Chapter 1679 Something Big Happened
William White can't control the life and death of MIOL. In fact, he is completely out of his mind now. The sudden increase in the overnight lending rate of more than ten times reminds him of the Hong Kong Paper Defense War a few years ago.
In layman's terms, the interest rate at which banks lend funds to each other on a one-day basis is called the overnight lending rate.
Many other interest rates are directly or indirectly affected by changes in the inter-bank lending rate, and even the international impact of its changes is also very drastic, such as the US federal funds rate and the famous LIBOR, so the inter-bank lending rate can usually be used as a national interest rate market An important reference for the degree of transformation. Generally speaking, if the liquidity is strong, the interest rate will be low, and if the liquidity is poor, the interest rate will be high.
To put it simply, I will lend you money today at the interest rate you will pay back tomorrow.
This is mainly for liquidity issues, which can speed up the flow of funds and deal with payment issues. The increase in overnight lending rates will slow down the flow of funds.
Overnight lending interest is generally a short-term lending behavior caused by the shortage or excess of inter-bank funds, that is, those who have excess funds lend funds to those who are in short supply, and those who are in short supply borrow funds. It has its own time limit, and overnight lending is the shortest, such as 1 day, 7 days, and 1 month.
Overnight lending rates in Europe are low, usually not above the high 5% level, due to continued monetary easing. Of course, this does not include some special circumstances, such as the delivery date of national debt, or the sale date of super large-cap stocks.
This sudden surge in demand for money will affect the lending rate to a certain extent. Of course, due to the many sources of funds, even a very significant event will only affect 50 basis points at most.
The rise will indeed rise, and 0.5% is terrible. For some investment banks, changes in this value will directly affect their judgment on future generations.
Back then, Soros sniped the Hong Kong paper with nerves, and directly exploded this value. The lending rate was close to 30%, which can be described as extremely brutal.
Seriously speaking, Xiangjiang's plate is still too small. If the same incident happened in Europe, it is absolutely impossible to be so outrageous. No matter how leveraged you are, it is impossible to leverage the entire market.
However, the accident just happened told William White that there is nothing impossible in this world.
First of all, the gold futures fell sharply. Although there is a reason for William White to take profits, it is not right for you to get a 10% discount for less than a week. It was originally said that it might be over a thousand, well, now that it has just passed five hundred dollars per ounce, it is directly discounted by 10%.
Once back and forth, well, both the long and the short sides have liquidated their positions. This kind of inhumane trading method makes people feel cold all over.
Fuck, this shit is not my fault!
William White is very painful, and he is even planning to buy spot gold. So, even though he guessed that there would be fluctuations, he didn't expect this to happen.
"I know about Filson, let's continue to increase the acquisition. Damn it, who the hell is messing with me."
Um, how many black lines floated down Fearson's head, and how many people were liquidated, he would not care about it. If you have the courage to participate in the market, you must have the courage to take the risk of liquidation. If you can't even admit defeat and leave the market, you are really not suitable for participating in the market.
Of course, if that was the case, he didn't need to rush to find her.
"No, boss, overnight lending in Europe suddenly soared by 300%. It seems that the current trend cannot be stopped."
"Fuck, where did the money go?" William White is no longer a financial novice after all these years of hard work. If it is the euro that has seen a sharp increase in the lending rate, well, one can only wonder if Soros is suffering from another illness.
Borrowing a lot of euros and then selling them, and the European Central Bank is not willing to see the euro exchange rate collapse. In this way, the euro's overnight borrowing surge is possible.
But this is obviously not the case at the moment. What is skyrocketing is the overnight borrowing of US dollars, which means that US dollars have suddenly become scarce in the European banking system.
"According to the information sent back by White Bank, money from all over the world is flocking to the United States."
"Ahem," William White choked and coughed. The answer was really surprising. But if you go back to the United States, you will go back to the United States. Could it be that you can't borrow money from the Bank of the United States. To be honest, for investment banks, there is really no concept of country.
"Then, where did the money go?" Seeing Felson shaking his head in a daze, William White seemed to have thought of something.
Seeing the boss's bewildered expression, Felson knew, or the boss had guessed something. And the reason for this kind of speculation is often not on the table.
It's just not this time, if you don't tell me, boss, I know how to do it later?
"Phew, Filson, let me tell you a story. It's not necessary to hide anything, but this incident is too tortuous and bizarre, and normal thinking logic can't explain it at all.
And this is not the worst, the worst thing is that because of this incident, because of the money, many, many people have died.
Now it seems that there may be more deaths. This story has a protagonist who is in prison for tax evasion of $10,000. In this incident, he may have a tacit understanding with Peanutton. This person's name is Leo Wan tower……"
After listening to William White's long story, Felson finally understood the boss's entanglement. Fuck, are you sure this is not a script, in his opinion, if this thing can be put on the big screen.
Well, this guy is obviously thinking too much. Looking at the whereabouts of those funds and the specific people who dealt with them, who really dares to shoot something.
Take a look at Clone Island, and then look at The Passion of the Christ, what good are you doing if you can’t teach you how to be a human being, you really don’t know who is in charge in this world.
"Boss, how to deal with this matter, if it is as you said, it must not be done with great fanfare."
"Ha, what else? Pretend not to know. The lending rate will not keep soaring. The United States wants to hit Europe, and the Fed wants to hit the banks. Everyone's table is set up, how can we not cooperate.
Or, they wouldn't mind knocking on White Bank's. "William White made it very clear. At this point in the matter, either you choose to compromise, and the chaebol headed by Goldman Sachs Morgan Stanley inject assets. Or you choose to die, even if you are run on, you will not compromise.
After the bubble crisis, Japanese brokerages died collectively. Since then, the financial initiative has changed hands. Even if they plan to compete with Americans in the future, they are actually not qualified.
As for the Rio Vanta incident this time, in the final analysis, it is a magical revision of the Japanese bubble crisis. You know, some people in later generations say that this thing is the second Marshall plan. Think about it, what kind of shit is this!