Chapter 2319 Waiting for the Wind to Come

By this time, not only the Jobses, but also the Google brothers were a little uneasy.

The next day, after Google's regular meeting, Xiangxie, in cooperation with Brin, came to his office and asked, "Feng, how much can we gain this time?" Page asked very directly without any nonsense.

"Theoretically speaking, the last A-class securities we purchased have a return of 200 times," Feng Yiping did not answer his question directly, but only mentioned part of the possible returns.

Because of the final reward, he can't answer it now.

"200 times!" Brin sat down on the sofa, and Page sat on Feng Yiping's desk.

If this scene were told, I guess not many people would believe that these two well-known rich people in the world, emerging representatives of Silicon Valley, would actually have trouble standing?

But that’s not incomprehensible.

Even a veteran rich man like Bill Gates will feel a little dizzy when he hears such numbers.

200 times return!

That's so high that it feels unreal.

It is estimated that only Buffett can remain calm in the face of such a rate of return. However, if the investment and the time of this operation are also included, then it is estimated that he also needs a few cans of Cherry Coke to calm down.

Page and Brin have never asked about this situation before. That is because they not only believe in Feng Yiping, but also with their net worth of more than 10 billion, the investment of 1 billion U.S. dollars, although large, is not worth them. Spending too much time paying attention.

They also believe in Feng Yiping's promise. Feng Yiping said that there will be two to three times the return, so they feel that in the end, at least a double return will be guaranteed, but 200 times?

Although they also knew that the funds used to short Series A securities would not exceed US$300 million, this was already extraordinary.

300 million U.S. dollars, a 200-fold return, that is, 60 billion!

According to the rate of return mentioned by Feng Yiping, wouldn't it be true that in just over a year, the return on this investment alone would at least exceed their combined net worth?

No, this is actually higher than the net worth of Bill Gates, the world’s richest man.

To be honest, after seeing the valuation of their wealth on various rankings, they sometimes feel that their money is really easy to come by, but now, there are people who can get it even easier.

In this situation, these two are regarded by many people in the world as trendsetters who are at the forefront of the times. They can't help but sigh, it's not that I don't understand, it's that the world is changing so fast!

"It's just, you two, this is just a theoretical rate of return," Feng Yiping gave each of them a bottle of water.

The two men looked at him without saying a word. They were probably still a little numb from the shock, and they didn't know whether they had listened to Feng Yiping's words.

"Gudu, Gudu," Brin drank most of the bottle in one breath and wiped his mouth with the back of his hand, "Why?"

It seemed that they had finally recovered their ability to think, but it didn't sound like there was much disappointment in these words.

This is also the reason why Feng Yiping did not mention this number in front of Jobs yesterday. Jobs's obviously declining physical condition cannot withstand such stimulation, and he will definitely care about and like this more than these two. Return.

"Just like when the debt reaches a certain amount, greater autonomy is actually in the hands of the debtor. The same is true for our investment this time," Feng Yiping explained to them as plainly as possible.

"In the financial field, there is probably a conservation law..."

"Is it understandable," Page put the nearly empty water bottle aside, "that if we short $1 billion in Series A mortgage securities, someone will go long by $1 billion?"

"Yes, of course, the $1 billion long position may not be the work of one company," Feng Yiping nodded.

In fact, according to Li Ruiyuan's report to him, there is now a situation where some guys on Wall Street are shorting mortgage securities like them, but they are shorting B-class mortgage securities.

At the same time, in order to offset the risk, they also went long A-rated securities, which are considered to be very high-quality and similar to mortgage securities guaranteed by the U.S. government.

What they don’t know is that these so-called A-rated securities are considered by them to be high-quality securities guaranteed by the U.S. government. Among them, a quarter of the truly high-quality securities would be good.

Most of the rest are various other non-high-quality securities that they packaged in, and in a nutshell, they can be said to be junk securities.

More importantly, for such a system, if the lower-level securities with poor ratings, that is, B-level securities, the so-called subprime mortgages, exceed a certain proportion, the proportion mentioned by Li Ruiyuan is about 10%. , that is, more than 10% of subprime mortgages become worthless, which will cause an avalanche.

The result of the avalanche is that the so-called high-quality securities at the 2A3A level at the top of this pyramid will also collapse.

Therefore, if they are used as a safety rope, in the end, it will become a noose around their necks.

But this is not unfair. These products were originally developed by their peers on Wall Street. In a general sense, they fell into a hole of their own making, which is considered suicide.

"Then there will definitely be such a situation. In the coming crisis, Wall Street, which will bear the brunt of the turmoil, will definitely have long-term companies going bankrupt,"

Shorting, which will eventually be discovered, is correct, but the return is low.

Going long, which was originally used to hedge risks, exposed them to great risks, and it was an investment with a loss rate that exceeded their imagination. The returns from short selling could not offset the losses from going long, and the result could only be Bankruptcy.

But this is still good. More companies will still just happily collect premiums, and maybe do more along the way. Anyway, they are just afraid that the noose around their necks is not strong enough.

"Including some of the companies we are currently paying insurance premiums for, they may not be able to survive in this future crisis..."

"Wait a minute," Brin stood up and interjected, "You mean, it's possible that companies like Goldman Sachs, Morgan, Merrill Lynch, Bear Stearns... may also go bankrupt?"

He was really shocked by the meaning of Feng Yiping's words.

Although they are unhappy with Wall Street, they know the strength of the big companies on Wall Street.

Even those companies may not be immune?

"There is a possibility, so this means that some companies that accept our premiums now will go bankrupt in the future. Given the situation at that time, because we all know that there are many related transactions between those companies on Wall Street, That is to say, when a crisis occurs, it will still be those companies on Wall Street that will immediately grab the high-quality assets of those companies that will go bankrupt."

For example, before Lehman Brothers was determined to collapse, its Wall Street peers, that is, the creditors, had already divided up the most valuable part of the remaining assets.

"If we can get a little bit of reward, that's good."

Feng Yiping actually probably remembers the investment banks that failed on Wall Street during this crisis. At least, he remembers the ones that survived.

But this time, he can't only deal with those companies that survive. Sometimes, if his vision is too precise, it will definitely make people suspicious.

Therefore, including Lehman Brothers, they are also collecting their premiums at this time. Of course, such investments that are known to give money naturally only account for a small part, but they are indispensable, because that way it seems normal.

"There are also some companies, if they pay us compensation according to the originally agreed proportion, then they will have no choice but to go bankrupt. In that case, they will take the initiative,"

"Originally, we were going to give you 1 billion, but now, we can only give you 300 to 500 million at most. Either you accept it, or we go bankrupt and let the contract in your hand turn into waste paper,"

"Do you think, under such circumstances, we can still insist on getting back the rewards we deserve in accordance with the proportion in the contract?" he asked.

"There's really no choice," Page said. "Wall Street, huh!"

Part of the return will certainly be forfeited, which makes his impression of Wall Street even worse.

"It doesn't matter," Brin patted him on the back, "We'll just wait for that day."