Because this financial crisis is worse than the previous life, on August 11, 2007, central banks around the world injected more than $500 billion in 48 hours to bail out the market, and the Federal Reserve injected $50 billion into banks three times a day to stabilize the stock market!

However, the subprime mortgage crisis continued. Pen | fun | pavilion www. ｂｉｑｕｇｅ。 ｉｎｆｏ

On August 14, 2007, dozens of companies such as Wal-Mart and Home Depot announced that they had suffered huge losses due to the subprime debt crisis, and Henry's company was also affected, but because they had taken precautions, the losses were minimized. Plus, these losses are nothing compared to the money made by Williams Royal Investments.

U.S. stocks quickly fell to multi-month lows

At this time, the three major central banks of the United States, Europe and Japan injected more than $200 billion to rescue the market.

Central banks in the Asia-Pacific region have also injected an additional $50 billion into the banking system.

However, on 16 August 2007, the stock price of the largest commercial mortgage company in the United States plummeted and faced bankruptcy, the US subprime debt crisis worsened, and the Asia-Pacific stock market suffered its worst decline since 911! On 20 August, the Bank of Japan injected another 2 trillion yen into the banking system to bail out the market. On August 21, just one day later, the Bank of Japan injected another 1.2 trillion yen into the banking system. The Reserve Bank of Australia has also injected $3.57 billion into the financial system!

On August 22, the Federal Reserve injected another $10 billion into the financial system, and the European Central Bank added an additional €50 billion to refinance operations.

On August 23, the Bank of England lent 2 billion pounds to commercial banks to deal with the crisis, and the Federal Reserve injected another $15 billion into the financial system!

Before August 31, the Federal Reserve had to inject between $10 billion and $20 billion into the financial system almost every day, and the situation in the financial markets was extremely grim!

On September 1, US President George W. Bush held a press conference and said that the government promised to adopt a package to save the subprime mortgage crisis.

The international situation is turbulent, the US economy is slowing down, the dollar is depreciating, the European Union is suffering heavy losses, the global stock market has plummeted, and countless companies are on the verge of bankruptcy. China's trade exports have dropped significantly, and the domestic economic situation is not optimistic, and the government has invested 50 billion US dollars to bail out the market.

The least affected countries in the world are Africa, whose main trading countries are the Williams Empire, which exports raw materials, and the Williams Empire favors them with products. In addition, Henry has developed a number of infrastructure projects to boost economic development and increase national income, so that enterprises can re-export surplus products for domestic sales. In addition, the Williams Imperial Central Bank has set aside $100 billion to stabilize the stock market! Since the Diego Exchange has been established for a short time and is small, it is relatively easy to rescue the market. Therefore, although the subprime mortgage crisis has swept the world, the citizens of the Williams empire seem to stay in a safe haven, and they do not feel the cruelty of the subprime mortgage crisis storm at all!

As time passed, the subprime mortgage crisis became more and more serious.

Seeing that many large financial companies were about to fail, the U.S. Treasury Department helped major financial institutions set up a $100 billion super fund on October 10 to buy their mortgaged securities. The next day, the American Bankruptcy Institute announced that the number of consumers who filed for bankruptcy in September was close to 120,000, a year-on-year increase of more than 45.5%. From February to October 2007, a total of 823,000 people were laid off in the United States.

On October 24, 2007, affected by the subprime mortgage crisis, the world's top brokerage Merrill Lynch announced a loss of $12.5 billion in the third quarter of 07, and the day before, Japan's largest brokerage Nomura Securities also announced a loss of $1.24 billion in the quarter. Subsequently, the Swiss bank, the largest in Europe by assets, announced that it had a quarterly loss of 82.5 billion Swiss francs in the third quarter for the first time in nearly five years due to losses on subprime mortgage-related assets.

"Dear, Williams Bank of America is the largest company in the United States, and since it did not invest in subprime bonds, it lost very little. U.S. President George W. Bush called and asked us to come up with $100 billion with Citi and Morgan Stanley to help the market get out of the subprime mortgage crisis!" Karina hurriedly came to Henry's office and said to him.

Henry smiled and said, "Of course it's no problem, but as much as we give, Citi and Morgan Stanley must also give out." ”

When Karina heard this, she couldn't help but smile, and instantly understood what Henry meant.

Williams Bank of America is doing well and has sufficient funds, while Citigroup and Morgan Stanley, both of which have invested in subprime bonds, have suffered heavy losses, and depositors and investors have become distrustful of them. But for Williams Bank of America, this loss is drizzle, and it is completely bearable. However, for Citi and Morgan Stanley, it will undoubtedly exacerbate the situation, causing the two banks to go bankrupt and collapse! Henry will eventually be able to buy them!!

"Okay!" Karina replied with a smile.

Citibank and Morgan Stanley naturally could not sit idly by and watch the subprime mortgage crisis in the United States continue, otherwise they would suffer huge losses! Obviously, none of them could have predicted how serious this financial crisis would be and how long it would last!

In December, the five major central banks of the United States, Canada, Europe, the United Kingdom and Switzerland announced a joint bailout, including short-term bidding and foreign exchange swaps.

The Federal Reserve submitted a package of reforms in response to the subprime mortgage storm, and the European Central Bank announced an additional two-week loan of about $700 billion to the eurozone banking system!

The smoke of this warless war seems to be getting more and more severe.

Both the state and the banks wanted to win the battle and invested in the purchase of subprime securities.

However, the effect was not great.

In March 2008, the time finally came for the pustules of subprime mortgages to fully rupture.

From March 3 to March 10, Bear Stearns' share price fell from $77.32 to $59.30 per share. Bear Stearns' liquidity has dried up to the point of exhaustion. Although Bear Stearns is the smallest of Wall Street's five largest investment banks, its collapse, one of the symbols of Wall Street's giants, will undoubtedly have a serious knock-out effect, and the already poor situation of institutions such as Lehman Brothers will be exacerbated.

To live or to die has become an unavoidable question for Wall Street giants.

On March 14, Bear Stearns' stock price closed at $30.85, down 45.9% from the previous trading day. Intraday shares briefly touched $28.42, the lowest since the 1998 Asian financial crisis. Dragged down, the Dow Jones fell 194 points on the day.

In order to prevent Bear Stearns' sudden bankruptcy from jeopardizing their own interests, European financial institutions asked traders to suspend trading with Bear Stearns. Under the pressure of a general deterioration in liquidity, Bear Stearns had to apply for emergency loans from the Federal Reserve, Williams Bank of America, and JPMorgan Chase.

When Henry heard the news, he smiled and muttered, "The first piece of fat is almost here!!

(To be continued.) )