Chapter 33 Subprime Short-Selling Mechanism
Cape Town, South Africa, in a high-end office building not far from the South African Ministry of Energy. The offices of Glencore and Mediterranean Trading Company are located here.
Not long ago, Green, a senior partner of Glencore, and the South African government finalized a trade agreement on oil and agricultural products, opening the door to the country of gold in one fell swoop. It brought new trade channels to a country that was widely sanctioned by the international community because of apartheid.
As one of the few wealthy countries in Africa, South Africa has a very strong ability to pay. They used gold instead of US dollars to buy oil from the Soviet Union and Iran, which were also sanctioned, and wheat from Latin America and other important livelihood materials from Canonco. In exchange, Glencore will harvest spot gold, which will be resold to the Mediterranean trading company downstairs and shipped back to the Soviet Union.
As an important store of value, gold will play a major role in Japan's actions in the near future. Because shortly after the signing of the "Plaza Accord", the dollar will actively seek to depreciate in order to ease the decline in US economic growth, and gold will become a favorite in the market. It is precisely because of the expectation that the US dollar is about to fall, the various subsidiaries under Sergei Sha are working hard to spend the US dollars in their hands as much as possible. However, it is very troublesome to realize spot gold. This kind of thing is not suitable for Glencore, which has a very fast turnover. On the contrary, it is more useful as a national asset reserve. So Seryosha is using the power in his hands to help the Foreign Trade Bank adjust its asset structure. In a month's time, the Foreign Trade Bank has successively purchased and stored up to 20 billion U.S. dollars in gold.
This also means that 20 billion U.S. dollars have flowed into the hands of Glencore. Seryozha left only the necessary liquidity for Glencore, and the rest was sent to the Bank of Tokyo through the Bank of Columbia. on the foreign exchange account.
There is still more than a month until September, and there is not much time left for Seryozha. Because he realized that the crazy arbitrage of the cadres of the Communist Youth League had caused great harm to the country but the losses outweighed the losses, Serezha took the initiative to stop the actions of his subordinates. Instead, in the name of oil hedging, he defrauded Gorbachev of agreeing to freely dispose of the foreign exchange reserves in his foreign trade bank account. Now there are two things to do before Sergei. The first is to let Mikhail hold 100 billion yen in assets before the announcement of the Plaza Accord. The second is to gradually transfer the more than one trillion US dollars left by the Foreign Trade Bank to the British financial market.
Mikhail currently only has assets worth about 40 billion U.S. dollars in yen. According to the current exchange rate of 250:1 yen to the U.S. dollar, the total is about 10 trillion yen. The first thing Mikhail did after taking office as the president of the Bank of Colombia branch in Japan was to apply to the Tokyo Stock Exchange for a position as a primary market dealer. This seat can directly conduct bulk stock trading without going through a brokerage like Nomura Securities.
The Bank of Colombia, which held a large amount of cash, immediately became the target of major Japanese companies. The Finance Department of the Ministry of Finance paid more attention to Mikhail, and even awarded him a certificate of honor from the Japanese government, thanking him Trust in the Japanese economy.
Mikhail accepted the honor with a cheerful smile, and he even hung it on the wall of his office. Every time a Japanese guest came to visit, Mikhail took the initiative to introduce it to the other party.
It's a pity that despite the enthusiasm of these big Japanese companies, Mikhail has never spent real money to take practical actions. Instead, he proposed to the Financial Services Agency to improve the trading mechanism of the subprime mortgage product market.
Mikhail took the initiative to come to the Financial Services Agency to apply for the establishment of a short-selling mechanism for subprime mortgage products. Naturally, the Financial Services Agency does not dare to take this man with trillions of yen in assets lightly. Many high-level officials came to meet Mikhail in person, and Kuroda, who has been in charge of the Bank of Colombia, was naturally honored to be among them.
"Shorting subprime mortgage products? Mr. Grachev, you are the president of a financial company that first engaged in subprime mortgage product transactions in Japan! Would you tolerate others shorting the subprime mortgage products you issued?" Noda, the deputy director of the Financial Services Agency, wondered asked.
"Your Excellency, as you said, I certainly don't want the subprime mortgage products I issued to be attacked by others! But as a responsible financier, I hope that the subprime mortgage products will have a better and sound trading system. Although the subprime The concept of credit has become popular all over the world not long after Mr. Ulyanov put it forward, and Japan is of course the biggest beneficiary. But the trading mechanism of only long and no short is unsound." Mikhail Team Yi Noda replied.
"Short subprime mortgage financial products, will anyone buy this kind of thing?" Another official sitting next to Noda asked disdainfully. How hot is the real estate market in Japan right now! Shorting subprime mortgages is shorting Japan's real estate and personal credit markets. Unless you are a fool, who doesn't know that Japanese people are now the richest consumer group in the world.
"The important thing is not whether someone buys it, but to establish a sound and open trading system! Everyone, the fluctuations in the financial market itself come from different people's different judgments on economic development! We should let financiers with different views also Join in!" Mikhail emphasized again.
"Okay, Mr. Grachev! We have understood what you mean. We will discuss with Nomura Securities and the Tokyo Stock Exchange to launch financial products that can short subprime mortgage derivatives as soon as possible. However, you must know that if the issuance is not satisfactory If so, we will cancel it at any time!" Noda said disdainfully, this Grachev is now forcing the regulators to issue such a product, could it be that he has lost confidence in the Japanese economy, I really don't understand what these foreigners are thinking what.
After sending Mikhail away, Noda called the person in charge of the Tokyo Stock Exchange and the person in charge of Nomura Securities to communicate about Mikhail's proposal.
"Deputy Chief Noda, I think that may be what I told him, I just hope that the trading mechanism of subprime mortgages will be more complete! I don't believe that anyone will really invest in this product now!" The person in charge of the Tokyo Stock Exchange replied cautiously .
"Yes! If Columbia Bank really wants to do this, I can guarantee that he will lose as much as he buys short. Our real estate boom has just begun, and our overseas real estate investment has bought 90% of the land in Hawaii. , We will also buy New York, Los Angeles, Chicago... If we go against our Japanese economy, we will perish!" The person in charge of Noda Securities said arrogantly.