When JP Morgan President Jamie Dimon stood in the dock of the court with a confused look on his face, the subprime mortgage industry finally couldn't hold on any longer.
While everyone was attracted by Madoff and J.P. Morgan, Reinhardt and Reilly were dancing with excitement because the price of CDOs dropped by 3%.
"It fell, it fell, it finally fell!"
With the collapse of Madoff's Ponzi scheme, the already shaky subprime mortgage market finally couldn't bear the final blow and began to collapse. The nature of Madoff's Ponzi scheme was too bad.
Madoff, a legendary Wall Street broker in the United States, the initiator of the securities computerization movement, a good man who has been committed to charity for many years, and an intimate grandfather in the eyes of his subordinates, has accumulated so many reputations, in the eyes of outsiders, Madoff Li is actually a noble and dedicated good man who is very trustworthy.
Even now, apart from those investors who have invested in Madoff's funds and are gnashing their teeth in hatred towards him, many people who have not invested in him feel very good about him. Public opinions on major forums describe him in this way.
"Everyone makes mistakes. I hope he can come forward and admit his mistakes soon, and we will all forgive him."
It seems that Madoff's continuous improvement of moral standards and maintaining his "good guy" persona over the years have had a great effect. However, Madoff is Madoff, and the United States belongs to the United States. No one will confuse the two.
This explosive incident has caused a strong earthquake in the Blue Star financial world. A long list of familiar European and American financial giants have appeared on the list of victims.
The United States' long-praised financial market stability system was directly shattered by this fraud case, and it even directly shattered Blue Star's dream of a rising financial market.
The United States immediately lost the trust of investors. The large number of sheep that Wall Street had worked so hard to attract in the past two months finally began to panic, and the largest wave of panic withdrawals came.
This completely disrupted the layout of those predators who were still on the run. Countless all-powerful private equity funds and investment banks were suffering under the overwhelming power of this mountain. However, they only suffered monetary losses, but for the bottom For ordinary people, it may be a disaster.
On December 15, the CDO fell by 3%, and the U.S. stock market began to plummet. Real estate, the only support for U.S. stocks, finally couldn't hold on.
Two days later, many funds from Merrill Lynch, Lehman Brothers and Bear Stearns closed, stocks plummeted, and Lehman Brothers even started laying off employees and issued a bankruptcy warning.
Reilly sat on the sofa in the office with his legs crossed and hummed a tune from his hometown. His mental outlook was completely different from that of a while ago. He picked up the phone on his desk and called Lehman Brothers.
"I am Lei Li from Li Fund. When do you plan to pay for the CDS contract in my hand?"
"Sorry, Mr. Reilly, your bill is being reconciled. I'm very busy right now and will call you later..."
Bang——
The sound of hanging up the phone on the other side made his ears feel uncomfortable, but Reilly didn't care about it. Although he didn't know what happened, he persisted until the end and became one of the winners.
"Yeah!"
“I love the feeling of being short!”
“Great, I’ll probably triple my wealth!”
Compared with the solitary Lei Li of Li Fund, the NS Fund was much more lively. Reinhardt and the short-sellers who had been winning were all cheering.
Reinhardt originally expected it to explode in a year, but he didn't expect the plot to be so twisty. In the past two months, with the help of two big news, the McArney shooting case and the Madoff fraud case, the market can't support it now. Living.
After Reinhardt had another drink with one of his clients, he picked up the phone and dialed Goldman Sachs' number, "Hi, I'm Reinhardt, I have..."
"Sorry, our server is out of order and the service will be stopped today..."
Bang——
Reinhardt picked his ears and shrugged indifferently.
He knew that when a balloon exploded, people's first reaction was to plug their ears and anything else was an "I won't listen" attitude, but he wasn't worried about anything because they were the winners.
Before the results come out, Goldman Sachs can use any means to cheat, but once the results are officially determined, everything will be finalized, unless Goldman Sachs declares bankruptcy now.
But thinking about bankruptcy, Reinhardt's expression suddenly became subtle. It seemed that Lehman Brothers was in trouble. What should the investors who signed a CDS gambling agreement with them do?
No, Lehman Brothers’ airdrop contracts are extremely popular in the market now, and they are all for players who hold the contracts and are preparing to swap debt for equity.
Thinking of this, Reilly laughed twice and got up and continued to join the carnival party in his office.
. . .
On December 25th, Christmas Day, the entire United States seemed to be filled with an atmosphere of depression and decadence, but what is certain is that most Americans did not have a very good Christmas Eve.
All eyes are on the real estate market. The default rate is getting higher and higher. Major financial institutions are holding more and more houses. House prices have plummeted, and other commodities and energy sectors have also followed suit.
The modern financial market affects the entire world. After a nuclear bomb in real estate explodes, a huge hole will be created. At this time, funds from other sectors will flow to this hole to fill it. All players in Blue Star will be unable to survive alone.
Even if Bear Stearns and Lehman Brothers closed down many of their investment funds due to large losses on their books, they are still valuable in the eyes of outsiders, and they will rush to buy them as long as they are released.
George, the president of Lehman Corporation, was listening to the roar on the phone with a dejected look.
"Tell me the truth, can our investment be guaranteed?!"
On the other side of the phone was a member of Congress.
"There is no problem with your investment. I will settle the settlement for you as soon as possible, but you must give me some time, especially Paul, I need time!"
"Okay, you will have time, but you must settle our money, otherwise you will know the consequences!"
Bang——
After hanging up the phone, George let out a breath. Most people would just go bankrupt, but if he didn't pay back the money from these big guys, he would probably commit suicide.
Jingle Bell--
The phone rang again, and George quickly answered it. It was the voice of the mayor of Apple City.
“George, I need you to give me an explanation why you laid off more than 2,000 people at once?!
So many people suddenly lost their jobs. I can't explain it to the union. You have to take the union's attitude into consideration! "
"Give me some time and I will explain it properly!"
After saying that, George hung up the phone and sneered in his heart. I don’t even know if Lehman will be around anymore. Who will care about you? I remember that the mayor seemed to have a lot of bombs in his hands. I don’t know. How much has been lost over time.
George sighed helplessly. It wasn't that he didn't work hard, but that Lehman Brothers had too many bombs, all thrown to him by those two bastards, Goldman Sachs and Morgan Stanley.
If other people on Wall Street might have had the opportunity to cut their losses, Lehman Brothers and Bear Stearns had taken too many bombs.
"asshole!"
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