Chapter 2520 The Eve of Harvest

Bear Stearns's decline seems to have no stopping trend. At the close of trading on the afternoon of the 5th, the stock price on Monday was still close to US$80, but it has quickly fallen to close to US$70.

Paulson was also very concerned about another piece of data from Bear Stearns. He asked his secretary to immediately find him the relevant data, which was the data on the cost of investment bank bond insurance.

Just like when we buy a car, we must purchase compulsory traffic insurance. Although investment banks are relatively freer than commercial banks and can engage in more risky businesses, they must also pay premiums to third-party insurance institutions when they issue bonds. To protect the interests of bond buyers.

Bear Stearns' costs in this area have risen even more sharply than the stock price has fallen.

The cost of insuring a 10 million bond on Monday was only US$316,000. Now it has soared to US$420,000, which means the average daily increase has exceeded 10%!

At this time last year, their expenditure in this area was less than one-tenth of what it was at this time, just over US$30,000.

This means that while the stock price is falling, Bear Stearns will have to increase its cost by an additional 30% in premiums alone.

And that’s still today’s data.

Paulson put down the document, took off his glasses, rubbed his eyebrows a few times, picked up the phone and informed his secretary, "Tell the National Press Club to postpone my speech at their venue until next Thursday."

"Is it the 13th, sir?" the secretary confirmed.

That was the day before Bush was to speak at the New York Athletic Club.

Paulson would have canceled the speech if he could.

When the crisis is far from over, or when the really difficult days have just begun, how can we talk about measures to prevent similar crises in the future?

Paulson thinks this is very funny and ironic.

But especially at times like this, the media cannot afford to neglect.

I have to say that the media is someone who will stab you hard at many critical moments.

If he really cancels this speech, then those guys in the media who are as sensitive as sharks will definitely smell blood immediately, and then they will spare no effort to give Bear Stearns a ride.

"Also, I fly to San Francisco tomorrow,"

The secretary immediately said, "Understood sir, I will contact Andrews Air Force Base immediately,"

This is another aspect of Paulson's downgrade when he came to Washington from Goldman Sachs. Now, when he travels, he does not have a special plane at all times.

The U.S. government has many business aircraft, but the only ones that can be called special aircraft are Air Force One for the president and Air Force Two for the vice president.

But after 9/11, in order to prevent accidents, the US government also equipped the second in line to the president, the Speaker of the House of Representatives, with a special plane.

However, compared to the President's 747 and the Vice President's 757, the Speaker's plane is much smaller. It is a military variant of a small business jet from Gulfstream, the C-20, and its airworthiness is quite average.

So much so that Pelosi drew widespread criticism for her request to upgrade her special plane early last year.

The reason was that during the trip from Washington to San Francisco, the C-20 had to stop for refueling due to endurance issues, so Pelosi requested to configure a larger special plane for herself.

Paulson is even worse. Although he is the fifth in line to succeed the President of the United States, one ahead of the Secretary of Defense, in addition to the Secretary of State, the Secretary of Defense, the Attorney General, and even the Director of the CIA are all behind him. The FBI director had ready access to a plane, but he didn't.

Usually in the country, he takes civil aviation.

But at this sensitive time, taking civil aviation is obviously not a good choice.

Think again about the current dilemma we are facing...

So why do you want to be the finance minister with a term of only more than two years?

Paulson could only say to himself in his heart, this is dedication to the country.

"Also, notify Bob to come to my office,"

A few minutes later, his deputy, Treasury Undersecretary Bob Steele, walked in and said, "Hank,"

Bob, who is always optimistic, also looked solemn at this time.

Paulson briefly told him, "I will fly to San Francisco tomorrow and participate in several activities there the day after tomorrow."

"I urge you to pay close attention to market movements and, in particular, Bear Stearns' liquidity position,"

To put it bluntly, it’s how much cash Bear Stearns still has on hand.

"Okay Hank," Bob replied, then asked, "What do you think, Bear Stearns..."

"Bob, I don't know," Paulson said.

In fact, they all know it, but they are still a little unwilling to face it.

“However, God has not given us a spirit of fear, but of power and love and a sound mind.”

Bob would now know more about Paulson's views on this issue.

Because he knew very well that Paulson would only quote the Bible like he just did when he was under great pressure, or when he felt a little scared.

…………

In Silicon Valley, Feng Yiping, who had just rushed back from Los Angeles, received a call from Brin as soon as he entered the office, "Feng, it has started, right? It has really started, right?"

Page said something there, but Feng Yiping didn't quite hear it. Brin immediately said, "Am I a little too excited like this? I'm sorry, I shouldn't be like this."

It turned out that Page was criticizing Brin's attitude at this time.

That guy Page, after becoming famous, became more and more dull.

But Feng Yiping understood him very well, and it was entirely due to pressure.

"It's okay Brin, I will have the same attitude as you when I find out that the girl I love breaks up with her boyfriend," Feng Yiping said with a smile, "Yes, it has really begun."

The beginning they talked about naturally meant that their investment had finally come to a point where they could get a return.

Since Bear Stearns can no longer hold back, they naturally have no ability to maintain the prices of securities related to mortgage loans, that is, the credit default swaps they purchased, after paying premiums for such a long time, they can finally go Got the money back.

"The amount of our contract with Bear Stearns is US$530 million. At this time, the fund team is already preparing on Wall Street to resolutely defend our earnings,"

Among the five major investment banks on Wall Street, their investment in Bear Stearns is only slightly more than that of Lehman, because Bear Stearns is the weakest among the five major investment banks on Wall Street.

"If the situation becomes irreversible, I can also ask Goldman Sachs and Morgan Stanley to assist us,"

Seeing that Bear Stearns' stock price has been falling, he can already judge that the weakest of the five major investment banks on Wall Street will probably not be able to survive this hurdle. However, most other companies on Wall Street are still taking a wait-and-see attitude at this time.

It's not that they can't see the situation clearly, but more likely that they can't believe it, or rather don't want to believe it, that the fire has actually burned Wall Street and burned them.

If he asked Goldman Sachs and Morgan Stanley for assistance at this time, it would undoubtedly indicate to them that Bear Stearns would definitely fail.

In any case, he should not let such rumors out.

"Haha, I knew that in this regard, Feng, you are the safest," Brin said happily.

"Feng, let us know at any time if we need to step forward," Page added.

"Probably indispensable," Feng Yiping said, "I plan to go to New York next week,"

Something like this, involving billions of dollars in high returns, was worthy of a special trip to New York.

After hanging up the phone with the two brothers, he was a little curious. Page and the others had called, but why didn't Jobs call?

Didn't he see the relevant news?

Of course, Jobs noticed the news, but after so many things, he knew Feng Yiping's ability to strategize. He believed that Feng Yiping must have made relevant preparations long ago without his reminding.

At the same time, he was also looking forward to Feng Yiping calling him, because Feng Yiping calling him meant that Feng Yiping needed his assistance.

He looked forward to that time.

…………

Feng Yiping had just sat down and was about to take a look at what those guys on the Internet and the experts said about his remarks the day before yesterday to see how many people were still scolding him.

He was concerned about this issue, naturally not because he was mean, but because he wanted to know how many people would soon be slapped in the face by reality. At this time, Sandberg called and said, "Feng, my mentor Summers has arrived in Silicon Valley." , do you have time to meet him tomorrow?"

"Of course I'm very happy to meet Mr. Summers,"

Not only is the other party the former Secretary of the Treasury of the United States and the former President of Harvard, it also depends on whether the other party is his capable mentor.

As soon as he arranged to meet with the former Finance Minister, the current Finance Minister called him directly on his mobile phone, "Feng, I will be in Silicon Valley tomorrow afternoon. Do you have time?"