Chapter 289: Leverage
After a small meeting, Li Yadong called Uncle Luo to a room alone.
Before Li Yadong could speak, Uncle Luo hurriedly said: "Boss, you have really decided, you must short US stocks?"
"Didn't I make it clear?"
Seeing that his tone was a little stiff, Uncle Luo knew that it would be useless to persuade him again, so he could only smile bitterly and nodded, "That'...... All right. ”
Suddenly thought of something, and asked again: "Boss, ...... you looking for me?"
"You used to work at the Bank of Boston, right?"
"Yes. Uncle Luo nodded.
"I want to know if I want to short U.S. stocks, according to the conventional mechanism, how much leverage can Bank of Boston provide to customers?"
Li Yadong's idea is very simple, a once-in-a-lifetime opportunity, either don't do it, or do it to death!
In 1987, the global stock market crash, that is, on that Black Monday, the Dow Jones index went all the way to the sky, and the US capital market evaporated 500 billion US dollars in one day, which is equivalent to one-eighth of the annual gross national product of the United States.
Where does all this money go?
Macro factors are not considered, from the micro secondary market alone, the secondary market itself does not directly create wealth, but more wealth transfer.
The money is not the same as in the pockets of some people, those who sell at the high point make money, and those who miss the opportunity to be trapped, or buy at the low point with the intention of speculation, become poor eggs and pick-up men.
The stock market crash of 1987 really hurt a number of people, and many financial predators were not spared, Sam Walton lost $2.1 billion a day, Bill Gates lost $4.5 billion a day, and even the financial oligarch Soros also suffered heavy losses.
But there are also people who have made a lot of money, such as the founder of the Tudor Fund, Paul George Jones II, whose hedge fund made a 62% profit in the stock market crash, with a conservative estimate of billions of dollars.
and Soros's best friend, Stanley Druckenmiller.
Although he didn't make as much money as Paul, he was deeply involved in it, but he made a good skill for the golden cicada to get out of his shell, and he escaped in a grand manner.
He led a hedge fund, Duquesne Capital Management, which he had never experienced negative returns in its 30-year history.
You have to admit that there really are geniuses in this world.
Li Yadong now seems to have a lot of money in his hands, some of the profits he made in the stock market before, plus the four parts of the Crazy Boy series have been released, and some of the box office shares add up to more than 60 million Hong Kong dollars.
However, this money is simply a drop in the bucket compared to those financial predators.
And if he wants to carve up more of the $500 billion, his first thought is to use leverage.
Uncle Luo looked at him deeply and thought: Even if you are short US stocks, you still have to use leverage, does this seem to die fast enough?
But when asked about the head, he still replied truthfully: "If the highest is the case, it is not a problem for the Bank of Boston to provide 50 times leverage." ”
"Fifty times?" Li Yadong's eyes couldn't help but light up, the money in his hand was full of calculations, and he might need to raise some to be able to exchange it for 10 million US dollars, to be honest, it was really pitiful.
But if you use 50 times leverage, it is very considerable, equivalent to a position of 500 million US dollars, and then, short US stocks by 100 points......
"Hiss......" suddenly thought of such a number, and even Li Yadong couldn't help but gasp.
Although he has always wanted to make money, he has never fantasized about becoming such a rich and powerful person, and he has always thought that money is almost enough.
This is the first time in my life that I find myself only one step away from the position of the richest man in the world.
"But ......"
Uncle Luo's divine turn pulled Li Yadong out of his dream.
He said angrily: "Uncle Luo, can you say anything at once?"
Uncle Luo smiled and said: "Boss, the premise of this fifty times leverage is that under normal market conditions, if it is really as you said, the world will face a big stock market crash, then the Bank of Boston will generally restrict loans to the securities industry." ”
"What do you mean?" Li Yadong was a little unclear So, after all, he was just a small shareholder in his last life, he was responsible for his own profits and losses, and the money spent on stock speculation was his own, and he never used leverage through banks or securities companies.
This means that if there is a so-called stock market crash, the Bank of Boston will usually terminate the agreement in time in order to avoid risks, which may make you miss the best time to sell. ”
"Can it still be like this?" Li Yadong was surprised.
"It's a normal thing......"
Uncle Luo explained: "Because whenever you use high leverage, and it coincides with the stock market crash, the funds that can be leveraged are absolutely huge, and for short customers, according to their normal process, the first method used by Bank of Boston must be betting, rather than injecting funds into the futures market according to what customers think." If you think about it, one million funds, 50 times leverage, magnified to 50 million, even if the option rises by 1 percent, it will be liquidated directly. It's no different from picking up money like that, so why should they put it in the stock market for others to earn?"
"Of course, there are losses and wins in betting, and usually gambling losses are also to be lost, but if the stock market crash comes, it will be different, under multiple times leverage, the stock index has been leaking all the way, even if the bank can't stand it, this also involves its own strength, in the face of such a situation, they would rather terminate the agreement and pay a certain amount of liquidated damages. ”
"I see, that's ......," Li Yadong understood as soon as he heard it.
Sure enough, it is the layman who looks at the excitement, and the insider looks at the doorway, these secrets in the industry, if it weren't for Lao Luo, a professional, to say it, he probably wouldn't know it in his life.
"Boss, in the final analysis, the Bank of Boston is too weak. What I said below is based on your correct judgment of the stock market crash, if you really want to use multiple leverage, I suggest you still find some large investment banks with performance capabilities, such as Morgan Stanley, Goldman Sachs, etc. ”
Uncle Luo came out of the Bank of Boston, and he is naturally clear about their investment model, since he has said so, then Li Yadong of the Bank of Boston will definitely not consider it again.
Li Yadong has heard of these two well-known investment banks, Morgan Stanley, Goldman Sachs, Merrill Lynch, and Citigroup, which are known as the world's four major investment banks.
The strength is naturally undoubted, and it shouldn't be a whole moth, after thinking about it, he replied: "Uncle Luo, do you know anyone from these two investment banks, if so, I want to contact you." ”
"No, on the Goldman Sachs side, if the boss wants to meet, I can make an appointment. Uncle Luo replied.
"Okay, Morgan Stanley will be Morgan Stanley, then trouble Uncle Luo, arrange it as soon as possible. ”
"Good. ”
……
In October 1987, there were four Mondays, namely the 5th, 12th, 19th, and 26th.
Which one is "Black Monday" in the end?
Li Yadong is still final, but at least the fifth can be ruled out at the moment, because he still remembers that before Black Monday, there were one or two small shocks in the US stock market, and there was also a fuse, it seems that a senior official in the US government made an important speech.
So, most of his attention lately has been focused on the Dow Jones index and the news and current events in the United States.
He was not in a hurry, he had these two impressions in his mind, and as long as he kept an eye on it, he believed that he would be able to gain insight into the specific date before the stock market crash came.
After waiting for two days, Uncle Luo finally came with news that he had made an appointment with a Chinese executive at Morgan Stanley and promised to meet with Li Yadong.
That afternoon, Li Yadong drove his tiger head to the Morgan Stanley Building in Central.
As his wealth gradually increased, his beloved NSR250R spent more and more time in the garage. To be honest, he prefers to ride a motorcycle than a car, especially in a place like Hong Kong, where it is not too cold all year round, and the driving feeling of a motorcycle is far from being comparable to that of a car.
But there is no way, I often have to meet some people with heads and faces now, and it is really not appropriate to ride a motorcycle again.
In the entertainment industry, it is to look at faces, but in the business circle, it is to look at faces.
Li Yadong knew a person in his last life, at that time he only had one restaurant, and the other party only had one shop, next door to him, and the scale was far inferior to him, and when he opened Santana, people had already bought Daben, and asked him where he got the money and borrowed it.
"Only in this way can you have face, and it is convenient to go out to do business!"
These are his exact words.
Li Yadong didn't think so at the time, and he really couldn't accept this consumption concept of "slapping a swollen face and becoming fat".
Five years later, Li Yadong opened a second restaurant, but that guy has changed to a Bentley, and the number of stores has grown to seven......
It was then that he understood the importance of "spectacle".
The man drove out in a car, and regardless of how he came here, the supplier was willing to give credit and drove a Bentley out, and the bank was looking for him to lend money.
For example, at this time, believe it or not, if Li Yadong really rode a locomotive, maybe he wouldn't even be able to enter the gate of Morgan Stanley.
The security guard enthusiastically stepped forward to give him a stop and then asked him about the purpose of his visit.
"I went to Ms. Zhang Xueli from your securities department, and I have already made an appointment with her. ”
"Yes, sir, please ...... here"