Chapter 1258: Waking Up from the American Dream
While Andy and Lima were living a life of three meals a day on the Montana farm, the whole world was still trembling under the ravages of the financial turmoil, and the bailout plans of various countries were like fighting fires, making the panic more and more out of control.
The Icelandic krona has fallen sharply against the euro. The Central Bank of Iceland had to announce that it would fix the Icelandic krona at 131 to 1 against the euro, but then due to the ruthless sell-off of the Icelandic krona in the foreign exchange market, the Icelandic central bank announced that it would abandon the support for the Icelandic krona exchange rate, and Iceland was only one step away from national bankruptcy.
On the 10th, after the authoritative rating agency Standard & Poor's said that it would consider downgrading the credit ratings of General Motors and Ford Motor Company from "B minus" to "junk", General Motors' shares immediately plunged sharply, falling all the way to the lowest price since 1950, and the total market value of the company's shares also shrank to the lowest point since 1929.
Dragged down, the New York stock market, which was already hovering at a low level, staged a dramatic scene less than an hour before the close.
The Dow Jones 30-industry stock average fell below 9,000 points in an instant under the pressure of the market's frenzied selling, which is also the first time that the Dow has fallen below this round number mark since August 2003.
Subsequently, 8900, 8800, 8700, and 8600 points were also easily broken. In the end, the Dow closed at 8579.19 points, down 678.91 points, or 7.3%, from the previous trading day.
The S&P 500 stock index also tumbled 7.6% on the day, while the Nasdaq Composite fell 5.47%. This is also the seventh trading day since the 1st of this month, the New York stock market has fallen across the board, and the three major stock indexes have fallen by more than 20% cumulatively...
Finally, Warren Buffett, who has invested $8 billion in the market, couldn't sit still and started his public relations offensive, took the initiative to call Treasury Secretary Paulson, offered advice, and wrote a long letter, put forward written suggestions, and expressed his willingness to take out 20% of private funds, $100 million, to support the implementation of the bailout plan!
In an hour-long interview with AMC Cable News, Buffett referred to the market turmoil as the "economic Pearl Harbor" and reaffirmed his belief that the United States will remain dominant in the long term.
It is extremely rare to publicly claim that he is buying stocks, and at a time when the financial crisis has caused investors to sell in a panic, whether it is patriotic or public relations, whether it is patriotic or public relations, he hugged Lima on the sofa and watched the old rascal talk with a solemn face, Andy still admires the old guy's responsibility and judgment very much.
"The financial system is in chaos right now, both in the United States and the rest of the world...
Therefore... I've been buying U.S. stocks. I'm referring to my own private account, which was all U.S. government bonds and no other equity investments.
Of course, this does not include my own Berkshire Hathaway shares, which I have donated all of them to charity.
All of the assets in my private account, except for Berkshire stocks, will soon be invested in U.S. stocks.
Why?
Because I bought stocks with a simple investment credo: fear when others are greedy, and be greedy when others are fearful. What is almost completely certain is that fear is now spreading everywhere and investors are terrified, even those who are seasoned...
I would like to make it clear that I simply cannot predict the short-term volatility of the stock market. Even I don't know whether the stock market will rise or fall in the next month or year.
However, even before market sentiment turns good or the economy recovers, it is very likely that the stock market has risen in advance, and it may be a big one. So if you have to wait until the robins are spring, then spring will be over ... โ
"My dear, when will this terrible economic crisis end? I read news reports that there are 73,000 new homeless people in the greater Los Angeles area alone, 40 percent of whom are women and children, which is terrible!"
Lima watched Warren Buffett's interview on TV, just left Brazil, which was hit hard by the economic crisis, and saw the sad scene of the news report, Lima was a little difficult to accept, after all, she came to the United States to develop, and she also had an 'American dream' that was touted by the world's media.
It's just that now it seems that this so-called 'American dream' myth has been completely shattered!
Andy tightened Lima in his arms from behind, his chin rested on her shoulder, and Lushan's claws habitually put on men's favorites, women's pride, and baby rations, and said lightly: "In Washington, they call it a 'ownership society', which means that every family in the United States has its own house, and the government does not interfere with people realizing their American dream." Do you know what the real meaning is?"
Lima was uncomfortable by Andy's bo, turned to look back at Andy, and shook his head with a slightly red face, a pair of gray-green eyes with mist in them, a little confused.
"Nobody cares about you, you have to rely on yourselfใใใใใใ It's time for them to admit defeat!"
Andy's words were a little indifferent, maybe a little cold-blooded, but that's the truth, it's time to wake up from the dream.
Under the market economy, it is simply impossible to achieve that everyone has their own housing, and it is even impossible to achieve that the vast majority of people have their own housing.
The so-called everyone in the United States has their own home, under the rush of the subprime mortgage crisis, like a sandcastle by the sea, after a wave, a mess, according to Andy's data, conservative estimates, there are currently about 7.5 million home buyers in the United States with 'negative equity', and 2.1 million home buyers are on the verge of 'negative equity'.
Just when Andy and Lima were tired of each other on the sofa, ready to meet the poor dagger, mend their shoes with swords, and complete the important matter of human life in the wind and sun, the most annoying thing happened to Andy.
That's right, the phone rang very inopportunely, and it was two phones that rang at the same time.
"Gurgle... Lima, who had pink cheeks, curled up, giggled gloatingly, and looked at Andy, who was annoyed with a constipated expression and was reluctant to get up, Lima reached out and stroked his cheek and said coquettishly: "Go and answer the phone first, everyone knows that you are writing behind closed doors, and you still call in, it is definitely not a trivial matter." โ
"Shet!" Andy cursed very unpleasantly, got up from the sofa, first took his personal mobile phone and looked at it, it was not far away from Joseph of the Freedom Eagle Security Company, groaned and chose to hang up first, and then picked up the external mobile phone, and saw that it was the phone number of Hamilton, the chief of staff of the Treasury Secretary.
"I really have to take it... Andy pouted at Lima, who had already begun to rearrange his clothes and pants, said unhappily, and then picked it up.
Lima looked at Andy, who had an unhappy expression when he first picked up the phone, and as time passed, a smile appeared on his face, and then became brighter and brighter, guessing that something good had happened.
"Hehe, Hamilton, thank you, tell me the good news, I didn't expect our Yingtai Bank to be selected for the first batch of bank capital injection plans, hehe, of course happy... It's not right for you to say that, who would dislike their own funds are more sufficient, but what you said is also right, the interest rate of 9% per annum is indeed not low, so let's call Stephen Noopy now, tomorrow afternoon's meeting, we Yingtai Bank will be on time... โ
After hanging up the phone, looking at the bright smile on Andy's face, he asked with some curiosity, "Honey, what good news?"
"Well, isn't this worried that some banks will continue to go bankrupt and cause more panic in the market, the Treasury has just finalized a bank injection plan, and the Federal Reserve Bank of New York has completed the selection of the first batch of banks with the assistance of the Office of the Comptroller of the Currency, and my Yingtai Bank is also among them, although the money is not much, but it also has a scale of 2 billion US dollars, hehe, it seems that the children who will make trouble really have NAI to eat!"
Saying that, Andy smiled evilly and stretched out the claws of Lushan, which attracted Lima's coquettishness, and slapped away the big hand that was making a mistake, Lima's eyes lit up slightly, the more successful her man is, the happier she is, although she can't be a hostess, but she won't give up her ambition to compete.
Like an octopus, Lima sat in Andy's arms, wrapped his arms around his neck, and said to Andy with silky eyes: "Honey, I want a baby!"
Andy raised his eyebrows and said with a teasing smile: "Of course it's no problem, making your belly bigger is an easy and happy thing for me!"