Chapter 5485 Seeking Stability?
Short orders! Unprecedented short orders!
The moment Madoff's "Ponzi scheme" was confirmed, the three major US indexes: Dow Jones, Standard & Poor's, and Nasdaq suffered strong short-selling pressure. Every second, tens of thousands of short orders were suppressed. And shocking news circulated in the market. It is said that many investment banks have invested money in Madoff's "Ponzi scheme".
If Madoff's "Ponzi scheme" is true, and he can't pay back the money, then these companies are likely to go bankrupt. There are even rumors that many stockbrokers' companies on Wall Street are also involved. It is unimaginable how many companies will be involved in the super-large "Ponzi scheme" of nearly two trillion US dollars.
It is also because of this "unimaginable" that the short-selling pressure is too great. The entire market simply cannot withstand such a huge short-selling volume.
The entire stock market plummeted. From 11 o'clock to 11:10, the Dow Jones has fallen 500 points, from 13970 points to 13470 points. As for the Standard & Poor's, it fell from 1545 to 1180 points, and the Nasdaq fell from 2830 points to 2350 points!
The situation is critical!
But what is more critical is that the heads of the major financial groups are in China, with Lin Feng. And what's worse, they can't be contacted at all. The eight major families in the United States have their own financial companies. Faced with this once-in-a-century financial risk, they naturally have to report to the family. But at this moment, the eight family heads can't be contacted at all. And the stock market has been collapsing. If it is allowed to collapse like this, the US economy may be destroyed.
Wall Street is known as the capital of vampires. They are naturally very clear that all their interests come from the prosperity of the world economy. If the overall economy collapses, then the liquidity of the economy will stagnate, which is definitely not good for Wall Street. Although. All of them can make up for the shortfall by short selling through the short selling principle of futures, but not everyone has the funds to short sell.
Before this, with the overall economic booming, who would short sell? Especially Lin Feng’s wedding, that is a happy event. And this time, Lin Feng has proposed a series of exciting plans long before this. The most important of these is that Lin Feng will restart the "flying saucer plan" and will build a flying saucer spacecraft again. For the next space journey.
You know, building a flying saucer costs hundreds of billions of dollars, which can bring a large number of orders to many steel companies, glass companies and other corresponding raw material companies. Not only that, Lin Feng also plans to build a brand new space eco-tourism city.
Yes. It's a city! Lin Feng announced. A city will be built on the moon, a city that can meet human habitation! And within ten years, people can settle there. Of course, if the relevant technology breaks through, this time may be shortened in a short time, and even five years of internal struggle can be formed!
Such a plan sounds incredible, and it seems that how can human beings suddenly walk so fast in space. But no matter what, it is a fact that Lin Feng decided to take out the money. Moreover. Lin Feng also announced that if he wins this lawsuit, all the compensation he gets will be invested in the plan of this space eco-tourism city.
And these will inevitably require a lot of material support, and will also bring a lot of orders and employment opportunities. Moreover, the global economic situation looks bright. In this case, everyone is looking at the head, and they all think that the stock market will prosper. Therefore, no one will short.
At this moment,
Facing this sudden and severe short situation, everyone's heart is a little bit. This is not right. In particular, the most critical thing is that now those giants are not here, and the people who can really decide the lifeline of all this are not here! What should I do now?
"Stabilize the market! Let the wind spread that Madoff was only arrested, but the money is still there!" The Morgan Consortium spread the wind at the first time.
As the chief financial consortium in the United States, the stock market has suffered a heavy blow, and the performance of the Morgan Consortium will not be good. Although it is said that even if the US stock market falls to pieces, the Morgan family will not be in trouble. They and the other seven major families in the United States firmly control the livelihood industries of the United States. These are all real industries. No matter how the stock market falls, these families will not be shaken.
After all, the food, clothing, housing and transportation of you Americans are inseparable from them. No matter whether the stock market rises or falls, their eight families can still make a lot of money. But for some companies under the eight major families alone, it is different. If the stock market plummets, all their funds will be wasted. Before this, everyone was bullish. Although it is said that if everyone is bullish, the stock market cannot continue to rise, there will always be someone to be the last buyer.
But for these giant financial companies, all they have to do is to sell all the chips in their hands at the highest point, so that those stockholders can be the last buyer. And now, it is far from the high point they think. Therefore, everyone has a lot of chips in their hands. If it plummets now, everyone’s performance at the end of this year will not be good. Working in a giant company has many opportunities and good treatment, but at the same time, the pressure is also great.
If your performance is not good, you may be fired at any time. After all, there are too many talented people in the United States, especially too many people waiting to be promoted. If you can't do it, then you can leave.
Of course, these are not reasons. These are definitely not the real reasons why these giant companies rashly decided to rescue the market. Because they can also withdraw part of the funds and short sell, so as to fill some of the deficits. In that case, as long as the data is not too ugly, there will be no problem. The real trouble is that these financial companies, when investing, are inevitably deceived by Madoff's "Ponzi scheme".
The interest rate of about 2% per month is too high, too high. All stockbrokers on Wall Street dare not guarantee that their funds can achieve a monthly return of 2%. Perhaps many ordinary stockholders will say that their profits can reach tens of percent or even hundreds of percent.
Indeed, there are many such things, and they are very common and common. On Wall Street, there are many examples of getting rich overnight. Such examples are countless throughout Wall Street. For example, before Intel acquired Tolon, an investor spent $110,000 to agree to buy Tolon's stock options at a price of $36 per share, a total of 300,000 shares.
(To explain: the so-called purchase of stock options is to sign an agreement with a stock company, where you can agree on a certain price to buy a certain number of shares of a certain stock in a certain period of time in the future. Generally speaking, the current price will be lower than the stock price you agreed to buy. This is actually a kind of gambling. If the stock price rises, you make money. If the stock price falls, you lose your principal. The advantage of this stock option is that you can buy far more stocks than your funds can buy at a very low cost)
As a result, just a few minutes later, Intel announced the acquisition of Tolon, causing Tolon's subsequent stock price to soar, soaring 28.3% on the same day. In one day, or even to be precise, in just four or five minutes, this investor made millions of dollars with a principal of $110,000.
There are countless examples of this on Wall Street. However, this is only possible when you have a small amount of funds to achieve such amazing benefits. For giant financial companies such as the Morgan Consortium and the Rockefeller Consortium, the amount of funds they control is too large, and it is often billions, tens of billions of dollars, or even more.
With such a huge amount of money, even if you get a return of more than 20%, it is amazing. Because of the huge amount of money, it is impossible for you to invest too much money in a stock at one time, because there will be many unforeseen accidents.
In particular, there are very few stocks that can withstand such a large amount of investment. This will directly make the stock company think that you are a hostile takeover. This behavior will lead to more accidents. And any accident will lead to huge losses of funds. When the amount of funds reaches a certain level, the belief is not to put all eggs in one basket.
Therefore, the 2% monthly interest rate launched by Madoff is really tempting. Although I have doubted this scam. But with a monthly interest rate of 2%, if you put $10 billion in, it will be $200 million a month. It is much easier to make money easily than to throw it into the stock market and make money with fear.
Of course, Madoff's scam was not aimed at these giant companies at first, because he was not confident enough. He only cheated a few billion dollars at the beginning. And it took so long to have such a little money. If he went to these giants, they would be dead with just a little money. But because of Lin Feng's "assistance", his appetite was also big.
Because of this, these financial companies would put tens of billions of funds in him. It also led to Madoff's "Ponzi scheme" to expand to more than one trillion US dollars!
Therefore, these giant companies put a lot of money in Madoff. Before this, although they were suspicious, Madoff's initial interest payment was indeed very generous, and initially it was possible to withdraw cash at any time, not even a month. At first it was said to be a month, then a week, or even as short as three days, you can withdraw cash.
Under the influence of interests, this led to these people falling into the trap. The investment manager of each company, and even the president, put a lot of money in Madoff. At this moment, he was in trouble, what should we do? Everyone is finished! That money is much more than the loss of falling stock prices in the market.
They must stabilize the market and then find a way to get money from Madoff!
"They really fell into the trap! Stay calm, can you keep calm?" Soros' eyes glowed with ferocity. (To be continued ~^~)