Soros's four fund managers stood in a row beside his desk. All of them lowered their heads and did not say a word. Their losses this time couldn't be said to be heavy … but it was quite disastrous!
Simply put, they had bought futures contracts on Rubles to appreciate, and all their futures contracts were useless. Most of their futures contracts on Russian stock index also failed, and Russia's stock index plummeted by 30%!
Of course, these falls are not instantaneous. Ruble's exchange rate was lowered according to the floating rate. But when this policy was announced, Ruble starts to plummet, and the banks do not have time to close their contracts. They also do not have time to set up reverse positions to stop their losses.
Russia's stock market and bond market also started to crash. Soros and his men had bought a lot of Russian bonds and wanted to make money from the high returns.
Many international speculators were stunned by Russia's move, but Soros's losses were the biggest!
"How much funds do we have left?" Soros asked.
"We still have more than 6 billion USD in liquid funds, and some bonds and shares. If we sell them, we might be able to raise 10 billion USD." Drucken Miller made some calculations and replied.
If bonds and shares continue to fall, their funds will be even lesser.
"Boss, what should we do? Short Ruble? It's too late. Those securities companies had stopped trading Ruble futures. "
Soros's four fund managers felt they had lost this time, and they might not even have the chance to make a comeback.
Soros banged on the table. "Who says we are finished? We still have close to 10 billion USD, and we did not lose! Ruble's crash will affect the entire European and US financial markets, and it will cause a chain reaction. "
Drucken Miller and his men looked at each other. "Boss, you are saying we should short other countries' financial markets?"
"That's right. Not only must we short Ruble, but we must also use high leverage to earn back our clients' money. If not, Quantum Fund will be finished, and we will all be bankrupt!" Soros said.
He is Soros, and he will not lose. As long as he still has the capital, he can make a comeback!
Luckily, Soros's years of experience in the fund business had taught him to always reserve funds to make a comeback. If not for this, he might have lost all his money!
"Boss, Mr. Malfoy is calling." Soros's secretary entered his office.
"Connect him. I will speak to him." Soros grabbed the phone on the table. "Malfoy, don't worry. Your investment will definitely not be a loss. Back then, I promised you that at least 10% of the profits would not change … That's right, I'm losing money now, but it's not like I don't have the chance to earn it back. Believe me, just wait for another half a month, at most half a month, and I'll give you all your money. If you force me now, you won't even get your capital back! "
After comforting Malfoy, another call came in.
Soros kept explaining to the other party, wanting them to believe him. Of course, the other party can only trust Feng Yu. If not, they will not even get back half of the money they invested in Quantum Fund, let alone the profits.
After hanging up, Soros instructed Miller and the rest. "Sell all bonds and stocks tomorrow. Mobilize funds to the German and Belarus markets. Whether we can make a comeback or not will depend on this!"
…
"Brother Feng, Russia is really using this extreme method." Fu Guangzheng was shocked. This method will affect Russia's reputation, and Russia will have to reconsider doing business with them in the future.
"Although this method is extreme, it's effective. At least for Russia now, this is one of the best methods." Feng Yu replied.
Russia's banks are on the run, and people are rushing to buy daily necessities. The rich quickly exchange their Rubles to USD, causing Rubles to fall.
Also, Russia's unemployment rate will increase, and their income will drop.
Russia's default on its debts might not last long, but the impact is significant. Also, Feng Yu is sure the deadline given by Russia will be extended. Russia will not have enough money to repay its debts in three months, and they still need to use the money to stabilize their economy.
"Since you had predicted this, why did you ask everyone to short other markets? Why are you being so conservative? If we had used high leverage to build our portfolio when the market is high, we can get more than ten times profits! "Fu Guangzheng asked.
Feng Yu looked at Fu Guangzheng and asked. "What if Russia does not use this method?"
"Huh? Didn't you say they will surely use this method? You still said this is the best method? "Fu Guangzheng asked weakly.
"I said if it's me, I will surely use this method. But I am not the one making the decisions for Russia. If they do not use this method, and other countries give Russia large amounts of aid or loans, we will suffer huge losses if we use high leverage to short other countries' stock indexes! "
Feng Yu is also not sure if Russia will use this method. After all, Russia is a superpower and not a small country. If they default on their debts, they will be condemned by the international community!
That's why Feng Yu informed Professor Liang and Fu Rongqi to build up their portfolio and be ready to increase their holdings. But no one dares to use high leverage, and all of them had hedged their bets.
Although the profits will be lower, the risks will also be lower. Also, their investments are bigger, and their returns will be higher.
"Then why don't we target Belarus and Ukraine? Those countries will be more affected. " Fu Guangzheng asked curiously. They did not target Russia is because of Kirilenko, but those two countries are not related.
"Brother Ki and I had invested in those two countries, and Brother Ki's business partners are in those two countries. Most importantly, those two countries have close ties with Russia. If they play dirty tricks, our investments will also go down the drain. "
Fu Guangzheng nodded. That's right. Those two former Soviet Union allies are militarily powerful and have close ties with Russia. No one can touch them easily.
Of course, Russia had tricked those two countries, and their relationship will worsen in the future.
Also, it's not bad for the Fu Family to make money from the European and US stock markets. Although Feng Yu had informed Li Zekai, the Li Family's investments are much lesser than the Fu Family. After this incident, Fu Guangzheng's assets will be closer to Superman Li's, and the Fu Family will be more powerful. Their position as Asia's top family will be firmer!
… …
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