new work time.
On the pedestrian street, people were coming and going. Zeng Li was wrapped in a thick down jacket, holding Lu Fei's arm, walking through the shopping mall shops.
The bodyguards in front and behind him are always vigilant.
"It's noon, let's find a restaurant to eat."
Zeng Li looked sideways with a bright smile on her face.
Lu Fei nodded and said nothing. His attention was deeply attracted by the subtitles on the LED scrolling screen at the entrance of the investment bank——
"Fox Business News: Mortgage delinquencies hit new high of 1.1 million."
"The interest rate of p2p online loans reached a new low, only 8.46%, and the transaction volume in 2006 reached a new high."
"..."
Wang Ben followed closely and saw Lu Fei suddenly hand over the shopping bag, and then took out the vibrating mobile phone.
The caller ID read: John Paulson.
"Hey, John, I'm calling at this time. Do you have good news or bad news?" Lu Fei smiled playfully.
"The good news is that the mortgage default rate continues to rise, from 4.5% to 4.6%, one step closer to the 8% point where subprime mortgages completely collapsed." There was no joy in John Paulson's tone.
"Where's the bad news?" Lu Fei suppressed his smile.
"The bad news is that no one jumped off the building. Damn it. Subprime bonds are obviously plummeting, but the CDOs packaged with junk bonds are becoming more and more valuable!"
John Paulson is gradually losing his composure.
Lu Fei was unusually calm, "Have they lowered the ratings of CDOs or mortgage bonds?"
"No, they're all the same, they're all level 3a!"
John Paulson said angrily: "Moody's, S&P, and Fitch have all fallen, and they are all collaborating with them. Lu, we must find a way to expose the rating agencies' involvement in fraud and let the media expose this scandal. Completely exposed!”
"No, no, John, have you contacted the media?"
Lu Fei walked into a Chinese restaurant and sat down alone.
"I looked for it. I looked for a friend who was an editor at the Wall Street Journal, but he actually told me that he would not bet his career on this fake news."
John Paulson emphatically said: "Haha, fake news."
Lu Fei pointed at the menu and ordered, "It's normal for him to refuse."
"It's not normal, it's so abnormal. I even showed him the conversation recordings investigated by the rating agency, but he still thought it was fake news." John Paulson was dissatisfied: "Lu, I need your help, you There must be media resources for this, right?”
"Calm down, John, calm down."
Lu Fei hurriedly reassured: "You might as well think about it, just like no rating agency dares to rate Wall Street bonds below grade A, naturally no media will dare to report it and offend the entire Wall Street."
"What do you mean, the media has also followed the capitalist trend?" John Paulson immediately understood.
"uh-huh."
Lu Fei smacked his lips. The entire subprime mortgage industry bundled Freddie Mac and Fannie Mae, the five major investment banks, private securities, the three major rating agencies, various credit companies, hedge funds, private equity funds, pension funds, etc. into one group.
Naturally, every effort was made to cover the lid.
Now they are dealing with such a behemoth.
"Those bastards, bastards!"
John Paulson was pacing back and forth, and out of the corner of his eye he scanned the ABX market. Lehman and Merlin were frantically buying stocks before the market closed, taking another 3.9 million in collateral.
In one morning alone, the abx index rose 0.2 points.
For CBS alone, the floating losses on the fund's books reached US$50 million, not counting losses from bearish positions on the index.
It is clear that house prices have begun to fall and default rates have begun to rise, but John Paulson has not made a penny and is still paying compensation.
What kind of bullshit is this!
"Don't be anxious, stay calm, I will take action when it's time to take action." Lu Fei knocked on the table disapprovingly.
Wall Street thinks it controls the position of public opinion, but little does it know that times have changed, and YouTube, Facebook, Twitter, etc. have suddenly emerged. Obviously, they have greatly underestimated the influence of new media.
"But the worst thing now is that the risk assessors from Bear Stearns came to my fund, and the leader was James Caan." John Paulson couldn't help but support him. "They are trying to persuade, no, to persuade other investments in the fund. They put pressure on me to sell at least half of the CDs we have."
(ps: In reality, hedge funds hold CDS with a paper value of US$25 billion.)
"Kane's idea is quite beautiful. It can be worth US$20 billion, which will completely unbalance the entire abx, and even the long and short sides of the subordinated bonds. Those who are long can make a lot of money."
Lu Fei smiled coldly.
"Yes, not only do they want our insurance premiums, they also want to take away everything we have." John Paulson turned around and looked through the glass window at the people in suits and ties indoors.
"John, if you hold on firmly, there will be a turn for the better."
Lu Fei said seriously: "Do you dare to continue to take orders?"
"Of course, I've been carrying it for more than a year, and I don't have to do it for another year or two." John Paulson gritted his teeth. Carrying orders is a kind of mental torture, not to mention resisting pressure at a disadvantage.
Lu Fei smiled and said: "Great, then I hope you can calmly turn around to the conference room and politely say to Kane's helper, 'No, fuck you, get out'!"
"Snapped."
John Paulson's confidence greatly increased, he put down the receiver heavily, and then walked back to the conference room. He saw James Caan and others talking and laughing. It seemed that he had a chance to win, but he felt unhappy for a moment.
"John, how do you think about my suggestion?"
James Caan takes a sip of coffee.
"What if I do what you said and the fund loses money?" John Paulson took out a tissue and spit out the gum.
"Haha, I have already thought about this problem for you."
James Caan said sadly: "While Lu Fei trusts you without warning, you can resell all the CDS in your fund to Lu Fei, and give all the losses and risks to the Trisolaris Fund. Since he is short on subprime mortgages, , just leave him alone..."
"You want me to betray Lu?"
John Paulson smiled coldly in anger.
"John, do you want to die with Lu? It's too late for you to get out now. Even if Lu wins the bet in the end, your fund can still charge handling fees. Isn't it great!"
James Caan shrugged.
"Shut up, Kane!"
John Paulson's eyes were filled with murderous intent, "I just want to say, no, Fakiyu!"
"John, you know who you're talking to!"
James Caan slammed the table and stood up.
In 2006 alone, he brought a profit of US$2.1 billion to Bear Stearns, a record high. Just like Richard Fuld's position at Bearsman, he also has a word for Bear Stearns. Death, overwhelming power.
At this time, do you dare to contradict the sponsor’s father?
"I've already talked to the fund's largest investor, Lu, and he said, 'Asshole, Kane'!" John Paulson swore and almost raised his middle finger in a fierce provocation.
Seeing him determined to follow Lu Fei all the way to the end, James Caan snorted coldly: "For some insurance compensation, you are pinning your hopes on the collapse of the housing market and even the entire subprime mortgage market. You are simply crazy. You will not stop You know the consequences, the fund suffers huge losses, can you bear it?"
"Don't worry, Lu Neng and I can handle it."
John Paulson had determination in his eyes.
"I didn't talk about Lu. He has so many assets. He is the second richest man in China. I'm talking about you. How can you take the lead?"
"I can handle it."
"You can't stand it."
"It's worth it."
John Paulson spoke firmly.
"You can't stand it!"
James Caan slapped the table and yelled.
Bear Stearns' risk assessor threatened: "John, don't forget, if the fund exceeds the stop loss range, we have the power to disqualify you as the fund manager. Even if you are in trouble, we won't be able to do it for you. You can't do anything for it." Don’t forget that.”
"I didn't ask!"
John Paulson didn't want to say more, opened the door of the conference room, and made it clear without a doubt: Get out of here!
"John, take care of yourself!"
James Caan glared angrily, shook his head and walked away.
Leave the hedge fund and go straight to the Metropolitan Club on Fifth Avenue in New York. Its founder is the famous J.P. Morgan.
Only the established political and business families of Zhengxing Banner are eligible to join.
Like Mr. Lu, he can't get in no matter what.
James Caan met Richard Fowles and Sean O'Neill in a small box specially arranged by Dalian.
"You came just in time."
Richard Falls took out the playing cards and said, "How about we chat while playing bridge?"
"no problem!"
When James Caan heard about bridge, he immediately became interested.
"Maybe you don't know, but Kane is a world-class bridge player and has won 10 domestic championships..."
Signonil took out a wad of cash from his pocket.
"11, hey, I got another one last year."
After James Caan sat down, the four of them were like the "Landlords Club" of Wall Street, and everything they said was related to subprime mortgages.
"Paulson didn't agree?"
Richard Fowles was surprised.
"Now we have to make plans again."
James Caan shook his head and laughed. According to the original plan, he persuaded John Paulson to be the mole, and Merrill Lynch placed other moles in the Trisolaris Fund to join forces to defraud Mr. Lu's money.
"No, the plan can still be implemented without Paulson." Richard Falls looked left and right, "How many Penguin products have you taken from several brokerages?"
Sionnier said the number with reservations, but pointed out that the shipment was taken from Goldman Sachs.
"As expected of Goldman Sachs."
Richard Fowles sneered, "Lu put on such a grand display at Christmas, and used an insurance policy that was impossible to default as settlement payment. I didn't expect that he still couldn't feed Goldman Sachs."
"How could it be possible that the gold futures account could just be ignored?"
James Caan was livid.
Snow O'Neill and others believed that the losses of more than one billion US dollars must be recovered from Mr. Lu twice as much.
In any case, this battle is between the five giants on Wall Street versus two funds. The advantage is mine!
They even opened champagne to celebrate in advance and organized a golf competition at the Hollywood Golf Club after the victory.
In the next few days, the subprime bond market was extremely hot in the cold winter. The stock prices of Lehman, Bear Stearns, Merrill Lynch and other giants were so bullish, and the highest one was undoubtedly the subprime mortgage leader——
Lehman once reached a historical high of $71.3.
The reason why the capital market reacted so violently is because investment banks have released annual reports one after another, and there will be greater moves in commercial real estate and subordinated bonds later this year.
It drove the share prices of Fannie Mae and Freddie Mac to soar.
America, covered with heavy snow, is in full bloom.
Looking at the flying snow outside the floor-to-ceiling window, Lu Fei sat back on his chair, looked at the computer, and flipped through domestic information. Although he was in the United States, he did not slack off in China's business at all——
"Ali Baba will be listed in Hong Kong this year."
"In order to ensure the food safety of the people, special rectification will be carried out in 2007."
"'Panda Burning Incense' has ravaged China's Internet, and many anti-virus software companies have joined forces to suppress it. Penguin and Qihoo have successively announced that their anti-virus software is completely free, causing a shock in the anti-software market."
"Dongfang Weidian was framed, and the real culprit is suspected to be Ruixing."
“Domestic e-commerce is developing rapidly. Enterprises such as Feigou, Ali, and Amazon are actively deploying logistics and warehousing. ZTO takes the lead and joins forces with YTO, STO, Yunda, Shunfeng and other companies to formally establish the ‘Kuaima Alliance’. China’s private logistics has entered the 2.0 era. "
"..."
Lu Fei looked at it for a while, his eyes slightly sore.
While rubbing Qingming's point, he picked up the landline and was about to call Lu Huateng to learn about the deployment of Penguin Games and cloud computing, as well as the general strategic direction for the next year. At this moment, Carlson Bullock knocked hard. The door seemed extremely urgent.
"It's not time for the annual meeting now."
Lu Fei raised his hand and looked at his watch.
"Not this, big deal, big deal!"
Carlson Bullock swallowed his saliva and said that Lehman had issued a 54-page short-selling report, pointing the finger directly at Penguin.
Damn it, Xu Xin was really right!
Lu Fei was already prepared. Instead of panicking, he actually wanted to laugh, "Where's Lehman's report?"
"The electronic version has been sent to your mailbox."
Carlson Bullock submitted a printed version, and we are also analyzing whether we should postpone the annual meeting by an hour or two? "
"No, Penguin and I should worry about this matter. The Trisolaris Fund cannot distract its attention. In the past two years, I have been focusing on gold, subprime mortgages, and semiconductors."
Lu Fei flipped through it, and it was pretty much the same as Xu Xin expected. He clung to the game business and online videos.
Carlson Bullock urged him not to take it lightly. After all, the Penguin stocks pledged by part of the funds of the Three-Body Fund would have an impact on the whole body. It was obviously against Penguin, but in fact it was against Three-Body.
Xiang Zhuang dances with his sword, aiming at Pei Gong.
Obviously, Lehman made this move right.
To make matters worse, Merrill Lynch, Bank of America, and UBS seemed to have agreed with Lehman and joined the short-selling penguin ranks.
Such a menacing attack must have been planned in advance!
There are still an unknown number of Wall Street giants lurking underwater, staring intently at the encircled Penguin and Trisolaris.
“How much did the stock price drop?”
Lu Fei smiled without any anger.
"It's just a slight shock at the moment, down 1.2%, but there will definitely be bigger moves in the future, and maybe it will sell off and cause panic." Carlson Bullock answered truthfully.
"What about the two moles?" Lu Fei asked.
Carlson Bullock said: "It's good. They didn't realize that they had been exposed at all. This time they were short Penguin, and they certainly couldn't escape the relationship."
"Have that George come to my office tomorrow."
Lu Fei reached out and grabbed the back of his head, pulling his head directly in front of him, with a frosty face:
“Then I told Friedman I wanted to write a book.”
