Chapter 227 The Wall Street jumping machine is open for business

Author: September Sauce

Chapter 227 The Wall Street jumping machine is open for business

(Update one chapter first, please vote for me)

In this world, there are some major turning points that always come with great fanfare. Even months or even years before they actually arrive, legends and rumors about it have already spread.

For example, the beginning and end of a war, such as the new king ascending the throne and the old king abdicating.

But this time, everything happened quietly.

In fact, no one even realized that it had started.

When the first victim's body fell from the tall building, most people were still laughing at his cowardice and stupidity and congratulated themselves on their wisdom and foresight.

But soon, someone realized the seriousness of the matter.

The financial market began to plummet, and the curve that they were so proud of and had brought them everything drew a sharp angle, and then began to plummet at an almost incomprehensible speed.

The wealth accumulated over the years disappears in an instant, and the number in the financial account decreases not even by rolling, but by digits.

Ultra-high leverage was originally the magic weapon for them to get rich overnight, but now, it has become the scythe of death.

In just half an hour, the price of CDS plummeted by hundreds of points. With a leverage of up to 30 times, those trading accounts with more than 50% of their positions were liquidated instantly.

And if the position exceeds 50%, it means that in this round of plummeting, the account owner not only lost all his principal, but also owed the bank a large sum of margin.

——

This is something that shouldn't happen.

But unfortunately, in the early crazy craze, there were not a few accounts that operated like this.

As a result, an unprecedented large-scale liquidation occurred.

One account after another, the finished products fell down in pieces, and behind every suspended account, there might be a bloody corpse.

In the office, Paulson stared excitedly at the computer screen in front of him.

It was undeniable that he was very nervous at this moment.

Of course, what makes him nervous is not the impending collapse of the economy, but the rising numbers on his account.

Just now, in less than an hour of trading from the beginning of the decline to now, the total number on his account has doubled.

This means that, excluding the profits that need to be handed over to investors, he has made a full US$1 billion!

"What a pity. If I had known earlier, I should have been more crazy."

Paulson sighed, feeling a little regretful.

Originally, his year-long plan had almost led to the moment of victory, but just three months ago, his capital chain was stretched to the limit, and the continuous losses almost destroyed his self-confidence.

Therefore, he had no choice but to accept investment from several international investment institutions on extremely favorable terms.

Back and forth, the amount of capital injected by these institutions reached an astonishing tens of billions of dollars. This money was dispersed by him into hundreds of trading accounts. Taking advantage of the overheated market and weak supervision, he almost sold out the largest short orders in the market.

All the chips were wiped out.

It was these funds that helped him get through the most difficult period.

Logically speaking, Paulson should be grateful to these mysterious sources.

But in fact, he only had resentment in his heart.

The reason is simple, he does not allow others to have the same vision as himself.

——

He doesn't want anyone to make money in this market but himself.

Of course, it's too late to say anything now.

Things have happened, profits have been divided, and all I can do is fulfill the agreement in accordance with the contract.

Paulson shook his head slightly, picked up the phone on the table, and called his assistant into the office.

Seeing the assistant's excited face, Paulson smiled slightly and asked:

"How about it, I didn't lie to you, right?"

"I said, the avalanche is right in front of us. All we have to do is add the last snowflake to it."

"Now, tell me, did we succeed?"

"Success!"

The assistant replied excitedly.

At this moment, in his eyes, Paulson is God.

A god who can predict the future.

Yes, if this is not the case, how should all this be explained?

While everyone was frantically chasing the rising trend, he was the only one who bucked the trend and placed short orders desperately at one peak after another.

Everyone thought he was crazy, that he was dazzled by the huge losses, and made the mistake of "not knowing how to stop losses" that only newcomers in the investment world make.

In fact, those colleagues in the past did not take into account the past friendship at all. After their own funds entered the market, they quickly took in multiple orders of chips in a ruthless and ruthless manner, driving up the price, so that Paulson's losses always followed him.

.

Over the past year, I have almost completely lost confidence.

If Paulson had not always shown him the greatest tolerance and encouragement, it is very likely that he would have left on the eve of victory.

The greatest favor in the world is nothing more than this.

The assistant secretly made up his mind that from now on, no matter where Paulson goes or what he does, he will definitely follow in his footsteps.

He looked at Paulson expectantly, waiting for him to give an inspiring speech.

However, after hearing the assistant's answer, Paulson calmly shook his head.

"No, we haven't succeeded yet."

"In other words, we only succeeded a small step."

"The decline in the CDS market has not spread to the stock market, property market, futures market, nor to other more real economic industries."

"How can this be enough?"

"If the scope of the decline is limited to CDS, then the strength in other areas will soon reflect back to CDS."

"It's going to stop falling quickly and that's not what we want."

The assistant was stunned for a moment, and then said decisively:

"Mr. Paulson, if you need to do anything, you can safely leave it to me!"

Paulson nodded approvingly. Sure enough, after putting down his dignity and becoming a clown once, he, as an assistant, has grown up rapidly.

So, after thinking for a moment, he stood up, picked up the oil-based pen, and began to write his plan on the whiteboard.

"First of all, we must continue to work hard in the CDS field, throw out all our last chips, and continue to smash the market."

"Secondly, the fluctuations in CDS must be transmitted to the property market. If it does not transmit or is cut off by some people, then we must connect it at all costs."

"Also, we need to continue to spread the word."

"Whether it's the end of the world, the collapse of America, or whatever."

"I want everyone to know, not just investors, that we have fallen into an abyss and there is no turning back."

"Only when everyone realizes this, the entire economy will collapse, and we will."

"You can earn more."

A few days later, Lehman Brothers held a public shareholder meeting.

John looked solemnly at the man talking on the stage, his eyes full of unwillingness and regret.

I am just an extremely ordinary investor. Even among the many investors in this country who have gone crazy, I can definitely be regarded as the extremely rational one.

I didn’t participate in futures, I didn’t participate in high-risk financial management, and I didn’t participate in CDS derivative investments, which are called the password of wealth by countless people.

He only trades stocks, and only the most stable and conservative bank stocks.

Lehman Brothers is an exception. It is not a bank but an investment institution.

But this institution has excellent credit, extremely high profits, and stable operating conditions.

So, after repeated weighing, John invested all his funds in the company's stocks.

For a long time, his decision was regarded as a genius investment by his family.

Since 2005, Lehman Brothers' stock has more than doubled from its initial price of $40 to $90 today.

And with the support of leverage, my own funds have grown from the initial US$200,000 to nearly one million US dollars now.

——
To be continued...