Of course, Zhang Chen knew that this was just an adjustment of the NASDAQ, but this adjustment took a bit of a long time.

In addition to the impact of Microsoft's antitrust investigation and Warren Buffett's remarks, this adjustment was also affected by some general trends.

This general trend, of course, refers to the default of Rakshasa debt.

The Long-Term Capital Management Company (LTCM) is now terminally ill, and the Rakshasa government has been struggling with the debt crisis for nearly four months, and Meriwether originally estimated that the Rakshasa short-term treasury bonds would be able to resume trading in two weeks at most, and as long as trading resumes, whether it rises or falls, the long-term capital management company will at least be able to get out of the way.

You might even be able to make a lot of money.

But no one expected that Rakshasa would really dare to declare a debt default!

Of course, Rakshasa did not directly say that he would not repay the money, but changed his statement, saying that the state's money was prioritized to pay workers' wages, and the payment of the $13.5 billion short-term debt of Western countries was deferred.

The so-called delay is a breach of contract!

The most interesting thing is that on the same day that Rakshasa announced that it would default on its debt, the Dow Jones index rose by 150 points.

Whether it is Long-Term Capital Management, Soros or any Western investor, they all believe that as long as Rakshasa dares to default, the United States will dare to sanction it, and when the time comes, as soon as the United States, the international policeman, takes action, Rakshasa will have to obediently repay the money.

The reason why the Dow Jones rose is because these investors feel that no matter what the economic situation of the Rakshasa is, even if the Rakshasa really collapses, at least their own interests can be guaranteed, and the United States cannot let it go, so the market confidence has been enhanced, and the Dow Jones has also risen a lot.

But the reason why a black swan can become a black swan must be that all kinds of coincidences come together to be called a black swan.

Crichton's fine spots were found on Lewinsky's blue dress。。。。。。

As soon as this explosive news came out, the entire international community turned its attention to Washington, where is anyone who cares about what happened to Rakshasa?

Criston also wanted to use the Rakshasa default to divert public attention, but his scandal was so explosive that it made him restrain his hands, and just made a report on Rakshasa in Congress, he was scolded back by the Republican-controlled Congress, debunking his intention to divert public attention.

As a result, under the mutual attack of the two parties, the United States really did not say anything about the Rakshasa default.

Some analysts believe that the United States did not take action because Rakshasa has nuclear weapons, and the United States cannot impose sanctions on a nuclear power.

While the public had been waiting for two days, muttering, the list of Rakshasa second batch of deferred debts came out。。。。。。

This time, the market was completely untenable, and the Dow Jones not only fell by 150 points that day, but also fell by 100 points, falling more than 250 points throughout the day, which is already a violent turmoil for the Dow Jones, which has always had a stable index.

However, they still underestimated the impact of this crisis.

Or, if you are not an insider, it is difficult to see how much of an impact the Rakshasa crisis will have on the United States.

The Rakshasa crisis is a typical event involving a small amount of money, but with a huge impact.

As a matter of fact, the direct investment and short-term debts of US capital in Rakshasa are not large, and even if Rakshasa declares that all of its 100 billion foreign debts will default, for these financial giants of the United States, the United States will only have $20 billion or 30 billion in them, and it is not an unbearable loss. What's more, Rakshasa only announced a partial debt default, and the loss will be even smaller, and if it is risky, it will not exceed 10 billion at best.

However, the existence of long-term capital management companies magnifies this risk dozens or even hundreds of times.

The long-term capital management company has a principal of 4 billion yuan, but it uses up to 30 times the leverage to control a huge asset of 125 billion US dollars, which is not the end, the United States is a financial liberalization country, and countless bonds and wealth management products are linked to the 125 billion US dollars of assets of the long-term capital management company, and the entire scale is as high as 1.3 trillion US dollars!

What is this concept?

This concept is that the long-term capital management company itself has four billion yuan, but feels that it is not enough, so it borrows another 120 billion dollars to do business, promising a certain return on investment, because of its good reputation, and it is composed of authoritative figures on Wall Street and the world's financial circles, out of trust and the temptation of high returns, investors will lend money to the long-term capital management company with certain withdrawal conditions.

If that's all there is to it, then the crisis would have been a loss for LTCM and a few other hedge funds such as Quantum Fund and Tiger Fund, but because these people have such a high probability of winning, there are many people around them to bet on the periphery.

One person said, well, I'm betting a thousand dollars, betting that they can still make money, and another person is saying, okay, I'm also betting a thousand dollars, betting that they can make money, cumulating, around LTCM and the financial derivatives of the Quantum Fund and the Tiger Fund, ten times the assets they control!

If LTCM is only a small loss, it doesn't matter, once LTCM has a life-and-death situation, the impact is too great!

It's unimaginable.

Of the $1.3 trillion dollars, 80 percent is Goldman Sachs, Merrill Lynch, Salomon Smith Barney, Lehman Brothers, and Da Mo。。。。。。 Financial products of these top investment banks.

Now that the Glass-Steagall Act has not been repealed, commercial banks and investment banks have not fully converged, and $1.3 trillion is almost equivalent to the scale of exhausting these top investment banks.

Although the trillion-dollar dollar is unlikely to disappear, the huge loss of LTCM will cause the market to panic, tighten the monetary policy, and then lose capital liquidity, triggering the collapse of the national economy!

Yes, the default of the Rakshasa may seem to be small in scale, but because of the LTCM, it is possible to completely collapse the US economy!

Of course, the general public was unaware of this, and while they were still reveling over this little thing in the crotch of Crichton's pants, no one noticed that countless bigwigs who really controlled the country's economic lifeline had rushed from far and wide to a small island called Jekyll on the coast of Georgia, just north of Florida.

The small island, which is usually untouched, has been closed at this time, and the only road leading to the island has been completely closed, and only helicopters and small passenger planes can be seen in the air stopping one after another in the only airport on the island.

The only golf resort on the island is no longer open to the public, but there are countless new faces around, keeping an eye on any passers-by.

All of this was for the sake of this secret meeting that was taking place in the secret conference room in the basement of the hotel.

"To sum up, you should already understand the urgency of the moment. We have to bail out LTCM, even if LTCM goes bankrupt, not now, we have to strip off his $4.8 billion debt, otherwise once it goes bankrupt, everyone in this room, we will all go to hell. "A pair of big black-rimmed glasses framed on a huge nose, and the person who has this nose, any financial practitioner in the world will have a heartfelt tremor when he sees him.

Greenspan.

(End of chapter)