Chapter 2734: Prepare for Harvest

Wall Street, watching the Mercedes pull over, John hurried over to open the door, "Li, welcome to Wall Street,"

"Hello John," Li Ruiyuan, who came from the UK, hugged John warmly, looking at the excitement on John's face, "Is it going well?"

"Very good!" John smiled.

He looked at the people passing by with no smiles on their faces, and whispered, "Welcome to harvest,"

Li Ruiyuan smiled. Speaking of it, he really looked like a hardworking old farmer this year, and the Western countries led by the United States, which used to be so arrogant, were his family's responsibility fields. At this time, the fields were full of heavy rice.

John keenly noticed Li Ruiyuan's reaction. It seemed that the trader who the boss relied on most was not too excited when he heard his good news?

Li Ruiyuan was indeed not very excited.

To be honest, it is really difficult to make a person who has a net profit of more than 15 billion US dollars in a month excited.

Moreover, because of the continuous decline in crude oil prices, the contracts originally purchased are still making money, not to mention that the long positions before this round of short selling have a total profit of more than 40 billion US dollars.

How can a person who can earn at least Bill Gates's wealth in just a few months be easily excited about the short selling in the stock market?

But Li Ruiyuan also felt that it was not easy for him to show indifference, "Haha, this is a harvest season!"

"They don't think so," John smiled and pointed to the people passing by and the tall buildings around him.

…………

The name looks grand, but it is actually very perfunctory. The office of the United Fund is only more than 300 square meters. Even so, it still looks very empty.

Although it is empty, it is not deserted at all. Although there are not many people, it seems particularly happy.

About a dozen people gathered in the hall, facing away from them, looking at the data displayed on the big screen on the wall, and kept clenching their fists and shouting, "Fall, fall, fall, yeah!"

Because the stocks displayed on it have been falling all the time.

"It's been falling," John felt relieved when he saw this situation.

"Do you feel that we don't look like a Wall Street company at all?" Li Ruiyuan said, looking at these familiar faces.

"You're right. Even before the subprime mortgage crisis, Wall Street companies wouldn't have such a relaxed atmosphere," John laughed, "I suddenly feel that this is a bit like a Silicon Valley company,"

"Add a few game consoles here, set up a lounge over there, and put more snacks and cakes in the tea room..." Li Ruiyuan held his suit jacket in one hand and pointed with the other, "Then it's a bit like it,"

"I think your plan is good," John nodded heavily.

The reason why they are relaxed here is that the tasks are relatively simple, and the process is also simple. Most people don't need to worry about market changes. They just need to follow instructions, borrow stocks and sell them at the right time, and then buy them back and pay them back at the right time.

The dozen people gathered in the hall at this time are the majority of the employees of United Fund.

"I think Feng will not have any objection," John clapped his hands with a smile, "Everyone, look who is here?"

"Li?" "Li!" The dozen people immediately surrounded Li Ruiyuan and greeted him warmly. This team was originally built by Li Ruiyuan.

When they were about to get good results, they were naturally looking forward to seeing Li Ruiyuan.

"Hello," "Hi," Li Ruiyuan shook hands with them one by one, and did not forget to joke with them, "You can smile so brightly in the office, but try to hold it back when you go out,"

"It's really hard to do this in the current situation," John's words made everyone laugh happily.

Faced with such a good situation, sometimes, even if other people are full of sorrow, it is really difficult to control the joy on their faces. You know, before this, the CDS contracts that the fund has settled have brought more than 20 billion US dollars in profits.

When the market was in mourning and companies on the street were suffering huge losses one after another, the United Fund was able to have such a large amount of income, and it seemed that there would be a lot of income. The joy and pride brought by this were at least doubled.

"Okay, everyone, Li and I still have a lot to discuss," John separated those guys who were eager to show off to Li Ruiyuan and took him to his office.

"Everyone is so enthusiastic. I wonder how they would welcome Feng if he came," Li Ruiyuan laughed.

"I bow down to you?" John said seriously.

"Haha, maybe someone can really do it," Li Ruiyuan laughed.

Because everyone actually knows that the reason why the efficiency is so good and it's so easy is mainly because of Feng Yiping.

"What's the specific situation?" he asked.

"Everything is going well," John couldn't help rubbing his hands, "Just waiting for the most appropriate time that Feng said,"

He sat down opposite Li Ruiyuan, "Unfortunately, we could have shorted more, but you know, the China Securities Regulatory Commission banned naked short selling of financial stocks in July,"

What we call short selling in the general sense is that you must borrow stocks from brokers in advance, sell them at a high price, and then buy the same amount of the stock at a low price and return it to the broker.

The so-called naked short selling was originally a new tool developed by financial system practitioners in order to get higher profits.

It does not require borrowing stocks in advance to sell the stocks, as long as the corresponding stocks are bought before the delivery date.

Because such operations actually sell stocks that do not exist, the volume may be very large, so the profit will be greater.

This is also often used by them to snipe some suitable targets, such as some stocks that are listed on several exchanges at the same time, so they are actively traded, or targets with good basic market but affected by negative news.

While their stock prices are still high, they will short the stocks in large amounts, suppress the stock prices, and use combined means to incite other investors who are unaware of the truth to sell their stocks, causing the stock prices to plummet, in order to increase the profit margin.

If they can kill the company directly, it would be even better, because that means they can buy back the stocks they need at a negligible cost.

I believe that when they created this tool and made profits from other industries again and again, they would never have thought that the wind and water would turn, and now, the knife they created has finally cut them.

The US regulatory agencies, which were most affected by the subprime mortgage crisis, were the first to say no to naked short selling. The financial institutions were already in a mess and were in a desperate situation. If you were allowed to artificially suppress the stock price, many companies would follow the footsteps of Bear Stearns and have a ridiculously low total market value, which was not even as valuable as their headquarters building.

"It is estimated that Europe will gradually ban such operations," said Li Ruiyuan.

This is the conclusion he and Feng Yiping came to after joint analysis. The main reason is that at this time, naked short selling is too harmful to some financial institutions that are already struggling.

"Fortunately, we prepared early and borrowed stocks very early," John said, "Feng, you really have a long-term vision!"

"We should cherish this opportunity," Li Ruiyuan whispered, "Feng believes that it is not ruled out that some countries will ban short selling of financial stocks next."

"The impact on us is actually not big. It is difficult to borrow the stocks we want to borrow now," because everyone knows that short selling at this time will make a profit.

"It's actually meaningless even if we borrow it now," because the stock prices of those suitable targets are already low enough, and there is not much room for profit.

"Also, Li, Feng, when do you think the time will come?" he asked in a low voice.

"It should be in the next few days," Li Ruiyuan said.

"Will the government really directly inject capital into the two housing agencies and take control, and let the shareholders pack up and leave?" John was still a little uncertain.

Although the shareholders of Bear Stearns lost everything in the end, it was acquired by JPMorgan Chase after all, and the Federal Reserve only guaranteed its mortgage securities assets worth more than 30 billion US dollars.

If the US government directly injects capital into the two housing agencies and takes control, it will be a crude interference in the market, which is exactly what the United States, which pursues a market economy, has always opposed.

"Wait, it will," Li Ruiyuan walked to the window and looked downstairs. Over there, the bronze bull on Wall Street still stood there steadily, and a large number of people hurriedly walked past it with their heads down.

In the sunshine, the bright buildings on the street are casting long shadows...

PS: The monthly ticket seems to be doubled, you won't forget to vote, dear