Extraordinary Genius

Chapter 1762 Crazy Falls

When you hear this news, Boo Ten doesn't have the heart to do the interview. He hurries to send out the reporters and summons their think tank immediately.

And the think-tankers, they knew about it, and they were shocked. In fact, they don't even know about the fake account.

They had analysed that, technically, both housing groups were on the verge of bankruptcy, but not irreparably, after all, the two housing groups had been bankrupt and had not risen again?

Even those banking institutions believed that the two-house group would certainly not go bankrupt, as the United States could not afford it and other countries could not.

Once the two housing groups go bankrupt, the bonds they guarantee will depreciate dramatically, and even many of them will become junk bonds. Investors and financial institutions that hold these bonds will then be badly hit.

This includes more than one EU country, more than one Asian country, and many other financial institutions, such as commercial banks, who cannot watch the two-room group go bankrupt.

And once the two housing groups go bankrupt, mortgage interest rates will inevitably soar again, and the subprime mortgage crisis that has just been depressed will erupt once again, even unstoppably, causing a serious financial crisis.

These two companies have too much influence, and the US government axe must not let them go bankrupt. And those financial investment institutions can't let them go bankrupt, and they can lose a lot.

For example, US Treasury bonds issued at this time amount to a little over $5 trillion, but the bonds issued by the two housing groups exceed $5 trillion!

Foreign exchange reserves in many countries will be severely affected as a result. So those countries can't let two businesses go bankrupt, and they have to help save them.

The bankruptcy of the two Housing Groups is not only a major problem for these bonds, but also inevitable for the financial crisis in the United States, so that those countries that buy the United States bonds will also suffer.

For example, although Huaxia polished the bonds of the two housing groups, it also held some US Treasury bonds. Unlike previous generations, Huaxia is no longer the largest creditor of the United States, but it is also well ranked.

The main investment is in foreign reserves, which all countries will choose to invest in. There are also many countries that have invested in treasury bonds issued by Huaxia.

Now the biggest holders of US bonds and two-house group bonds are island countries, followed by the EU, Canada, Australia and so on.

The US suddenly discovered that it was no wonder that Huaxia was so stiff that they did not aid the US, since they held only tens of billions of dollars in US bonds.

Tens of billions of dollars, still government bonds, will certainly not turn into scrap paper, even if it is a bit of a loss, it will not be huge, after all, government bonds are also profitable.

As Xiaobu X once analyzed, the two groups were able to survive, and as long as the European Union and banks on the Asian side assisted, they did have to assist with a large amount of cash.

But I didn't expect the two housing groups to make financial falsifications, let them analyze, there are serious deviations!

Over the course of the year, the two Housing Groups continued to receive more cash through bond financing, with a view to reversing it. But bond financing requires a high return for investors.

So the two housing groups keep increasing their yields, that is, financing bonds at higher interest rates, making them increasingly indebted.

Increasing interest rates are also placing an increasing burden on them. It is a vicious circle that the value of the bonds they once issued will continue to decline, as will the price of their shares.

Of course, if they finance enough money to make enough profits, that's not the case, unfortunately, they don't make profits, they lose money continuously.

The two Housing Groups themselves believe that the political axe had to intervene after they had raised more than $77 billion. Just as Axe helped sell Bellstein, it would certainly worry about dragging the entire U.S. financial market after the bankruptcy of the two-house group.

Like Bellstein, Lehman Brothers Bank, Merrill Forest Bank, many shareholders have become dispossessed and they have been pitted.

But whoever really stood behind it managed to get away. By commissioning investments and other means, it was also the owners who took the lead in withdrawing capital, ensuring that their property was not lost or suffered too much damage.

Many are saying that the imposition of the US political axe is clearly a shareholder trap that pits them all as investors.

But none of these people in the pit had much influence, and all the influential people had succeeded in escaping, and that was the investment climate in the US.

Xiaobu X saw the situation at hand and felt that it seemed impossible not to help the two housing groups, that they must be adequately funded, and that to stabilize their stock prices, they must not fall wildly.

So Boo X contacted the Fed and the U.S. Securities and Exchange Commission to ask them to make effective remedial measures about the two housing groups.

Feng Yu also intended to borrow some shares of the two housing groups, and then made a fortune when the stock price plummeted to make up for his losses in the dollar trading market, but found that no financial company would lend them shares of the two housing groups anymore.

To be honest, all financial companies have lost sight of the upswing in the share prices of the two housing groups, and the more they borrow, the more they lose.

Although it is not possible to profit from the shortage of the shares of the two housing groups, the stock index in the US will definitely follow the decline, selling the shorter stock index futures will also allow Feng Yu to make up for the losses and even make a small profit.

The next day, when the stock market started, the stock of the two housing groups started selling. When the sale was concentrated, many could not be settled at all, but the stock price was still falling wildly.

The price of the two housing groups soon fell a dollar line and turned into a total high-risk garbage stock.

At that time, the Fed and the U.S. Securities and Exchange Commission took the lead, waiving some interest for the two housing groups and again offering an interest-free loan to allow the two housing groups to have sufficient cash turnover, while restricting the trading of the shares of the two housing groups, thus stopping the sharp fall in stock prices.

Even so, the stock of both housing groups fell by more than 20 percent.

Impacted by the scandal of the two housing groups and the falling share price, investors no longer trust many companies in the US. If the two housing groups are huge enough to make financial false, then wouldn't other companies?

If other companies were financial counterfeits, wouldn't it be very dangerous and could collapse at any moment?

So on that day, the entire U.S. stock market was falling, and the NYSE and NASDAQ indices were falling by more than five percent, another sharp drop to name but a few.

Feng Yu looked at the earnings on the stock index futures and said it was not over!

……

PS: Happy Valentine's Day, everyone can have fun with their loved ones today. Ask for a reward so the Fourth can buy a rose, thank you ~ ~