Reborn as the richest man in India

However, when there was no news from Thailand, Qiao Ge heard some news from Bangzi.

On January 23, 1997, Bangzi Hanbao Iron and Steel went bankrupt.

Although Hanbao Steel has been exposed to various high debts before, during this liquidation, more specific news was made known to the outside world.

According to the data, Hanbao Steel's debt was as high as 1,000% at the end of 1996, which was more than ten times the value of the company's assets.

This is still preliminary statistics. The real debt must be more than 10 times.

After Qiao Ge saw these data, he could only say that he was speechless, which was outrageous.

This time, I don’t know how many stick banks have been emptied. It’s simply outrageous.

Government and business came together, and after Hanbao Steel delivered benefits to senior officials and bank executives, banks became cash machines.

Now, it finally exploded.

This explosion was of course an earthquake for Bangzi Country. Banks had a lot of bad debts and many of them had to go bankrupt.

In addition to Bangzi domestic, CRA companies are also vomiting blood.

Last time, because Hanbao Steel defaulted and was unable to provide funds, the US$300 million deposit they previously paid to Northern Mining Company could not be returned.

Therefore, CRA requires Hanbao Steel to compensate, and the US$300 million should be shared.

At that time, CRA paid US$250 million, and they asked Hanbao Steel to bear another US$100 million.

In other words, Hanbao Steel will give CRA $100 million.

During this period, CRA Company has been chasing Hanbao Steel for money, but it ended up going bankrupt.

With this bankruptcy, CRA basically has no chance of recovering US$100 million.

Hanbao Steel owed so much debt in China, how could it care about the debt owed by CRA Company here.

Qiao Ge thought about this financial crisis, and Bangzi Country had also suffered a huge impact, which was very miserable.

Due to the depletion of foreign exchange, Bangzi citizens, especially women, have donated gold jewelry to the country.

Unfortunately, the gold is still too small compared to the US dollars needed. It is a drop in the bucket and cannot solve the fundamental problem.

In the end, Bangzi Country accepted assistance from foreign institutions such as the International Monetary Fund.

The conditions here are naturally harsh.

The so-called chaebols of Bangzi Country are further controlled by foreign countries, especially big capital led by Wall Street in the beautiful country.

Domestic financial supervision and economic policy formulation have also been controlled by foreign penetration, completely losing their independence.

But then again, Bangzi Country is originally the grandson of Beautiful Country, so it is normal for it not to be independent.

Although the current financial crisis began with the depreciation of the Thai baht in Thailand in July, Soros and others probably started in May.

Since Thailand and other Southeast Asian countries belong to the financial and trade liberalization market, they allow free exchange of foreign exchange and Thai baht. Soros first borrowed a large amount of Thai baht through various channels, and then put it into the Thai market and exchanged it for US dollars, thereby consuming a large amount of Thai baht. foreign exchange reserves.

There was a large amount of Thai baht selling in the market in a short period of time, resulting in a continuous decrease in foreign exchange, and the Thai baht began to depreciate rapidly.

This change naturally caused huge panic inside and outside the market, and investors adopted a follow-up strategy: selling the Thai baht and staying on the sidelines.

This adds to the pressure on the Thai government to convert.

The Thai government urgently invested foreign exchange reserves in an attempt to exchange them for the Thai baht to stabilize the exchange rate, but unfortunately it failed.

Later, Thailand joined forces with Singapore and other countries to save the baht. Unfortunately, they underestimated the power of Soros and others and failed in the end.

With the rapid depreciation and collapse of the Thai baht, the already fat Thai stock market and property market collapsed directly, which accelerated the flight of foreign capital and made Thailand worse.

After using various means to stabilize the exchange rate, the Thai government had no choice but to give up resistance.

The Thai government was forced to announce that the baht would be decoupled from the U.S. dollar and implement a floating exchange rate system, which caused the baht exchange rate to plummet by 20% that day.

This is just the beginning, the exchange rate will continue to fall.

The sharp depreciation of the exchange rate in Thailand has also affected the surrounding Southeast Asian countries. The currencies of the Philippines, Malaysia, Indonesia and other countries have begun to depreciate.

At this time, Soros is back again.

Due to the sharp depreciation of the Thai baht, they can buy back enough Thai baht with very few US dollars, and then return the Thai baht to the various channels that originally lent the Thai baht to them.

This is just like the Mao family's rupee depreciation, and India paid off its Soviet-era loans at a very small cost.

In the end, Soros made a huge profit difference.

Of course, speaking of it, Qiaogo found that he was now also one of the 'Soros'.

Although he is not operating it, his funds are part of it, which is equivalent to providing bullets.

The Qiaogos made a lot of money, but they left a huge disaster to Southeast Asian countries.

After making a lot of money from international hot money and hot money, and leaving contentedly, the foreign exchange market, stock market, and property market in Thailand and other countries continued to plummet; a large number of banks and enterprises went bankrupt; the unemployment rate soared; the national currency and credit collapsed; the country was in turmoil, etc.

Most of these have to be borne by ordinary people.

In fact, Soros's operation is not only to make money from the depreciation of the exchange rate, but their financial methods are not so low-level.

There are other arrangements here, such as shorting the stock market, the futures market, etc.

Regarding these, the 'Soros' will show it vividly and vividly next to Hongkong.

They not only suppressed the Hong Kong dollar exchange rate, but also launched attacks on the stock and futures markets, such as shorting the Hang Seng Index.

If the exchange rate is only one-dimensional, then their current method is a multi-dimensional and all-round sea, land and air encirclement and suppression.

(As for the process of this red sky defense battle, there is a lot of information online, so I won’t write too much, otherwise it will be too superficial...)

Rupa was in a hurry from Delhi to Mumbai that day. Before Jogo came through the door of his office, he had already remembered his voice.

“Brother, big brother, it’s fallen, it’s fallen big.”

Seeing Lupa rushing in with excitement, Qiaogo stared at him a little strangely and asked: "Why are you so excited after falling?"

"The real estate market in Hongkong." Lupa laughed, "Last time you sold Hongkong's assets, those people laughed at you for losing money. How about now? I see, this is Brother, you have seen through it a long time ago. In this market, you have to escape quickly. Otherwise, you will really lose money now."

Qiao Ge sighed secretly in his heart.

In the third quarter of 1997, housing prices in Hongkong began to fall, and the decline was significant.

And this is just the beginning. Qiao Ge knows that the red-empty property market will have to wait until five or six years to recover.

The red-sky real estate market and stock market have been very crazy in recent years, especially the real estate market that has grown by more than 25% every year. How can this growth be healthy?

Now coupled with the impact of the financial crisis and the sniping attacks by Soros and others, the crash has come earlier and the losses have become more severe. (End of chapter)