Chapter 2431 Promise

The conversation once again returned to the subprime mortgage crisis, but this time, Feng Yiping did not directly answer Paulson's question, "What does Mr. Minister think of this issue?"

Although he kept saying "Mr. Minister," his previous remarks were rude, and coupled with his current rhetorical question, it seemed that he really didn't mean too much respect.

It's not that he is arrogant, this is actually a song that reaches the top of any mountain.

In a society like the United States that worships individuality, sometimes, if you are too gentle, not only will it not help solve the problem, but it may give others a reason to push for more.

Let’s not talk about Wall Street’s attempt to use the release of Android to achieve the purpose of investing in Facebook, etc. Now, because the prices of real estate-related securities have become somewhat unsustainable, they are trying not to fulfill the credit default agreement signed by Feng Yiping and others. The exchange of agreements and greetings have already been sent to Paulson.

If he doesn't express his opinions forcefully and clearly, those guys will definitely think that he is weak and can be bullied.

Besides, through Steve Jobs, Feng Yiping actually saw clearly.

In the United States, as long as you have strength, no matter how unruly you are, no matter how bad-tempered you are, or no matter how silent you are, you will still get the support of the people and the admiration of the elites.

To put it simply, what Paulson valued was not Feng Yiping's good temper, but his strength.

With his current strength, a better attitude would naturally be better. If his attitude was worse, Paulson could only smile and tolerate it.

"Do you know why I've been having insomnia lately?" Paulson really didn't take Feng Yiping's attitude to heart. "It's because I agree with you. I also think that the crisis has not passed yet."

"However, I am currently unable to make a reliable judgment on the scale and intensity of the crisis,"

"But I think there are only two possibilities. Either, the intensity will be so great that we can't even imagine it, and it will completely destroy our financial industry, thus destroying our economy and destroying our country."

"Either, as Bernanke expected, the impact of the subprime mortgage crisis on the market will be limited and controllable,"

"I appreciate Bernanke's optimism," Feng Yiping said.

Paulson smiled. He also hoped that things would develop like that, but the reality is very cruel. As long as he knows more about the relevant information, such as the situation of his classmates, he can clearly realize that such a situation does not exist at present. It can make people feel the soil of optimism.

Sitting in the position of Minister of Finance, he naturally hopes that things will develop for the better, but for the sake of safety, he must prepare for the worst outcome.

In the face of such a crisis, no amount of thorough preparation can be overestimated.

If you are not fully prepared, or if you miss the best opportunity, you will definitely pay a heavy price.

"Based on your conclusion, it is obviously leaning towards the former possibility, that is, this is a serious crisis that may destroy our financial industry, real economy, high-tech industry...completely destroy our economy,"

Feng Yiping nodded, "Although I don't know exactly when this severe storm will come, I know that it will definitely come, because I don't see any favorable factors at all at the moment,"

"The stock market is falling, capital is fleeing, asset price bubbles, mainly housing prices, are serious, corporate debt defaults are rising significantly, and residents' income growth rate is falling sharply..."

"None of these signs of triggering a financial crisis is optimistic,"

"I'm sure the crisis is deepening as we speak,"

Paulson's palms arched in front of him like a pyramid, he closed them inward, tilted his head forward, and looked at Feng Yiping from above his glasses, "According to your inference, next year, the crisis will gather full strength and completely explode." year,"

"So, what I don't understand is, why do you say that the crisis will be over before the end of 2009?"

"As for the reason why I said that, Mr. Minister should have guessed it, right?" Feng Yiping said.

"That was a crisis so big that it could destroy everything," Paulson said. "I'm really not sure how you can be so confident."

"It is precisely because the energy of the crisis is so great that it can destroy everything, so we must not bear the consequences, so we can actively and decisively adopt powerful rescue policies," Feng Yiping said.

"And Minister, you are the most suitable person to receive such a rescue operation," Feng Yiping gave him another small compliment.

"Bailout..." Paulson pondered for a moment.

Frankly speaking, in his current plan, he does not have a plan to lead the rescue of the market, because the United States is a country with a free economy and has always pursued a policy of non-intervention in the market.

The "powerful market rescue" policy mentioned by Feng Yiping is of course an unprecedented intervention in the market.

"Let's not talk too far, let's just say, from the beginning of the 20th century to the present, has Wall Street experienced many similar crises?"

"Of course, I estimate that many people on Wall Street have long forgotten these painful lessons,"

"Those guys who spend all their time indulging in money and money, probably don't even know why they get such a high salary that makes them feel unreal. Naturally, they don't think that history, although it is not a simple repetition, is Always strikingly similar,"

"From past experience, the center of the storm is the financial institution, that is, the financial crisis caused by the financial institution has the most extensive impact and is particularly strong,"

"From past experience, we can also draw a conclusion that whenever we adopt active rescue policies, the risks of the financial storm that originally had disastrous consequences can be controlled within our acceptable range, and we can quickly restart from the crisis and recover quickly,"

"What are you talking about?" Paulson recalled the previous financial crises.

"I'm talking about the great panic in 1907," Feng Yiping said, "That year, because of Mr. Morgan's active rescue, the crisis was not only alleviated, but by 1908, the market quickly recovered to the level before the crisis,"

The financial crisis in 1907 is also called the first great panic in the United States.

That crisis has many similarities with the current situation.

However, the first to go bankrupt was the main financial industry at that time, the trust company.

That time, more than 300 trust companies went bankrupt, and even the New York Stock Exchange almost closed down.

At that time, the United States did not have the Federal Reserve, but fortunately, financial giant Morgan stood up and provided loans to financial institutions in need of funds and bought their stocks... It can be said that he single-handedly calmed the serious financial crisis that caused panic in the entire United States.

"The Federal Reserve has been established for hundreds of years. After 100 years of development and accumulation, the United States is many times stronger than it was at that time. It is impossible that it cannot do what Morgan alone could do at the time,"

"Oh," Feng Yiping nodded somewhat exaggeratedly, "Maybe the heads of some domestic institutions in the United States, those rigid dogmatists, think that rescuing the market is intervening in the market, so the market should not be rescued,"

"Mr. Minister, it seems that the resistance you will encounter next will be very great. As far as I know, the lady on Capitol Hill has been criticizing China's economic policies and should definitely not let you take corresponding measures,"

Paulson glanced at Feng Yiping. He knew that the lady Feng Yiping was referring to was House Speaker Pelosi.

As for Feng Yiping mentioning her at this time, he thought it was because of her consistent position of opposing China.

Thinking that he might also face her firm opposition, he felt that he and Feng Yiping had a common hatred for the enemy. Putting such an immature person in such a position was not good for anyone.

"Feng, thank you for your suggestions. Regarding your fund..."

"That is not my fund. It is a fund jointly established by me, Jobs, Page, and Brin," Feng Yiping emphasized.

"For this fund, I want to try to convince the three of them that it will not be dissolved in the short term, or will never be dissolved,"

"I hope that this fund can contribute to the rescue operations that will definitely take place in the future,"

"As long as you need it, I can raise more funds,"

"You and I both know that in such a crisis, one of the most important issues is to raise a large amount of funds to invest in the market to solve the liquidity problem,"

"I will also try to convince them to accept Wall Street companies that have signed large credit default swaps with us to pay our income in other ways,"

"When the crisis breaks out completely, we may also acquire stocks and related securities..."

"We will do our best to calm this crisis,"

Feng Yiping said this, of course, not to promote the spirit of communism.

First of all, if there is support from Paulson, who is both the Secretary of the Treasury and has a great influence on Wall Street, the income of their fund will naturally be more secure.

Secondly, such responsible behavior can naturally increase the favorability of the US government and the American people towards him.

For his company, this is undoubtedly an additional guarantee.

Finally, everyone knows that such a time is actually a good time to pick up bargains, which is what we call a good time to buy at the bottom.

Why not do such a good thing that can kill two birds with one stone?

"Because we all know that in the case of a market crash, our own company will definitely not be immune to it,"

Paulson's eyes have long been lit up.

The initial capital of Feng Yiping's fund is 4 billion US dollars. According to the current trend, the value will be at least around 20 billion.

This is not a small amount.

The key is that there is really no company as proactive as Feng Yiping at present.

Even those banks have to do their work again and again before they will draw out some funds to set up a rescue fund.

He really hopes that there will be a role model like Feng Yiping.

He stood up, unable to hide his excitement, "Thank you, Feng,"

"From today on, my mobile phone will be open to you 24 hours a day,"

Well, such a statement is settled!