"Feng Yu, why did you inform me that the US will stop short selling?" Fu Rongqi was curious. Short selling was beneficial to them, and why should they stop short selling? Could it be that Feng Yu had made an agreement with someone and wanted to change his strategy?
"Uncle Fu, do you still remember during the Asian Financial Crisis, we had thought of a way to slow down the stock market's decline? But we did not use it at that time. "
Fu Rongqi was still recalling what he had thought of when Professor Liang asked. "Are you talking about the government banning short selling?"
Fu Guangzheng was stunned. "What do you mean by banning short selling? Isn't the market open to the public? "
Fu Rongqi thought the only way to buy shares was to buy them up. But later, he found out they can borrow money and return it later. But can the government interfere with the stock market like this?
Feng Yu laughed. "Any government that is open and fair will have some administrative measures to protect their country's interests. This is understandable. Although this will affect the US stock market's reputation, the pros outweigh the cons. "
"Also, the ban on short selling will not cover all the shares. There should be a range of companies. List out some of the stocks that are being shorted and ban short selling. The other companies like Microsoft, Intel, etc. are not banned from short selling. If you are capable, go against them. "
"Did you notice that there are only about 3,000 shares that are being traded frequently now? The rest of the smaller companies can just find an excuse to stop trading. Some of the companies' profits this year are doing well, and these companies' shares will not plummet. In fact, they might even be overtaken by others."
"As long as they control 10% to 20% of the market and prohibit short selling, it will have a serious impact on our short selling."
Fu Guangzheng nodded. But Fu Rongqi and Professor Liang understood what Fu Guangzheng said. This way, they will need to borrow a large number of shares and ban short selling. This way, the share prices will not plummet but will rebound slightly. Then, they will suffer heavy losses.
If they are to short sell their shares, they will have to sell their shares at a lower cost to pull down the share prices. The higher the difference, the more profits they can make.
If they are in a fund company with high leverage, they will be able to make high profits. Of course, if this fund company goes bankrupt, you can forget about making money. You might not even be able to get your capital back.
At this time, in some of the more closed stock markets, such as Hua Xia's stock market, short-selling is prohibited. This was seen as a form of speculation. Hua Xia was too young in the stock market and could not afford to be tossed around like this.
This kind of short-selling also needed to be coordinated with some public opinion attacks. For example, exposing the company's shortcomings, the company's losses, shareholders' violations, etc. If they can sue them, the effect will be better. In a short period of time, the company's shares will plummet.
Feng Yu's main targets were Lehman Brothers, Bank of America, Merrill Lynch, Morgan Stanley, and Fannie and Freddie Group. Among them, Lehman Brothers gave Feng Yu some profits.
The high price of 60 US dollars per share had fallen to less than 40 US dollars, and it was still falling. Back then, they had issued additional shares and raised another six billion USD. Unfortunately, it was not enough.
They wanted to issue additional shares, but the share prices had plummeted, and no one is willing to buy their additional shares.
Feng Yu had reduced his short-selling, but he did not stop short-selling stock index futures. He continued to use the media to expose the financial problems of these financial companies.
These are all real news, and Feng Yu is not afraid to go against them in court. In fact, these companies also do not dare to go against Feng Yu in court. This will cause their share prices to plummet even faster.
Many of these companies had used the most extreme method, which is to fabricate their financial reports to prevent investors from losing confidence in them. Once the investors withdraw their funds, it will be a devastating blow to these companies.
Feng Yu's short selling is decreasing, but some financial groups are increasing their short-selling efforts. These financial groups can see the profits, and how can they not make use of this money?
The more the stock market falls, the faster the crude oil price rises. The higher the sentiment of the crude oil market, the more funds are flowing out of the stock market. There is a strong correlation between these two factors.
Feng Yu does not remember when the ban on short-selling was issued in his previous life. But he knows this is only a temporary ban and will not last for a long time.
But Feng Yu does not need to short-sell as crude oil prices are rising faster than in Feng Yu's previous life. Feng Yu must focus on the crude oil market. Once the crude oil price falls, he must increase his short-selling contracts to get the most profits.
Even though Feng Yu had stopped short-selling, the US stock market had been turned upside down by Feng Yu.
Feng Yu had gotten people to expose many scandals about his companies, and every time, these scandals were proven to be true. Many investors believe Feng Yu's team's information.
Furthermore, Feng Yu is the God of Financial Investment, and he has a strong influence in the financial market.
Some companies also used the media to claim that Feng Yu is trying to influence the stock market and suppress their companies' shares. Feng Yu is a sinister person.
But Feng Yu asked his people to ask him. Did I accuse you wrongly? Your companies are losing money, and your shares will surely fall. What's wrong with me not being optimistic about your companies' shares?
Feng Yu does not even need to step in to start a war of words. Ralph and the rest are enough to stop him. Feng Yu had never heard of those so-called top management of big companies.
At this time, Paul Allen jumped out to say that Feng Yu is using his influence to influence other companies' share prices to make profits. This is immoral speculation.
Feng Yu replied on Twitter: "Ah … Microsoft's share prices fell again."
Just this tweet alone caused Microsoft's share prices to fall by 2.3% on the same day. For a giant company like Microsoft to fall so much, especially when the company is still making profits, this shows that many investors are not rational.
They were too easily influenced by other factors, especially many individual investors, who were simply following the herd mentality of investing. When everyone is betting that the share prices will rise, I will follow suit. When everyone is selling, I will also follow suit. Maybe I will not make a lot of money, but I will not lose a lot.
During this time, the price of crude oil had touched the 140 USD line.
Feng Yu knew this is the crucial moment. The major crude oil importing countries must negotiate with OPEC. If the crude oil prices continue to rise, they will not be able to withstand it!
… …
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