Chapter 5498: The Law of the Jungle
The stock market reversed! Why is Wall Street still wailing?
It's very simple, that's greed, greed! What kind of people are on Wall Street? They are all profit-seeking speculative brokers. On Wall Street, basically, you can't see anyone who really comes to invest. People like Buffett are rare in China, not to mention on Wall Street. Of course, the US stock market was originally used for investment. Ordinary people would hold a share for decades and wait for dividends every year. But later, the world finance was ruined by this group of people on Wall Street.
Just now, Soros's 900,000 short orders suppressed the stock market, and it seemed that the stock market was about to collapse. Many people believe that the previous wave of decline was a rehearsal and a test, and this time it is real. Therefore, many stock brokers on Wall Street followed suit. Although they may not be able to sell the stocks they hold now, they can sell short futures to recover their losses.
The initial appearance of stock futures was to balance the stock market. There is nothing wrong with the appearance of this thing itself. Including in the United States, no one has ever said that futures are wrong and leverage is wrong. It's just that in China, when futures were introduced, the qualifications for futures were restricted. In name, it was to protect small and medium-sized investors, but in fact it was the greatest injustice to small and medium-sized investors.
Just now, many people on Wall Street followed suit and shorted. As a result, not long after shorting, it reversed strongly. At this moment, the stock index was reversed. With the strong long-term buyers and the clarification of companies such as Microsoft and '', the Nasdaq index quickly recovered.
Then, the Wall Street Journal claimed that this was a premeditated strong short-selling conspiracy against Nasdaq, using the Madoff fraud case as a sniper.
With these three measures, the stock index quickly returned to the starting point. Yes. It was the starting point. 2847 points, no different from the previous 11 o'clock! The stock index almost did not move.
But. Wall Street was wailing, those small and medium-sized stock brokers. The money they invested before was completely wasted. In the recent counter-trend rise, it was completely reduced to a bubble and swallowed up without leaving any residue.
Of course, Soros made money. Just now, 900,000 orders came down. On average, each order made 370 points. One point is 100 US dollars, and 900,000 orders are 33.3 billion US dollars!
In less than 30 minutes, 30 minutes after dinner, Soros made another 33.3 billion US dollars. Combined with the 24.8 billion US dollars he made before, Soros made 58.1 billion US dollars for Lin Feng in just three hours.
Of course, it was not only Soros who made money, but also big banks such as Morgan. They also made money. After they took over the market strongly, a reversal of the market was triggered. Although they did not make as much as Soros, they also made tens of billions of dollars.
And the losers were the stockbrokers on Wall Street. Of course, you want to say how these stockbrokers can lose so much money. It's very simple. First, there are many of them. How many stockbrokers are registered on Wall Street? 700,000, there are more than 700,000 officially registered stockbrokers; second, according to securities rules, these stockbrokers cannot conduct financial transactions themselves, they can only manage wealth on behalf of customers, and there are an average of 3-7 customers behind a stockbroker. The total number of these customers is very astonishing; third. The US financial market is an open market. As long as you register an account with the three major US stock indexes, you can trade anywhere in the world, whether you are in China on the other side of the earth, or in Antarctica or the Arctic, as long as you register and apply for an account, you can trade.
These three conditions add up to
cause the US stock market to be extremely active, with normal daily trading volume generally around 130-300 billion US dollars. Of course, this is normal trading volume. What is normal trading volume? It is a very ordinary day, a day's trading volume without any fluctuations. After all, the US stock market usually lasts for a long time, and the bull market for a long time is measured in 10 years. In most cases, trading days are very dull.
Of course, no matter how dull it is, the daily trading volume is also around 1 trillion yuan. This is incomparable to the Chinese stock market. After all, the United States is the world's number one financial market, and the rules of the current financial world are all made by Americans.
But today, the trading volume of this wave of flows just now has exceeded 200 billion US dollars! Now, there is still 1 hour before the closing, and the trading volume has reached 300 billion US dollars so far. Today is destined to be an extraordinary day.
At this moment, on the plane. Eight American family heads are returning to the United States on a private plane. They are naturally very clear about everything that happened in the US stock market. As for the behavior of the presidents of their banks, they naturally know only a limited amount. After all, they have not returned to the United States, and their control over the overall situation is always limited. Moreover, these presidents also invested in Madoff behind their backs, which will only be clear on the annual financial settlement day.
But at the moment, they are very satisfied with the reversal of the US stock market. Although they have not yet learned who sniped the US stock market this time, it is a good thing that their people made money in it. As for the stockbrokers on Wall Street losing money, what does it have to do with them!
The financial market is originally a market for capital crocodiles. If you want to get a share of this market without sufficient capital, you must be prepared to be swallowed up. No matter where you are, the law of the jungle always applies, the strong prey on the weak, and the fittest survive.
"Now that they've made money, what's next?" Abby Cohen asked. She is just a market analysis expert. She is not good at detailed operations. She can only analyze but not operate. Therefore, she has never touched the financial market. Although her money can be invested, it has always been used to buy government bonds, bonds, and blue chip stocks for long-term investment.
"It's fun for them to make money! You know, no matter how they make money, it has nothing to do with Madoff's money. Even if they make several times the money they invested in Madoff, it can't offset their stupid behavior. "Soros chuckled. He is a standard risk speculator, so he naturally understands that the market rules are now to let these people make money. If they don't make money, they will not continue to play. This game cannot continue. Soros has always been taboo about the "back-up bargain hunting" of the eight major American masters. Although this possibility is not too great, after all, the eight major American families want to buy the bottom, and the price they pay is too high. But as long as there is a slight chance, Soros will not be careless. He had lost once before, once in Asia.
It’s not like no one in Asia has warned him about the Chinese government’s moves. However, he believes that the chance of this action is not high, because he is targeting Hong Kong. If mainland funds want to come over, it needs some channels and time. At the same time, the mainland also needs to defend against risks, and the Hong Kong government may not necessarily do so. Accept funds from mainland China. But who would have expected that something with a small probability would happen, and funds from the mainland would come and directly defeat him. Moreover, what made him even more depressed was that his allies betrayed him at the last moment and gave him a fatal blow.
This time, of course, he would never make such a mistake again. No matter how small the possibility is, he will consider it and then designate a corresponding response plan.
"How much money do you need to deal with the counterattack of the eight major families?" Abby Cohen asked.
"The cash is about US$500 billion. In that way, I can completely destroy the little link that maintains the stock market. Even if the eight major families bail out the market, it will be useless!" Soros said a number that had been calculated in his mind for a long time.
Lam Feng previously gave Soros a total of US$570 billion, of which US$100 billion was used by Soros to purchase one-year and half-year stock index short orders, and the remaining US$370 billion was used to purchase various sub-prime short orders. Loan bonds, this is also one of their trump cards. The remaining US$100 billion is the liquidity used to attack the stock market this time. Currently, this liquidity adds up to US$158.1 billion. This is still US$341.9 billion short of US$500 billion!
Abby Cohen frowned, it seemed like this kind of deal would have to happen many times. Can Soros win every time? This is what Abby Cohen is worried about. You know, this is a hundred times leverage. Once an accident occurs, all the money may be lost. Although, in the history of Wall Street, no one has lost so much money at one time. But there is always a first time for everything. Financial markets, in particular.
"Don't worry, we will win. As long as the eight major families don't buy the bottom in advance, we will win!" Soros was full of confidence. "This time, we have been planning for so long. Although our absolute strength is not as good as others, we are the first. With our hands, we can now make the stock market rise when it rises, and make the stock market fall when it falls. If they can’t see through our bargaining chip, they can’t win the battlefield war!”
"Okay, that's it for today, we can get off work!" Soros turned off the computer and said with a smile.
Abby Cohen was slightly startled.
"Now they are ready. If we continue to attack, they will take advantage of the situation to pursue us. At present, the funds they can mobilize far exceed ours, so there is no need to attack again today. We will continue tomorrow!" Soros clapped his hands and smiled. explain.
The market is closed here, but the Federal Reserve is on standby. The bank presidents of the Federal Reserve are tense at the moment, waiting for the next attack by the mastermind behind the scenes. This time, they have prepared at least more than 300 billion US dollars in funds. As long as the mastermind behind the scenes dares to attack, they will solve it completely at all costs.
But who would have expected that after waiting until the market was closed, the other party did not attack again! (To be continued)