American Fortune Life

Now the US stock market is getting more and more weird. There are no rules to follow at all, and even a rumor on Wall Street may even cause turbulence in the stock market.

Bardstone is very clear that this is caused by general anxiety in the market. Everyone feels that there is something wrong, but they all find out what went wrong, so this kind of worry and anxiety, or suspiciousness is more appropriate. .

"Boss, our large purchase of cheap cds on the market has attracted the attention of some people, and some even went to the company to inquire about the news. Although some people have doubts, the abx (real estate subprime index, so-called short selling) (That is, the need for this index to plummet) is still stable, Standard & Poor's has not lowered the rating of cdo, and now the price of cds is also very cheap, but there are already some concerns in the market. "

After Bardstone explained the latest situation, Andy glanced at the detailed data on the table, debt mortgage bond CDO and credit default exchange CDS. The relationship between these two products is that the higher the risk of cdo, the higher the value of cds guaranteed for it. But during the real estate boom, the price of CDs was very low because most people didn't think there was any risk to CDO.

Andy what he is doing now is to buy cheap CDs while shorting dangerous CDOs.

Andy closed the file, his mouth turned up, with a smile, ridiculous and happy, "The whole world is a false carnival, and a few outsiders and geniuses may have their eyes. Investors are greedy, bankers Greed. Once sitting on Wall Street, greed becomes what it should be, almost an obligation.

Are there really no smart people here? No, this is a weird circle, the closer you get to the market, the harder it is to find its stupidity!

What we are doing now is gambling on bond transactions. The line between gambling and investing is artificial and very thin. The most stable investment also has a certain gambling nature, and the most daring speculation has obvious investment characteristics. Perhaps the best definition of "investment" is "gambling with odds in your favor".

"Oh, boss, the size of our investment this time is not smaller than some Wall Street investment banks. Even Facebook shares have been mortgaged for 200 million US dollars. We now hold 700 million US dollars of CDs and 200 million US dollars each. Shorting CDO, 150 million deposits exist in JP Morgan Chase, and use the generated interest to fill the losses. Once the real estate collapses, the boss, you will create a new wealth myth! Admire, this is a big bet on almost all the net worth.

Al's remarks made everyone in the meeting room focus on Andy. After all, all the people who have been sitting this time have been busy researching the real estate market. They are convinced that the real estate market crashes. Undoubtedly, it is only a matter of time before the myth of creating wealth by your own boss.

"Oh, this is inseparable from your work during this time. I am not a shy person. You will get a good bonus and ample vacation time because of your hard work during this time." Andy for his people The idea is very clear, and he is indeed not a shy person. What mixed Wall Street is not a generous bonus. The annual salary specification is not really high to avoid the government's attention.

The rigorous and reserved Wall Street Jingyings didn't have any messy cheers or whistle, but they just applauded vigorously.

"Oh, how it feels to everyone, it seems like the winning ticket is in hand. If everything goes well, everyone needs to work hard. I hope everyone can work up for a period of time, even a few years. Here, we will witness miracles and changes in the world economy. I hope you do n’t leave behind, because this is my chance and your chance to realize your self-worth! "Andy never missed the opportunity to draw a beautiful future for everyone, everyone is profiting Yes, on Wall Street, driving them with interests is undoubtedly the most appropriate.

Waiting for the crowd to leave, only Bardstone and Alvitre were left in the meeting room, and Li Xiaoying was specifically called by Andy.

"Al, when does your think tank expect the first domino to fall?" Andy turned his pen in his hand, and asked Al with a more relaxed posture.

"The ideal situation is that the three major rating agencies lower the rating of mbs (mortgage securities), but unfortunately, this situation is difficult to occur, three a!" Al smiled with a mocking smile on his face, shaking his head again and again.

"Does the three major rating agencies really not see the risk of real estate bubbles?" Andy frowned slightly, and really did not understand that the three major rating agencies are very famous all over the world. There is Standard & Poor's in this. Even ordinary people in Rabbit Country have heard the name of this professional company.

"In fact, the three major rating agencies have also been blinded, and the ratings they give are based on the evaluation of the materials that traders want to see and their own common sense basis." Bardstone smiled. Andy puzzled.

"What?" Andy was curious.

"Wall Street Investment Bank's bond traders are 7-figure annual income guys. They trick people with 5-digit annual income (employees of rating companies) more than enough. In fact, the best employees of rating companies are one after another. He jumped to the investment bank and helped his new owner to deal with his old owner. "When Bardstone saw that his boss didn't seem to believe this reason, he gave the boss a simple example of deception.

Simply put, half of the borrowers who can get a high score and the other half of the borrowers who have a low score get a mbs purposely. The score can be as long as it passes the three a standard line, and the other half is low. The possibility of a sub-borrower interrupting its supply is very, very high.

"The most important reason is that their biggest basis is that since the Great Depression, there has never been a simultaneous decline in house prices across the country. They feel that borrowers are not ready to take out loans, and they will have to collect the house at that time. For mbs, they will be so confident in giving an aaa rating. "

Andy's brows stretched, this reason is quite reliable. "Since the rating agency we can't count on, then where will the first domino fall?"

"After our think tank has analyzed all the information that can be collected publicly, the second quarter will usher in a peak period of loan repayments, and large-scale supply cuts will occur, that is, in April, from a loan company When the bankruptcy begins, the domino effect will start to detonate the real estate bubble in the United States. At that time, our cds can start to profit. As for the short of cdo, we still need to face the dying struggle of our opponents. "

With his arms spread out, Arvitelli casually placed on the conference table, confidently and calmly gave the answers the boss needed, which is also the value of their think tank, otherwise, why did the boss spend money to support them.

Andy smiled with satisfaction. His tall and strong body leaned on the boss chair. He really couldn't wait for April to come.

"By the way, Al, there is one more thing that you need to allocate to cooperate with Emily. Immediately, Emily needs to be in contact with the Graham family to complete the acquisition of Newsweek."

"Oh my God! This is so incredible. Boss, you want to buy Newsweek?" Al said in surprise.

Bardstone and Li Xiaoying looked at Andy in surprise, after all, the influence of Newsweek was too great, and it was by no means comparable to the previous regional weekly "The Observer".

"Yes, basically it is certain that I will own this weekly magazine, and the purchase price will be one dollar ..." ...

With a proud smile on Andy's face, his steps became fluttering, remembering the dumbfounded stupidity of the three people in the conference room just now, they couldn't help but feel dark, matching their faint expressions, the three directly Worship.