Chapter 45: A windfall in anticipation
On the morning of 11 September 2001, two civilian airliners hijacked by terrorists crashed into Building One and Building Two of the World Trade Center in New York, respectively. Pen @ fun @ pavilion wWw. ļ½ļ½ļ½Uļ½Eć ļ½ļ½ļ½ļ½
At about 9 o'clock, another hijacked passenger plane crashed into the Pentagon of the US Department of Defense in Washington, USA, and the Pentagon was partially structurally damaged and collapsed.
In the aftermath of the incident, military forces across the United States were put on maximum alert. Although the Taliban issued a statement saying that the terrorist incident had nothing to do with Ben-****, the U.S. government still identified Ben-**** as the prime suspect in the terrorist attack.
In response to the attack, the United States launched the "War on Terror," invaded Afghanistan to eliminate the Taliban harboring al-Qaeda terrorists, and passed the USA Patriot Act. On 7 October 2001, United States President George W. Bush announced the start of a military offensive against Afghanistan.
911 was the worst terrorist attack in the United States, with a total of 2,996 victims.
The United Nations issued a report saying that the economic losses of the terrorist attack amounted to 200 billion US dollars, equivalent to 2% of the gross domestic product of that year. The damage to the global economy has even reached about $1 trillion.
The psychological impact of this incident on the American people is extremely far-reaching, and the American people's sense of economic and political security has been seriously weakened.
However, in the shadow of 911, the Premier League on the other side of the ocean seems to continue without any impact except for increasing security forces.
On September 15, the fifth round of the English Premier League at Blackburn Rovers was played at the home stadium of Ewood Park.
Before the start of the game, Arthur's starters observed a minute's silence for the victims of the 911 attacks.
At the start of the game, Ipswich dominated the game, dominating the pitch and pressing aggressively up front - after a temporary Premier League summit, no team saw Blackburn as underdogs.
In the 10th minute, Stam made a mistake and conceded the ball, the Ipswich winger crossed from the left for the first time, and the visiting center forward's head in the penalty area flicked the goal, but fortunately, Blackburn American international Friedel flew to save the ball.
In the 17th minute, Benayoun suffered a major injury in the game, and Benayoun was hit to the knee by Ipswich in the back, and immediately fell to the turf with a painful expression.
After receiving a short treatment from the team doctor, Benayoun once returned to hope to stick to the game, but could not continue in the 23rd minute, Benayoun took the initiative to signal for substitution, and Sun Jihai came on as a substitute.
After losing Benayoun, Blackburn Rovers put more energy into defence.
In the 34th minute, the visitors found another good chance to open the scoring when the Ipswich centre fired a powerful right-footed volley into the middle of the penalty area, only to be blocked by Henningberg's right-footed sliding tackle in the middle of the box.
At half-time, the two sides fought to a 0-0 draw.
In the second half, neither team made any personnel changes, but Ipswich, who was unable to attack in the first half, suffered fitness problems, and Blackburn finally took control of the situation on the field.
In the 54th minute, Duff got rid of a cross from the wing, and the opposing defender's header was not far away, and Cambiaso followed up with a heavy shot that went wide.
Five minutes later, Blackburn Rovers came back when Alonso's clever pass was met by Ibrahimovic's low shot from a tight angle on the left side of the penalty area, and the ball deflected off the opposition defender and hit the outside of the post and bounced off the line.
In the 65th minute, Blackburn Rovers missed another great chance to score when Duff got away from the left and crossed 45 degrees from the left, but Frank Lampard's header went just high.
Jose Mourinho then made a second substitution, with Didier Drogba replacing Jeff Kenner and Sun Jihai, who had previously played at right midfield, at right-back.
In the 77th minute, the Ipswich goalkeeper made another key save, Duff broke through at high speed on the left and split the ball, Drogba's header went straight to the goal, the Ipswich goalkeeper flew to lift the ball, and then blocked Ibrahimovic's barb shot.
In the 84th minute, Duff took a corner kick from the right side of the field, and Stam flanked the header in the middle, but the ball was saved by the Ipswich goalkeeper on the goal line, and the visitors escaped again.
However, the goal was long overdue.
Blackburn Rovers finally broke the deadlock a minute later when Frank Lampard dribbled from outside the box with a right-footed shot that deflected into the corner of the net to make it 1-0.
The Ipswich team, which was behind in the score, replaced two forwards to make a last-ditch effort, but they were unable to recover.
In the end, Blake Benlik beat Ipswich Town, and after winning five consecutive victories, they temporarily secured the top position in the standings.
Although the game was played at Blackburn's home stadium, the club's chairman Arthur was rarely absent, because he was on the other side of the ocean, on Wall Street in New York, USA.
In the aftermath of 911, U.S. investors began to panic sell stocks, causing the stock market to plummet. Over the week, the Dow, Nasdaq and S&P fell 14.3%, 16.1% and 11.6%, respectively, with stocks losing an estimated $1.4 trillion.
Despite the Bush administration's massive infusion of money into the stock market, panic selling was inevitable after the market reopened on 17 September, with major stock indexes falling to their lowest point in three years.
Since Manhattan Island is home to a large number of multinational financial companies, their operations have been affected to a greater or lesser extent, with losses of more than $10 billion according to preliminary estimates. Companies with offices in the World Trade Towers were even more unlucky, with their operations nearly paralyzed and a large amount of data lost, among the notable ones Bank of America, Asahi Bank, Deutsche Bank, International Trust Bank, Kemper Insurance Company, Marsh Insurance Company, Imperial Life Insurance Company, Guy Carpenter Insurance Company, Kanter Fitzgerald Investment Company, Morgan Stanley Financial Company, and the American Mercantile Futures Exchange.
Among them, Morgan Stanley suffered the most because it rented a total of 298,000 square meters of office space in the World Trade Center, and many of the company's employees did not even have office space.
Of the more than 4,000 known missing people in the World Trade Towers, the vast majority are employees of financial companies, and there is no shortage of senior executives. Of those, 650 of the 1,000 employees of Cantor Fitzgerald Investment Company were killed, and 300 employees of Marsh Insurance Company were also missing.
New York City auditors estimated that $34 billion in direct damage to buildings and other property, $11 billion in casualties, and $14 billion in clean-up and salvage costs.
Within a week of 9-11 alone, AIG, the largest property insurance company in the United States, paid $500 million, Metlife, the second-largest life insurer, paid $300 million, and A Financial Insurance Group paid $230 million. Several of the world's largest reinsurers have also suffered heavy losses, including Munich Reinsurance, Swiss Re, Lloyd's of London, and General Reinsurance.
Warren Buffett, the American "stock god", once said that it would take years for his reinsurance company to recover. Moody's Investment Services, an internationally renowned consulting and evaluation agency, predicts that the total repayment of the global insurance industry will be between $15 billion and $30 billion.
In the aftermath of the 911 incident, the stock market continued to be at its lows for five trading days. The Dow Jones Industrial Average is down 17.5% since Sept. 10, while the Dow Jones Transportation Average, which has some of its constituents from the airline sector, is down 27.5%.
No one could have imagined that the market would fall so quickly and so fiercely except for one person. Without any warning, the market continued to dive in the afternoon, and the decline deepened.
This person is Arthur, who came to New York a week early.
Arthur came to New York a week early because he feared that he would be suspected by the US authorities of having something to do with terrorist organizations, after all, this is the time to come, and it is doubtful that he will reap huge benefits from the stock market crash.
Arthur played a pretense this time, that is, to buy Google's shares, and he had claimed that the Internet bubble had not reached its peak for most of the previous year, and he was optimistic about the decline of the US stock market, and he had already bought the US stock market in a big way, even if he lost nearly one million funds.
These actions are all means for Arthur to clear his body of possible connection with the 911 incident.
"It started today with a 7.13% drop on the first day and a 14.56% decline for the whole week." Arthur watched the collapse of the U.S. market, but he smiled.
After the official opening of the market at half past nine, the market fell by hundreds of points within a minute, and then continued to hit new lows, plummeting by more than 5%, which made Arthur, a prophet, also frightened.
As a result, many retail investors began to panic, and small and medium-sized funds were even more worried about what big losses would occur, so they began to scramble to flee.
As soon as many retail investors poured out and the funds fled, they began to form a multi-kill effect, funds and other institutions began to trample on each other, and the market and individual stocks fell more and more.
After 2 p.m., everyone knew that the three major US stock indexes had no chance of saving them in a short time.
"It's really a windfall, let's settle in the pocket first!" Looking at such a tragic trend, Arthur said with some fear.
Arthur is very satisfied with the short-selling operation after the collapse of the three major U.S. stock indexes caused by the 911 incident.
On March 16, 2000, Arthur's team began to short.
By October 16, Arthur cleared his position, minus the cost of $30 million, and in just seven months, he earned a gross profit of $320 million. And half a year of it is just Arthur's layout time to hide people's eyes, and it is only a month to make money in the real sense.
Of course, Arthur also has to deduct a little transaction fee and commission allocated to the team, that is, three percent of the commission when selling, one thousandth of stamp duty and other expenses, nearly 30 million US dollars.
In this way, it is a net profit of $290 million.
Now, with the fraction left in the account, Arthur has a balance of nearly $330 million in his private account.
Arthur's operation, not only the yield but also the ultimate profit, is a legendary scene in the history of Wall Street!
If you start from investing 10,000 yuan in the stock market on November 23, 1999, then in nearly two years now, this 10,000 yuan can become nearly 170,000 yuan, an increase of 16 times, which is undoubtedly an impressive record and a huge victory.
It's a pity that Arthur's original investment was too small, if he had invested $100 million at the time, it would have been close to $1.7 billion now......
However, after all, making money is not Arthur's biggest hobby, for the construction of the team and recruitment, he has always been withdrawing funds from the stock market, so the current final income has made him extremely satisfied!
Although the three major U.S. stock indexes plummeted after the 911 attacks, they quickly recovered after that. By early November this year, the Dow Jones Industrial Average had risen above its September 10 level. The Dow Jones Traffic Average took a little longer, but was restored on 3 January 2002.
Now that he already knew the trajectory of this fluctuation, Arthur naturally would not let go of this good opportunity.
Because of the sweetness, Arthur is ready to make persistent efforts and continue to take advantage of the collapse of the US stock market to buy stocks and start buying bottoms.