When I am reborn in Hong Kong, I just want to lie down

When this person was panicking, someone shorted Lehman Brothers, which made them very unhappy. They planned to start a Pacific Rim to let them know that such direct short selling was a provocation to them. They did not believe in Lehman Brothers. There will be problems with the Mann Brothers.

Lehman Brothers, which ranks behind Pacific Rim Group, is a company with a deeper foundation than Pacific Rim Group. How could there be problems? You, an investment bank that has finally survived, don't manage your own three-quarter acre of land well, and you still cause trouble. ?

Although they are on the side of Lehman Brothers and are teammates, although they support their teammates, their teammates are not helpful. The teammates are teammates, but they are just pigs.

Just when regulators took action against Pacific Rim, things took a turn for the better.

The 158-year-old Lehman Brothers filed for bankruptcy, triggering a chain reaction that plunged credit markets into chaos.

This accelerated the fall of the insurance giant AIG (International Group) into the abyss, and caused almost everyone to suffer losses, whether it was retirees in Norway or investors in ReservePrimary funds, and the latter was America's A money market mutual fund that was once considered as safe as cash.

Within a few days, the resulting chaos even engulfed Wall Street's top two mainstays, Jin and Morgan Stanley.

Deeply frightened, American officials rushed to launch a more systematic solution to the crisis and reached an agreement with Congress on Sunday on a US$7000 billion financial market rescue plan.

The investigation into Pacific Rim also ended in silence, and its stock was like waste paper. On the other side, everyone at Pacific Rim was clapping their hands and celebrating, but they were calmed down by their respective supervisors. The reason given was very simple. The country is in a difficult situation now, and everyone We need to work together and get more bonuses, but don't celebrate. At the end, the supervisors said with a smile: "You must be sad or sad when you go out, otherwise, your happy smile may be beaten."

The cold humor of the supervisors did not make everyone laugh. They also understood that if they were really happy, they might cause dissatisfaction from others.

Therefore, on the day Lehman Brothers declared bankruptcy, when everyone went out from get off work, they had serious expressions on their faces, as if their parents had died, or perhaps as if someone owed them money.

In fact, there is an interesting phenomenon that you may not have noticed. Orientals have more freedom of speech and can speak loudly outside. However, in North America, most people are cautious about their words and deeds.

Maybe in North America, if you talk casually and accidentally become involved in discrimination or other inappropriate remarks, it will become evidence in court.

Both the origins and consequences of Lehman Brothers' collapse underscore the difficult position policymakers find themselves in as they grapple with the deepening financial crisis.

They don't want to be seen as eager to step in and bail out financial institutions that have gotten into trouble because they were too risk-seeking.

But in the current era, when markets, banks and investors are all connected by a complex and invisible web of financial relationships, the pain of allowing large institutions to collapse on their own is unbearable.

Some critics later pointed out that the systemic risks that emerged after the collapse of Lehman Brothers could have been avoided had the government intervened.

Before the collapse of Lehman Brothers, federal officials had defused a series of financial turmoils on a local scale by keeping troubled institutions such as Fannie Mae, Freddie Mac and Bear Stearns alive.

Officials decided the agencies were too big to let them fail and spent billions of dollars of taxpayer money bailing them out.But that was not the case with Lehman Brothers.

As for the reason, we don’t know. There is another thing, that is, Pacific Rim. When this group had problems, no one came out to say a word for it. However, when it jumped out and shorted a certain When some major investment banks came out to criticize Pacific Rim, this has to be thought-provoking.

However, some people believe that Lehman Brothers' bankruptcy was largely self-inflicted.The company invested heavily in an overheated real estate market, borrowed heavily to boost returns, was later than other companies to recognize its losses, and failed to raise capital when investments went wrong.The company is so deep in the crisis that finding a willing buyer has become a daunting task, leaving the government largely helpless.

Lehman Brothers, once the fourth largest investment bank in the United States by market capitalization, suffered huge losses due to inappropriate investment in subprime mortgage home loan products. All potential investors refused to intervene, and because U.S. Treasury Secretary Paulson publicly stated that he "will not save anything." ”, finally filed for bankruptcy protection in the U.S. Bankruptcy Court for the Southern District of New York.

2008年9月10日公布的财务报道显示，“雷曼兄弟”第二季度损失39亿美元，是它成立158年来单季度蒙受的最惨重损失，“雷曼兄弟”股价较2007年年初最高价已经跌去95%。

The collapse of Lehman Brothers was directly reported to the media by Paulson’s statement that he would “not save anything”. The essence of this statement was that the federal government sent a clear signal that they did not want to be like Bear Stearns or Fannie and Freddie. "In that way, directly intervene in the market to implement assistance.

On September 2008, 9, the Federal Reserve jointly established a US$14 billion stabilization fund with ten major financial institutions to provide financial guarantees for financial institutions at risk of bankruptcy and ensure market liquidity. Among these ten major financial institutions were the recently escaped Merlin has survived. Obviously, the federal government does not want one Wall Street investment bank in trouble to transfer its business risks to the U.S. government.

In a sense, deep participation in the synthetic CDO (collateralized debt obligations) and CDS (credit default swaps) markets is likely to be one of the direct causes of Lehman's collapse.

The reason why Lehman Brothers, the largest insurance company International Group (AIG) and many financial institutions suffered huge losses was not because of their traditional businesses (AIG’s traditional insurance business was even impeccably strong), but because they were too involved in new Stimulating financial derivatives CDs.

The CDS market is 48 times larger than the subprime mortgage market, equivalent to 4 times America's GDP.

CDS is a contract, which means credit default swap contract. The CDS contract is a very common financial derivative instrument in the United States, first created in 1995.

The emergence of CDS products made lenders feel that they could lend money without knowing whether the loans would be recovered. This was the driving force behind the Lehman crisis.

Unfortunately, one year after the outbreak of the subprime mortgage crisis, the credit performance rate of society has dropped significantly and widely. The risks borne by those merchants who used to provide credit insurance to the whole society in the CDS market have become large enough to The entire business of his century-old store has collapsed.