Chapter 713: Let's Get Started
After making all the preparations he could, Link lived his normal life without showing much of an anomaly.
In June, the Federal Reserve really revealed that it will raise interest rates by September, and the interest rate increase plan is already being formulated.
The whole United States recognized the news, and a deacon of the Federal Reserve said in an interview with reporters: "The Fed will raise interest rates in order to ensure the position of the dollar in trade." In the process of this monetary policy adjustment, we will take necessary measures to ensure the safety of social capital. ”
This is an early warning and a commitment of the Fed to this monetary tightening program.
Claire didn't even wait for Link to go to work, and came to the castle to look for Link while the Link family was still having breakfast.
Link sees him and invites him to breakfast.
At the dinner table, Claire said as she ate, "Link, the banks we are staring at do have some unusual behavior, although they have also formulated similar countermeasures as us, but their total loan quotas have suddenly dropped significantly. ”
He looked at the information in his hand and said: "City banks, for example, after announcing the strengthening of fund management last month, ostensibly only strengthened the loan review, but their borrowing amount last month fell by 54% compared with the same period last year." The same is true for the National Bank of America, which has also dropped by 50%. Other major banks also fell by at least 35 percent. ”
Link took a sip of milk, swallowed the food in his mouth, and said, "Well, they should be going to get moving soon." ”
Claire had a solemn look on her face and said, "Now what I'm concerned about is how many of our outstanding shares are in the hands of those institutions. ”
Jessica heard them say this, and seeing that the children were full, she said goodbye to Link and went to work, sending the children to school by the way.
When Jessica left, there was no one else in the restaurant, and Claire spoke casually. "Those bastards could sell our stock at any moment," he said. ”
Link needed money because he was worried about it: "If they do that, I think you have a solution." ”
If his shares in those banks are held by some institutions. Those structures may trigger panic selling of these stocks by selling.
If he is ill-prepared and recycles those stocks at a higher price to prevent the stock price from collapsing, his money will be trapped. He will not have enough available funds in the subsequent stock market correction. The retail shares in the stock market will become the pockets of those institutions. They thus achieve the goal of entering the board of directors of the bank.
Perhaps, they have another means.
If a large number of outstanding shares are taken to the board by an opponent, Link's companies will have to re-release a large number of outstanding shares. Whether it is a new issue of shares or the release of shareholders' shares, the original shareholders can reduce their holdings in proportion. Those people can put together the shares of those companies again. And Link and the original shareholders will lose a lot as a result.
Those original shareholders will also be separated from Link because of losses.
Although it was just a guess, it was impossible to avoid it immediately.
Link also prepared accordingly, but he was not sure whether he could successfully resist the opponent's attack, so he needed to prepare with both hands. At least he guarantees the interests of other shareholders and does not let them think that he is incompetent.
Claire nodded and said, "I talked to Neil that if that really happened, they wouldn't pay too high a price. They may not re-inhale until the stock price is down 30%. ”
Link laughs and says, "Then go down 30% and start earning a lot of stocks." ”
"Okay!" Claire knew that Link had run around the world before, just to raise money. "Hopefully you have enough money. ”
"We also have to deal with our allies. ”
"I think they'll agree, and besides, we now have a lot of shares and we have more board members. They have no choice. ”
Link laughed, "Maybe we can see who our true friends are in this matter." He paused and added. "How much gold do we have now?"
"At current prices, it's worth about $14.3 billion. However, after monetary tightening, the dollar may appreciate. ”
Link nodded and said, "I see." ”
"Then I'll go first!" Claire said as well. He planned to go to work early. "By the way, Garden Bank still hasn't found anything out of the ordinary, and I think Joshua can still be trusted. ”
Link nodded and said, "I'm not going to work today, call me directly if you have something." ”
“OK!”
After Claire left, Link's worries grew. He did prepare, but it was difficult for him to get leveraged borrowing in the United States. And he's going to hold the stock for a while, and even if he gets a leveraged loan outside the United States, the interest he needs to pay is very high.
That's not what he wants.
What he wanted was to retain control of those companies without losing money.
So it's better for him to have his own funds and not have to pay interest.
But he knew it wouldn't be easy.
He went to the study and took out the phone to the companies, asking them to temporarily leave all the projects that could be suspended and leave the funds in the company for the time being.
In particular, Hanse Investment.
He called Ames: "Ames, it's me. How's it going?"
"We have sold most of the shares that we are planning to realise and expect to complete our plan in another month. ”
Link's plan was simple, he sold some of the shares first. Only the shares reserved in the plan are retained.
At the same time, Furren was doing the same thing.
It can be said that Link is fully worth this time, and even most of the net worth of several friends has been gambled in.
Link had been judging when that was going to happen. He has been in contact with Charlie, hoping to know in advance that the Fed is announcing interest rate hikes, so that he can roughly know when the other party will make a move.
While that isn't necessarily the exact time, that's the most likely time.
It's early August.
Link received information from Charlie that the Federal Reserve will officially raise interest rates on the morning of August 19.
Typically, the Fed makes its announcement two days in advance, usually before the end of the week. If the market reacts violently, they can use the weekend for two days to think about what to do.
When Link received the news, it was already August 3. As soon as he got the news, he contacted Claire and the others, and they knew whether their opponents would want to catch them off guard before the Fed made an announcement, or wait for the Fed's announcement before taking advantage of the situation to hit their stocks.
They don't know who their opponent is, and they don't know exactly when they will do it. All they can do is cover it with water. The key to failure or success lies in how much "soil" they have in their hands.
Link and Claire keep an eye on the stocks of those banks every day, and bank stocks may be the first battleground for each other.
However, the two of them waited until the market closed on Friday, and the market was still stable. It made the two of them even think that the enemy was not planning to do anything before the Fed announced.
But on Monday, August 8th. From the moment the New York Stock Exchange opened, the shares of the Atlanta Development Bank began to fall. The market opened more than 6% lower than the closing price at the end of last week.
When Link and Claire received the call, they said almost simultaneously, "They did it." ”
Claire preemptively said: "They have boosted the Atlanta Development Bank's share price by 31 percent in the first three months. ”
That is, their opponents have squeezed more than one-fifth of the gains made by shareholders in the previous months. That's enough to make Atlanta Development Bank investors feel anxious.
"At what price are we better?"
"Now the price is fifty-three dollars, and I suggest it's better to sell it around forty dollars. I don't think they're going to buy a lot of stocks above $40. ”
Link nodded and said, "Okay." That keeps other banks paying close attention. ”
While the two of them were discussing, a group of people were operating on a computer at the expense of the supervisor at a manor house in the suburbs of New York.
Their supervisor was a middle-aged man with a bare head and only half a circle of short gray hair. He heard a report from his men: "They didn't react at all?"
A man in his thirties said, "Yes, half an hour has passed, and they haven't done anything, haven't they reacted yet?"
"Continue to keep prices down. Also, be prepared to do something to other targets. ”
“OK!”
At Fox, Link and Claire have been eyeing the Atlanta Development Bank's share price. Claire looks at more data, such as the number of transactions and large orders, etc.
Claire and also make a phone call every now and then.
By the halfway point of the break, Atlanta Development Bank's share price had fallen 16% from last week. And at this time, Claire also received some calls. Listening to his conversation, it should have been a call from the shareholders of the Atlanta Development Bank.
After hanging up the phone, he told Link: "Some people are scared, and they are asking for an immediate board meeting to discuss a solution to the stock price crash." ”
Link thought for a moment and said, "I'll talk to them." ”