Chapter 642

As the financial crisis is more severe than before, on August 11, 2007, central banks around the world injected more than $500 billion into the market within 48 hours, and the Federal Reserve injected $50 billion into banks three times a day to stabilize the stock market!

However, the subprime crisis continues.

On August 14, 2007, dozens of companies, such as Wal Mart and home depot, announced that they had suffered huge losses due to the subprime debt crisis, and Henry's company was also affected. However, because they had taken precautions early, they reduced the losses to the minimum. In addition, these losses are nothing compared with the money made by Williams Royal Investment Company.

U.S. stocks soon fell to their lowest level in several months

At this time, the three major central banks of the United States, Europe and Japan injected more than 200 billion US dollars into the market again.

Central banks in the Asia Pacific region also injected another $50 billion into the banking system.

However, on August 16, 2007, the stock price of the largest commercial mortgage company in the United States plummeted and faced bankruptcy. The U.S. subprime crisis worsened, and the Asia Pacific stock market suffered the most serious decline since September 11! On August 20, the Bank of Japan injected another 2 trillion yen into the banking system to rescue the market. On August 21, just one day later, the Bank of Japan injected another 1.2 trillion yen into the banking system. The Australian Federal Reserve also injected a $3.57 billion into the financial system!

On August 22, the US Federal Reserve injected another US $10 billion into the financial system, and the European central bank added 50 billion euros in refinancing operations.

On August 23, the Bank of England lent 2 billion pounds to commercial banks to cope with the crisis, and the Federal Reserve injected another 15 billion dollars into the financial system!

Before August 31, the Federal Reserve has to inject $10 billion to $20 billion into the financial system almost every day. The financial market situation is extremely grim!

On September 1, U.S. President Bush held a news conference and said that the government promised to adopt a package plan to save the subprime mortgage crisis.

The international situation is turbulent, the U.S. economy is slowing down, the U.S. dollar is devaluing, the European Union has suffered heavy losses, the global stock market has plummeted, and countless companies are on the verge of bankruptcy. China's trade and export have been greatly reduced, and the domestic economic situation is not optimistic. The government has invested 50 billion US dollars to rescue the market.

Africa is the least affected in the world. The main trading country of African countries is the Williams Empire, which exports raw materials to them, while the Williams Empire tends to export products to them. In addition, Henry formulated many infrastructure projects to stimulate economic development and increase national income, so that enterprises can export surplus products for domestic sales. In addition, the Williams imperial central bank took out $100 billion to stabilize the stock market! Since Digo exchange was established in a short time and on a small scale, it is relatively easy to rescue the market. Therefore, although the subprime mortgage crisis has swept the world, the citizens of Williams empire are just like staying in a safe haven, and have not felt the cruelty of the subprime mortgage crisis storm at all!

As time goes by, the subprime crisis is becoming more and more serious.

Seeing that many large financial companies are about to collapse, the US Treasury Department helped major financial institutions set up a $100 billion super fund on October 10 to buy their mortgage-backed securities. The next day, the American bankruptcy Association announced that nearly 120000 consumers filed for bankruptcy in September, a year-on-year increase of more than 45.5%. From February to October 2007, 823000 people were laid off in the United States.

On October 24, 2007, affected by the subprime mortgage crisis, Merrill Lynch, the world's top brokerage, announced a loss of $12.5 billion in the third quarter of 2007. The day before, Nomura Securities, Japan's largest brokerage, also announced a loss of $1.24 billion in the quarter. Subsequently, the largest Swiss bank in Europe announced that due to the loss of subprime related assets, it had the first loss in nearly five years in the third quarter, reaching 82.5 billion francs.

"Dear, Williams Bank of America is the largest company in the United States, because it did not invest in subprime bonds, so the loss is very small. U.S. President Bush called and asked us to spend $100 billion with Citigroup and Morgan Stanley to help the market out of the subprime mortgage crisis! " Kellina came to Henry's office in a hurry and said to him.

Henry laughed and said, "sure, but Citigroup and Morgan Stanley have to pay as much as we can."

Kailinna smell speech, not from a smile, instantly understand the meaning of Henry.

Williams Bank of America has good efficiency and sufficient funds. In contrast, Citigroup and Morgan Stanley have both invested in subprime bonds and suffered heavy losses. Depositors and investors distrust them. In addition, with the worsening financial market in the United States, Huaqi and Morgan Stanley will never have a better time! As the saying goes, if you hurt one thousand enemies, you will lose eight hundred. But for Williams Bank of America, this loss drizzle, completely bear. However, for Citigroup and Morgan Stanley, it will undoubtedly aggravate the situation and lead to the bankruptcy of these two banks! Finally, Henry can buy them!!!

"All right!" She replied with a smile.

Naturally, Citibank and Morgan Stanley can't sit back and watch the US subprime mortgage crisis continue, otherwise, they will lose a lot! So he quickly agreed to Henry's request. Obviously, none of them expected the severity and duration of this financial crisis!

In December, the five central banks of the United States, Canada, Europe, the United Kingdom and Switzerland announced a joint rescue, including short-term auction, foreign exchange swap and so on.

The US Federal Reserve submitted a package of reform measures against the subprime mortgage crisis, and the European Central Bank announced that it would provide an additional two-week loan of about $700 billion to the eurozone banking system!

The smoke of the war seems to be more and more serious.

Both the state and the banks want to win the battle and have invested in the purchase of subprime securities.

However, the effect is not great.

In March 2008, the subprime mortgage crisis finally broke down.

From March 3 to March 10, Bear Stearns shares fell from $77.32 to $59.30. Bear Stearns's liquidity has dried up to the point of exhaustion. Although Bear Stearns is the smallest of the five major investment banks on Wall Street, as one of the symbols of Wall Street giants, its collapse will undoubtedly have a serious impact, and the already poor situation of institutions such as Lehman Brothers will worsen.

Survival or death has become an unavoidable problem for Wall Street giants.

Bear Stearns shares closed at $30.85 on March 14, down 45.9% from the previous day. The share price hit $28.42, the lowest since the Asian financial crisis in 1998. As a result, the Dow Jones index fell 194 points.

In order to avoid the sudden bankruptcy of Bear Stearns endangering their own interests, European financial institutions asked traders to suspend trading with Bear Stearns. Under the pressure of overall deterioration of liquidity, Bear Stearns had to apply for emergency loans from the Federal Reserve, Williams Bank of America and * *.

When Henry heard the news, he showed a smile and murmured: "the first piece of fat is coming!"