"Leaving again?" Feng Yu's mother grumbled. "They will not see you again for a long time."
"Mum, don't worry. I will be back before the Olympics. I will be busy this year, and I will retire next year." Feng Yu hugged his son.
"You had told me this before. Never mind. Even my wife does not care about me, and I cannot do anything about it. You must come back for a few days every month. Don't tell me it is a long journey, and it is only a short flight. "
"I know, Mum. I am not only making money this time. I am the World's Richest Man, and even if I do nothing, I will not be dragged down from this throne. This time, I want to teach the US a lesson. "
"What do you mean? Teach the US a lesson? What are you going to do?" Zhang Muhua is worried. Her son is no match for the US.
"It is hard to explain the economy. Don't worry. There is no danger."
"Then bring more bodyguards."
Feng Yu does not need his mother to remind him. He will also bring more bodyguards. This time, Soros is going to do something big, and it might affect the interests of many people. If he meets someone crazy, it will be too late for regrets.
Nothing like this had happened in history, but it does not mean it will not happen in this life.
Feng Yu is going to the US to research and short the US stock market.
Now, many securities companies in the US are suffering high losses, and the leverage is getting higher. When the economic situation is bad, those securities companies will use high leverage.
During the Asian Financial Crisis, Soros was able to get high leverage is because of the sudden change in the economic situation.
Lehman Brothers, the fourth-largest commercial bank in the US and the world leader in the asset securitization market, is facing a huge crisis.
Its three largest fund companies are in serious debt, and Lehman Brothers is going to declare bankruptcy to get rid of some of their burdens.
If they do not declare bankruptcy, their debts will snowball.
Feng Yu is in the Empire State Building in New York's Wind and Rain building. He is looking at his computer screen and instructing his men.
"Borrow Lehman Brothers' shares, use as much leverage as you can, borrow as much as you can, and dump this company's shares!"
Lehman Brothers is one of the constituent stocks of the S&P 100 Index and has business dealings with many companies. They also provide financial advisory services.
The funds in the United States started to short Lehman Brothers' shares, and on that day, Lehman Brothers' share price plummeted by 7%.
The CEO of Lehman Brothers, Richard Fuld, the Wall Street tycoon who had single-handedly developed Lehman Brothers, was now trying to think of a solution.
A large number of short selling of their company's shares in the market will make the company's crisis even greater. If the shareholders lost confidence in the company, it would be a real crisis.
They believed that this was because all three of their funds had gone bankrupt and were liquidated. Of course, there must be other financial groups that were attacking them.
They don't have the money to fight against the consortium that attacked their share prices, but they can bring in other funds to let the consortium back off.
In particular, Lehman Brothers had close ties with many companies. Once Lehman Brothers had a problem, it would cause a domino effect. Therefore, those companies would definitely support Lehman Brothers, and they had to support them.
Lehman Brothers' solution is to raise funds through public offering.
Now, they have no money, and they need to issue some shares to raise funds. This way, the company will have funds to operate normally and avoid a cash flow breakdown.
But this is a solution to quench one's thirst with poison. Feng Yu heard that Lehman Brothers is contacting other companies to raise shares, and he immediately bought back Lehman Brothers' shares and returned them to those securities companies.
During this period, Lehman Brothers' share price had dropped from 60 USD to 49 USD, and it had fallen by nearly 20%.
Feng Yu, who had been shorting Lehman Brothers and the US stock index, had also made some profits. After making up for his losses from selling USD, he still has some profits.
Lehman Brothers' share offering is going smoothly, and they are confident that they can pull the share price back to 60 USD again. This time, they will definitely raise 6 billion USD.
During this period, Feng Yu did not short Lehman Brothers' shares. Instead, he started to short Fannie and Freddie Group's shares. Freddie and Freddie Group handle almost half of the US mortgage loans.
There is also a very powerful organization called the Government Mortgage Association. This is the real US state-owned mortgage company. Why is this company not in a serious crisis? It is because they cannot compete with Freddie and Freddie Group in subprime mortgage securities.
Freddie and Freddie Group's mortgage-backed securities are now more than 2.5 trillion USD. Including the Government Mortgage Association, the total is more than 3.2 trillion USD, accounting for more than 16% of the total value of US bonds in circulation!
No wonder the bankruptcy of these two giant companies will bring a heavy blow to the US economy. Not only the US government will suffer losses, but many Japanese and European Union governments, banks, etc., will also suffer losses. This time, Hua Xia will be able to avoid the losses.
Now, it is not only Feng Yu who is shorting the US stock market. Many hedge funds and other funds in the world can see that the US stock market is in trouble, and this is bad news.
That's why many funds are shorting the US stock index, including many US fund companies. In front of profits, Americans do not care about their country's economy. Anyway, they are rich, and they can be the top people in any country.
Fund companies in Europe and Asia will not care about the US. In any case, when the economies of some European and Asian countries were in trouble, US funds often took advantage of the situation. The US funds were just carrying forward their actions.
Some big US fund companies took the opportunity to short the US stock market in Europe, Japan, and other financial markets, hoping to recover their losses by hurting each other.
At this time, Hua Xia's semi-open financial market shows its advantage. Also, because the US had lowered its benchmark, the profit margin is very small. That's why in Asia, the Tokyo stock market is the biggest target, and in Europe, the London stock market is the biggest target.
Many fund companies are getting restless. Today, a company might make a big profit, and tomorrow, another company might fail and go bankrupt.
The world's financial industry is very busy, and this is what Feng Yu wants to see. The US stock market will also be affected if the US stock market falls. The US stock market's decline is unstoppable!
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