Siheyuan (courtyard house): My name is Shazhu!

Chapter 525 Gold Futures and the Nasdaq Crash!

The Lunar New Year is the most important event for Chinese people. After a year of hard work, everyone wants to relax and have a family reunion.

He Yuzhu, Zhou Songyu, and Qin Huairu were all very happy to see their more than ten sons, daughters, grandsons, and granddaughters in front of them. The He family was indeed thriving.

This is the atmosphere a family should have. Only He Daqing is still in his hometown, back to the courtyard house at No. 95 Nanluoguxiang, which he bought as a place to retire.

He Yushui's parents-in-law are still alive. She spent the Lunar New Year at her husband's home and did not come to the New Year's Eve dinner.

Chinese New Year is a joyous occasion, and the days that bring joy pass by very quickly.

The gold market, which was expected to plummet at least ten days later, saw a sharp drop at the opening on February 9th, the fifth day of the Lunar New Year.

Just like the poem says, "The Milky Way falls from the ninth heaven," from the opening to the closing, the price of gold dropped directly from 610 US dollars per ounce to 364 US dollars per ounce.

A 40.32% drop in a single day threw the gold futures market into chaos, leaving countless people trapped and those who had leveraged their long positions facing margin calls.

The gold market rallied even more sharply the following day, with the index plummeting to a low of $247 per ounce. The total drop over two days was 59.5%, which means using leverage is a recipe for disaster!

The Little Eagle Group is insatiable and has gone too far. At such low prices, no one will dare to go long anymore.

He Yuzhu didn't understand, but the people in the investment department didn't care. The settlement date was 340 to 360 US dollars per ounce, which was only 15 days away. They could sell some now!

In some cases, people take orders and then reverse their positions to go long, or they sell to themselves and buy to themselves, hoping that the market will stay at this price level for a few more days.

The major financial groups in the UK are not stupid. They are suppressing the funds that have entered the market to buy, and based on their purchase positions, they are trying to force them to continue to be liquidated.

It wasn't a good deed for anyone, and on the third day it quickly pulled back up to 315 US dollars per ounce.

Gold prices have plummeted and then rebounded again. These conglomerates are playing these games with no one interfering. Little Eagle, where is your malicious market manipulation? Why are you silent now?

The market started to consolidate around 300 to 320 US dollars per ounce, and the US financial group's consolidation was very effective.

Fortunately, Dongda Group's investment department had the funds to replenish 1200 billion US dollars in margin, preventing a margin call.

They didn't sell at this price, but waited for the delivery date in three days. These four consortia didn't have much ammunition left, and they were confident that they could push the price below 340 within three days.

The price fluctuated on the first and second days. On the third day, it was not easy to push up the price. The investment department started to support the market, and the closing price was 333 US dollars per ounce.

After the transaction, the investment profit was 210 billion, a loss of 70 billion, and they still have 82 billion US dollars to support the market, so they are bullish.

The gold market is generally stable, trading sideways around 325 US dollars per ounce, with the next upward move expected at least three months from now.

He Yuzhu also overheard the plans of the four consortia to start raising the price of gold to around 500 US dollars per ounce three days later, and then decide on the future trend of the gold price.

Is the volatility of the futures market related to who is manipulating it, how much capital is involved, and what the relevant policies are?

Just as the gold futures market stabilized, giving people a breather, many people began to experience freefall and swimming, suffering margin calls and being unable to repay their debts after investment failures.

This was barely a breath of fresh air before the Nasdaq market, amidst a barrage of bad news and fluctuations in the gold futures market, saw a decline in investors and a collapse due to increased selling pressure.

On February 28th, the stock price fell by 6% from the opening to the closing.

He Yuzhu knew that the Nasdaq was starting to collapse, and that it would be another lost fifteen years. Poor ordinary investors would be another wave of easy prey, and it would be satisfying to harvest them.

The small wings of the gold futures market have completely distorted the Nasdaq market.

In the previous life, the market fell by 10% in three days; now it has fallen by 18% in three days, with the index dropping to 4100 points, a loss of 900 points.

In just one month, the Nasdaq was halved, a drop of 50.12%.

One year later, the gap was 75%, with the Nasdaq at 1248 points.

In December 2002, the Nasdaq hit a low of 1009 points, a total drop of 80%.

The scene was one of utter devastation and widespread mourning, with all sorts of people clinging to their household registration books, trying to erase their identities.

This sharp drop in Nasdaq tech stocks has left countless investors penniless, but there are still many middle-class people with high debt who may still have to pay off their loans.

With them around, these banks were going to engage in 'subprime lending,' which triggered a global 'financial storm.' These are the evil financial groups.

These consortia hold original shares, and their main funds are invested in the gold futures market, not the NASDAQ market.

They made a lot of money in the gold futures market this time. Big data shows that their total income from the previous few transactions should be around 3100 billion US dollars!

The profits of Dongda Group led to the bankruptcy of investments by Europa, Little Eagle, and a number of large, medium and small investment banks, exceeding 150.

Some analysts estimate that these banks and investment banks have suffered total losses of between 800 billion and 1 trillion US dollars.

He Yuzhu didn't care about this analysis. As long as his company was profitable, what did it matter to him if others suffered huge losses?

The Nasdaq market lost approximately $4 trillion in market capitalization after the bubble burst, and earned less than $400 billion, less than one-tenth of that.

Let's celebrate first. We still have a lot to do. These conglomerates have huge appetites. Without big data analysis, we might not be able to beat them.

It's possible that they used two thousand tons of gold to collapse a vast empire; they didn't have much foreign exchange and were unable to support it, which is why they succeeded.

Try replacing it with Dongda Group or the four conglomerates. With trillions of dollars in US dollars as a backing, no matter how much gold you have to dump, tens of thousands of tons of gold won't be enough.

The Nasdaq has begun to fall sharply, which has indeed caused many investors to lose everything and go bankrupt, but it has not had a significant impact on large banks and investment banks.

Let's wait for the global subprime mortgage crisis and financial crisis a few years from now; that's when the real cleansing will happen.

He Yuzhu received a confidential phone call from the military headquarters in his hometown while he was in his office. They wanted him to come to his hometown when he had time, but they didn't say why. He Yuzhu understood what it was about.

"I'll be there tomorrow afternoon." He Yuzhu didn't refuse, nor did he hesitate. He now held an administrative rank, the highest level at that!

This is also a reward for merit!

Even if He Yuzhu is kept within the rules, some people still don't want the "extermination of three clans" to happen!

The next day, He Yuzhu's private plane carried four naval shipbuilding experts who had come from Malaysia to his hometown military headquarters.

After exchanging pleasantries, we got down to business. "First of all, we would like to thank Chairman He for his long-term support for the development of the military, and also thank him for his support in building our aircraft carrier battle group."

To be honest, we already included building an aircraft carrier battle group in our plans last year.

The main problem is that there are still many technologies that haven't been overcome, preventing us from building our own aircraft carrier battle groups. With your help, we've decided to formally launch the project to build an aircraft carrier battle group.

"General Liu, you're too kind. Building a strong national defense force is also my dream. I have the money; it's enough for you to build three or five aircraft carrier battle groups."

There are no outsiders here, and this must be kept secret. I also have nuclear power technology. For other technologies, you experts can ask these four engineers.

They are mainly responsible for building various types of warships in Malaysia. They have never built an aircraft carrier themselves, but they understand the technology. When building an aircraft carrier, tell them your requirements.

I'll provide the funding. As for the shipborne weapons, you guys figure that out; I don't know anything about them!

"It can be used to build nuclear power."

"Yes, the tonnage must be within 120,000 tons; you can choose for yourselves."

"We discussed with these four bigwigs and came up with a truly feasible shipbuilding plan."

"I won't get involved in the specifics; you guys decide!"

"Thanks."

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