Chapter 1798 Free Is the Most Expensive

Gu Nianzhi really wanted to see what it was like inside the venue, but the pictures of Lu Jin hadn't been sent back, so they had to continue watching the demonstrations outside.

Gu Nianzhi asked Lu Yuan worriedly: "Boss Lu, do these people know that there will be a meeting here today?"

"The road was closed in advance, and the news was not blocked on purpose. Someone must know about it." Lu Yuan sat on the sofa comfortably, holding a cup of tea, sipping hot air, and smiling at Gu Nianzhi, " ...in a hurry?"

"Look at the scale of this parade." Gu Nianzhi couldn't express how he felt.

As a young man with a strong sense of justice, she can understand those young people who marched and demonstrated.

The term capitalist is not a good term, either in history or in reality.

It is not to deliberately discredit the capitalists, but the capitalists have really done nothing good.

Their pursuit of profit determines their shortcomings, which can be regarded as congenital defects.

But the world is in their hands, and a few countries once got rid of the control of capitalists, and were blacked out by these capitalists who control global wealth.

But now, Gu Nianzhi just learned that her father was actually the man at the top of the capitalist food chain, and he was the one who really stood at the top of the pyramid.

"...Mr. Lu, my dad...where did he get so much money?" Gu Nianzhi asked worriedly, very worried that the money coming from Lu Jin was not coming from the right place.

Lu Yuan could hear her worries, and comforted her with a smile: "Your father is so smart, if he wants to make money, it will be easy."

"I would like to hear the details." Gu Nianzhi quickly sat up straight and listened to Lu Yuan's "Family History" of "Von Rolstedt", or the first pot of gold.

"Ten years ago, there was a global financial crisis in the world here."

"That financial crisis started with the subprime mortgage crisis in the United States."

Gu Nianzhi listened attentively, and hurriedly said: "We also have such a financial crisis over there."

She saw it in a book.

Lu Yuan nodded, "It seems that everything happened, but I think the reasons for it must be different."

Gu Nianzhi: "..."

Lu Yuan took out his mobile phone, searched out the news of the financial crisis, and showed it to Gu Nianzhi: "Look, you know the biggest investment bank Lehman Brothers that collapsed at that time, right?"

Gu Nianzhi took a look and said, "Yes, because the US government refused to bail out Lehman Brothers, this investment bank finally went bankrupt."

Lu Yuan said with emotion: "At the beginning of that year, someone suddenly warned of the seriousness of the subprime mortgage crisis in the financial market, which quickly caused panic in the market, which in turn led to a full-scale default of financial derivatives and the bond market."

"To put it simply, it's like a bank being run on. The debts issued have not been recovered, but all depositors suddenly rush to withdraw money. The bank must not have so much cash to withdraw. This is a breach of contract and the bank will go bankrupt."

"At that time, many large, medium and small banks and investment banks in the United States were on the verge of bankruptcy overnight, and short sellers entered the market and sold everything. Your father only used 10,000 U.S. dollars as capital, and through continuous short selling and cashing out, he almost hollowed out Lehman. Brother's market value."

Gu Nianzhi didn't blink his eyes.

That financial crisis happened before she was twelve years old, and she didn't remember anything about it at all.

All she remembered was the financial crisis in the other world, which she also learned from books and the media.

"After the collapse of Lehman Brothers, your father entered the highly leveraged financial derivatives market."

"That era was the era of financial short carnival. It was completely starving the timid and supporting the bold."

"Your father used his genius-like mind to obtain sky-high wealth from the stock market in a short period of time."

Gu Nianzhi rolled his eyes and couldn't help but said, "Is that person who suddenly jumped out to warn of the subprime mortgage crisis related to my father?"

Lu Yuan smiled meaningfully, "What do you think?"

"...But how did my father know that the subprime mortgage crisis would erupt? He is not a professional in finance either?" Gu Nianzhi asked doubtfully.

"Your father is not a professional in finance, but he is a master of physics. It is no news that Wall Street is willing to hire physics students to make financial models for them."

"Of course, Wall Street can't afford to hire your father, but your father once helped others to build a credit analysis model, which was later used by the three major credit rating agencies in the United States to predict the future default rate of the financial market."

Gu Nianzhi: "..."

When Lu Yuan talked about the events of that year, he was so impressed by Lu Jin's ability.

"...Then the subprime mortgage crisis broke out. I knew it was related to Lu Jin's warning, so I asked him what happened."

"Your father said that the credit rating model has logical flaws. When he helped people build the model, the other party didn't say that it would be used as a credit rating system, and he didn't expect it to be fully adopted by the three major credit rating agencies. "

Gu Nianzhi suddenly understood, and said in surprise: "...so my father knew that the rating system of the US credit market is based on wrong predictions!"

"Yes, since the credit rating of the entire financial market has fundamental flaws, the credit ratings of various bonds, financial derivatives, and stocks rated by this system have loopholes. This loophole determines the entire credit rating and the financial market. It will collapse within a certain period of time."

"Your father calculated the time when the entire market would collapse, and issued an early warning after short selling."

Gu Nianzhi was intoxicated when he thought about his father's heroic demeanor of strategizing in front of the computer without leaving home, relying entirely on knowledge of mathematics and physics to obtain huge profits.

With such a heaven-defying father, it's no wonder that Huo Shao's sense of crisis has increased...

Gu Nianzhi secretly grimaced in his heart, with a playful smile on his lips.

Lu Yuan continued: "...the entire western financial credit system can be said to have been brought down by him alone."

Gu Nianzhi: "..."

She coughed lightly, indicating that we will not take the blame for it: "...Mr. Lu, what you said is unreasonable."

"First of all, subjectively, my father didn't mean to bring down the Western financial system. You just said that he made credit rating models for people. It was friendly, that is to say, it was completely free of charge."

Lu Yuan laughed and nodded, "Yes, this is a lesson, free things are the most expensive."

Gu Nianzhi raised the corners of her lips, "Yes, so the other party actually took advantage of my father."

"Secondly, after he was infringed, he still ignored the past and raised an early warning at an appropriate time, which is tantamount to saving the Western financial system and preventing them from being devastated. Isn't this enough? - This is already considered great Come on!"

Gu Nianzhi tapped on the coffee table in front of him, "My father has done his utmost to benevolent, and as for making a small fortune later, that's just the reward he deserves. ——Do you not need to pay with someone's credit model? ?”

"This may be the biggest loss ever caused by piracy..."

Lu Yuan was amused by Gu Nianzhi's sophistry, pointed at her and said repeatedly: "Your mouth is really eloquent! It's really comparable to the barrister Qin Suwen back then!"

※※※※※※※※※※※※※※※※※※※※

This is the second update today: Chapter 1798 "The Free is the Most Expensive".

Remind everyone of the monthly and recommended tickets!

Hey guys, little angels~~~

╰(*°▽°*)╯