giants of the era

Chapter 500 The crisis is over, the windfall is huge

In 2007, the subprime mortgage crisis broke out in an all-round way. The severity of this crisis was beyond everyone's imagination. The major central banks injected capital frequently, but they still could not prevent the financial crisis.

In a blink of an eye, 2008 came, and the subprime mortgage crisis further intensified.

On January 1, the International Monetary Fund (IMF) stated that as of now, the global subprime mortgage crisis has lost nearly two trillion U.S. dollars!
This year, countries are still busy to rescue the market, and Li Zetian is not idle, busy with acquisitions and poaching.

Other companies are developing obscenely, but Li Zetian's company is developing against the trend. There are more and more factories, R&D laboratories and talents, which makes people dumbfounded.

At the beginning of the year, Tesla Motors launched a new electric car, but because of the global crisis, the media reported it and said it was amazing.But then the focus was shifted by the subprime mortgage crisis.

Li Zetian didn't care either. Tesla didn't get much attention. Anyway, it's the first car, and there are many technologies that need to be perfected and improved.This year, the global economy declined and consumption power decreased, and not many people could afford luxury sports cars.

However, there are nearly 30 users who pre-ordered Tesla cars, and Li Zetian is already very satisfied. This is a very good result!A Tesla car costs 10 US dollars, and its sales are 300 billion US dollars, which is already super powerful!

Li Zetian still thinks that Tesla cars are too expensive. Only by greatly reducing production costs can electric vehicles be popularized!
It was September 2008, 9, which is a historic day for the famous Wall Street.

Facing debts of US$6130 billion, Lehman Brothers, the fourth largest investment bank with a long history of 158 years and the number one position in the U.S. mortgage bond industry for 40 consecutive years, officially announced to file for bankruptcy protection! ! !
The bankruptcy of Lehman Brothers immediately triggered a global financial tsunami. Wall Street ushered in a veritable "Black Monday".

The Asia-Pacific stock markets fell sharply on September 9, among which Japan, Hong Kong, Taiwan, and South Korea all fell by more than 16%. The Australian stock market was also hit by an earthquake. In the long run, the biggest impact of Lehman's bankruptcy on the world is that it further dampened people's confidence in the market and the future.

The subprime mortgage crisis that broke out in the United States in 2007 brought heavy losses not only to the United States, but also to the global economy. The bankruptcy of Lehman Brothers indicates that the crisis will further escalate, and more large financial institutions will fall in this crisis The collapse of the front-line investment banks, which are the pillars of Wall Street, announced that the core of the US financial system has been shaken, and the subprime mortgage crisis has officially evolved into a global financial turmoil.

On the same day that Lehman Brothers officially announced its application for bankruptcy protection, Bank of America, representing the will of the Federal Reserve, acquired Merrill Lynch, the third largest investment bank in the United States.

Buffett couldn't help sighing: "All Wall Street companies are 'naked swimmers'. Only this time, Merrill Lynch managed to climb ashore and not drown in the water. But Lehman Brothers was not so lucky..."

It's just that this "dramatic" transaction has made many people angry!
"The U.S. government could have rescued Lehman Brothers, why only Merrill Lynch!!!"

"It's the U.S. Treasury Secretary Paulson who 'will not help', which led to the outbreak of the global financial tsunami!!!"

"Yeah, originally, the impact of the subprime mortgage crisis has been reduced, but the bankruptcy of Lehman Brothers made the situation even more serious!!!"

"..."

In this regard, Li Zetian was naturally gloating, because the bankruptcy of Lehman Brothers was of great benefit to him, so he had no intention of intervening at all.Then when Lehman Brothers went bankrupt, it shared its assets with other companies.

On September 9, Chronos Bank invested US$17 billion to acquire Lehman Brothers' New York headquarters, two data centers and some trading assets. On September 17.5, Chronos Bank once again acquired Lehman's business in the Asia-Pacific region and its business in Europe and the Middle East. On October 9, it signed an agreement with Lehman Brothers again, agreeing to acquire Lehman Brothers' Indian back office business.

The once-great Lehman Brothers had been dismembered beyond recognition in less than three weeks.At this point, Lehman finally fell into the bottom of the valley and could never see the light of day again.

At the beginning of January 2009, Nortel Networks, the largest telecommunications equipment manufacturer in North America, was on the verge of bankruptcy, but was acquired by Galaxy Networks under the name of Li Zetian.

Nortel Networks is a company formed by the merger of Northern Telecom and Gulf Networks in 1998. It is a famous Canadian telecommunications equipment supplier and a world leader in optical networks, GSM/UMTS, CDMA, WiMAX, IMS, and enterprise communication platforms. leading supplier.

After Galaxy Networks acquired Nortel Networks, it greatly enhanced its own strength and became a veritable telecommunications network equipment giant. It will be able to face more challenges in the future, such as challenges from Huawei.

……

Obviously, even in 2009, the financial crisis has not been eliminated.

On March 3, American International Group (AIG), the largest insurance company in the United States, suddenly announced its losses in the fourth quarter of 2. This news became the last straw that weighed on the US stock market!
$617 billion! ! ! !

AIG lost $2008 billion in the fourth quarter of 617 alone, the largest quarterly loss in the history of the United States. People can't help being shocked and panicked!

On the same day, the Dow Jones Industrial Average price index closed at 6763.29 points, the lowest closing level since April 1997, which also means that the market value of the Dow Jones Index has shrunk by more than half in just one and a half years.Under this stimulus, Asian stock markets generally opened sharply on the 4rd.Among them, Japan's Nikkei index once dropped to 3 points in early trading, falling to the lowest point after the collapse of the bubble economy.China's Shanghai Index fell 7117.66%; Hong Kong's Hang Seng Index fell 1.05%.

When Li Zetian heard the news, he was overjoyed and secretly thought that he was going to make a lot of money again.

Shorting stock index futures, the more the indexes of various countries fall, the more Li Zetian earns!
However, Li Zetian’s agreed time for shorting stock index futures is April Fool’s Day, April 2009, 4. On the one hand, he said that he fooled the world and made a fortune; The market started to recover.

Of course, there will still be some companies that will continue to be affected by the subprime mortgage crisis.For example, General Motors went bankrupt on June 6st.

The 2008 economic recession and the global credit crisis pushed car sales to the brink of recession. By 2009, General Motors, which was seriously short of liquidity, was unable to recover.Li Zetian wanted to buy General Motors, but it was obviously impossible.The United States is determined to help General Motors tide over the difficulties.

Li Zetian doesn't care, he still thinks that he has too many car companies and it is difficult to manage.

At this moment, Li Zetian and Dongfang Yuqin are collecting funds and counting how much money they made during the subprime mortgage crisis.

When I finally saw this number, even though I was as calm as Li Zetian, I couldn't help being shocked!
(End of this chapter)