sinovels Chapter 555: 700 Billion Yuan Bailout Plan, The Faucet Is About To Open And Let Out Water
Chapter 555: 700 Billion Yuan Bailout Plan, The Faucet Is About To Open And Let Out Water
As Lehman Brothers declared bankruptcy, the financial tsunami triggered in North America began to sweep across the world.
Right now, the headline news in various countries around the world is just four words - financial crisis!
After the bankruptcy of Lehman Brothers, the subprime mortgage crisis greatly escalated, and North American and even global governments quickly took new measures.
Major agricultural banks have continuously launched various interest rate cuts and rescue operations.
Like the domestic market, the government has introduced a series of policies such as reducing stamp duties, which has led to a short-term rebound in the stock market.
For a while.
The whole world has been cast a psychological shadow by the financial tsunami sweeping across North America.
At this time, almost everyone inevitably thought of the Great Depression that occurred in the 1930s.
After the bankruptcy of Lehman Brothers, the main corporate protagonists of the subprime mortgage crisis became Fannie Mae and Freddie Mac.
Also because the global market has seen the huge impact of the bankruptcy of Lehman Brothers, the North American government "920" is determined to protect Fannie Mae and Freddie Mac.
September 20, 2008.
The Bush Administration officially submitted a bill to save the financial system to the North American Congress.
The Ministry of Finance and Economic Affairs will be authorized to purchase up to 700 billion yuan of non-performing housing mortgage assets.
The North American government hopes to solve all problems within two years, hoping to solve this problem before it affects the real economy and avoid a Great Depression like the 1830s.
Global banks are also continuing to cut interest rates, increase stimulus policies, and government purchases of housing mortgage assets.
Debt defaults and falling asset prices will create a vicious cycle of chain pressure on the economies of various countries, which will lead to bank operating difficulties and make it more difficult for companies to obtain loans. They will eventually have to resort to more extreme means such as layoffs and production cuts to tide over the difficulties, thus leading to an era of global deflation.
Banks, especially emerging countries, will face very severe challenges: on the one hand, the long-term overheating of their own economies prevents them from taking inflation lightly; on the other hand, the global deflation crisis triggered by the Lehman Brothers incident makes them choose their own interest rate policies. was in a dilemma.
The time comes on September 29th.
Lu Yi received an ocean call from Lu Qi from North America.
Lu Qi went to North America five days ago. If the Future Group wants to launch a large-scale stock repurchase process, it needs an important person in North America to avoid the impact of time differences.
after all.
The current situation is that unexpected and huge changes may occur in a time difference of one hour.
"Director Lu, I have just received reliable news here that the North American government's 700 billion-meter financial rescue plan was submitted to the House of Representatives for the first time and was overwhelmingly rejected.
"The result is that U.S. stocks fell sharply."
"The Dow Jones Index closed down 777.68 points, or 6.98%, setting a record for the largest single-day drop in history.
"More importantly, the Dow closed at 10,365.45 points, effectively breaking through the 11,000-point defense line that had been defended for eight months for the first time.
"Because the Dow broke through the Maginot Line of 11,000 points, market confidence has become extremely fragile. Any slight disturbance will turn into a panic."
As soon as the call was connected, Lu Qi's words reached Lu Yi's ears.
The Dow's 11,000-point defense line can be called the dividing line between bulls and bears.
According to the definition of a mature stock market, the maximum decline in market adjustment should not exceed 20%.
In October 2007, since the Dow adjusted from 14,198 points, it has not been able to effectively fall below 11,000 points.
Some domestic foreign exchange experts said: 70 points on the Mijin Index and 11,000 points on the Dow Jones Industrial Average are the "policy bottoms" in North America.
When Citigroup and Merrill Lynch announced huge losses in early January this year, the Federal Reserve marked an emergency sharp cut of 75 basis points in interest rates on January 22, launching a battle to defend the Dow Jones Industrial Average's 11,000 point level.
Even when Lehman suddenly filed for bankruptcy protection on September 15, triggering the global financial crisis and destroying the confidence of bulls, it failed to penetrate the 11,000-point defense line in a short period of time.
Even in the huge panic, the 11,000-point defense line held on for half a month, which was simply a miracle.
Of course.
There is a reason why Lehman exploded and the Dow did not penetrate the 11,000-point defense line.
First, the North American Securities Regulatory Commission issued an emergency ban on large-scale short selling.
The North American Securities Regulatory Commission announced a temporary short-selling ban on more than 800 financial stocks from September 18th to October 2nd. Short parties have lost an important means of suppressing the stock index.
The so-called short selling means that when stock investors are bearish on the price of a certain stock, they borrow the stock from a brokerage firm to sell it, and then buy back the stock after the stock price drops and return it to the brokerage firm to gain profits.
Secondly, the Lehman incident happened to break out on September 15, 2008.
Friday of the week of September 15th to 19th coincides with the monthly settlement day of various futures and options in North America.
The bulls who were suddenly hit by Lehman's bankruptcy will suffer huge losses on the settlement day if they do not fight to survive and stick to the 11,000-point defense line of the Dow Jones Industrial Average...
As a result, both long and short sides launched a stock index futures war of unprecedented scale.
September 15-19, 2008 was the busiest week in the history of global major stock index futures trading.
The average daily trading volume of major stock index futures in North America, Europe and the Eagle Country exceeded 5 million contracts, a surge of three or four times compared with the daily average level last month.
Among them, the trading volume of small-cap S&P 500 stock index futures alone on September 16 was close to 360 billion meters of gold, which was equivalent to short sellers using stock index futures to sell 360 billion meters of gold on the same day, which greatly reduced the selling pressure on the stock market.
But on September 29, the House of Representatives rejected the North American government’s 700 billion bailout plan, which gave the bears an opportunity to counterattack.
"No more waiting!"
"I guess the United States will open the floodgates and release water like crazy.
"Immediately announce the buyback plan, and strive to complete the 3 billion meters of gold within three days, or even within one day.
Lu Yi responded.
"Understood." Lu Qi said.
Although the North American House of Representatives rejected this rescue plan, Lu Yi, as a reborn person, knew very well that this plan would eventually be passed by the Senate on October 1 and the House of Representatives on October 3 after modifications.
no way.
Must be saved.
If it is not rescued, it is likely to deteriorate into the Great Depression of the 1930s.
I have caused the financial crisis myself, and I have to swallow this bitter pill with tears in my eyes.
Even if various means are used to transfer the crisis to the outside world, the majority of the crisis still has to be borne by oneself. 4.7
After ending the call with Lu Yi, Lu Qi immediately took action.
The 3 billion meters of gold repurchased have already been distributed to multiple accounts. As long as he says a word, the transaction can be carried out immediately.
Half an hour later.
At an impromptu press conference, Luqi announced a buyback plan of 300 million meters of gold.
At the same time he announced the news, funds from dozens of trading accounts began to pour into the stock market, buying shares of Future Group.
And at the same time.
Under Lin Qingya's instructions, Lu Yi's family trust fund also frantically purchased shares of Future Group.
For a while.
Stocks that were originally falling began to rise against the trend.
And many people who received the news also took action immediately, intending to follow the Future Group and make a lot of money. .