February 13, 2007.

New Century Finance, the second largest subprime mortgage lender in North America, issued a profit warning for the fourth quarter of 2006. Then Huifeng Bank announced that North America's housing loan mortgage business suffered huge losses and wrote down $10.8 billion in related assets.

At the same time, major North American investment banks, including Bear Stearns, Citigroup, Merrill Lynch, Morgan Chase, Regen, etc., have all generated huge losses and have not been disclosed yet.

As North America's second largest subprime mortgage lender, New Century Finance is about to face debt rushing from Wall Street of up to $17.4 billion.

The news was exposed and the company was immediately cast a shadow. Such a high debt was simply unable to be repaid. As bankruptcy had even entered the countdown stage, investors' panic began to spread, the fuse of the first detonator had been ignited, and the prelude to the subprime mortgage crisis began to begin.

There is actually undercurrent behind the tranquility of Wall Street, but Luo Sheng is happily celebrating the New Year.

Go to work overseas as usual.

In March, domestic employees have also returned to their jobs one after another.

...

On Wednesday afternoon, March 14, Luo Sheng’s office of Blue Star Technology.

"Don't forget tomorrow's morning meeting."

Erin, who walked to the door of the office, did not forget to turn around and remind Luo Sheng. As the two sides looked at each other, Erin threw a charming look and left with satisfaction.

The first shot fired this week has just ended. Ming Jing stopped the troops, and Luo Sheng lost all the elite troops at home. However, as a master of strategy, he never cared about the gains and losses of a soldier, but only the final outcome.

After a break after the war, Luo Sheng poured a cup of tea and returned to his desk to sit for a while, glanced at the computer, and saw a signal asking for access to the screen interface.

That was his private anonymous contact account with Paulson’s hedge fund and the successor fund, which was independent and Luo Sheng wrote an encryption security system himself.

It is impossible to make an international long-distance phone call. The route is simply unsafe and can be eavesdropped on every minute.

Luo Sheng quickly operated on the keyboard for a while, then brought a Bluetooth headset and leaned against the chair.

"Michael."

"Mr. Luo, mortgage default cases hit a new high, and nearly two million houses have defaulted."

"Two million?"

Luo Sheng immediately clanged his hands on the table and clasped his fingers and said, "Does the broker jump off the building after mortgage defaults soar?"

At the same time, Michael stayed in his office all night in Manhattan Island, North America, and did not go home. It was almost dawn. When he heard Luo Sheng's words, he responded:

"Mr. Luo, the market operation is derailed and should have collapsed in February, but Standard & Poor's did not lower the value of mortgage bonds. The mortgage bond market was manipulated by interested people. Almost at the same time, Goldman Sachs' system was sacked, our information was gone, Bank of America also had power outages, and the Morgan Stanley server malfunctioned, it was too irritating..."

Hearing this, Luo Sheng replied, "What is the current market value of my credit default swap?"

Michael: "According to the policy agreement, the monthly premium is paid to the bank more than 30 million yuan, and the current loss is about 9%.

Luo Sheng: "Well, that is to say, hundreds of millions of dollars are gone..."

After a moment, Michael heard another voice: "I know the reason. Although I have no evidence, the big banks are busy passing on the crisis. Goldman Sachs, Citi, Morgan Stanley, Morgan Stanley, Morgan Chase, Merrill Lynch... Now almost every bank is selling junk bonds to those consumers who have no suspicion, and then paying for their greed. After the sale is over, it will lower the value of the bonds. This is an unprecedented scale of crime on Wall Street and should be exposed."

Upon hearing this, Luo Sheng couldn't help but remind: "No bank or credit commentator will confirm this kind of news. Michael, you'd better not do this, otherwise you will be interrogated by the FBI immediately."

On the other side, Michael, who was barefoot and put his hands on his hips, walked back and forth in his office, took a deep breath, and then said in a conscious mind: "That's right!"

He has made great calculations, but has not reached this level.

Luo Sheng said lightly: "Michael, if this is a protracted battle that will fight a hundred battles, you can lose the previous ninety-nine times, but you have to win it for me the last time, and the real winner will be the one who laughs to the end. I don't care about short-term losses, or even long-term losses, I only care about the final result."

Michael: "god! Thank you, thank you very much!"

He found that this was the most tolerant investor he had met in his career, and other investors were about to explode on the spot, which shows what kind of dilemma Michael is facing now.

Luo Sheng smiled and said, "Go and fight."

The call ended. At this moment, Michael, who was far away in New York, also took off his Bluetooth headset after finishing the communication, lay down on the spot and stared at the lights on the ceiling for a long time.

It seemed as if I saw a ray of hope.

As February entered, subprime mortgage bonds did not collapse as he expected. Michael's mentality was almost on the verge of an explosion. He firmly believed that the derailment of the market was manipulated by interested people because the default rate was soaring.

The monthly premium amount of credit default swap purchased by the successor fund is as high as a terrifying US$66.8 million, which means that the fund will lose 19% in just one year, and it will disappear if it exceeds US$600 million. The collapse may be the successor fund.

The 4.2 billion fund managed will be put into operation in just about six years.

It is conceivable how much pressure Michael is, but after talking to Luo Sheng, he gave him great confidence. As the largest investor of the successor fund, Luo Sheng did not ask for redemption of the fund, and he did not even take the initiative to inquire about such a big thing.

Other investors of the successor fund are constantly asking how their money is.

Michael, who had been lying on the floor for a few minutes, suddenly turned over and sat back to his computer and began to edit a mass email in the internal email:

[To all investors, our contract allows me to take extraordinary measures to deal with the derailed market. I currently have reason to believe that the mortgage bond market has been manipulated by those who are interested. In order to protect investors from their harm, I decided to prohibit investors from redeeming funds unless I issue a new notice.]

After Michael edited this message, he was struggling hard before he was about to click to send. Click to send means he was gambled on his career and everything, and he might face lawsuits or even prison.

"Win the last time..."

Michael murmured to himself, and couldn't help but think of Luo Sheng's words before. Finally, his finger gently clicked on the mouse.

It was late at night, and less than a minute after he sent it out, his mailbox exploded.

Almost all investors were extremely angry, and this anger seemed to want to come over the network cable and cut him to death and remove him from the top.

Michael fully understands his investors, and many of them even leave their assets to him.

Less than three minutes later, his phone rang and Michael answered.

Investor: "holy **, Michael, what have you done? What have you done? Ah?"

Michael: "Eddie, I've said it in the email."

Investor: "How much did the mail sentencing fund invest in?"

Michael: "Only $4.2 billion."

Investor: "Where is the premium? How much do we have each year?"

Michael: "It's quite a lot to pay about $700 million a year, but I'll make money by taking the lead."

Investor: "Hahaha, can you make money? Dog Corpse Rice! The funds you manage will be zero for 6 years, and you'll bet on everything. Youmad made Michael, I want to redeem my funds."

Michael: "It's so stupid Eddie. If you redeem the fund now is equivalent to committing suicide, the fund will fall by 17% to... If the fund capital falls too much, according to the agreement, the credit default swap will expire, and then those banks will take away all the collateral..."

Investor: "What? Do you mean the contract will expire? Will it expire? Oh, no, Mad, send me Michael, pay me back the money, have you heard that, pay me back the money quickly, I want to sue you!"

Michael: "If you do this, it will only make the fund capital fall even more crazy, and the bank will take away all the collateral..."

Investor: "holy **! Michael, if I go to the rooftop, I will definitely pull you a piece of cushion, I swear! I swear to God!"

Michael: "Thank you Eddie, I'm honored, but I don't think I'll jump ahead of you, and I swear to God."

Investor: "Youmadfa Class Michael! Dou... Dou... Dou... Dou..."

The call hung up as investors roared at the beginning of a series of f letters. At this moment, Michael put down the phone in his hand and smirked on the table.

The phone just hung up and rang again, but he didn't answer.

He knew that at this moment, except for Luo Sheng, the investor, all investors were eager to come over with a big knife and cut him down, absolutely.

Michael put on his headphones, turned the music to the maximum, and then beat the drum next to the office wildly, releasing the pressure in this way.

At the same time, John Paulson's pressure is also the case, he may be even greater, because Paulson's hedge fund is several times more than his successor.

At this moment, it is getting dawn in North America, and John Paulson is running in Zhongyang Park, New York to release the huge pressure in his heart.

However, at the same time, Luo Sheng, who was far away on the other side of the ocean, was not under any pressure, and he was even happily playing the chicken-eating game with Erin.

For Luo Sheng, the biggest difference between him and other investors is that even if his $6.2 billion is gone, he will not be hurt. He is still the top ten richest people in the world and will not have any negative impact on his career.

However, if you make money, it will not be a little profit.

Of course happiness is over.
Chapter completed!