Chapter 423: 423
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The decline of the three major stock indexes did not seem to cause much panic in the market. The downward trend in the subprime market began to highlight in January 2007, and it fell 40% in three months after the new century company filed for bankruptcy protection in April.
However, when the U.S. stock market reached the critical point of collapse, it was in the following October, that is to say, six months after the subprime mortgage market began to collapse, the stock market began to collapse in a sharp spiral way.
The most important thing is that people don't realize the seriousness of things. From a regional perspective, the real estate speculation in the United States was initially concentrated in a small area, but no one expected that the snowball would grow larger and larger, and the regional crisis quickly spread across the United States.
After the Asian financial crisis, due to the need of reserves, the international demand for safe or considered safe US dollar assets has increased. Both sovereign wealth funds and foreign central banks have a huge demand for fixed income securities.
This further explains why securitized debt built around us real estate prices can be issued around the world to some extent. Accordingly, the financial crisis triggered by the United States has spread to major economies around the world.
Securitization has helped the U.S. government to achieve the policy goals of releasing liquidity, promoting growth and employment, and improving social welfare, which can be called a successful "financial project"; however, the other side of achieving the policy goal is that risks are accumulating.
The U.S. government is undoubtedly the biggest beneficiary, which is why when the subprime mortgage crisis broke out, all the bankers were playing rogue, lying on the ground directly, leaving the crisis to ravage, and finally forced the government to rescue the market, pouring money into the collapsed CDO again and again, and successively purchasing MBS bonds that were already garbage.
Andy has $7.2 billion of CDs bonds that are short by leverage with a principal of 600 million. Although it's not as crazy as Michael Bry, the Bull character with long crooked dates, he's also the leader of this big short.
George Soros, the God of shorting, pulled down his old face and ran to meet Michael berry again and again with his nephew's recommendation. He said a lot of "old driver takes me" to the rising star as soon as he met him. Michael Berry was so entangled that he had no choice but to give the general know-how. He quickly went back to draw gourds like this, and immediately went home to short more than one billion CDs.
The huge risk of a long backlog was finally triggered by the US government's and Wall Street's leading lending incentives to the poor who could not afford to buy a house.
The reason why Andy pays more attention to CDs shorting is that CDs is mainly issued by insurance companies such as AIG. What's wrong with him is that you can buy insurance without relevant assets. It's equivalent to buying a car insurance for Lao Wang's car next door. If he crashes, you'll be happy to get compensation, and Lao Wang doesn't know it.
However, it seems that everything is developing in the favorable direction of Andy's big bears. In fact, the small and medium-sized bears who short CDs but lack liquidity capital have already started to jump up and down in a hurry. Well, it's the words that add fuel to the fire, the hot pot ants scurry and so on.
Because the original bond price of MBS is still high, and the CDs of MBS re securitization still keeps the AAA rating. The cash flow in hand is not enough, the liquidity is insufficient, and the short price rises instead of falling. They have to lose money, inject capital into the margin account, and be forced to close their positions without making up.
Andy plays with the marker in his hand, sits on the boss's chair, his feet on the table, gently shakes his body, the chair rotates back and forth, a relaxed expression looks at all kinds of data displayed on the LCD screen in front of the conference room which has been changed into the general conference room of the strategic command.
Albemarle walked up to Andy and sat down with an ugly face. "These damned bastards, full of lies!"
"Ha ha, don't be angry, al. Isn't this something we thought of long ago? In fact, this time we took the lead in making a stroke lightly, which has played a domino effect. The reason why MBS is still high and CDs rating is not lowered is just to pretend nothing and lure other peers to buy the junk bonds that it is eager to sell and can make the company bankrupt, so as to get away from it. And the receiver of the drumming and flower passing process, those fools are not pitiful.
Ha ha, you don't know how many calls I've received in recent days. My grandfather called me to keep silent and don't make any more comments about the subprime crisis in public. "
Andy throws the marker in his hand on the desk, hands around his chest, head on the back of the chair, sneering.
"But boss, we'll lose a little bit of the money in the margin every time."
"Well, Al, it's useless to complain. You know better than anyone else. Their strength is not what we can contend with at present. They are just holding on. What can we do? Our margin is enough. When they can't hold on, we can exchange more than 100 million margin for billions of profits without loss. Besides, CDO insurance has not started Have you made money? Although you are pitiful, now you have to be patient enough. When the darkest moment before dawn passes, we will have a bright sunrise! ""As the fog gets thinner and thinner, before the truth can be revealed, I really want to know which greedy guys will take over the garbage."
Andy's eyes were half opened, and he took a look at al, chuckling, "Wall Street's greed is flowing in the blood, full of fraud and lies, and they are just playing a game called," after the dust settles, who are we and them, stupid? " The game. "
alvette make complaints about his boss's Tucao, but he doesn't think that young boss can be so calm. You should know that the risk of shorting is not so great. If you are not careful, you will die without a burial ground.
In fact, how could Andy not know the risk of shorting? He also summed up the three fears of the subprime crisis.
First, I bought CDs and found that all the relevant assets were in default. The price of CDs remained unchanged and I thought the whole system was colluding to make a fake. Now it is in this stage, which makes the bears miserable and ridiculed by the investment banks who are back to normal.
Second, it's not easy to make money with the CDs in hand, and start to worry about bankrupting the investment banks of the gambling rivals and turning their CDs into waste paper.
Third, finally, the warehouse was emptied and the money was obtained. However, I found that I might be targeted by the FBI or occupied by "occupy Wall Street". There was too much pressure on public opinion.
Although Andy summed up the three fears of short sellers, they did not include himself. Some people don't want him to shout "wolf is coming", so they will pay. Through the old Smith's mouth to Andy, he is not a fool. He knows what compromise is. If he wants to make money and smash someone else's pot, they dare to kill you. For example, Kennedy, tut. His favorite thing is smashing the pot. No matter it's the opponent's or the ally's, it's like a myth.
"Boss, recently, there have been many phone calls to the company to find out the news, especially the financial adviser of Goldman Sachs Group, corsey, wants to visit you." Said Albemarle, seizing the opportunity.
Andy looked at al with a smile, shook his head and said: "they are the main target of Michael Berry's gambling, and CDO is not what they are responsible for research and development? I'm not interested in meeting him. OK, I'm going to pick up my girlfriend from work. Tut, look at the changes over the past week. The stock market is back to life. It's time to go up. MBS is not going down, but it's going up. CDs is still AAA. Although some companies go bankrupt, everyone is still OK. What happened on April 2 is almost a joke. It seems that my two weeklies have been slapped. "
Alvette shrugs and helplessly watches his young boss clap his ass and walk away. It seems that he can only say sorry to his old friends. No matter out of professional ethics or confidentiality agreement, he can't disclose even a word of information to anyone.
Andy, however, has no intention to meet each other. He sells these MBS in a big way and praises how good they are. He invents the CDO hedge insurance to short MBS in private. Goldman Sachs is undoubtedly the most arrogant player in this way.
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The decline of the three major stock indexes did not seem to cause much panic in the market. The downward trend in the subprime market began to highlight in January 2007, and it fell 40% in three months after the new century company filed for bankruptcy protection in April.
However, when the U.S. stock market reached the critical point of collapse, it was in the following October, that is to say, six months after the subprime mortgage market began to collapse, the stock market began to collapse in a sharp spiral way.
The most important thing is that people don't realize the seriousness of things. From a regional perspective, the real estate speculation in the United States was initially concentrated in a small area, but no one expected that the snowball would grow larger and larger, and the regional crisis quickly spread across the United States.
After the Asian financial crisis, due to the need of reserves, the international demand for safe or considered safe US dollar assets has increased. Both sovereign wealth funds and foreign central banks have a huge demand for fixed income securities.
This further explains why securitized debt built around us real estate prices can be issued around the world to some extent. Accordingly, the financial crisis triggered by the United States has spread to major economies around the world.
Securitization has helped the U.S. government to achieve the policy goals of releasing liquidity, promoting growth and employment, and improving social welfare, which can be called a successful "financial project"; however, the other side of achieving the policy goal is that risks are accumulating.
The U.S. government is undoubtedly the biggest beneficiary, which is why when the subprime mortgage crisis broke out, all the bankers were playing rogue, lying on the ground directly, leaving the crisis to ravage, and finally forced the government to rescue the market, pouring money into the collapsed CDO again and again, and successively purchasing MBS bonds that were already garbage.
Andy has $7.2 billion of CDs bonds that are short by leverage with a principal of 600 million. Although it's not as crazy as Michael Bry, the Bull character with long crooked dates, he's also the leader of this big short.
George Soros, the God of shorting, pulled down his old face and ran to meet Michael berry again and again with his nephew's recommendation. He said a lot of "old driver takes me" to the rising star as soon as he met him. Michael Berry was so entangled that he had no choice but to give the general know-how. He quickly went back to draw gourds like this, and immediately went home to short more than one billion CDs.
The huge risk of a long backlog was finally triggered by the US government's and Wall Street's leading lending incentives to the poor who could not afford to buy a house.
The reason why Andy pays more attention to CDs shorting is that CDs is mainly issued by insurance companies such as AIG. What's wrong with him is that you can buy insurance without relevant assets. It's equivalent to buying a car insurance for Lao Wang's car next door. If he crashes, you'll be happy to get compensation, and Lao Wang doesn't know it.
However, it seems that everything is developing in the favorable direction of Andy's big bears. In fact, the small and medium-sized bears who short CDs but lack liquidity capital have already started to jump up and down in a hurry. Well, it's the words that add fuel to the fire, the hot pot ants scurry and so on.
Because the original bond price of MBS is still high, and the CDs of MBS re securitization still keeps the AAA rating. The cash flow in hand is not enough, the liquidity is insufficient, and the short price rises instead of falling. They have to lose money, inject capital into the margin account, and be forced to close their positions without making up.
Andy plays with the marker in his hand, sits on the boss's chair, his feet on the table, gently shakes his body, the chair rotates back and forth, a relaxed expression looks at all kinds of data displayed on the LCD screen in front of the conference room which has been changed into the general conference room of the strategic command.
Albemarle walked up to Andy and sat down with an ugly face. "These damned bastards, full of lies!"
"Ha ha, don't be angry, al. Isn't this something we thought of long ago? In fact, this time we took the lead in making a stroke lightly, which has played a domino effect. The reason why MBS is still high and CDs rating is not lowered is just to pretend nothing and lure other peers to buy the junk bonds that it is eager to sell and can make the company bankrupt, so as to get away from it. And the receiver of the drumming and flower passing process, those fools are not pitiful.
Ha ha, you don't know how many calls I've received in recent days. My grandfather called me to keep silent and don't make any more comments about the subprime crisis in public. "
Andy throws the marker in his hand on the desk, hands around his chest, head on the back of the chair, sneering.
"But boss, we'll lose a little bit of the money in the margin every time."
"Well, Al, it's useless to complain. You know better than anyone else. Their strength is not what we can contend with at present. They are just holding on. What can we do? Our margin is enough. When they can't hold on, we can exchange more than 100 million margin for billions of profits without loss. Besides, CDO insurance has not started Have you made money? Although you are pitiful, now you have to be patient enough. When the darkest moment before dawn passes, we will have a bright sunrise! ""As the fog gets thinner and thinner, before the truth can be revealed, I really want to know which greedy guys will take over the garbage."
Andy's eyes were half opened, and he took a look at al, chuckling, "Wall Street's greed is flowing in the blood, full of fraud and lies, and they are just playing a game called," after the dust settles, who are we and them, stupid? " The game. "
alvette make complaints about his boss's Tucao, but he doesn't think that young boss can be so calm. You should know that the risk of shorting is not so great. If you are not careful, you will die without a burial ground.
In fact, how could Andy not know the risk of shorting? He also summed up the three fears of the subprime crisis.
First, I bought CDs and found that all the relevant assets were in default. The price of CDs remained unchanged and I thought the whole system was colluding to make a fake. Now it is in this stage, which makes the bears miserable and ridiculed by the investment banks who are back to normal.
Second, it's not easy to make money with the CDs in hand, and start to worry about bankrupting the investment banks of the gambling rivals and turning their CDs into waste paper.
Third, finally, the warehouse was emptied and the money was obtained. However, I found that I might be targeted by the FBI or occupied by "occupy Wall Street". There was too much pressure on public opinion.
Although Andy summed up the three fears of short sellers, they did not include himself. Some people don't want him to shout "wolf is coming", so they will pay. Through the old Smith's mouth to Andy, he is not a fool. He knows what compromise is. If he wants to make money and smash someone else's pot, they dare to kill you. For example, Kennedy, tut. His favorite thing is smashing the pot. No matter it's the opponent's or the ally's, it's like a myth.
"Boss, recently, there have been many phone calls to the company to find out the news, especially the financial adviser of Goldman Sachs Group, corsey, wants to visit you." Said Albemarle, seizing the opportunity.
Andy looked at al with a smile, shook his head and said: "they are the main target of Michael Berry's gambling, and CDO is not what they are responsible for research and development? I'm not interested in meeting him. OK, I'm going to pick up my girlfriend from work. Tut, look at the changes over the past week. The stock market is back to life. It's time to go up. MBS is not going down, but it's going up. CDs is still AAA. Although some companies go bankrupt, everyone is still OK. What happened on April 2 is almost a joke. It seems that my two weeklies have been slapped. "
Alvette shrugs and helplessly watches his young boss clap his ass and walk away. It seems that he can only say sorry to his old friends. No matter out of professional ethics or confidentiality agreement, he can't disclose even a word of information to anyone.
Andy, however, has no intention to meet each other. He sells these MBS in a big way and praises how good they are. He invents the CDO hedge insurance to short MBS in private. Goldman Sachs is undoubtedly the most arrogant player in this way.
The decline of the three major stock indexes did not seem to cause much panic in the market. The downward trend in the subprime market began to highlight in January 2007, and it fell 40% in three months after the new century company filed for bankruptcy protection in April. However, when the U.S. stock market reached the critical point of collapse, it was in the following October, that is to say, six months after the subprime mortgage market began to collapse, the stock market began to collapse in a sharp spiral way. The most important thing is that people don't realize the seriousness of things. From a regional perspective, the real estate speculation in the United States was initially concentrated in a small area, but no one expected that the snowball would grow larger and larger, and the regional crisis quickly spread across the United States. After the Asian financial crisis, due to the need of reserves, the international demand for safe or considered safe US dollar assets has increased. Both sovereign wealth funds and foreign central banks have a huge demand for fixed income securities. This further explains why securitized debt built around us real estate prices can be issued around the world to some extent. Accordingly, the financial crisis triggered by the United States has spread to major economies around the world. Securitization has helped the U.S. government to achieve the policy goals of releasing liquidity, promoting growth and employment, and improving social welfare, which can be called a successful "financial project"; however, the other side of achieving the policy goal is that risks are accumulating. The U.S. government is undoubtedly the biggest beneficiary, which is why when the subprime mortgage crisis broke out, all the bankers were playing rogue, lying on the ground directly, leaving the crisis to ravage, and finally forced the government to rescue the market, pouring money into the collapsed CDO again and again, and successively purchasing MBS bonds that were already garbage. Andy has $7.2 billion of CDs bonds that are short by leverage with a principal of 600 million. Although it's not as crazy as Michael Bry, the Bull character with long crooked dates, he's also the leader of this big short. George Soros, the God of shorting, pulled down his old face and ran to meet Michael berry again and again with his nephew's recommendation. He said a lot of "old driver takes me" to the rising star as soon as he met him. Michael Berry was so entangled that he had no choice but to give the general know-how. He quickly went back to draw gourds like this, and immediately went home to short more than one billion CDs. The huge risk of a long backlog was finally triggered by the US government's and Wall Street's leading lending incentives to the poor who could not afford to buy a house. The reason why Andy pays more attention to CDs shorting is that CDs is mainly issued by insurance companies such as AIG. What's wrong with him is that you can buy insurance without relevant assets. It's equivalent to buying a car insurance for Lao Wang's car next door. If he crashes, you'll be happy to get compensation, and Lao Wang doesn't know it. However, it seems that everything is developing in the favorable direction of Andy's big bears. In fact, the small and medium-sized bears who short CDs but lack liquidity capital have already started to jump up and down in a hurry. Well, it's the words that add fuel to the fire, the hot pot ants scurry and so on. Because the original bond price of MBS is still high, and the CDs of MBS re securitization still keeps the AAA rating. The cash flow in hand is not enough, the liquidity is insufficient, and the short price rises instead of falling. They have to lose money, inject capital into the margin account, and be forced to close their positions without making up. Andy plays with the marker in his hand, sits on the boss's chair, his feet on the table, gently shakes his body, the chair rotates back and forth, a relaxed expression looks at all kinds of data displayed on the LCD screen in front of the conference room which has been changed into the general conference room of the strategic command. Albemarle walked up to Andy and sat down with an ugly face. "These damned bastards, full of lies!" "Ha ha, don't be angry, al. Isn't this something we thought of long ago? In fact, this time we took the lead in making a stroke lightly, which has played a domino effect. The reason why MBS is still high and CDs rating is not lowered is just to pretend nothing and lure other peers to buy the junk bonds that it is eager to sell and can make the company bankrupt, so as to get away from it. And the receiver of the drumming and flower passing process, those fools are not pitiful. Ha ha, you don't know how many calls I've received in recent days. My grandfather called me to keep silent and don't make any more comments about the subprime crisis in public. " Andy throws the marker in his hand on the desk, hands around his chest, head on the back of the chair, sneering. "But boss, we'll lose a little bit of the money in the margin every time." "Well, Al, it's useless to complain. You know better than anyone else. Their strength is not what we can contend with at present. They are just holding on. What can we do? Our margin is enough. When they can't hold on, we can exchange more than 100 million margin for billions of profits without loss. Besides, CDO insurance has not started Have you made money? Although you are pitiful, now you have to be patient enough. When the darkest moment before dawn passes, we will have a bright sunrise! ""As the fog gets thinner and thinner, before the truth can be revealed, I really want to know which greedy guys will take over the garbage." Andy's eyes were half opened, and he took a look at al, chuckling, "Wall Street's greed is flowing in the blood, full of fraud and lies, and they are just playing a game called," after the dust settles, who are we and them, stupid? " The game. " alvette make complaints about his boss's Tucao, but he doesn't think that young boss can be so calm. You should know that the risk of shorting is not so great. If you are not careful, you will die without a burial ground. In fact, how could Andy not know the risk of shorting? He also summed up the three fears of the subprime crisis. First, I bought CDs and found that all the relevant assets were in default. The price of CDs remained unchanged and I thought the whole system was colluding to make a fake. Now it is in this stage, which makes the bears miserable and ridiculed by the investment banks who are back to normal. Second, it's not easy to make money with the CDs in hand, and start to worry about bankrupting the investment banks of the gambling rivals and turning their CDs into waste paper. Third, finally, the warehouse was emptied and the money was obtained. However, I found that I might be targeted by the FBI or occupied by "occupy Wall Street". There was too much pressure on public opinion. Although Andy summed up the three fears of short sellers, they did not include himself. Some people don't want him to shout "wolf is coming", so they will pay. Through the old Smith's mouth to Andy, he is not a fool. He knows what compromise is. If he wants to make money and smash someone else's pot, they dare to kill you. For example, Kennedy, tut. His favorite thing is smashing the pot. No matter it's the opponent's or the ally's, it's like a myth. "Boss, recently, there have been many phone calls to the company to find out the news, especially the financial adviser of Goldman Sachs Group, corsey, wants to visit you." Said Albemarle, seizing the opportunity. Andy looked at al with a smile, shook his head and said: "they are the main target of Michael Berry's gambling, and CDO is not what they are responsible for research and development? I'm not interested in meeting him. OK, I'm going to pick up my girlfriend from work. Tut, look at the changes over the past week. The stock market is back to life. It's time to go up. MBS is not going down, but it's going up. CDs is still AAA. Although some companies go bankrupt, everyone is still OK. What happened on April 2 is almost a joke. It seems that my two weeklies have been slapped. " Alvette shrugs and helplessly watches his young boss clap his ass and walk away. It seems that he can only say sorry to his old friends. No matter out of professional ethics or confidentiality agreement, he can't disclose even a word of information to anyone. Andy, however, has no intention to meet each other. He sells these MBS in a big way and praises how good they are. He invents the CDO hedge insurance to short MBS in private. Goldman Sachs is undoubtedly the most arrogant player in this way.
