July 27, 2007, was an ordinary day, and an extraordinary day.

The financial crisis of 2008 can basically be regarded as the beginning of today's subprime mortgage crisis, which caused the global stock market to plummet for the first time.

As investors' concerns about the subprime loan crisis and the real estate market swept Wall Street, the U.S. stock index closed plummeting on the 26th, and the Dow Jones Industrial Average fell by more than 300 points, creating a four-year high for the week.

Affected by this, the Asia-Pacific stock market fell on the 27th, the Nikkei fell sharply, and Australia, South Korea and other stock indexes created the largest one-day decline this year.

Even the Celestial Empire stock market, which has a very eye-catching performance, cannot avoid being affected. The Shanghai Stock Exchange closed at 4,345.36 points, down 1.10 points, and the Shenzhen Component Index closed at 14,614.10 points, down 5.64 points.

In the following days, the global stock market generally fell and fell, and there was no sign of a rise at all.

Correspondingly, since July, international oil prices have accelerated.

Despite the slowdown in the U.S. economy, the economic growth of Europe and island countries is significantly better than expected, especially the economic growth of countries such as the Celestial Empire and India, and the global oil market demand is strong.

Affected by factors such as the Iranian nuclear issue, the intensification of tensions in Nigeria, and the leakage of oil pipelines in the Gulf of New York and the United States, international oil prices showed a volatile upward trend, approaching $70 by late June, and reaching $78.21 per barrel in July 31, breaking through the record high set last year.

The Korn Ferry Investment Finance Department took advantage of this wind and made a lot of money.

"Mr. Jiang, is it true that all employees of the Guanghui Investment Finance Department will be given a holiday throughout August?", Guan Weidong asked in surprise.

Early this morning, Jiang Hui called Guan Weidong to his office and asked him to arrange for all employees of the financial department to take a month off this month, and their salaries will be paid accordingly.

It was only in the past few days that Jiang Hui saw the news of the stock market plummeting everywhere on several major web portals, as well as on Guanghui Weibo, and remembered that July and August this year were the time when the subprime mortgage crisis officially broke out.

It can be said that throughout August 2007, there was nothing to play in the financial market, whether it was stocks or futures, foreign exchange or whatever, it was too difficult to make money.

On the contrary, there is a high probability of losing money.

Of course, Jiang Hui can also invest in the financial department of Sang Guanghui to short the stock market and crude oil, and if the operation is good, he may be able to make a lot of money when others are bleeding heavily in August.

However, in recent times, the outbreak of the subprime mortgage crisis and its increasing impact on global financial markets have also made governments feel the crisis.

All sorts of stimulus are pouring in, and you can't expect it.

In this case, the risk of oil futures is too high.

This morning, crude oil may still fall sharply, the downward trend will not change, maybe in the afternoon which country announces the launch of a policy, oil prices will come and rebound.

In this case, the position will be liquidated accidentally.

Although the Korn Ferry Investment Finance Department has made a lot of money in the past two years, it is basically smooth sailing, and it is not to say how many of the world's leading traders there are.

Jiang Hui is not confident that in this market environment, these people can continue to make a lot of money for themselves, so it is better to take the opportunity to take a vacation, which can be regarded as a commendation for everyone's outstanding achievements this year.

"Yes, the achievements of the Ministry of Finance this year and the amount of money earned are more than all other departments and all brother companies combined, so it should be rewarded", Jiang Hui knew that after telling Guan Weidong about this decision, he would definitely be very surprised.

"But all the staff are on holiday and all are cleared, this is too exaggerated. Although the global stock market has fallen sharply in the past few days, oil prices are rising", the entire Guanghui Investment, now Jiang Hui is most concerned about the financial department, and Guan Weidong has also done a lot of work.

"This round of crisis may come more violently than everyone thinks, of course, you are right, oil prices are still rising, the fundamentals of the overall rise of the global economy have not seen any obvious changes, oil prices will definitely continue to rise, but such a sharp stock market fall, has not been seen for many years, and it does not hurt for us to avoid the limelight."

"Mr. Jiang, you asked our financial department to withdraw from investment in the domestic stock market last month, and now you are going to give all employees of the financial department a month off, is the financial market really so bad now?"

"Boss, have you noticed that in recent decades, basically every ten years, the global economy has ushered in a twist and turn?"

Jiang Hui's words are really not casual, many economists believe that every ten years or so, there will be an economic crisis.

In 1987-1988, the stock market ushered in a global crash, which was marked by "Black Monday".

October 19, 1987, is the famous "Black Monday" in financial history. On the day, the Dow fell 22.6%, the Nikkei fell 15%, the Financial Times of London fell 10.8%, Paris fell 9.7%, the Australian stock market fell 25%, and Singapore fell 20%.

In addition, the Hong Kong-Hong Kong Hang Seng Index announced that it would stop trading for 4 days after falling by more than 10%, but on the day it reopened on October 26, it fell directly by 1,120 points to 2,241 points, a drop of more than 30%.

In this economic and financial crisis, the entire market value of the global stock market has lost more than $1.4 trillion, more than three times the total loss of the First World War!

Ten years later, in 1997-1998, the Asian financial crisis broke out.

This crisis includes four main battlefields: the Asian financial crisis, the Russian financial crisis, the Hong Kong and Hong Kong financial defense war, and the Wall Street crisis.

The crisis began on 2 July 1997 in Thailand with the depreciation of the Thai baht, and then further affected the currencies, stock markets and other asset values of neighbouring Asian countries such as Malaysia, Singapore, Japan and South Korea, disrupting the rapid economic growth of Asia.

Another decade passed, and the time entered 2007.

Perhaps a few years later, the first global stock market crash caused by the subprime mortgage crisis on July 27, 2007 will be the beginning of the 2007~2008 financial crisis.

Nowadays, international financial activities are becoming increasingly close, various financial markets are interconnected, and the outbreak of a local market crisis often involves the linkage of multiple markets, thus triggering a global financial turmoil.

The subprime mortgage crisis is a prime example of this.

Originally, this problem mainly existed in the United States, and other countries were not serious.

However, with the acceleration of globalization, the various financial markets are becoming more and more interconnected, and the United States is the undisputed number one power in the world. They have a crisis, how can other countries be spared?

"Mr. Jiang, do you mean that the Yankees' subprime mortgage crisis will get bigger this time?", Guan Weidong said in surprise, under Jiang Hui's prompting, he probably understood what Jiang Hui was worried about.

"Every typhoon has an eye of the storm, and every financial storm has its own eye of the storm. The so-called eye of the storm is the cause of the financial turmoil, which is the fuse that detonates the financial crisis, and I believe that the subprime mortgage crisis in the United States is the fuse of the new round of financial crisis. ”

Jiang Hui said categorically.

It is said that don't pretend to be forced, pretend to be forced to be struck by lightning.

However, Jiang Hui has even experienced such a thing as rebirth, what are you afraid of?

(End of chapter)