Chapter 388

Nowadays, the stock market in the United States is becoming more and more strange. There is no rule to follow. Any rumor on Wall Street may even bring stock market turbulence.

Bardstone is very clear that this is the result of the general anxiety in the market. Everyone feels something wrong, but they find out exactly what's wrong, so this kind of worry and anxiety, or the suspicion is more appropriate.

"Boss, our massive acquisition of cheap CDs on the market has attracted some people's attention. Some people even came to the company to inquire about the news. Although some people have doubts, at present, ABX (real estate sub loan index, so-called short selling, that is, the index needs to fall) is still stable. Standard & Poor's has not lowered the rating of CDO. Now, the rating of CDs is still stable The price is also very cheap, but there are already some concerns in the market. "

After bardstone's update, Andy looks at the details on the table, CDO and CDs. The relationship between the two products is that the higher the risk of CDO, the higher the value of CDs guaranteed for it. But during the real estate boom, the price of CDs was very low because most people didn't think there was any risk in CDO.

What Andy does now is to buy cheap CDs while shorting dangerous CDOs.

Andy closes the document, turns his mouth up, with a smile, like sarcasm or happiness. "The whole world is in a false carnival, a few outsiders and geniuses may have a unique insight. Investors are greedy, bankers are greedy, once sitting on Wall Street, greed becomes what it should be, almost an obligation.

Is there really no intelligent person here? No, it's a strange circle. The closer you get to the market, the harder it is to find its stupidity!

What we are doing now is gambling on bond trading. The line between gambling and investment is artificial and very fine. The most stable investment also has certain gambling nature, and the most audacious speculation also has obvious investment characteristics. Perhaps the best definition of "investment" is "gambling with odds in your favor".

"Ho Ho, boss, the scale of our investment this time is no smaller than that of some Wall Street investment banks. We have mortgaged the shares of Facebook for 200 million US dollars. Now we hold 700 million US dollars of CDs, 200 million US dollars of short CDO, 150 million US dollars of margin in JPMorgan chase to cover the loss with the interest generated. Once the real estate collapses, boss, you will create Make a new wealth myth! " Alvert lie's admiration for Andy's courage comes from his heart. It's a gamble of almost all his wealth.

Al's words made everyone in the conference room turn their hot eyes to Andy. After all, all the people who are sitting here have been busy during this period of time studying the real estate market. They are sure of the collapse of the real estate market, and it's only a matter of time before their boss creates the wealth myth.

"Ha ha, it's inseparable from your work in this period. I'm not a stingy person. You will get good bonus and plenty of vacation time because of your hard work in this period." Andy is very clear about his subordinates' ideas. He is not really a stingy man. What he mixed with Wall Street is a huge bonus. In order to avoid the government's attention, the annual salary specification is not very high.

There are no disorderly cheers or whistles from the strict and reserved Wall Street Jingying people, but the cheery and forceful claps on their faces.

"Ha ha, how do you feel like you're winning? If you want everything to go smoothly, you need to work hard next. I hope everyone will be able to work hard. In the future, we will witness miracles and changes in the world economy. I hope you don't fall behind, because this is my opportunity and your realization Opportunities for self-worth! " Andy lost no time to draw a bright future for everyone. People are all profit-seeking. In Wall Street, it is undoubtedly the most appropriate to drive them with interests.

Waiting for the jubilant crowd to leave, the meeting room was only left with bardstone and alvert lie, as well as Li Xiaoying, who was specifically called by Andy.

"Al, when do your think tanks expect the first domino to fall?" Andy turns the pen and sits more casually looking at al.

"The ideal situation is for the three rating agencies to reduce the rating of MBS (mortgage-backed securities). Unfortunately, this situation is very difficult to occur, class 3A!" With a mocking smile, Al shook his head.

"can three rating agencies really fail to see the real estate bubble risk?" Andy frowned slightly. He couldn't understand that the three most famous rating agencies in the world are not clear about market changes. There is standard & Poor's company in it. Even ordinary people in rabbit country have heard the name of this professional company.

"In fact, the three rating agencies were also blindfolded. Their ratings were based on the materials traders wanted to show them and their own common sense." Bardstone laughs and explains to Andy.

"What do you say?" Andy is a little curious."The bond traders at Wall Street investment banks are seven figure earners, and they are more than enough to cajole those five figure earners (the employees of rating companies). In fact, the most excellent employees of rating companies have been transferred to investment banks to help their new employers cope with their old ones. " When bardstone saw that the boss didn't seem to believe the reason, he gave the boss a simple example of deception.

In short, half of the borrowers who can get high scores and the other half who have low scores are purposefully assigned to an MBS, and the score only needs to pass the triple a standard line, and the half who have low scores are very, very likely to be cut off.

"And the most important reason is that their biggest basis is that since the great depression, there has never been a nationwide simultaneous decline in house prices in the United States. They think that the borrower can't get the loan, and then they can take over the house. For MBS, they will give AAA rating with such confidence. "

Andy's eyebrows are wide open, which is a very reliable reason. "Since we can't count on rating agencies, where will we start to lose the first bone card?"

"after analyzing all the publicly available information through our think tank, we will have a peak repayment period in the second quarter, and a large-scale phenomenon of foreclosure will emerge. That is to say, in April, from the bankruptcy of a loan company, the Domino effect will start to detonate the real estate bubble in the us. At that time, our CDS can start to make profits, as for CD. O's shorting still needs to face the dying struggle of the opponent, but it won't take long

Alvette spread out his arms and put them on the conference table at will. He confidently and calmly gave the answers the boss needed, which is also the value of their think tank. Otherwise, the boss will pay for them.

Andy smiled contentedly. He leaned on the boss's chair. He couldn't wait for April.

"By the way, Al, there's another thing you need to assign some people to work with Emily. She'll be in charge of contacting the Graham family and completing the acquisition of Newsweek."

"God! It's incredible, boss. You want to buy Newsweek? " Said Al in surprise.

Bardstone and Li Xiaoying were also surprised to see Andy. After all, Newsweek's influence is so great that it is not comparable to the previous regional weekly observer.

"Yes, it's almost certain that I'll own the weekly, and the purchase price will be one dollar..."

。。。。。。

Andy has a proud smile on his face, and his steps become light and floating. He thinks of the dumbfounded silly look of the three people in the conference room just now. He can't help but feel dark and cool. With his light forced expression, the three people directly worship him.