Chapter Eight Hundred and Ninety Seventh: Playing the Piano to the Cow

Zhu Ken Miller, one of the managers of Quantum Fund, is also one of Soros' four main lieutenants. He hurried into Soros' office without knocking. At Quantum Fund, he was also one of four people who entered Soros' office without knocking.

"Miller, what's wrong?"

"Mr. Soros, XX Commercial Bank of Thailand has lent out a large amount of Thai baht forward contracts, not our people."

Soros smiled, did they finally make a move? In fact, this Feng is someone he admires very much. He believes that Feng's financial ability is no less than his four deputies.

It's a pity that this Feng is from Xiangjiang and has a lot of money, so he will never be his deputy. But he would also disdain Feng if he could be considered equal to him.

That kid didn't know what kind of luck he had, but he actually bought so many Microsoft stocks, otherwise how could he compare with him?

"Keep an eye on them and see if they will operate in the same way as ours." Soros also wanted to see what Feng could do if he only agreed to cooperate but did not listen to his orders.

In the afternoon, he got feedback that a large amount of funds entered the market and bought the stocks of some banks in Thailand.

Soros has already understood that the opponent's operating methods are the same as his, and the next step is to use various methods to continuously expand the debt ratio.

...

Feng Yu used the borrowed money to buy stocks, buy long-term bonds, etc. Basically, he borrowed as much as he could, bought as much as he could, and then mortgaged these stocks and bonds, borrowed again, and bought stocks and bonds in a cycle.

In this way, 10,000 U.S. dollars can buy hundreds of thousands of U.S. dollars of long-term bonds. Where did the rest of the money come from? All of it was borrowed from Thai banks and financial institutions.

"Feng, what's going on? Why do we have so many debts?" Kirilenko panicked. Isn't the debt too high?

"It's a good thing to have more debts. What do you think will happen if we throw away all these bonds now?" Feng Yu asked with a smile.

"Ah? Throw them all away? Isn't that sure to lose money?" Kirilenko was shocked. Isn't it stupid to do so! We are here to make money, don't you want to lose money like this!

Lennon, the chief financial analyst hired by Kirilenko, couldn't stand it anymore. He reminded: "Mr. Kirilenko, have you forgotten that we bought a lot of stock index futures before, all of which were short-selling."

"Short selling? We have short sold a lot?" Kirilenko said excitedly,

Then he turned his head and asked Feng Yu again: "What do you mean by selling short?"

Feng Yu and Lennon looked up at the ceiling at the same time, you don't know anything, you were so excited when you heard about short selling just now!

"Short selling means that we first sell some stock index futures contracts, and then according to the agreement, within a certain period of time, buy them back and return them for delivery. And we only need to pay a 10% margin, which can also be understood as 10% Double leverage. That is, we use one dollar to achieve ten dollars."

Kirilenko still looked blank: "And then?"

"Then what you said just now, once we sell a large number of bonds, stocks, etc., then the stocks will inevitably fall. When the stocks fall, the stock index will also fall, right?"

"Of course I know this!" Kirilenko gave Feng Yu a blank look, as if "you still ask me such a simple question".

"The stock index has fallen, which can in turn stimulate stocks to continue to fall, and then form a vicious circle. There will be a large number of stockholders who will sell in panic. Some foreign investors will also lose confidence in the Thai stock market and sell Thai stocks. You Look, we sold these futures for ten yuan. At that time, we didn't have any goods in our hands. It was equivalent to borrowing them. We bought them back when they fell to eight yuan and returned them. With a price difference of one yuan and ten times the leverage, we made twenty yuan. This is how our short-selling stock index futures contract makes money.”

"But we lost money before, can this part be subsidized for the loss?" Kirilenko still remembered Feng Yu's saying that in the first two months, he might not make any money.

"We can't make it back, but it won't be too bad. The main reason is that our debt ratio is too high, so we will lose a lot of money in ordinary bonds and stocks. But don't forget, we also have a sharp weapon, that is foreign exchange contract."

Kirilenko blinked his eyes. This time he saw Feng Yu's angry eyes, so he wisely didn't ask any questions, and waited for Feng Yu to speak for himself.

"The decline in stocks and the stock index will make many investors pessimistic about Thailand's economy and the baht. Think about what we did when the ruble depreciated?" Feng Yu reminded.

"I know this, quickly exchange rubles for dollars!" Kirilenko said excitedly.

Feng Yu nodded and gave Kirilenko a thumbs up: "Yes, it is to exchange for a more valuable US dollar. Although I am reluctant to admit it, I have to say that the US dollar is the most widely circulated national currency in the world. One of the most important foreign exchange in the world."

Kirilenko kept a dark face and didn't speak. He was unhappy when he heard that the US dollar was better, but there was no way, because the ruble was not strong enough.

"Foreign exchange is the same as stocks. What do you think will happen when a certain foreign exchange is sold off in large quantities? For example, the exchange rate?" Feng Yu reminded.

Kirilenko tentatively said, "The exchange rate has decreased?"

Feng Yu cast an approving look: "That's right, the exchange ratio will inevitably drop. From 24:1, it will continue to fall, and it will exceed 30:1. Then the value of the US dollar will remain unchanged, and the Thai baht will depreciate."

"In that case, our baht contract will make money, right?"

"Of course, in this way, our foreign exchange futures contract can make a fortune. The depreciation of the Thai baht will cause inflation in Thailand, which will cause Thailand's economy to further decline, and then the stock price will fall further. We can make money , that is, short-selling stock index futures and foreign exchange futures.”

"That's not right, we should be able to make a lot of money this way, why do you say that we may not be able to make money?" Kirilenko still didn't understand. Ten times leverage, why can't you make money?

Lennon explained from the side: "When we sold Thai baht, we were also losing money."

Kirilenko was completely stunned. He lost money first, and then he could make money. He couldn't figure it out. Forget it, finance is too damn difficult. Not everyone is like Feng, proficient in everything. As long as you have money, and you have a good friend like Feng, you can just follow along and make money.

Feng Yu looked at Kirilenko's bewildered eyes, and he didn't bother to explain. With this kind of person who doesn't understand at all, he has tried his best to explain in vernacular, but it is still difficult. Of course, this is also related to his previous work. As a financial broker in my previous life, how could I tell my clients all the details?

It’s just that some conditions have to be hidden and some conditions have to be ambiguous, so that customers will ask you to operate it. If it’s as simple as buying and selling vegetables, then who will use their financial brokers?

"Brother Ji, in short, you have to know that our account will continue to lose money in the past few days. You have to calm down."

Kirilenko said angrily: "When did I lose my mind? I told you to operate it, so I will leave it to you. Feng, don't you believe me, it doesn't matter if you lose money, I am happy!"

Feng Yu rolled his eyes, are you still in a good mood? If you have a good attitude, you won’t give up your hobbies of wine and sex, and just sit in the office and look at the financial data that you can’t understand at all. Forget it, if he wants to stay here, just stay here . ( )