Chapter 861 The Subprime Mortgage Crisis Broke Out! !

Xiao Qi chose to leave on the night of April 2, which has a deep meaning.

In the previous life, April 2, US Eastern Time, was when the subprime mortgage crisis broke out.

Due to the time difference, when Xiao Qi arrived in the United States, it was already late at night on April 2, Eastern Time.

When Xiao Qi left Huaguo, the subprime mortgage crisis had not yet erupted. When he set foot on the land of America, the subprime mortgage crisis had already erupted with astonishing destructive power for the first time. It can even be said that the spring of subprime mortgages is over!

There is no difference from the previous life. The "profit warning" of the New Century Financial Company in February did not attract too many people's attention. [

However, on April 2nd, New Century Financial Corporation, which was unable to repay and was rejected for an extension, announced to the outside world that it was filing for bankruptcy protection, and that it would substantially lay off employees.

As soon as this news came out at 8:00 in the morning, the Nasdaq index fell 3% immediately, and caused a chain crash on subprime mortgage companies. The overall decline exceeded 8%, and the highest even fell by 18%. After the trading of the three major U.S. stock indexes, the losses evaporated by more than 160 billion US dollars in market value.

This is only the storm of subprime mortgage finance companies, and their most closely related investment funds have been unable to sit still since the morning.

The large number of subprime debt financial products they hold in their hands are extremely dangerous things. They can boast of "dancing on the tip of a knife" on weekdays, but once the subprime mortgage company goes bankrupt, the subprime debt in their hands will Financial products would be worthless. Moreover, a large amount of liquidated damages will be paid, which is for investment funds. is absolutely deadly.

More than half of the investment funds are listed institutions, and they even come from subsidiaries of investment banking giants such as Morgan, Merrill Lynch, and Goldman Sachs. The business of these investment funds is subject to stock market supervision.

Although through various means, they delayed the notification of the loss of the subordinated debt in their hands, but when the market was about to close in the afternoon, some small and medium-sized investment funds had huge loss scandals, and the final loss of 160 billion US dollars in market value. At least one-third comes from the panic prediction of small and medium-sized investors for investment funds.

Fortunately, it was only the small and medium investors who were panicking. If the big guys couldn't stand it, the panic shouldn't be so small.

The U.S. subprime bond market is a very large market, with a value of about 13 trillion US dollars, but I am afraid that not only the subprime debt market will be affected, but also the 15 trillion subprime bond market. Because the advent of disasters is generally panic-like, investors and the stock market will not care about the risk difference between subprime debt and subprime debt, and will only become more panicked because of the huge scale.

All right.

The subprime market is big enough, isn't it?

But do you know how huge the investment fund market in the United States is?

At least more than 5 trillion US dollars! !

It's just that it's included in the stock market regulation on the surface, private equity funds, etc., can only be more than it. It can't be less than that!

You know, it does not mean that if you hold a $1 subprime loan financial product, you will lose $1 in the end.

If it were really that simple, the German Industrial Bank, Royal Dutch Bank, Mizuho Bank, etc. who just bought several hundred million dollars in subprime debt products in their previous lives would lose even their pants. A group of high-level executives almost collectively put on a trapeze show!

So, if even the collapse of the $13 trillion subprime mortgage market would trigger a violent tsunami. So what kind of shocking storm will it cause if the investment funds of 5 trillion or more suffer huge losses?

It is conceivable that because of the globalization of financial products, even rich people in China have bought a lot, so this financial turmoil will not only affect the United States, but will soon spread to Europe and Asia... … all over the world, millions of investors will weep, and thousands of people will own it all.

However, the financial world is so cruel.

When you come in and participate, you have to take risks and responsibilities. [

Then, on the other hand, there are two sides to everything, and those who lose money will make money.

It is the practice of many fund managers to bet on the collapse of subprime debt in advance. Of course, many people bet that the subprime debt will not collapse. Whoever loses will be eaten by the other party.

Xiao Qi naturally made a lot of money from it!

Tong Wencong has been in New York and Wall Street during this time. Today, all his hard work has been rewarded the most.

Although many people are speculating, the US government will definitely save subprime debt, save investment funds, and save the stock market.

However, the power of capital is beyond the control of the government. This time, the three chained brothers and sisters above will never escape the end of being tortured to death!

Xiao Qi looked at the time, it was already one o'clock in the morning, "Call Tong Wencong over here, let's find a place to eat."

"it is good!"

Anthony smiled and dialed the phone.

When he put down his phone, he found that Xiao Qi was not excited at all, but picked up the recent information of Mario Law Firm that he had sorted out just now, and looked at it very seriously. Average profit!

The profit of 500 million US dollars is only today!

When the entire profit is harvested, Anthony is sure that Xiao Qi can earn at least 15 billion US dollars from the subprime debt operation! !

That is to say, Xiao Qi earned 60 Mario Law Firm in an understatement of an investment activity, but even so, he still read the business report of the law firm seriously, with no pride or impatience. No.

It really is a genius!

Anthony thought admiringly.

The legal industry in the United States has developed to this day and is already a relatively mature industry. It can be said that there is no second country in the world where the legal industry can be as mature and regulated as the United States.

To put it funny, even if he commits a crime, the criminal can lie to his parents, but he will never hide anything from the lawyer, because only the lawyer will help him find loopholes in the law and get rid of legal sanctions.

Lawyers care not about the law at all, but about the people who entrust them.

In a sense, lawyers are dedicated to confronting the law.

All the business Xiao Qi did in the United States did not hide from Mario Law Firm. The contract signed with Tong Wencong was also drafted with the help of Mario and Anthony.

Also because of this, Anthony understands the entire investment process.

I deeply know how great the vision of the little boss is in this understatement. [

The decision maker with outstanding vision is the core figure of a group. Anthony has long believed that Xiao Qi is the soul of the fairy faction, and now he has strengthened his belief in following. (to be continued...)