Chapter 690

Just when the U.S. stock market was on the rise and the concept of the Internet was widely sought after, the national election, the quadrennial political drama, came to an end in a wave of incredible voices. At the beginning of the year, George W. Bush, who had won a big victory in the Gulf War and whose prestige in China was in full swing, unexpectedly lost to Clinton, a hairy young man from the Democratic Party.

Although the Federal Reserve announced as early as the beginning of the year that the U.S. economy has ended a recession that lasted for nearly a year and has begun to resume growth, and the U.S. stock market has entered a new round of bull market since the beginning of the year, voters can really feel that there is still a long lag in the increase in incomes and the improvement in the employment situation.

However, the US presidential election that is just around the corner will obviously not give the Bush administration a chance to prove the effectiveness of its governing policy again. Voters have attributed all the difficulties they have encountered in recent years due to the weak economy to the failure of the Republican Party.

So they used one vote after another to not only make the Republican Party lose its majority position in both the Senate and the House of Representatives, but also kicked the Republican Bush out of the White House!

Fortunately, Li Xuan was still prepared for the defeat of Bush Sr. and laid the groundwork on the side of the Democratic Party in advance. After the general election came to an end, most political commentators in the United States, when analyzing the reasons for Clinton's victory, regarded him as inviting Al Gore, a popular Democratic senator, to be their running mate.

Although Gore is a Democrat, he has always adhered to centrist political views, advocating reducing the government's fiscal deficit, preventing the government from exercising too much power, and advocating control over the size of the government. This is a far cry from the traditional Democratic Party's government-oriented approach to governance, and it has won Clinton the support of a large number of conservative voters in the central and southern regions.

As one of Al Gore's important funders, Li Xuan can be regarded as taking the opportunity to successfully connect with the new Clinton administration. Although the resignation of Bush Sr. will greatly alienate the relationship between the Eastern Bloc and the White House, Li Xuan also took this opportunity to wash away his image as a "hardcore Republican supporter."

After all, really smart players have always bet on both ends, so that they will always be invincible!

However, changes in the political climate will still have a significant impact on the business environment of enterprises. For example, shortly after the U.S. election, Li Xuan received a transatlantic phone call from New York from Peterson, chairman of Hilson-Lehman Corporation.

Peterson told him on the phone that there was a stock short-seller on Wall Street that had set its sights on Oriental Games, which had just been listed on the New York Stock Exchange this year. They plan to wait until next year when the new attorney general takes office, and then lobby the new minister to conduct an antitrust investigation into Oriental Games.

In addition to allowing investors to make money when the stock price rises in the European and American stock markets, there are also opportunities for profit when the stock price falls. This operation method is called short in professional terms, that is, through the securities company to borrow a large number of shares of the company that will fall to sell in the market first, and then wait until the stock price really plummets to buy back the corresponding number of shares, and return to the securities company to close the position.

For individual investors, if they want to make money by shorting stocks, they must have an accurate vision and be able to make correct judgments about the future market of stock prices. But for institutions that specialize in short-selling games, there are a few differences. As long as it is a company that they pick, even if the stock price is rising all the way, they can always find a way to create all kinds of negative news to suppress it, so that the stock price will turn from rising to falling.

For example, the famous Muddy Waters and Citron in another time and space, two Wall Street short-selling institutions, have made many Chinese companies listed in overseas capital markets fearful. They can always find all kinds of loopholes in the financial reports and other public information of listed companies - profit fraud, customer data fraud, etc., and then take the opportunity to cause panic among investors, and then make profits through the collapse of the target company's stock price.

These listed companies under Li Xuan's name have excellent performance in themselves, and there is no need to raise the stock price by low-level means such as embellishing financial statements. But even if you don't have a problem yourself, the short-selling agency can find a way to help you create a problem.

For a multinational company with a large market share in the United States, it's almost impossible to find a company that hasn't been entangled in antitrust issues. This has become one of the most common tools used by many small and medium-sized enterprises in the United States to deal with large companies in the same industry, which is not only inexpensive, but also often very effective.

Take Oriental Games as an example, its FC home video game console and Game-Boy handheld game console both occupy more than 70% of the market share in the home console and handheld field in the United States. Any game company that is interested in showing its strength on the two major platforms is bound to cooperate with Oriental Game Company.

However, many third-party game companies are unwilling to be deprived of a large amount of platform royalties by Oriental Game Company, so they often file antitrust complaints with the US Department of Justice on the grounds that Oriental Game Company abused its market dominance.

In the U.S. market alone, Oriental Games suffers no less than 10 antitrust complaints from other game companies every year. But whether these complaints will ultimately be investigated depends on the Justice Department's view.

At least the U.S. Department of Justice during the Reagan administration and the Bush administration didn't entangle Oriental Games too much. But now that the Democrats are in control of the U.S. government, many people naturally think that their opportunity has come.

Like the Wall Street short-selling institutions mentioned by Peterson earlier, they don't even need to really let Oriental Games Company be found guilty, but only need to say that the Department of Justice agrees to open an investigation on this issue, and they can take advantage of the short-term negative news to profit from the stock price of Oriental Games.

Peterson was naturally well aware of his boss's deep connections in Washington, so he just treated this matter as a joke to Li Xuan in order to shorten the distance between him and his boss. However, in the eyes of some people who are not well-informed enough, Bush Sr.'s unexpected defeat in the election is a major blow to Li Xuan and the Eastern Bloc, and it is natural to seize this opportunity to beat the water dog and take advantage of the world's richest man!

This may be the so-called big move, and the Eastern Bloc will definitely enter an eventful period in the next period, and may even need a few killer performances to re-establish itself as a tough image in the American market.

And this also gave Li Xuan an excuse to convince the management of the Oriental Group to temporarily shrink in overseas markets such as the United States, consolidate the current fruits of victory first, and at the same time devote more energy to the development of the newly rising Chinese market!