Chapter 968 The Next Plan Is to Short Island Bonds
Chapter 968 The next plan is to short island bonds
Yang Chen, Wall Street investment bank, Gates, so many bigwigs shorted the European stock market together, attracting ordinary investors to follow suit.
Although the Rothschild family spent a lot of cash to forcibly raise the stock prices of some industry giants, they still could not restore the decline of the European economy and stock market.
After more than a month of declines, many companies have lost at least half their share prices.
The halving of the stock price will not have any impact on the company's operations, but it will greatly reduce the book wealth of shareholders.
Take lvhm Group, the parent company of lv, for example. The halving of the stock price caused the wealth of Arnold, the richest man in Europe, to shrink by nearly 40%, and he was forced to give up his position as the richest man in Europe.
Yang Chen never earns the last copper coin. Although the European economy is unlikely to pick up in the short term, the stock prices of European listed companies are also unlikely to rebound significantly.
But it is unlikely that it will fall again, basically it will maintain the current level and fluctuate up and down.
Therefore, Yang Chen doesn't want to waste any more time and continue to hold empty orders, so it's safe to close the position as soon as possible.
Yang Chen sent a message to the Wall Street tycoons, inviting them to hold a video conference to chat about closing the Internet.
After exchanging pleasantries, Yang Chen directly talked about the topic.
Yang Chen: "I think it's almost time to close the net, don't earn the last copper coin. Everyone, buy as soon as the market opens tomorrow to close your position."
President of Goldman Sachs: "Ah? I think there is still room to fall. At least there is still room for a 10-15% decline. Why are you closing your position now?"
President of Citigroup: "Yes! It can guarantee more than 10% more income,
Why not wait? "
The capitalists are really greedy, and they are not satisfied after earning 50% of their profits, and they have to earn the last 10% to be satisfied.
****President: "Mr. Yang said not to earn the last copper coin. We agree with this idea. However, it is a theory that is only used when the situation cannot be controlled or the result cannot be determined. Now we can clearly know that Europe The economy is unlikely to return to its previous level for at least ten years, so the stock prices of major companies must be bearish in the short term. So, why don't we continue to hold short positions?"
Let these greedy capitalists give up the 10% interest, they will definitely not agree.
So Yang Chen thought of a way, and by the way, used their greed to his advantage.
Yang Chen hurriedly said: "Actually, I have a new project, so I asked everyone to quickly close their positions."
When the giants heard that Yang Chen had a new project, they immediately got excited.
President of Goldman Sachs: "Haha... I just said that Mr. Yang can't ask to close the position for no reason. Tell me about any new projects?"
****President: "Haha... I just said why Mr. Yang didn't want the last 10% profit. It turned out to be a deliberate project. I don't know what project to do this time?"
Yang Chen replied with a smile: "The current international situation is unstable, and Maoziguo restricts energy exports, causing global energy prices to soar. It is not only Europe that is affected, but also other countries that rely on energy imports, and they are also greatly affected .”
Yang Chen deliberately paused.
The president of Miyin Milin quickly asked: "Well, Mr. Yang is right. What project does Mr. Yang want?"
Yang Chen said decisively: "Short island country bonds!"
As soon as this remark came out, the giants were shocked.
If shorting the stock market is only aimed at listed companies, it is not aimed at any national government.
So shorting island country bonds means that they have to compete with the island country government.
At first glance, shorting the entire European stock market must be more difficult than shorting a small island country.
actually not.
They are shorting the European stock market. As long as they do not go too far, the governments of European countries will not end up competing with them.
At most, institutions such as the Rothschild family that hold a large shareholding will end up saving the stock price.
But shorting island bonds is different.
Island bonds are issued by the island government, and shorting them means competing with the island government.
Therefore, the Wall Street tycoons would be surprised when they heard Yang Chen's words.
President of Goldman Sachs: "Mr. Yang is not joking, right? Are you sure you want to short island bonds?"
Yang Chen nodded, and said confidently: "That's right, you heard me right, I'm talking about shorting island country bonds."
President Miyin Milin: "But the currency of the island countries is the third most common currency in the world. It is not easy to short their bonds. If they resist desperately and print money frantically to recover the bonds in the market, we will not be able to short them."
****President: "That's right! If it's shorting the bonds of a small country, there are still others, and we can definitely win it with our strength. But shorting the bonds of an island country is too risky and completely unfeasible. "
It seems that these capitalists still have a sense of crisis, and they don't dare to do anything for profit.
President of Morgan Stanley: "But I think it can be done. In theory, we can get considerable benefits. Mr. Yang is right. The island country relies on imports for 90% of its energy and 60% of its food. Their ability to be self-sufficient Very poor, which also determines that their own economy is too much affected by external factors. Now that the prices of energy and food are rising globally, and the economy of the island country is in a mess, I think it is indeed possible to try shorting. "
****President: "Who doesn't understand this truth? The problem is that what we are shorting is bonds. The island government can issue more money to buy back bonds. We cannot be successful in shorting."
It seems that the investment capabilities of these giant presidents themselves are not very strong, but they have the help of super intelligent groups, and all of them can be invincible on a global scale.
Yang Chen said with a smile: "Let me analyze our operation thinking for everyone. After I finish the analysis, everyone will decide whether to do it or not. Okay?"
The giants nodded.
Yang Chen then analyzed his train of thought to everyone.
Suppose now that 1 meter of gold can be exchanged for 200 island currency.
Now Yang Chen and the others have borrowed 10,000 island national currency bonds from the island country, and then sold them in the market.
This will inevitably lead to a drop in the bond price of the island country, and a bond with a face value of 10,000 may only be worth 9,000 island currency.
In this way, they can use 9,000 island currency to buy bonds with a face value of 10,000 to repay the island bank.
The 1,000 island currency difference is their profit.
This situation is an ideal operation process, that is to say, the island government did not intervene in the bond market and allowed the market to develop freely.
However, from a common sense point of view, the island government must not sit idly by and watch the bond fall, they will definitely print currency for repurchase, and forcibly bring the bond price back to the face value.
This is where Wall Street titans worry too.
From an economic theory point of view, they can definitely get the price difference by shorting. The problem is that it is hard to say whether the island government will give them this price difference.
If the island governments don't want them to make the money, there are plenty of ways to turn things around.
So, this involves Yang Chen's second plan.