Global Monopoly of Technology

February 13, 2007.

New Century Financial Corporation, the second largest subprime mortgage lender in North America, issued a profit warning for the fourth quarter of 2006, followed by an announcement by Huifeng Bank that the North American home loan mortgage business suffered huge losses and wrote down $10.8 billion in related assets.

At the same time, the major investment banks in North America, including Bear Stearns, Citigroup, Merrill Lynch, Morgan Chase, and Reagan, have all incurred huge losses that have not yet been disclosed.

As the second-largest subprime mortgage company in North America, New Century Financial is about to face up to $17.4 billion in debt from Wall Street.

The exposure of the news immediately cast a shadow over the company. Such a high debt cannot be repaid at all. The countdown to bankruptcy has even entered the stage. Investors' panic has begun to spread. The fuse of the first detonator has been ignited. This is where the prelude to the crisis begins.

Behind the tranquility of Wall Street, there are undercurrents, but Luo Sheng has passed the New Year happily.

Work overseas as usual.

In March, domestic employees also returned to work one after another.

...

On the afternoon of Wednesday, March 14, Luo Sheng's office of Bluestar Technology.

"Don't forget the morning meeting tomorrow."

Irene, who walked to the door of the office, did not forget to turn her head to remind Luo Sheng. When the eyes of the two sides met, Irene threw a charming look and left with satisfaction.

The first shot of this week has just ended, and the elites have withdrawn. Luo Sheng has lost many elites in the home battle. However, as a strategist, he never cares about the gains and losses of each soldier, only the final victory or defeat. the result of.

After taking a rest after the war, Luo Sheng poured a cup of tea and went back to his desk to sit for a while, glanced at the computer, and saw a signal requesting access prompt popped up on the screen interface.

It was his private anonymous contact account with Paulson's hedge fund and successor fund, which was isolated and Luo Sheng wrote an encrypted security system himself.

It is impossible to make an international long-distance call, the line is not secure at all, and the CIA is overheard in minutes.

Luo Sheng quickly operated on the keyboard for a while, then put on a Bluetooth headset and leaned back on the chair.

"Michael.

"

"Mr. Luo, mortgage default cases have reached a new high. Nearly 2 million houses have defaulted."

"Two million?"

Luo Sheng immediately put his hands on the table and clasped his fingers together, and said, "Has the broker jumped off the building due to the surge in mortgage defaults?"

At the same time, in the office of the Succession Fund in Manhattan Island, North America, Michael stayed in his office all night and did not go home. Now it was almost dawn, when he heard Luo Sheng's words, he responded:

"Mr. Luo, the market was derailed and it should have collapsed in February, but Standard \u0026 Poor's did not cut the value of mortgage bonds. The mortgage bond market was manipulated by people with intentions. Goldman Sachs' system was down at almost the same time. No more, Bank of America also had a power outage, Morgan Stanley's servers were down, it's ridiculous..."

Hearing this, Luo Sheng asked back, "What is the current market value of my credit default swap?"

Michael: "According to the policy agreement, the monthly premium is more than 30 million yuan paid to the bank, and the current loss has reached about 9%."

Luo Sheng: "Well, in other words, hundreds of millions of dollars are gone..."

After a while, Michael's voice came again: "I know the reason, although I have no evidence, but the big banks are busy passing on the crisis, Goldman Sachs, Citigroup, Morgan Stanley, Morgan Stanley, Merrill Lynch... Now every Almost every bank is frantically dumping junk bonds to unsuspecting consumers, then paying for their greed, and waiting until the sell-off is over before lowering the value of the bonds. This is an unprecedented crime on Wall Street and should be exposed."

Hearing this, Luo Sheng couldn't help but remind: "No bank or credit rating agency will confirm this kind of news, Michael, you'd better not do this, or you will be immediately interrogated by the FBI."

On the other side, Michael walked back and forth in his office with bare feet and hands on his hips, took a deep breath, and said with hindsight, "That's right!"

He counted everything, but he didn't count on this level.

Luo Sheng said indifferently: "Michael, if this is a protracted battle that requires a hundred fights, you can lose the first ninety-nine times, but the last time you have to win it back for me, you will have the last laugh. The real winner. I don't care about short-term losses, or even long-term losses, I just care about the end result."

Michael: "God! Thank you, thank you, thank you so much!"

He found that this was the most forgiving investor he had ever met in his career, and the other investors were about to explode in place now, showing what kind of predicament Michael was facing right now.

Luo Sheng smiled and said, "Go and fight."

The call was over. At this moment, Michael, who was far away in New York, took off his Bluetooth headset after finishing the communication, and lay down on the spot and stared at the lights on the ceiling for a long time.

It was like seeing a ray of hope.

In February, the subprime mortgage bonds did not collapse as he expected. Michael's mentality was almost on the verge of exploding. He firmly believed that the derailment of the market was manipulated by people with intentions, because the default rate was skyrocketing.

The monthly premium of the credit default swap purchased by the successor fund is as high as 66.8 million US dollars, which means that the fund will lose 19% in just one year, and if it exceeds 600 million US dollars, it will be gone. The collapse may be Succession Fund.

The 4.2 billion fund under management will be put into operation in about six years.

One can imagine how much pressure Michael was under, but after talking to Luo Sheng, he gave him great confidence. As the largest investor in the Succession Fund, Luo Sheng did not ask for the redemption of the fund, and he did not even have such a big thing happen. Take the initiative to ask.

And other investors in the successor fund are constantly asking how their money is doing.

Michael, who had been lying on the floor for a few minutes, suddenly rolled over, sat back in front of the computer and started editing a mass email in his internal email:

[To all investors, our contract allows me to take extraordinary measures to deal with the derailed market. At present, I have reason to believe that the mortgage bond market has been manipulated by people with intentions. In order to protect investors from harm, I decided to prohibit investors from being harmed. Redeem funds unless I issue a new notice. 】

After Michael finished editing the message, he struggled again before he was about to click send, which meant betting on his career and everything, possibly facing lawsuits and even jail time.

"Win the last time..."

Michael murmured to himself, and couldn't help thinking of Luo Sheng's words before, and finally, his finger lightly clicked on the mouse.

It was late at night, and less than a minute after he sent it, his mailbox blew up.

Almost all the investors were extremely angry, and this kind of anger seemed to want to hack him to death along the network cable and cut him into eight pieces.

Michael completely understands his investors, many of whom even entrust him to take care of their wealth.

Less than three minutes later, his phone also rang, and Michael connected.

Investor: "Holy shit, Michael, what have you done? What have you done? Huh?"

Michael: "Eddie, I already said that in the mail."

Investor: "Go to the horse's mail, how much did the successor fund invest?"

Michael: "Only $4.2 billion."

Investor: "What about the premiums? How much do we have each year?"

Michael: "It's about $700 million a year, which is a lot, but I'll get ahead and make money."

Investor: "Hahaha, will you make money? Shimi! The fund you manage will go to zero in 6 years, and you're desperate, Umade will send Michael, and I want to redeem my funds."

Michael: "It's stupid Eddie, if you redeem the fund now it's suicide and the fund falls 17%...if the capital of the fund falls too much, according to the agreement, the credit default swap will fail, and then the banks will take Take all the collateral..."

Investor: "What? You mean the contract will expire? Will it expire? Oh, No, Maddie Michael, pay back my money, did you hear me, pay me back quickly, I'm going to sue you!"

Michael: "If you do this, it will only make the fund's capital fall even more crazy, and the bank will take all the collateral..."

Investor: "Holy shit! Michael, if I go to the roof, I'll pull you back, I swear! I swear to God!"

Michael: "Thank you Eddie, I'm honored, but I don't think it's necessary, I'll probably jump one step ahead of you, and I swear to God."

Investor: "Umade law class Michael! Beep...beep...beep...beep..."

The call was angrily hung up as investors roared at the beginning of a series of F letters. At this moment, Michael put down the phone in his hand and smirked on the table.

The phone just hung up and rang again, but he didn't connect.

He knew that at this moment, except for the investor Luo Sheng, all the investors wanted to come over with a big knife and cut him off, absolutely.

Michael put on his headphones, turned the music on to max, and beat the drum frantically on the drum next to the office, releasing the pressure in this way.

At the same time, John Paulson's pressure is not the same, he may be even greater, because Paulson's hedge fund is several times the successor.

At this moment, it is gradually dawn in North America, and John Paulson is running in the morning in Zhongyang Park in New York to release the huge pressure in his heart.

However, at the same time, Luo Sheng, who is far away on the other side of the ocean, has no pressure, and even he is now happily playing chicken-eating games with Irene.

For Luo Sheng, the biggest difference between him and other investors is that even if all his $6.2 billion is lost, he will not hurt his bones. He is still the top 10 richest people in the world, and he will not give a shit about him. any negative impact on your business.

However, if you earn it, it is not a matter of earning a little bit.

Of course it's all happy.

...