Chapter 511: The Subprime Mortgage Crisis Erupts!

A trillion dollars is a lot, and it is difficult to digest in the global financial market.

Li Zetian had to take advantage of the months before the subprime mortgage crisis fully broke out, boiled frogs in warm water, and took his time. However, Li Zetian believes that even if the financial crisis breaks out, they will not see the seriousness of the situation, and there will still be many gamblers.

The plan to short stock index futures is proceeding slowly.

Li Zetian lives a very comfortable life in Hangzhou, raising flowers, watering, and being comfortable every day.

More than four months have passed in a blink of an eye.

On August 2, 2007, the German Industrial Bank announced a profit warning, and later estimated a loss of 8.2 billion euros due to the huge losses suffered by its 12.7 billion euro "Rhineland Fund" and the bank's own small participation in the US real estate subprime mortgage market. The Bundesbank convened the nation's interbank to discuss a package to save the German Industrial Bank.

After Li Zetian heard the news, he smiled, don't be afraid of Germany, Japanese banks are called losses!

The original Wells Fargo Bank of the United States also did the business of the subprime mortgage market for real estate in the United States, but later, Li Zetian ordered the entire business to be sold to Japanese banks. In other words, Japanese banks have acted as receivers, so it is certain that Japanese banks have suffered huge losses.

At present, even the German Industrial Bank has announced a profit warning, as if the real estate in the United States has completely collapsed, and the subprime mortgage crisis has begun to spread around the world!

It was only a few days later that news came from the United States that the U.S. Home Mortgage Investment Corporation officially filed for bankruptcy protection with the court on August 6, becoming another large mortgage lender in the United States to file for bankruptcy after the New Century Financial Corporation.

As soon as this news came out, a stone shook a thousand waves, causing a huge shock in the United States, and the American stock market plummeted!

Just the next day, Bear Stearns, the fifth-largest investment bank in the United States, announced the collapse of two of its funds, also due to the subprime mortgage crisis.

This time, the U.S. stock market plummeted across the board, and the U.S. stockholders collectively panicked!

"It's over, I bought so many funds and stocks, and now I'm losing a lot!"

"Oh God, the real estate bubble burst, the subprime mortgage crisis is coming, won't all my previous investments be wasted?!! I'm going to become poor overnight!"

"It's over, I'm completely finished, I owe so many debts, how can I pay them off?"

Many people heard the bad news and fell to the ground.

This is not the most desperate time, and bad news is coming one after another!!

On the third day, BNP Paribas, France's largest bank, announced that it had frozen three of its funds, also suffering huge losses because of their investment in U.S. subprime mortgage bonds. This move could not help but cause the European stock market to plummet, and most of the world's stock indexes fell! Crude metal futures and spot gold prices plunged!

Central banks around the world injected more than $500 billion into the market in 48 hours, and the Federal Reserve injected $60 billion into banks three times a day to stabilize the stock market.

This rescue is not insignificant, but unfortunately, it did not play a role in saving the market.

A few days later, Japanese and Korean banks also suffered losses due to the subprime mortgage storm in the United States. Among them, twelve companies, including Mizuho Bank, Japan's second-largest bank, lost more than $25 billion. In addition, five Korean banks, including OORI, invested a total of $5 billion in secured debenture documents (CDOs), which also suffered heavy losses!

The next day, the three major central banks of the United States, Europe and Japan injected more than $100 billion to rescue the market.

Asia-Pacific central banks have also re-injected into the banking system.

However, it was still not possible to contain the subprime mortgage crisis.

On August 16, the stock price of the largest commercial mortgage company in the United States plummeted and faced bankruptcy! The U.S. subprime debt crisis worsened, and the Asia-Pacific stock market suffered the worst decline since 911!

Li Zetian watched the fire on the other side of Hangzhou, watched the flowers in the courtyard, and had to say "wonderful".

It's just that this subprime mortgage crisis is not so easy to save the market, not to mention, I have shorted so many stock index futures...... Especially Japan!

Li Zetian had a sneer on his face.

Japan is indeed very miserable, and it is about to be played to death by Li Zetian.

On August 20, the Bank of Japan injected another 1.6 trillion yen into the banking system.

The next day, the crisis in the Japanese stock market remained unresolved, and the Bank of Japan had to inject another 1 trillion yen into the banking system.

Li Zetian couldn't help but be surprised when he saw that the Bank of Japan had injected capital into the banking system again: "Hey, the Japanese government is awesome, it's so rich!

Li Zetian suddenly complained about himself.

The Japanese government is exhausted and miserable, the government's financial reserves are about to be wiped out, the entire country's economy is in shambles, companies are bankrupt, workers are laid off, shareholders are mourning, and the economy seems to have regressed for many years.

In the United States, the Federal Reserve is pouring a lot of money into the financial system almost every day. This made Li Zetian sigh, the Federal Reserve really deserves to be the master of the rich pockets, he is the rich man, I am not.

There is no way, the Federal Reserve prints money, which can be called "the world's largest money printing machine". One prints money, the other makes money, and the two are not the same level.

More than two months later, the subprime mortgage crisis is still not over.

The Federal Reserve and the US Government were helpless, and President Bush suddenly called Li Zetian.

"Hello Chronos!"

"Your Excellency, hello, is there something wrong?" Li Zetian asked, but he knew what was going on in his heart.

Although he was not in the United States, he was the first to know what was happening in the United States. At this time, the U.S. government is encouraging banks and tycoons to donate money to help the U.S. market out of the subprime mortgage crisis.

In fact, Li Zetian wanted to say in his heart, donate you to be paralyzed!

However, if you do this, you will be truthful, and others will say, look, look, the richest man in the world is rich and unkind, and everyone else donates money, but he doesn't donate, how picky!

Bush's attitude of asking for others is still very sincere and humble, and he said with a smile: "Oh, that's right, this subprime mortgage crisis has spread all over the world, and the US economy has been hit hard. A few days ago, the U.S. Treasury Department helped major financial institutions set up a $100 billion super fund to buy distressed mortgage securities. However, this money is still not enough, so I hope that Chronos· You can be generous and help the market out of trouble!"

"Your Excellency, please rest assured, it is my duty to do this! In fact, I will do the same without His Excellency the President taking the initiative. As he spoke, Li Zetian changed his words and continued, "However, Your Excellency, as you know, many companies under my name have suffered heavy losses in this subprime mortgage crisis...... So, there's only so much I can do to help others. ”

Li Zetian first gave President Bush a preventive shot, don't think that I will pay too much money, and my brother will also "lose" a lot, okay?

President Bush nodded and said, "Oh oh oh yes, yes, I understand." However, it is good that you can make a contribution, and the US Government and the American people will thank you!" President Bush secretly said with a small calculation in his heart, as long as you stand up, you will be embarrassed to contribute only a little money?

Li Zetian pouted, not knowing President Bush's careful thoughts.

At this time, Li Zetian was thinking about how much money he wanted to donate.

"Which companies are willing to pay now?" asked Li Zetian.

Several banks, including Bank of America, Citibank and Morgan Stanley, have said they have agreed to spend at least $75 billion to help the market out of the subprime mortgage crisis. ”

"$75 billion? Okay, in this case, I'll make up $25 billion and make up $100 billion!" As soon as Li Zetian finished speaking, he suddenly felt like a two-hundred-and-five, reluctant to pay the money, and very awkward.

$25 billion, for many people, that's an astronomical amount!

$25 billion can create one of the world's top 10 richest people!

How many companies can be bought for $25 billion!

Why isn't it distressing?

Spicy next door, fortunately, my brother has earned hundreds of billions of dollars from the United States alone, and 25 billion US dollars should be sent by Lao Tzu to Huazi and rewarded to your US government!

When Bush heard this, he was very happy and vigorously thanked Li Zetian, and said that he planned to present Li Zetian with an award, the Presidential Medal of Freedom, or the Congressional Gold Medal. Li Zetianxin said, I am short the U.S. stock market, you are really funny, and you also gave me an award, well, very good, I like it!

After the phone call with President Bush, Li Zetian immediately instructed Chronos Bank to contact Bank of America, Citibank, Morgan Stanley, and other banks to jointly raise funds for the super fund.

Of course, good deeds must be promoted, otherwise the $25 billion money will not come out in vain.

Not long after, newspapers, television, and the Internet were overwhelmingly reporting the news that Li Zetian generously donated $25 billion to save the market.

This wave of favorability is really special 6, and people all over the world can't help but give Li Zetian a thumbs up.

"As long as the subprime mortgage crisis in the United States is solved, the financial crisis in other countries will also be solved. There are really not many people who are so wealthy and righteous!"