Soviet Godfather

Vol 5 Chapter 33: Subprime shorting mechanism

Cape Town, South Africa, in an upscale office building not far from the South African Ministry of Energy. The offices of Glencore and Mediterranean Trading Company are set up here.

  

   Not long ago, Glencore's senior partner Green and the South African government finalized an oil and agricultural trade agreement, opening the door to a country of gold in one fell swoop. It has brought new trade channels to this country that has been widely sanctioned by the international community because of the apartheid system.

  

  As a rare rich country in Africa, South Africa has a very strong ability to pay. They used gold instead of U.S. dollars to buy important civilian assets such as oil from the Soviet Union and Iran, which were also sanctioned, and wheat from Latin America. In exchange, Glencore will harvest spot gold, which will be sold to the Mediterranean trading company downstairs and shipped back to the Soviet Union.

  

  Gold, as an important means of value preservation, will play a major role in Japan's actions in the near future. Because not long after the signing of the "Plaza Agreement", the U.S. dollar will actively seek depreciation to alleviate the decline in US economic growth, and then gold will become the sweet pastry on the market. It is precisely because it is expected that the US dollar will soon fall, Sergei's subsidiaries are trying their best to spend the US dollars in their hands. However, it is very troublesome to realize spot gold. This kind of thing is not suitable for Glencore, which has a very fast turnover. On the contrary, it is more useful as a country's asset reserve. Therefore, Sergey Sha is using his power to help the Foreign Trade Bank adjust its own asset structure. In a month, the Foreign Trade Bank has successively purchased and stored up to 20 billion U.S. dollars of gold.

  

This also means that 20 billion U.S. dollars has flowed into Glencore's hands. Xie Liosa left Glencore with only the necessary working capital, and the rest was sent to the Bank of Tokyo through the Bank of Colombia. On his foreign exchange account.

  

   There is still more than a month before September, and there is not much time left for Sergey Sha. Realizing that the crazy arbitrage of the Communist Youth League cadres would do great harm to the country but not worth the loss, Sergey Sha took the initiative to stop his actions. Instead, he defrauded Gorbachev in the name of oil hedging to allow him to freely control the foreign exchange reserves in the foreign trade bank account. There are two things that Sergei has to do now. The first is to let Mikhail hold 100 billion U.S. dollars in Japanese yen assets before the announcement of the Plaza Accord. The second is to transfer the remaining US$1 trillion from the Foreign Trade Bank to the British financial market one after another.

  

   Mikhail has only about 40 billion U.S. dollars worth of Japanese yen assets. According to the current exchange rate of 250:1, the total is about one trillion yen. After Mikhail assumed the post of president of the Bank of Colombia in Japan, the first thing he did was to apply for a position as a primary market dealer on the Tokyo Stock Exchange. This seat can directly conduct bulk stock trading without going through a brokerage such as Nomura Securities.

  

Bank of Colombia, holding large sums of cash, immediately became the target of major Japanese companies vying to win. The Ministry of Finance of the Ministry of Finance paid more attention to Mikhail and even awarded him a certificate of honor from the Japanese government. Thank him. Trust in the Japanese economy. Mikhail happily accepted the honor, and he also hung it on the wall of his office. Whenever Japanese guests visited, Mikhail took the initiative to introduce them.

  

   It is a pity that despite the enthusiasm of these big Japanese companies, Mikhail never took out real money to take actual actions. Instead, he proposed to the Financial Services Agency a proposal to improve the market trading mechanism of subprime mortgage products.

  

   Mikhail came to the Financial Services Agency to apply for the establishment of a short-selling mechanism for subprime products. For this man holding trillions of yen in assets, the Financial Services Agency naturally dare not take it lightly. Many high-level officials came to meet Mikhail in person, and Kuroda, who has been in charge of the Bank of Colombia, was naturally fortunate to be among them.

  

"Short subprime mortgage products? Mr. Grachev, you are the first president of a financial company engaged in subprime mortgage product trading in Japan! Would you tolerate others shorting the subprime mortgage products you issue?" Noda, the second chief of the Financial Services Agency, wondered Asked.

  

"Your Excellency, as you said, I certainly don’t want my subprime mortgage products to be attacked! But as a responsible financier, I hope that subprime mortgage products can have a better and sound trading system. The concept of loan has been popular all over the world not long after Mr. Ulyanov put it forward. Of course, Japan is the biggest beneficiary. However, the trading mechanism of long but not short is not sound." Mikhail The team replied with Noda.

  

   "Short the financial products of subprime mortgages, will anyone buy this kind of stuff?" Another official sitting next to Noda asked disdainfully. How hot the real estate market in Japan is now! Shorting subprime loans is shorting Japan’s housing and personal credit markets. Unless it is a fool, who doesn’t know that Japanese people are now the richest consumer group in the world.

  

"The important thing is not whether anyone buys, but to establish a sound and open trading system! You, the volatility of the financial market itself comes from different people's different judgments on economic development! We should let financiers with different opinions also Join in!" Mikhail emphasized again to ~www.wuxiaspot.com~ Well, Mr. Grachev! We have understood what you mean, and we will discuss with Nomura Securities and the Tokyo Stock Exchange as soon as possible to launch financial products that can short subprime mortgage derivatives. However, you have to know that if the release is not ideal, we will cancel it at any time! "Noda said disdainfully, this Grachev is now forcing the regulator to issue such a product. Is it because he has lost confidence in the Japanese economy? I really don't understand what these foreigners are thinking.

  

   After sending off Mikhail, Noda called the head of the Tokyo Stock Exchange and the head of Nomura Securities to communicate with Mikhail's proposal.

  

"Secondary Noda, I think maybe I told him, I just hope that the subprime mortgage transaction mechanism will be more complete! I don't believe that anyone will invest in this product now!" The head of the Tokyo Stock Exchange replied cautiously. .

  

"Yeah! If Columbia Bank really feels like doing this. I can guarantee that he will lose as much as he buys short. Our real estate boom has just begun. Our overseas real estate investment has bought 90% of the land in Hawaii. , We will also buy New York, Los Angeles, Chicago...If we do the right thing with our Japanese economy, we will die!" The head of Noda Securities said arrogantly.

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like