Chapter 1717

When the global financial market is severely shaken, stocks, futures, bonds and so on have fallen, but many people find that the prices of crude oil and gold fluctuate constantly, or even not fall at all, but rise slightly.

First of all, the hot money escaping from the bond and stock markets have entered the futures market. Futures are also goods, which can be regarded as real objects.

Originally, they could turn bonds into dollars and save them. But the dollar is devaluing, and they also lose money.

The fall of the stock market, coupled with various bad news, caused a large number of shareholders to flee. Of course, there are also some investment funds that take the opportunity to short the stock market and make profits by reverse operation.

It's a pity that this can't be done soon. It's not that the government doesn't allow it, but that no financial company is willing to lend you shares.

Everyone knows that the stock market is falling seriously. Why lend you the stock?

Before that, the leverage ratio of many investment companies continued to rise, from five to ten times, to thirty times, and even some companies made 50 times of super high leverage.

Don't think these investment companies are stupid. They are looking for death to make such high leverage. They can buy insurance, a credit default swap.

Banks can't use these high leverage, but what about the fund companies? How about the risk?

Buy insurance. Of course, this is not insurance in the traditional sense, but the actual effect is the same as insurance.

The fund company went to the bank and said, "I have a high investment risk here. How about you help me make loan default insurance?"? In ten years, I'll pay you a hundred million yuan of premium every year. That's one billion dollars.

If I don't break the contract, then you will get the premium for nothing, and you will surely make another profit if you take my premium investment, right?

If I break the contract, then you should help me lose money.

What party a thinks is that when I use leverage to invest, the profit itself is several times, and take out one billion yuan to buy insurance, I still have profit.

After analysis, Party B believes that the risk of Party A's breach of contract is extremely low, which may be one percent. Then this insurance can be done, and the profit is not low.

If there is only one, then the profit is not too much, but what if we can attract the same 100 customers? Isn't it just 100 billion yuan?

In this way, even if one of them is really unlucky to pay for breach of contract, I can afford to pay for it. Using the premium of other policyholders to pay insurance compensation is the normal operation means of insurance companies.

So the bank sells the insurance contract of the credit default swap to the major fund companies and collects more premiums from the companies, so they are safe.

But it will take ten years to get the profit completely. It's too slow, isn't it?

So they talked to the third party. These contracts are worth 100 billion dollars, but it will take ten years to get them. Now they sell you 50 billion dollars. Do you want them?

After bargaining, the third party bought the $100 billion contract at a price of $40 billion, and Party B directly pocketed $40 billion in profits.

The third party also felt as if there were too many in ten years, so he also listed the price and sold it for us $45 billion, attracting the fourth party to buy it. Once they changed hands, they easily lost US $5 billion in profits.

After so many changes of hands and the attraction of this model, the market of this kind of insurance contract has become extremely huge, with a total amount of more than $60 trillion.

All the above participating financial institutions have made money, and their profits are basically from the subordinated loan bonds operated by the original company with leverage, and these loans, in the end, are all on the credit institutions and borrowers.

So only credit institutions and lenders lose money, and everyone else can make money. Generally speaking, banks will not lose anything, but they are also credit institutions. Even fund companies under banks also invest in subordinated loan bonds.

When the lender defaults, the company holding the insurance contract will pay.

Then the last offerer was unlucky. They had to pay for the insurance. If only one or two defaults don't matter, they can afford it. But they could not have imagined that the default rate would be so high.

From a few percent to a dozen percent, how can the premium be so high? What's more, they still change hands layer by layer.

The last one can't bear to go bankrupt. It will spread upward and then spread to the whole chain step by step.

At this time, we began to look for political axe. We're going bankrupt, don't we care?

But think about it. How much insurance did you collect at the beginning, but the money paid out exceeds the insurance money by tens or hundreds of times, or even higher.

What can we do if the US government axe doesn't have so much money? It's simple. They have such a big Mac as LiangFang group, so LiangFang group is forced to swallow this kind of rotten contract again.

Political axe, then those who can not afford to fund companies, more began to declare bankruptcy. Originally, some of their parent companies belonged to some large financial groups, and these losses could not be borne.But now that the political axe has taken over, how nice to throw the burden out directly. Their consortiums should first consider their own interests.

As a result, the situation of bankruptcy is becoming more and more serious. The number of enterprise bankruptcy and personal bankruptcy is soaring.

At the same time, oba announced a series of measures aimed at the poor, which attracted too many people to vote for him.

He also claimed that the war launched by the United States against Afghanistan was simply a mistake. It would have been fine if the battle had been resolved as quickly as they had expected, but it took so long to drag down the economy of the United States.

Anyway, xiaobushi is going to step down. At this time, all the shit pots are buckled on his head. Many policies are decided by the State Council, and the power of the small cloth ten is far from that.

The people of the little Busten family are also working hard behind their backs. They want to hold back desperately, at least let little Busten step down safely, and then leave the trouble to their successors, so as to prevent their family from being criticized by their opponents when there are candidates again.

The economic situation of the United States is becoming more and more severe, and the European side is also seriously affected. Even UBS has lost money.

At this time, many funds simply escaped from the U.S. market and turned to the European market. In fact, this is the reason why the European side made great efforts to save the market, attract these hot money to join in, and make their economy better.

The reason why the economic situation of the United States is very good is that it can attract the most foreign investment in the world.

When those funds arrived in Europe, as Feng Yu expected, they joined the futures market, and the largest investors were crude oil and gold.

After seeing the news, they all relaxed a lot. It seems that crude oil has risen to about $100. It's no problem!

When Feng Yuhe was happy, there were serious problems in the business of an important partner of Feng Yu.

…… (to be continued. )