Global monopoly of technology

February 13, 2007.

New Century Financial Corporation, the second largest subprime mortgage company in North America, issued a profit warning for the fourth quarter of 2006, and then Huifeng Bank announced that it had suffered huge losses in its North American home loan mortgage business, writing down US$10.8 billion in related assets.

At the same time, the major investment banks in North America, including Bear Stearns, Citi, Merrill Lynch, Motor and Chase, and Reagan, have incurred huge losses that have not been disclosed.

As the second largest subprime mortgage company in North America, New Century Financial is about to face a debt of up to $17.4 billion from Wall Street.

The exposure of the news immediately cast a shadow over the company. Such a large amount of debt is simply unable to repay, and the countdown has even entered the stage of bankruptcy. Investors' panic has begun to spread, and the fuse of the first detonator has been ignited. The prelude to the crisis was thus kicked off.

There is an undercurrent surging behind the quiet Wall Street, but Luo Sheng is happily celebrating the New Year.

Work overseas as usual.

In March, domestic employees also returned to work one after another.

...

On the afternoon of Wednesday, March 14, Luo Sheng's office of Bluestar Technology.

"Don't forget the morning meeting tomorrow."

Irene, who walked to the door of the office, did not forget to turn back to remind Luo Sheng. When the two sides looked at each other, Irene cast a charming look and left with satisfaction.

The first shot fired this week has just ended, and Luo Sheng has retired. Luo Sheng has lost many of the elites at home. However, as a master of strategy, he never cares about the gains or losses of a single soldier, only the final victory. the result of.

After taking a break after the war, Luo Sheng poured a cup of tea and went back to the desk to sit for a while, glanced at the computer, and saw that a signal requesting access popped up on the screen.

That was his personal anonymous contact account with Paulson Hedge Fund and Chuan Ren Fund, which were separated and Luo Sheng wrote an encrypted security system himself.

It is impossible to make international long-distance calls, the line is not safe at all, and the CIA can be overheard in minutes.

Luo Sheng quickly operated on the keyboard for a while, then put on a Bluetooth headset and leaned back on the chair.

"Michael."

"Mr. Luo, the mortgage default case has reached a new high, and nearly two million houses have defaulted."

"Two million?"

Luo Sheng immediately put his hands on the desktop and put his fingers together, and said, "Is there a broker who jumped off the building for the sudden increase in mortgage defaults?"

At the same time, as far away as the Heirloom Fund office in Manhattan, North America, Michael stayed in his office all night and did not go home. Now it is almost dawn. Hearing the words from Luo Sheng, he responded:

"Mr. Luo, the market is derailed. It should have collapsed in February, but Standard & Poor’s did not lower the value of mortgage bonds. The mortgage bond market was manipulated by interested people. At almost the same time, the Goldman Sachs system went down. All our information No more, the Bank of America also went out of power, and the Morgan Stanley server went down. It’s too much...

After hearing this, Luo Sheng asked back: "What is the current market value of my credit default swap?"

Michael: "According to the policy agreement, more than 30 million monthly premiums are paid to the bank, and the current loss has reached about 9%."

Luo Sheng: "Well, in other words, hundreds of millions of dollars are gone..."

After a while, Michael heard another voice: "I know the reason. Although I have no evidence, the big banks are busy passing on the crisis. Goldman Sachs, Citigroup, Morgan Stanley, Motor and Chase, Merrill Lynch... Almost all banks are frantically selling junk bonds to unsuspecting consumers, and then paying for their greed, and then lowering the value of the bonds after the selling is complete. This is an unprecedented crime scale on Wall Street and should be exposed."

After hearing this, Luo Sheng couldn't help but reminded: "No bank or credit review agency will confirm this kind of news, Michael, you'd better not do this, otherwise you will be immediately interrogated by the FBI."

On the other side, Michael, barefoot and akimbo walked back and forth in his office, took a deep breath, and said with hindsight: "Yes!"

He counted a thousand things, but he didn't count this level.

Luo Sheng said lightly: "Michael, if this is a protracted battle with a hundred battles, you can lose the first ninety-nine times, but the last time you have to win it back for me, it’s the last laugh. The real winner. I don’t care about short-term losses or even long-term losses. I only care about the final result."

Michael: "God! Thank you, thank you, thank you very much!"

He found that this is the most forgiving investor he has encountered in his career, and other investors are now exploding on the spot, which shows what dilemma Michael is facing now.

Luo Sheng smiled and said, "Go and fight."

The call ended. At this moment, Michael, who was far away in New York, took off the Bluetooth headset after finishing the communication. He lay down on the spot and stared at the ceiling lights for a long time.

As if seeing a ray of hope.

Entering February, the subprime mortgage bonds did not collapse as he expected. Michael's mentality was almost on the verge of explosion. He strongly believed that the derailment of the market was manipulated by interested people because the default rate was skyrocketing.

The monthly premiums of the credit default swaps purchased by the Chuan Ren Fund amounted to a terrifying US$66.8 million, which means that the fund will lose 19% in just one year. If it exceeds US$600 million, it will be gone. The possibility of a crash is Passing on the fund.

The 4.2 billion fund under management will be spent in about six years.

It is conceivable that Michael was under great pressure, but after talking to Luo Sheng, he gave him great confidence. As the largest investor in Chuanren Fund, Luo Sheng did not ask to redeem the fund, and he did not even have such a big incident. Take the initiative to intervene.

Other investors in Chuanren Fund are constantly asking how their money is.

Michael, who had been lying on the floor for a few minutes, suddenly stood up. He sat back at the computer and began to edit the content of a group email in the internal mail:

[To all investors, our contract allows me to take extraordinary measures to deal with the derailed market. I currently have reason to believe that the mortgage bond market is being manipulated by people who are interested. In order to protect investors from it, I decided to ban investors Redeem funds unless I issue a new notice.

After Michael edited this message, he was struggling again before clicking to send. Clicking to send means betting on his career and everything, and may face lawsuits or even jail.

"Win the last time..."

Michael muttered to himself and couldn't help but think of Luo Sheng's words before. Finally, his finger lightly clicked on the mouse.

It was late at night, and less than a minute after he sent it out, his mailbox exploded.

Almost all investors are extremely angry, this anger seems to want to come along the network cable and hack him to death, to cut him off.

Michael fully understands his investors, and many of them are even left to him.

Less than three minutes later, his phone rang and Michael was connected.

Investor: "Holyshit, Michael, what have you done? What have you done? Huh?"

Michael: "Eddie, I already mentioned it in the email."

Investor: "How much did Chuanren Fund invest in the email to Tama?"

Michael: "Only 4.2 billion dollars."

Investor: "What about the premium? How much do we approximate each year?"

Michael: "It costs about 700 million US dollars a year, which is quite a lot, but I am one step ahead and will make money."

Investor: "Hahaha will make money? Gou Shimi! The fund you manage will return to zero in 6 years. You are desperate. Umade will send Michael and I will redeem my funds.

Michael: "It's so stupid Eddie, if you redeem the fund now is tantamount to suicide, the fund will fall by 17% to... If the fund's capital drops too much, according to the agreement, the credit default swap will expire, and then those banks will Take all the collateral..."

Investor: "What? Do you mean that the contract will expire? It will expire? Oh, No, Made made Michael, pay me the money, did you hear that, pay me the money soon, I will sue you!"

Michael: "If you do this will only make the fund's capital fall crazier, the bank will take away all the collateral..."

Investor: "Holyshit! Michael, if I go to the rooftop, I will definitely pull you back, I swear! I swear to God!"

Michael: "Thank you Eddie, I'm honored, but I don't think so, I may jump one step ahead of you, I also swear to God."

Investor: "Michael Umade Law Lesson! Toot... Toot... Toot... Toot..."

The call was angrily hung up with a series of violent roars beginning with the letter F. At this moment, Michael put down the phone in his hand and smirked on the desktop.

The phone just hung up and rang again, but he didn't get through.

He knew that at this moment, except for Luo Sheng, the investor, all investors wanted to come over with a big knife and chop him off, absolutely.

Michael put on the headphones, turned the music on to maximum, and then banged frantically on the drum set next to the office to release the pressure in this way.

At the same time, John Paulson's pressure is also the case, he may be even greater, because Paulson's hedge fund is several times that of heirs.

At this moment, North America has gradually dawned, and John Paulson is running in the morning in Zhongyang Park in New York to release the huge pressure in his heart.

However, at the same time, Luo Sheng, who was far away on the other side of the ocean, had no pressure, and he was even happily playing a chicken game with Irene.

As far as Luo Sheng is concerned, the biggest difference between him and other investors is that even if all his 6.2 billion US dollars are lost, he will not hurt his muscles and bones. He is still the top ten richest person in the world and will not be What are the negative effects of your own business?

However, if you make a profit, it is not a matter of earning a little bit.

Of course happiness is over.

...