Extraordinary Genius

What is the concept of one thousand percent of overnight interest rate cuts? This extreme means basically has to be abolished overnight. No one will be able to afford this interest, and the dealers are not so profitable!

The announcement of this policy also means that the $5 billion foreign exchange reserve used by the Thai government is not enough. In reverse, I can't play Soros.

Of course, when this policy comes out, Soros can't continue to sell the Thai baht. He can't afford it.

The important means of suppressing the exchange rate of the Thai baht were abolished.

"Boss, is the government in Thailand crazy? The consequences of doing so will have a major impact on their financial industry!" Zhu Ken Miller was a little panicked, no Thai baht sold, how to suppress the exchange rate of the Thai baht ?

It is useless to rely on the Thai baht sold by foreign companies and foreign banks.

Soros said calmly: "Don’t worry, you also said that this means is the best policy for both losses. It just shows that the foreign exchange reserves of the Thai government are not enough!"

If the overnight interest rate is raised to such a large extent, financial institutions will inevitably be greatly affected. Those financial institutions will have to maintain a large excess of reserves to deal with withdrawals, liquidation, exchanges and other services.

Overnight interest rates, there are one day, seven days, one month and other lending methods, Thailand government ~ government certainly do not dare to raise the interest rate of these borrowings to more than 1,000 percent!

"But their foreign exchange reserves are not enough, and our US dollar is not much. Now we can only borrow more than seven days, and the daily interest rate is also increased to one thousandth, and the interest for one week is not a small amount. Our costs have risen sharply!" Zhu Ken? Miller hurried.

Soros held his head in one hand and a cigar in his hand. He had to think carefully about how to deal with it. Is it stiff, or admit defeat, temporarily withdraw, wait for him to raise all the funds, then come back!

"Miller, call them all back, let's talk about it, how to deal with it."

Although Soros is arbitrarily, the four gold medal managers under the opponent are still very trusting. The important things will be discussed with them. For example, the act of hitting multinational currencies in Asia this time is everyone’s agreement.

......

"Soros is going to finish, they don't have a Thai baht to sell, they have to lose money." Fu Guangzheng laughed.

Feng Yu and Professor Liang looked at each other and shook their heads.

"The light, the overnight interest rate and the interest rate of the day's interest rate increase so much, but the seven-day interest rate has not been adjusted, Soros they can borrow for seven days, and then continue to sell the Thai baht." Professor Liang explained.

"Seven days? Seven days, if their costs are much higher, they will not be said, and the risks will become even bigger."

"But you haven't thought about it. They have invested so much before. If they quit, how much will they lose? What's more, when they set up a forward foreign exchange contract, it was 24:1. If these contracts were delivered, they would There is not much loss. But if the Thai baht continues to depreciate, they can make money!" Feng Yu reminded.

Soros has established a minimum of $15 billion in forward contracts, and even if the Thai baht returns to the 25:1 exchange rate, they also have a profit of $600 million. As long as they don’t lose more than $600 million when they sell the Thai baht, they won’t lose.

However, according to Feng Yu's estimate, Soros had sold the Thai baht in the early stage, and at least had lost more than 800 million US dollars, mainly due to the loss of interest and depreciation.

In other words, if the Thai baht really returns to the exchange rate of 25:1, Soros will be defeated this time!

Although it has stirred up the Thai economy and made a fortune, Soros can be a shame.

In fact, the funds originally prepared by Soros are absolutely sufficient. Without Feng Yu’s participation, it is enough. However, Soros is too greedy. He firmly believes that the depreciation of a country's currency will form a chain reaction, so it has already opened positions in many countries in East Asia.

Although there are leverage factors and they are long-term contracts, a margin must be set aside to avoid a sudden increase in the currency of a country, and all of their contracts are closed.

In addition, they have too many positions, although there are leverage factors, they can actually invest a lot. Originally, they thought that Feng Yu and Kirilenko had participated in this fund. It was enough to use it. How do you know that Feng Yu suddenly pulled back and retired!

Speaking of it, Soros is now in a dilemma, and it has nothing to do with Feng Yu.

"So, you are optimistic about Soros, they will win?" Fu Guangzheng frowned.

"No, on the contrary, I think Soros will be defeated at this time, and will temporarily retreat." Feng Yu smiled, took the coffee on the table and took a sip.

"why?"

"The main reason is that Soros's funds are insufficient. Originally they thought that I had enough to join, but now I quit, and flashed him. He is not without funds, but he will not be transferred so soon. !"

"But you are not saying that the funds of the Thai government ~ government are also spent almost?" This sentence is clearly Feng Yu told him a few minutes ago.

"Yes, the funds of the Thai government are not enough. Their foreign exchange reserves have started to drop sharply this year. This is also a major mistake. You think, if you have a problem with your business and need capital turnover, what will you do? Do?" Feng Yu reminded.

"Let's borrow. You mean, they will find a way to borrow?" Fu Guangzheng suddenly realized. In that case, the Thai government has a new capital injection, as long as the purchase of the Thai baht, the exchange rate of the Thai baht will inevitably be pulled back.

Thailand itself owes a lot of money, and the scorpion is not too much, nor does it care more. Those countries that lend money to the government of Thailand do not want to look at problems in Thailand.

Once the Thai economy collapses, the money that was borrowed before will not be recovered! In other words, some countries must also lend money to Thailand, or help pull the Thai baht to ensure the stability of the Thai economy and the stability of the financial market!

Professor Liang looked at Feng Yu, and his eyes were full of approval. This student may be blue, no, it will definitely be blue.

The economy can never be separated from politics and governance. Many people cannot see this, and Feng Yu sees it very clearly. Plus Feng Yu is so young, more than him, is inevitable!

"Guangzheng, there are still many places to learn." Professor Liang said with a smile.

"Professor Liang, I will study hard, I will certainly not let you down." Fu Guangzheng assured.

Feng Yu was very curious to look at Fu Guangzheng and looked at Professor Liang. How do you listen to this meaning? It seems that Fuguang has become a student of Professor Liang. The relationship between the two people is a bit messy.

......

Zhu Ken? Miller hurried into the office of Soros, shouting in his mouth: "Boss, can't stand it!"