reserves is almost wiped out. The entire country's economy is in a mess. Companies are bankrupt, workers are laid off, stockholders are in distress, and the economy seems to have regressed for many years.

In the United States, the Federal Reserve injects a large amount of money into the financial system almost every day.This made Li Zetian sigh, the Federal Reserve really deserves to be the master of wealth and wealth, he is the rich man, and I am not.

No way, what the hell is the Fed printing money, it can be called "the world's largest money printing machine".One prints money, the other makes money, and the two are not at the same level.

After more than two months, the subprime mortgage crisis is still not over.

The Federal Reserve and the US government were helpless, and President Bush suddenly called Li Zetian.

"Hello, Chronos!"

"Your Excellency, hello, what's the matter?" Li Zetian asked, but he knew what was going on in his heart.

Although he is not in the United States, he is also the first to know what happened in the United States.At this time, the U.S. government is encouraging banks and rich people to contribute money to help the U.S. market get out of the subprime mortgage crisis.

In fact, Li Zetian wanted to say in his heart, you are paralyzed!
However, if you do this, it will be true. Others will say, look, look, the richest man in the world is rich and ruthless, and everyone else contributes money. If he doesn't donate, how stingy he is!
Bush's attitude of asking for others was very sincere and humble, and he said with a smile: "Oh, that's right, the subprime mortgage crisis has spread to the whole world, and the US economy has been hit hard. A few days ago, the US Treasury Department helped major financial institutions to set up a $1000 billion worth of super funds to buy distressed mortgage securities. Still, the money is not enough, so I hope Chronos Li you will be generous and help the market out!"

"Please rest assured, Your Excellency, I am obliged to do this matter! In fact, I will do it without your Excellency taking the initiative." As he spoke, Li Zetian changed the subject, and continued, "However, Your Excellency, if you want to come, you will know , Many companies under my name have suffered heavy losses in this subprime mortgage crisis...so, my ability to help others is limited."

Li Zetian first vaccinates President Bush, don't you f-cking think that I will pay too much money, brother also "lost" heavily, okay?
President Bush nodded and said: "Oh, yes, yes, I understand. However, it is good that you can contribute. The US government and the American people will thank you!" President Bush had a small calculation in mind, Secretly, as long as you stand up, are you embarrassed to only pay a little money?
Li Zetian pouted, not knowing what President Bush was thinking.

At this time, Li Zetian was thinking in his heart how much money he should donate.

"Which companies are willing to pay now?" Li Zetian asked.

"Several banks, including Bank of America, Citibank, Morgan Stanley, etc., said they agreed to spend at least $750 billion to help the market get out of the subprime mortgage crisis."

"750 billion U.S. dollars? Well, if this is the case, I will make up 250 billion U.S. dollars and make up 1000 billion U.S. dollars!" Li Zetian just finished speaking, and suddenly felt like a [-] million.

250 billion US dollars, for how many people, is an astronomical figure!
250 billion US dollars can create a world's top ten richest people!
How many companies can $250 billion buy!

Why doesn't it make people feel distressed?

Spicy next door, fortunately, my brother has earned hundreds of billions of dollars from the United States alone, and the 250 billion dollars will be sent to beggars by my father, and rewarded to you by the US government!

When Bush heard this, he was very happy, and kept expressing his gratitude to Li Zetian, and said that he planned to present Li Zetian with an award, the Presidential Medal of Freedom or the Congressional Gold Medal.Li Zetian said in his heart, I am shorting the U.S. stock market, you are so fucking funny, and you even gave me an award, um, very good, I like it!
After the phone call with President Bush ended, Li Zetian immediately ordered Cronos Bank to contact Bank of America, Citibank, Morgan Stanley and other banks to jointly raise funds for the super fund.

Of course, good deeds must be publicized, otherwise, the 250 billion US dollars will not be wasted.

Not long after, newspapers, TV, and the Internet were all reporting that Li Zetian generously donated $250 billion to rescue the market.

This wave of favorability is really amazing 6, people all over the world can't help but give Li Zetian a thumbs up.

"As long as the subprime mortgage crisis in the United States is resolved, the financial crises in other countries will also be resolved. There are not many people in this world who are as generous as Chronos Li!"

(End of this chapter)