Chapter 1807: Crazy Fall
Hearing this news, Xiao Bu Shi didn't have the heart to accept an interview. He hurriedly sent the reporters away, and then immediately summoned their think tanks.
Those people in the think tank also knew the news, and they were all shocked. In fact, they don't even know about the fake accounts.
They have analyzed that from a technical point of view, both Fangfang Group is on the verge of bankruptcy, but it is not impossible to save. After all, Liangfang Group has gone bankrupt before, and it has risen again?
Even those banking institutions believe that the two companies will not go bankrupt, because the United States cannot afford it, and neither can other countries.
Once the two companies go bankrupt, the bonds guaranteed by them will depreciate significantly, and many of them will even become junk bonds. Then investors and financial institutions holding these bonds will be hit hard.
This includes many financial institutions in the European Union, many Asian countries, and many commercial banks. They cannot watch the two Fangfang Group go bankrupt.
Moreover, once the two housing groups go bankrupt, the mortgage interest rate will inevitably soar again, and the subprime mortgage crisis that has just been suppressed will explode violently again, even unstoppable, causing a serious financial crisis.
The influence of these two companies is too great, and the US government must not allow them to go bankrupt. And those financial investment institutions cannot let it go bankrupt, and they will also suffer heavy losses.
For example, the national debt issued by the United States at this time is 1.5 trillion U.S. dollars, but the bonds issued by the two rooms are more than 5 trillion U.S. dollars!
The foreign exchange reserves of many countries will be seriously affected as a result. Therefore, those countries cannot let the two companies go bankrupt, and must help save them.
The bankruptcy of Erfang Group will not only lead to major problems with these bonds, but also the outbreak of the financial crisis in the United States. Those countries that buy US treasury bonds will also suffer losses.
For example, although Huaxia has polished the bonds of the two groups, it still holds some U.S. government bonds. Although China is different from the previous life, it is no longer the largest creditor country of the United States, but it is still ranked very high.
The main thing is foreign exchange reserve investment, which is an investment method that all countries will choose. There are also many countries that have invested in the national bonds issued by Huaxia.
The countries that currently hold the largest U.S. treasury bonds and Fanfang Group bonds are island countries, followed by the European Union, Canada, and Australia.
The United States suddenly discovered that it is no wonder that China is so stubborn and just does not help the United States. It turns out that the US national debt they hold is only tens of billions of dollars.
Tens of billions of dollars are still national debts, and they will definitely not become waste paper. Even if there is a small loss, it will not be a big one. After all, national debts also have interest.
Once Xiao Bushi asked people to analyze that these two groups can tide over the difficulties. As long as the European Union and the banks in Asia provide assistance, they will indeed have to provide a large amount of cash assistance.
But unexpectedly, the two Fangfang Group actually made financial frauds, which caused serious deviations in their analysis!
For more than a year, Liangfang Group has been financing through bonds to obtain more cash, hoping to turn around. But in order to obtain bond financing, investors must be given a high return.
Therefore, the two housing groups continue to increase their yields, that is, issue bonds at higher interest rates for financing, which makes them more and more indebted.
The rise in interest rates has also brought an increasing burden on them. The value of the bonds they have issued will continue to decline, and their stock prices will continue to decline. This is a vicious circle.
Of course, if the money they raise can make enough profits, these things will be nothing. Unfortunately, not only did they fail to make profits, but they suffered continuous investment losses.
The two Fangfang Group themselves also believe that after their provision exceeds 77 billion US dollars, the government will have to intervene. Just like the government is helping to sell Bear Stearns, they will definitely worry that the bankruptcy of the two housing groups will drag down the entire financial market in the United States.
Like the bankruptcy of Bear Stearns, Lehman Brothers, Merrill Lynch, etc.,
Many shareholders have lost everything, they have all been cheated.
But those who really stood behind the scenes managed to escape. Through entrusted investment and other methods, when the capital is withdrawn, these behind-the-scenes bosses are the first to withdraw the capital, ensuring that their property has not suffered any loss, or has not suffered too much loss.
Many people are saying that the US government's coercive method is clearly a trap for shareholders, trapping investors like them.
But none of these people who were cheated had much influence, and those who were influential managed to get away. This is the investment environment in the United States.
Seeing the current situation, Xiao Bushi also felt that it would be impossible not to help the two Fangfang Group. They must be given sufficient funds, and their stock prices must be stabilized to prevent them from falling wildly.
So Xiao Bushi contacted the Federal Reserve and the US Securities and Exchange Commission, asking them to take effective rescue measures for the matter of the two Fangfang Group.
Feng Yu originally planned to borrow some shares of the two rooms, and then take advantage of the scandal and make a fortune when the stock price plummets, so as to make up for his losses in the US dollar trading market, but he found that no financial company is willing to lend them The shares of the two rooms are gone.
To put it bluntly, all financial companies are no longer optimistic that the stock price of Liangfang Group will rise. The more they borrow, the more they will lose.
Although it is impossible to short-sell the stocks of Liangfang Group to make a profit, the stock index in the United States will definitely fall accordingly. Short-selling stock index futures can also allow Feng Yu and the others to make up for losses, and even make a small profit.
The next day, when the stock market started, the shares of the two Fangfang Group ushered in a wave of selling. During the concentrated selling, many stocks could not be traded at all, but the stock price was still falling wildly.
The stock price of Liangfang Group soon fell below the one-dollar line and became a complete high-risk junk stock.
At this time, the Federal Reserve and the U.S. Securities and Exchange Commission took action. On the one hand, they waived some interest for the two rooms, and provided an interest-free loan again, so that the two rooms have enough cash flow, and on the other hand, they are against the two rooms. The trading of some stocks was restricted, which stopped the plunge in stock prices.
Even so, the stocks of the two housing groups still fell by more than 20%.
Affected by the scandal and stock price drop of the Two Fangfang Group, investors no longer trust many companies in the United States. Giants such as the Two Fangfang Group will cheat financially, so other companies will not?
If other companies are also financially fraudulent, wouldn't it be very dangerous and may collapse at any time?
So on this day, the entire U.S. stock market fell. The indexes of the New York Stock Exchange and Nasdaq both fell by more than 5%, which can be said to be another sharp drop.
Feng Yu looked at the earnings on the stock index futures and thought that the matter was not over yet!
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PS: I wish everyone a happy Valentine's Day, everyone can play happily with their loved ones today (serious face). Ask for a little reward, so that the fourth child can buy a rose, thank you~~
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