Chapter 1807

Hearing this news, Xiao Bushi was not in the mood for an interview. He hurriedly sent reporters away, and then immediately called their think tank.

The people of the think tank, who also knew the news, were shocked. In fact, they don't know the problem of fake accounts.

They have analyzed that, from a technical point of view, the two housing groups are on the verge of bankruptcy, but they are not irremediable. After all, the two housing groups have gone bankrupt, or have they risen again?

Even those banking institutions believe that Fannie and Freddie will not go bankrupt, because the United States cannot afford it, and other countries cannot afford it.

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

This includes many European Union Financial institutions, many Asian countries, many commercial banks and other financial institutions. They can't watch Fannie and Freddie go bankrupt.

Moreover, once the two housing groups go bankrupt, the mortgage interest rate will inevitably soar again. The subprime crisis just under pressure will break out again violently, even irresistible, causing a serious financial crisis.

The influence of these two enterprises is so great that the US government cannot let them go bankrupt. And those financial investment institutions can't let it go bankrupt, they will lose a lot.

For example, the U.S. government bonds issued at this time are $1.5 trillion, but the bonds issued by LiangFang group exceed $5 trillion!

Foreign exchange reserves of many countries will be seriously affected. So those countries can't let the two companies go bankrupt, they have to help save them.

The bankruptcy of LiangFang group will not only cause big problems in these bonds, but also inevitable in the outbreak of the financial crisis in the United States. Then those countries that buy the national debt of the United States will also suffer losses.

For example, although Huaxia polished the bonds of LiangFang group, it still holds some US Treasury bonds. Although China is not the largest creditor country of the United States anymore, it is also ranked very high.

It is mainly foreign exchange reserve investment, which is the investment method that all countries will choose. There are also many countries that have invested in the national debt issued by China.

At present, the largest country holding US Treasury bonds and LiangFang group bonds is island country, then EU, Canada, Australia and so on.

The United States suddenly found that it was no wonder that China was so adamant that it did not help the United States. In fact, they had only tens of billions of dollars in U.S. Treasury bonds.

Tens of billions of dollars, or national debt, will certainly not become waste paper, even if there is a little loss, it will not be big, after all, national debt also has interest.

It has been analyzed that the two groups are able to survive. As long as the European Union and Asian banks provide assistance, they really have to provide a lot of cash.

But I didn't expect that Fannie and Freddie actually made a financial fraud, which caused serious deviation in their analysis!

LiangFang group has been financing through bonds for more than a year to get more cash in the hope of turning over. But to finance bonds, investors must be given a high return.

So Fannie and Freddie continue to raise yields, that is, to issue bonds at higher interest rates for financing, so that they are increasingly in debt.

And the rising interest rate also brings them more and more burden. The value of the bonds they have issued will continue to decline, and their share price will continue to fall, which is a vicious circle.

Of course, if they can earn enough profits from the money they raise, it's not a problem. Unfortunately, instead of making profits, they are losing money continuously.

Fannie and Freddie believe that after their withdrawal of more than $77 billion, the political axe has to intervene. Just as the government axe helps to sell Bear Stearns, it will surely worry that the bankruptcy of Fannie and Freddie will drag down the financial market of the whole country.

When Bear Stearns, Lehman Brothers and Merrill Lynch went bankrupt, many shareholders became destitute, and they were trapped.

But the people who really stand behind the scenes are all successful. Through entrusted investment and other ways, when withdrawing the capital, these behind the scenes bosses took the lead in withdrawing the capital, ensuring that their property did not suffer loss or too much loss.

Many people are saying that the coercive means of the US government axe is clearly a shareholder trap, which has sunk all these investors.

But these people who have been trapped have little influence. Influential people have successfully escaped. This is the investment environment of the United States.

Seeing the current situation, Xiao Bushi also felt that it seemed impossible not to help the two housing groups. He had to give them sufficient funds and stabilize their share prices, so as not to let them fall violently.

So xiaobushi contacted the Federal Reserve and the U.S. Securities and Exchange Commission, asking them to make effective rescue measures for the affairs of LiangFang group.

Feng Yu had intended to borrow some shares of Fannie and Freddie, and then make a big profit when the scandal happened and the stock price plummeted to make up for his losses in the US dollar trading market. However, he found that no financial company was willing to lend their shares.To put it bluntly, all financial companies are not optimistic that the stock price of LiangFang group can recover. The more they borrow, the more they lose.

Although it is impossible to short the shares of LiangFang group for profit, the stock index of the United States will surely fall a little. Short selling the stock index futures can make Feng Yu make up for the loss, or even make a little profit.

The next day, the stock market began, the stock of LiangFang group ushered in a selling trend. When concentrated selling, many of them can't be concluded at all, but the stock price is still falling wildly.

The stock price of Fannie and Freddie soon fell below the one dollar line and became a thoroughly high-risk junk stock.

At this time, the Federal Reserve and the U.S. Securities and Exchange Commission took the initiative. At the same time, they exempted some interest from LiangFang group, and provided another interest free loan to enable LiangFang group to have enough cash flow. At the same time, they restricted the trading of LiangFang group's shares, so as to stop the stock price collapse.

Even so, Fannie and Freddie's shares fell more than 20 percent.

Affected by the scandal and share price decline of LiangFang group, investors no longer trust many companies in the United States. Such a big Mac as LiangFang group will make financial fraud, then other companies will not?

If other companies are also financial fraud, wouldn't it be very dangerous and could collapse at any time?

So on this day, the whole stock market of the United States is falling, and the indexes of the New York Stock Exchange and NASDAQ are down by more than 5%, which can be said to be another collapse.

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

……

PS: I wish you all a happy people's day. Everyone can play happily with the beloved today (serious face). Please give me a reward so that I can buy a rose. Thank you