Chapter 1833 Announcement of the Prohibition Order
The U.S. stock market is now in a crazy situation. There are far more people selling and short selling than buying. The shareholders of many companies are desperately increasing their holdings, but it doesn't help.
The stocks of financial companies such as banks and funds led the decline, and even the stocks of companies such as Coca-Cola and Microsoft were falling, and they couldn't stop it.
Obviously Coca-Cola is still profitable this year, and Microsoft is still profitable, but their stocks are falling. When panic strikes, you don't even think about whether your stock is strong or not.
Many people need to sell these high-quality stocks to raise funds, or to save their other industries, or plan to make money by short selling other stocks. There are also some people who simply sell for the sake of selling. They simply want to cash out the stocks and feel that the risk of the stock market is too great.
In a country with a highly developed financial industry like the United States, there are also many people who only know how to buy stocks when they buy stocks, and they don't know how to sell stocks at all.
Most of the short selling is done by investment companies, and there are very few individuals.
The US Securities Regulatory Commission issued an announcement at this time, prohibiting short selling of LUO, that is, if you do not hold the stock of this company, short selling is not allowed.
The reason is that this is an obvious speculative behavior that seriously disrupts the market order and must be banned. This method was used during the Internet bubble.
But this kind of LUO short selling is actually not many, the scale is not large, and the impact on the market is not enough.
Although the U.S. Securities Regulatory Commission has made such regulations, the stock market in the U.S. is still falling, and there is no tendency to stop.
Many people call this time a cliff-like drop, and the stock price plummeted like a dive.
The wealth of the US financial market is constantly evaporating, and what disappears every day is an astronomical figure.
After this order was issued, Feng Yu keenly discovered that what he expected might happen. He urgently contacted Kirilenko, Fu Rongqi and others, adjusted his investment strategy, stopped short-selling stocks, and began to reap the fruits of victory.
Feng Yu once predicted with Fu Rongqi that once such a cliff-like decline occurs and the market short-selling behavior is extremely serious, how should the market be rescued?
The most simple and direct way is to order intervention in the market and prohibit short selling.
Whether you own the company's stock or not, short selling is not allowed anyway. Especially for some key stocks, after the stocks leading the decline are banned, the whole momentum can be reversed.
During the Asian financial crisis, Feng Yu and the others had discussed that once they could no longer hold on to Hong Kong's stock market, they would adopt this method.
But fortunately, in the end, the funds led by Soros retreated first, and they did not adopt such extreme measures.
But at this time, the U.S. stock market, if this method is not adopted, there is no other way.
If the government does not take over companies such as Bear Stearns and China Fanfang Group, then the US government may still spend a lot of money to stabilize the stock market, but now the government has no money, and they can only use some administrative measures when the stock market falls!
In the past few days, Soros has short-sold a large number of stocks in the US stock market and has made a lot of profits. Some of his losses are beginning to be filled back.
Doing his best investment method is indeed the right choice. To hell with those syndicate warnings.
At this time, the investment of many consortiums is also losing money, and Soros doesn't care anymore. This is a normal business investment for him, what's the problem?
It's just that Soros stared at the short-selling of the stocks of the companies under the big consortia, and the meaning of revenge was very obvious.
Today he heard the order from the China Securities Regulatory Commission to prohibit short selling of LUO. He didn't care at all, and it didn't affect him in any way.
His short selling is still going on, he hasn't recovered his losses, and since he has done it, why not make more money? If he has enough funds, does he still care about the attitude of those consortiums?
Xiao Bushi and his team sat together to discuss how to save the US stock market. The current situation is too serious, and the stock market in the United States has fallen too hard.
Many people's investments have been liquidated,
was forced to liquidate. Every time someone thought it was the bottom, they were surprised to find that it was far from the bottom.
Even according to Buffett's classic theory, the stocks of many companies have already fallen below their true value, but no one dares to go in and buy the bottom.
Going in at this time is not buying bottoms, but filling holes. Those who want to buy bottoms and cause blood losses are the best proof.
"President, that media released news again. It revealed that the financial advisors of several companies were once the financial advisors of the two rooms, so now many people suspect that the financial affairs of those companies are also falsified."
Xiao Bushi was very angry. Can't that damned media shut up now? He obviously asked someone to say hello to the company, and don't release any negative news at this time, but the media replied that the news needs freedom, and the government has no right to interfere with them telling the truth.
And Xiao Bushi also discovered that the media had a vague relationship with Feng Yu, but unfortunately there was no substantive evidence. Even if there is evidence that the media has something to do with Feng Yu, so what?
All the news that came out was real and completely legal, so what could he do? What's more, the media seems to have shares in companies from Russia, the United Kingdom, and island countries. At this time, he can no longer provoke these countries.
"Isn't there any good news?!" Xiao Bu said angrily.
"Yes, Cox said that after researching, they came up with a way to stop the stock market from continuing to fall wildly, but it requires the cooperation of the government and the Federal Reserve."
Xiao Bu Shi suddenly became interested, and finally had good news. The Fed will definitely cooperate and must cooperate!
"What way, tell me."
"Short selling ban!"
Xiao Bu Shi frowned: "Hasn't this been ordered?"
What kind of good method is this TM? It has no effect at all. After thinking for such a long time, came up with such a broken method that has no effect at all?
"No, this is different from the previous one. It is to stop the short selling of financial stocks for ten days, and stop it completely. All investment institutions must report their short positions every day, and any behavior suspected of manipulating the market will be sanctioned!"
Xiao Bu Shi was taken aback: "Stop short selling financial stocks? Is this ok? We are a financially open country, will this have a serious impact on the future?"
This is simply drawing fire from the bottom of the pot, Xiao Bushi also felt that this would cause a huge shock. This is completely contrary to the free market that the United States has always promoted.
"This is the last resort. If the plunge in financial stocks is stopped, other falling stocks will be stopped, so that the panic will disappear. Of course, the government and the Federal Reserve must come up with an asset rescue plan, and come up with a A lot of cash to lend to those financial companies to tide them over and restore investor confidence. We need time and this will buy us enough time.”
Xiao Bu Shi frowned, what the fuck is asking for money? !
But he thought about it, and it seemed that this was the only way. But he can't take the blame for this.
Since it was the solution that the chairman of the China Securities Regulatory Commission came up with, let him carry it in front of the stage, and let him bear the blame in the end!
When many people were enjoying short selling, the China Securities Regulatory Commission issued an astonishing announcement: stop short selling of 797 financial stocks for a period of ten days. All investment institutions must report short positions every day and strictly investigate market manipulation!
All investors were stunned by this announcement!
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