Global monopoly of technology

one week later.

The head of the Succession Fund, Michael Barry, sat in the same position where John Paulson had sat before, and the person sitting face to face with him was Luo Sheng.

After the meeting, there was a huge gap between Michael's image and Luo Sheng's impression. He couldn't see John Paulson's style of financial men's suits.

A T-shirt + shorts is standard for Michael. He has a habit of running around in the office barefoot, and he has a drum set in his office.

Michael lost an eye due to cancer when he was a child, and one of his eyes is now a false eye.

He started to learn about the stock market when he was in the second grade. From the beginning, he simulated investment. By the time of middle school, he had already begun to put real money into stock market trading.

But in fact, he almost became a doctor at the beginning.

However, the investment attracted a lot of his attention, and he spent almost all his free time in the evening, and he also opened a special blog for this.

This caused him to fall asleep while standing during a complicated surgical operation. He also broke the patient’s oxygen account. Eventually, he was kicked out of the operating room by the doctor. At the age of 29, he completely said goodbye to his career as a doctor and set foot on Wall Street. Become a trader.

The colleagues who knew him used to call him Doctor Michael, not Mr. Michael.

Facts have proved that Michael belongs to Wall Street, he was born a good trader.

He founded Chuanren Capital in 2001 and created an amazing rate of return for investors. In the year he was founded, he brought investors a terrible rate of return of 55.44%.

At this time, Luo Sheng stared at Michael. He didn't know how the head of Chuan Ren Capital was. If it was not enough, he would rather put the remaining US$2.9 billion in Paulson's hedge fund.

So Luo Sheng decided to act every time and asked: "I now have 2.9 billion US dollars in cash lying in the bank, and I lose tens of thousands of dollars every day. The return on investment of Chuan Ren’s capital is quite amazing. I will leave the 2.9 billion US dollars to you. Michael, but before that, I need you to answer my two questions. First, how much cash does the Fund have now, and second, what will you do with my banknotes?"

Without any hesitation, Michael immediately responded: "1.3 billion US dollars, if you give me 2.9 billion US dollars, I will use it to bet against the national housing market, credit default swaps."

Suddenly, Luo Sheng stared at the halves with blank eyes, and subconsciously spread his hands and said, "What?"

Michael recognized Luo Sheng when he saw Luo Sheng, a technology giant from China, the top ten super-rich in the world's richest list, and the youngest billionaire in the world.

However, Michael does not think that he can be as easy as the technology industry in the financial market. In his opinion, Luo Sheng contacted him this time because he was mostly interested in the good rate of return that Chuanren Capital brought to investors. Entrust a fund to inject Chuanren's capital to hedge or appreciate in value, nothing more.

Michael is still a little proud of being able to attract such a super-rich.

Therefore, he said to Luo Sheng: "In the 1930s, the housing market in the United States plummeted by about 80%, and half of the loans defaulted. However, there were many signs beforehand that everyone could see. For example, the investment boom One characteristic is the rapid increase in the complexity and rate of financial fraud. Do you know that these problems are rising at the moment? And they have reached a new high since the 1930s."

Luo Sheng shook his head: "So, what does this have to do with your gambling real estate market?"

Michael smiled slightly and said: "You may be confused by the mortgage-backed securities, subprime mortgages, and bond levels, but this is normal. Wall Street likes to use these seemingly tall terms to make non-professionals think they are professional, even Make investors powerless to deal with those investments."

It's dinner time, Luo Sheng's guest.

He poured a glass of wine for Michael himself, then looked around at the delicious food on the table, wondering how to start with that plate first, and casually said: "Eating and drinking while talking, the best thing to say is that I can listen to a non-professional person. understand."

"Thank you for your wine."

Michael politely responded, and after taking a sip, he continued: "The so-called mortgage bonds make big banks make money wildly. They make billions of dollars with a 2% commission for each bond, but then they found that they didn’t have enough loans. There are only a limited number of people who have a good job and can afford a house. Banks have to fill it with higher-risk credit and keep their money-making machines running. These high-risk credits are subprime loans."

"But it's just a combination of a bunch of AAA-level mortgages. In the past, there was a federal government guarantee, but now it's different. There is no guarantee. It is divided into a bunch of levels. The highest level is AAA, and you can get the repayment first. B, the slowest to get the repayment, the first to default, but the B grade has good profits, but the risk is also high, and sometimes defaults. If B and BB continue to develop, they will drop from low risk to almost rubbish."

Michael took a sip of wine again, commenting that Luo Sheng, who bowed his head for dinner, spoke freely with Jiu Jin: "This is the lowest level of consumer credit rating, no proof of income is required, floating interest rates are also rubbish, and the default rate has risen from 1% to 4%, and as long as it rises to 8%, many BBB grades will return to zero. So I want to short these bonds, which is a bet."

Luo Sheng immediately looked up at him: "You said that the value of the 8% default bond will return to zero. Now it is 4%..."

Michael: "Yes!"

Luo Sheng: "What if it reaches 8%?"

Michael even leaned back against the seat, surrounded his arms for a moment of silence, and then looked at Luo Sheng: "If it reaches 8%... the state of the US economy will... Boom!! It will even cause a comprehensive economic disaster. Sooner or later someone will discover this investment goal, Mr. Luo, we must act quickly."

Luo Sheng was still calm and asked: "You want to use my money to sell vacant loan bonds, how can you confirm that these bonds are worthless?"

Michael answered patiently: "I have done quantitative analysis and research. The housing market is supported by these bad debts. This is a time bomb. I want to short it!"

Luo Sheng asked again: "How to do it? My company also bought real estate in the Bay Area. As far as I know, there seems to be no insurance contract or option for mortgage bonds."

Michael answered in an orderly way: "Sir, this is what I want to do. I want the bank to help me tailor insurance. Then I will buy credit default swaps, just like bond insurance. As long as the bonds default, credit default swaps It will compensate me. The mortgage bonds will definitely collapse slowly. If you give me $2.9 billion, I can bring you tens of billions of dollars in excess short-term returns."

Luo Sheng chewed the food, and said after a moment: "It's quite tempting, but Wall Street is under your feet. Why has no one noticed this?"

Michael sneered and laughed: "The whole Wall Street is in a carnival moment, greedy and crazy, all busy selling bonds to collect fees."

Luo Sheng asked again: "These bonds are really so bad? Are they legal?"

Michael replied: "No one knows the content of the bonds. I have seen 65% of AAA mortgage bonds, but in fact 95% of them are subprime loans with a consumer credit rating below 550. What happens when the market feels that the risk is too high? Secured debt certificates will turn the housing market crisis into a national economic disaster, and even spread from the United States to the world."

Having said that, Michael stared at Luo Sheng with piercing enthusiasm and waited for his reply. The latter was picking up the napkin and wiping his mouth to shake.

After a while, Luo Sheng said calmly: "She is my assistant. Tomorrow she will ask her for $2.9 billion to play."

Michael couldn't help but stunned for a while. After he recovered, he subconsciously exhaled and finally showed a bright smile. He couldn't help but glance at Qin Weimu, who was sitting next to him and said nothing, and looked at Luo Sheng, solemnly Said: "Thank you Mr. Luo, thank you for your trust in me."

Soon after, Michael Barry left.

He took away 2.9 billion U.S. dollars of investment from Luo Sheng. Of course, it could not be cash. This money has been prepared for a long time and can be remitted to the account of the Churen Fund the next day.

As soon as Michael Barry left, Qin Weimu looked at Luo Sheng with a smile: "You guy has a good acting skills, and you can't see any flaws."

"Many talents and wealth and billions." Luo Sheng laughed, and suddenly he added quickly in his heart: "It's getting late, so why not stay here for one night?"

In fact, it was just after seven o'clock in the evening.

Qin Weimu was too lazy to pay attention to him, and soon left Luo Sheng's room. She was going to prepare materials for the contract with Chuanren Fund tomorrow.

...