Chapter 1384 No One Is a Fool

"Now that they have found out, some things are inappropriate. Why, Allen, your prediction back then has come true, why don't you feel happy at all?"

Greenspan smiled bitterly, not to mention his status, at his age, there are really not many people who can still make fun of him. Paul Volcker is certainly one of them.

"Old man, don't talk about this. Every time I talk about the Internet bubble, someone will bring me out and make fun of me.

Facts have proved that even if the stock price collapses now, it will still be higher than when I proposed the bubble. Our richest man claims that predicting the collapse of stock prices or property prices is heresy.

Because these forecasts are usually not time bound. The U.S. economy is cyclical and upward. If it rises too much, it will fall and vice versa. If officials must make predictions, it is best to limit them to a time, otherwise they are being rogue, because this is an accurate prediction. "

Greenspan smiled bitterly after saying this, but Paul Volcker laughed out loud. This damn position of the head of the Federal Reserve is simply a target. Any changes you make there will always benefit some people and unlucky others.

No, this wave of regulation has gone too far. Even if interest rates are lowered to provide adequate liquidity, the capital market has not responded at all.

It doesn't matter if you cut interest rates, if they rise tomorrow, they will fall at a faster rate the day after tomorrow.

"Alan, so this is another fan of the Chicago School?"

"That's not necessarily true. He just thinks I'm stupid. Appropriate interest rates are still very necessary.

Or maybe we're being too hasty. It's better now. Europeans' small money has been trapped, and they are also seeking change. "

The slow depreciation of the euro is something that the Federal Reserve is happy to see. However, you are almost getting a 20% discount, which is too much.

Greenspan smiled bitterly, no one in this world is a fool. Look, William White is desperately buying euros while shouting about exchange rate manipulation. Damn, this time, American car manufacturers are united and strongly demand the devaluation of the U.S. dollar.

Just like stocks, it doesn't matter if it falls very fast. There won't be much turnover rate. This means that everyone's shareholding cost is not low. It doesn't matter if your current stock price is low. If the bastards above don't want to lose money, Either cover the position and lower the average price, or hold back on selling and wait for a miracle.

Anyway, if there is no systemic risk, you are not in a hurry to use this part of the assets. There will always be a day when the price returns to a reasonable price.

The exchange rate is actually the same. If it falls slowly, it may lower market expectations. As a result, no one or institution is willing to hold the euro. However, once you fall too far, another situation will arise.

People with a higher risk appetite will definitely see this opportunity, and those who originally considered investing in U.S. capital will choose to wait for the time being. After all, a 20% discount is too much.

The most troublesome thing is that the Gallic Rooster and the Germanic people are best at manufacturing.

Especially the Germans, good quality and high prices are their labels.

However, with a 20% discount now, why should you buy GM? Wouldn't it be better to just go for Audi?

The falling exchange rate also brings another benefit. That is, virtual investment has declined and physical investment has increased. You originally planned to invest 100 million US dollars in an assembly line in Europe. Now, 80 million US dollars is enough.

As a result, an extremely strange scene occurred. The exchange rate and the stock market were both falling, with no rebound in sight. However, the manufacturing prosperity index is slowly rising. This weird scissor gap is actually something the Germans like to see.

The capital market was really good in the past, but those engaged in production were miserable. No matter how many products you produced, no matter how high-quality they were, the money you made in your pocket was still very insignificant.

What I want to say here is that we should not worry about scarcity but inequality. If there is no comparison of returns in the capital market, the money earned from these screws is actually not a lot.

But, wouldn’t it be harmful after comparison?

The result was naturally very bad. The funds that followed the trend and entered Nasdaq were lost forever. Those who could get back half of it were considered lucky. More people were directly pressed to the floor and rubbed.

It's good now. The Germans who have learned a lesson have begun to find the channels they are good at. They choose to ignore those unrealistic things.

After going around for a while, Yingjiang was shocked to find that the plan to trick his European friends seemed to be wrong from the beginning. Or maybe they are too anxious and you don't leave any money-making effect to others. This is really too much. Now you are dumbfounded, there is nothing to cover the position, and there is nothing to make persistent efforts. Since you can't play the game, there's no problem in admitting defeat and leaving, right?

But, such a result is not what Yingjiang needs.

"Um, is this bottoming out, or is the Fed tightening liquidity?" To judge whether the euro has rebounded, you don't actually need to look at the price. William White can easily make such a judgment when he sees the sharply rising transaction amount. .

Philson was speechless. He must have not read the email he sent you. Well, the boss needs to rest. It's inappropriate for you to disturb him while he's on vacation. If you need a reply urgently, believe it or not, I'll send you to the border office directly.

"Well, boss, I sent you an email. However, there is news that Greenspan has been in contact with some big guys in Europe."

Well, William White was extremely surprised. As long as he had contact, it would be over if he just found some paparazzi to take pictures. So what about the boss of the Federal Reserve Bank of America? When it comes to security level, he is not as good as William White's woman.

"Did they hide in a cave to discuss it?

In general, isn't it just those golf courses? There should be paparazzi stationed there. There's something wrong with the camera. "

Philson shook his head and smiled bitterly. I heard that it was just a small forum. God knows how there were so many big guys. By the time the reporters swarmed in, the news they got was just hearsay.

"The association has also begun to exert its efforts. In an election year, no matter how hard the Fed is, it will not dare to make any mistakes. The recent employment data continues to decline, and the donkey is under great pressure.

Unexpectedly, after leading so much time, something went wrong at the last moment. It doesn't matter if the financial market is not doing well, but if the job market is also doing poorly, Al will really be in danger. "

"Hahaha, hahaha, this guy is really unlucky. Silicon Valley, which could be a powerful help, now has too much time to take care of itself. It seems that they have not received satisfactory financial support."

William White did not have any political opinions, but he had a good personal relationship with Bush Jr. This is not a secret in the United States and many people know it.

However, most companies in Silicon Valley have no money, but this does not include William White. To paraphrase this guy’s original words, how should I spend so much money?