Chapter 2186: Challenging Wall Street

"Is it these additional factors that cause securities that should have fallen to continue to rise?" Jobs asked seriously.

"Yes," Feng Yiping answered simply and affirmatively.

"You mean, the investment-grade securities made by the three major rating agencies, including Moody's, Standard & Poor's, and Fitch, are actually a mess..." Jobs moved his mouth several times, and finally That word was replaced with "trash,"

But everyone understands that what he wants to say is bullshit.

"You're actually right, but not just those securities, including those rating agencies, it's just bullshit," Feng Yiping said the word Jobs wanted to say.

At least to many Chinese people, the so-called three major rating agencies are a mess, because they have downgraded China's sovereign debt rating more than once.

But facts have proven that when they lowered our rating, our national economy was still running smoothly and well, and it still maintained rapid growth.

"If we look at their financial reports, we can find some problems. For example, Moody's, in 2006, the revenue of the institutional financial division accounted for 44% of its total revenue, and the profit margin continued to exceed 50%. "

"In other words, the big banks on Wall Street are their real bread and butter, so in many cases, they will have to become tools in the hands of Wall Street,"

"In fact, the relationship between rating agencies and investment banks has been ambiguous since their establishment. Many employees of rating agencies would like to work in investment banks because they will earn more,"

"Under such a premise, they sometimes even actively cooperate with investment banks to let some risky products slip through...,"

"Wait," Page interrupted them, "that is, we can make an analogy. The situation we are facing now is similar to that all stocks are falling, but the Dow Jones Index is rising. ?”

He asked with a question he was still familiar with.

Feng Yiping nodded, "Yes, what we are facing now is such a situation,"

"That is, this additional factor actually includes...," Jobs glanced at Brin and the others, and then at Feng Yiping.

Because they don’t know much about this professional knowledge, mainly because even for them, the guess is too shocking, so they are very uncertain.

"Including all the investment banks on Wall Street, including the rating agencies, and even the Federal Reserve, they together have caused the current situation that deviates from the actual situation," Feng Yiping said what they did not say.

Brin raised his hands like a primary school student at this time, "Can it be said that the entire American financial community joined forces to cause such an abnormal situation?"

Feng Yiping spread his hands.

Jobs slapped the table and said, "This is not an abnormality, this is fraud."

"It is indeed a fraud. Of course, although these guys are aware of it now, they may not know the seriousness of the matter,"

If these institutions knew how serious this matter would be, then companies like Lehman Brothers would definitely mobilize with all their strength and try every means to recover their losses. At most, they would be seriously injured next year, but they would never go bankrupt. .

This method was also discussed in American movies later, which is to sell all the garbage in your hands while other colleagues are still not clear about it.

At the same time, they can also go short like Feng Yiping and others.

"Besides, when the whole of Wall Street, including the Federal Reserve, is doing this, I think that's obviously not fraud, is it?"

This is similar to the saying that those who steal hooks will be punished, and those who steal the country will be martyred.

The trap played by Wall Street is too big. It can be said that they have successfully kidnapped the entire U.S. government and the entire U.S. economy. Under such circumstances, what they did will obviously not be called fraud.

"But no matter how they hide it, this problem cannot be hidden. In fact, the market has already reacted. The CDS we invest in, which is the mortgage securities credit default swap product, has lower-level , such as Class B, the market price is already rising,"

"What does this mean?" Page asked without understanding.

“This means that more and more people are not optimistic about B-class mortgage securities. More and more people believe that under the current situation, B-class mortgage securities will experience large-scale defaults, and thus they are not qualified to invest. value, but it has short-selling value.”

“Because buying B-rated CDS is essentially shorting B-rated mortgage securities,”

It was difficult for Feng Yiping to say these words, and it was also difficult for them to hear them, because those guys on Wall Street had created too many professional terms that made professional people like Feng Yiping sound a bit confusing.

Not to mention the three of them.

"To use an inappropriate metaphor, the product we invested in is equivalent to," Feng Yiping thought for a moment, "it is equivalent to buying an accident insurance policy for a neighbor next door. Of course, the beneficiary is yourself. ,"

"Or to put it another way,"

To put it that way, it's like having some unclear dispute with a neighbor.

What's more, in the eyes of many people, there was some confusion between him and his neighbor named Alba in Beverly Hills.

"It's equivalent to buying an insurance policy for our neighbor's car next door. Of course, the beneficiary is still ourselves,"

"The current situation is that the neighbor's car has had problems, but he said no, the insurance company said no, the police department said no, and even the victim of his accident said no, I'm fine,"

"The problem is that it's easy for one neighbor to say, but if all our neighbors' cars have accidents, then it's obviously impossible to cover it up,"

"Is the trend that all the neighbors' cars will really have accidents?" Jobs said.

"Yes," Feng Yiping answered affirmatively again.

The three of them breathed a sigh of relief.

That's not relaxation, that's surprise.

They don't understand those professional terms yet, but as long as they think about it, all the neighbors' cars will have accidents, then they can intuitively understand how big the accident will be.

Even if they don't understand economics, they will understand at this time that when such a situation occurs, the entire US economic system will face a huge challenge.

"Will our economy be ruined?" Brin asked.

"This should be a financial crisis with huge losses. Many companies will close down and many people will go bankrupt, but in the end, the government will definitely rescue the market,"

"So, it won't be ruined, but it will be seriously damaged,"

"Will the stock price fall?" Page asked.

"It will definitely fall,"

During the financial crisis, the company's revenue will definitely decline, or at least it will not grow as fast as it is now.

"So, this time, we are also involved in stock index futures. These situations will be explained to everyone in detail later,"

They don't understand what they say, and it just adds to their troubles.

When they heard that the stock price would fall, their faces looked even worse, because that meant that the company's market value would fall next year and their wealth would shrink.

"In other words, we are fighting against the entire US financial system?" Jobs' question was from another angle.

"You can say that," Feng Yiping nodded.

Jobs finally understood why Feng Yiping said that his nationality might affect the project when he found him.

Why did he say that if he wanted to get a smooth return, he might rely on someone like him who had influence and reputation in the business world.

Because it is obvious that it is not easy to get a return from those guys on Wall Street that may bankrupt their company.

Of course, he is confident.

If someone on Wall Street really dares to do that, he will let them learn his lesson.

"In fact, we are not the only ones who are against Wall Street. There are many other investors. I am sure that even some banks are making the same investment as us to offset their losses."

"That is, they will also go against themselves."

"Yes, they only have money in their eyes," Brin sipped tea.

They have always had a bad impression of Wall Street.

"So what should we do now, wait?" Page asked.

"No, we can't be so negative. We have to continue to increase investment, and this time we will invest in those A-rated credit default swaps with higher ratings, which means that everyone thinks the risk is the lowest, so the return is also higher."

"Since we will definitely offend them, let's just be a little more ruthless."

Such Feng Yiping surprised Jobs and others. Is it because he thinks the conflict with Wall Street in the future is not big enough?

However, they like such courage!