The Nikkei put warrants launched by Goldman Sachs and the U.S. exchange were hotly sold, and the news reached Japan, and the Japanese stock market, which was already slightly tired, poured down like a storm. There was a widespread plunge in stocks, and the Nikkei, which was unusually strong, suddenly lost its support, falling below 39,000 points in the blink of an eye, followed by 38,900 points, 38,800 points, 38,700 points...... 38200 points, 38100 points.

Then.

The futures market was in chaos, and the bulls, led by Japan's six major conglomerates, were in a panic and kept communicating by phone, but they could not come up with a solution in a short time. None of them expected that Goldman Sachs would secretly come to such a deal, and actually quietly launched Nikkei put warrants, let alone understand why Nikkei put warrants could cause such a terrifying blow to the Japanese stock market just after they were launched.

With the price of Nikkei futures plummeting, those highly leveraged and heavy longs almost all liquidated in the blink of an eye. The bulls were notified and asked to make a margin call, and the bulls who could not replenish the margin in time could only accept the fate of being forced to liquidate.

That's right.

At this point, the bulls should consider not how to fight back, but how to make sure they pay enough margin and not get kicked out of the game. Of course, there are also interested investors who have long been frightened by the tragic situation of the plunge, and have no intention of continuing to resist, and they admit defeat very shamefully and leave the market.

"President, we need to add about a billion dollars in margin as soon as possible. If the situation cannot be reversed, more funds may need to be prepared. Jiro Kono reminded with a heavy face.

"Hoo ......"

The president of Mitsubishi Bank did not answer, but took a deep breath quietly, hoping that he could calm down the Cisco question. It is absolutely impossible to watch billions of dollars of wealth evaporate out of thin air as the price of Nikkei futures plummets, without anger and distress. What made him even more angry was that not only had all the floating wealth evaporated, but he also had to continue to add additional funds, otherwise. The huge amount of money that their consortium has invested before will face unimaginable losses, and may even lose completely.

Now.

The president of Mitsubishi Bank is faced with a dilemma, either to increase the chips and continue to gamble, or to admit defeat and leave the market!

The Japanese seem to be well-dressed and polite, but they are extremely greedy in their bones and dare to take risks to "make a big deal with a small one". Therefore, despite knowing that the Nikkei futures market was extremely dangerous this time, the president of Mitsubishi Bank had no intention of backing down, and soon decided to add margin and continue to gamble.

Ay.

After listening to the decision of the president of Mitsubishi Bank, Jiro Kono's mouth opened. I wanted to say it again and again, but in the end I didn't raise any objections.

He knew that the president's determination would be difficult to change.

At the same time.

The other five major consortia and countless small and medium-sized investors are all facing the same decision, either to increase their chips and continue to gamble, or to admit defeat and leave the market.

The six major consortia are confident that their wealth is strong, so it is naturally impossible to retreat like this. Other investors have different decisions. Some followed in the footsteps of the six major consortia, raised funds, and waited for an opportunity to fight back; Some investors temporarily retreated, and even a few investors secretly switched camps and shorted backhanded.

……

The stock market plummeted. The price of Nikkei futures has also plummeted, and the morale of the bulls is very low, so they can only continue to retreat, and the loss of territory is getting bigger and bigger. On the other hand, the bears are full of morale. Taking advantage of the momentum, a large number of short orders were continuously sold, suppressing the price of Nikkei futures little by little. Constantly recovering lost ground. Soon, countless short investors turned from floating losses to floating profits.

If you close the position directly, it will become a real profit. But those who dare to play in the futures market are not lacking in ambition and courage, and now that the Japanese stock market has plummeted, the price of Nikkei futures will only fall even worse, who will be stupid to close the position and leave.

Everyone is vying to carve up a bigger cake, and some wait-and-see funds have also joined, and the market is full of empty orders for a while.

The bulls had the intention to fight back, but they were demoralized and unable to organize an effective counterattack, and the price of Nikkei futures continued to fall.

Less than two hours after falling below 39,000 points, the Nikkei fell below 38,000 points again.

Wow.

The price of Nikkei futures has fallen below 38,000 points, and the panic in the market has intensified. The bears took the opportunity to suppress it vigorously, and some bulls couldn't bear the pressure and reluctantly cut their flesh and left the market. Just three minutes later, Nikkei futures fell to 37,950.

Then, the number was firmly fixed and stopped beating! Is the market stabilizing the decline? Of course not, Nikkei futures have fallen to the limit.

With more than an hour left before the market closed, Nikkei futures fell to the limit, ending the day's trading early.

At this time.

Nikkei futures are still subject to a price limit system, rather than a circuit breaker system (a 15-minute suspension of trading in the event of extreme price movements in the market), with a limit of 3% and the end of trading on that day as long as the rise or fall reaches 3%.

Yesterday, the Nikkei closed at 39,139 points, and now it has fallen to 37,950 points, plummeting 1,189 points, a whopping 3.038%!

The futures market has stopped, but the stock market continues to trade, the stock price continues to fall, and the Nikkei index is not immune.

By the end of the day, the Nikkei had fallen to 37,623 points, plunging 1,516 points, or 3.87%.

The sudden plunge was not expected by anyone.

Even.

There are many investors who have not fully woken up to the end of the trade and have not figured out what is really going on in the Japanese stock market.

……

"Goldman Sachs deserves to be Goldman Sachs, if you don't make a move, you will have a fatal blow!" Seeing the Japanese stock market and Nikkei futures plummeting across the board and being destroyed almost without resistance, even Tang Bao, who had long expected this, was shocked to witness the powerful destructive power of the financial nuclear bomb with his own eyes.

Because he knew that this was not an accident, but a financial nuclear strike against the Japanese stock market carefully planned by financial predators led by Goldman Sachs.

At the end of World War II, Japan ate two atomic bombs. Now, when the economy is booming and just dares to say "no" to the United States, it has been slapped on the head and tasted a financial nuclear bomb. It has not fully enjoyed the glory of economic rise, and has been economically emasculated by the United States.

I have to say.

Japan is truly a tragedy.

"This ......" Legge was also surprised and incredulous, he didn't expect that the Japanese stock market, which was unbeatable and unusually strong before, was so fragile.

The Nikkei plummeted by more than 1,500 points, and Nikkei futures even fell directly!

Before.

The scene that Legge couldn't imagine was actually happening right in front of his eyes. Cappus, Kate, and many of the traders were stunned.

"Huh. This is normal! Tang Bao said with a light smile. The hot sale of Nikkei put warrants will attract countless investors to suppress the Japanese stock market. Even if the bulls are no longer able to survive, they will not be able to compete with global capital...... The fact that the Japanese stock market collapsed directly under the onslaught of investors is the best proof of this. Let's see, the Japanese stock market will continue to plummet in the future. If Japanese investors want to turn around, it is simply impossible. ”

"Yes, now that countless international funds are pouring in, it is not ordinary to short the Japanese stock market, and it is not ordinary to turn over!" Legge echoed.

Arguably.

Today's collapse of the Japanese stock market will give investors who are bearish on the Japanese stock market infinite confidence, and it is logical that they will beat the water dogs. Capital's pursuit of profit is an instinct, but it does not carry any pity. They don't care about the life or death of the Japanese stock market.

Next.

The situation in the Japanese stock market has not improved, and it has continued yesterday's decline. Investors led by the big six conglomerates poured tens of billions of dollars in hopes of boosting stock prices, but nothing improved. Stock prices fell across the board. In the entire exchange, there are simply not a few stocks that have risen against the trend.

The situation in the futures market is not much better, if not worse. As more and more bears joined, huge short orders were frantically thrown. The collapse of stock index futures prices has no chance to rise at all. And the bulls see that they can't do anything and can only give up resistance for the time being and keep retreating.

By the time of closing.

The Nikkei fell to 36,950 points. It plummeted by 1,000 points, a whopping 2.71%. Nikkei futures fell to 36,500 points, plummeting 1,123 points, or 2.98%, and approached the limit several times during the period!

Japanese stocks and Nikkei futures plunged for the second day in a row.

Now Japan can't calm down! In particular, countless international funds have poured into the futures market, constantly suppressing Japan's stock index futures, and the bulls are simply unable to compete. If there are no surprises, tomorrow's Nikkei futures will continue to plummet, and may not even be able to complete the entire trading day before falling to the limit. The plunge in Nikkei futures will also hit investor confidence and cause the stock market to plummet.

So.

Criticism of stock index futures soon began to emerge in Japan. The leader is still Japan's largest professional economic newspaper, the Japan Economic News!

The Nihon Keizai Shimbun preemptively issued an article condemning the stock index futures for causing the Japanese stock market to fall, accusing the U.S. exchange of issuing Nikkei put warrants to hit the Japanese stock market. Subsequently, mainstream media such as Japan Industrial News, Asahi Shimbun, and Yomiuri Shimbun followed up with intensive reports, regarding stock index futures as the culprit of the stock market crash. Of course, Goldman Sachs and U.S. exchanges, which have just launched Nikkei put warrants, are not immune.

Last week, the Nikkei Shimbun confidently claimed that the Nikkei index would rise to 45,000-48,000 points in 1990, and even shouted that it would break through 50,000 points.

Mended.

Not long after singing this hymn, he was mercilessly slapped in the face.

In view of the sharp decline in Japan's stock market and futures market, Japanese economists have come forward one after another, emphasizing that Japan's economy is operating well, and that the decline in the stock market is only a temporary pullback and the result of many international capitals taking the opportunity to maliciously short sell the Japanese stock market, which will soon stabilize and rebound.

Forthwith.

The presidents of Sony, Honda, Toyota, Panasonic, Mitsui Bank, and other companies have spoken out one after another, bluntly saying that the company's annual earnings have reached a new high, and the stock price plummeting is unreasonable, and that it is the international investors who maliciously short the stock market in an attempt to achieve the purpose of obtaining huge profits from the futures market by creating a crash in the Japanese stock market.

In a word.

For a time, the mainstream voice of the Japanese media probably meant the same thing, that is: the Japanese economy has not deteriorated, as long as the confidence is firm and does not follow the trend of selling, the Japanese stock market will soon stabilize its downward trend and rebound rapidly. Those international speculators who maliciously shorted will also lose their money.

With so many prestigious economists and entrepreneurs standing up to appease them, the panic in the heart of investment has gradually receded.

No selling!

Pity.

The stock market rally they imagined did not materialize, and they were greeted by more than 30 consecutive trading days of declines, and both the stock market and the futures market fell one-sidedly. The more it falls, the worse it gets.

International speculators have also followed up more and more frantically, suppressing the Japanese stock market and futures market. The situation in the stock market and futures market is getting worse.

Late February.

The Nikkei has fallen to 32,000 points, down 20% from its peak of 40,000 points; The bulls in the futures market were also miserable, and they were beaten to the point of crying wolves and surrendering one after another. Only the main bulls led by the six major consortia are still struggling to resist, intending to fight back.

Unfortunately, at this time, the Japanese stock market and futures market were like an airplane soaring high in the sky and suddenly its engine turned off, and one of its heels fell straight down.

You have the means to get to the sky. It is also difficult to change the outcome of the crash.

Therefore.

In the process of the collapse of the Japanese stock market, countless investors who tried to support the market and buy the bottom were endlessly crushed, and the downed plane was wiped out.

Call.

After selling the last stock, Tang Bao and others ended their actions in the stock market and began to specialize in Nikkei futures in the futures market. At this moment, the trend of the sharp decline in the Japanese stock market is already difficult to reverse, and it is pointless for him to continue to stay in the stock market and make waves, for fear that it will cause trouble.

"Boss. We're playing too much this time...... We opened a position around 39,000 points, and now Nikkei futures are down to 32,000 points! Legge couldn't suppress the excitement in his heart, his voice trembled slightly, he didn't dare to estimate how much profit he had.

But he was pretty sure. Definitely an astronomical amount, unimaginable!

on this.

Legge had no doubts, and neither would others. From the moment the Japanese stock market plummeted, they knew they were going to reap the rewards this time.

"Hmm."

Tang Bao smiled. In fact, his heart was as excited and excited as Legge and the others, but he was forcibly suppressed by himself.

"March is the delivery month of Nikkei futures, so be prepared to close your positions in advance!" Tang Bao suppressed his excitement. Solemnly commanded. For the sake of prudence, he felt that it was better to be in the pocket. Therefore, when the price of stock index futures is still falling, it intends to close the position.

After all.

Tang Bao's short position this time is too heavy, with hundreds of trading accounts, up to more than 3 million Nikkei futures contracts, and it is not so easy to get out of the market safely.

"Yes, boss. Well, I've already checked that the delivery time for the March Nikkei futures contract is March 16th. I expect the price of Nikkei futures to rebound in early March, and at that time, the bulls may also take advantage of the situation to reduce losses. Legge said.

"Hmm."

Tang Bao nodded. He is also aware that the price of Nikkei futures may fluctuate dramatically as the delivery period approaches.

Saying.

Not to mention that Tang Bao arranged for traders to start secretly closing positions and leaving the market. However, international speculators continue to frantically rush into the Japanese stock market and futures market, hoping to pick up a little scraps. The international financial predators did not show the slightest softness, and led countless international speculators to ravage the Japanese stock market and futures market wave after wave.

Goldman Sachs, Morgan Stanley, Tiger Fund and other frenzied sell-offs and suppressed the Japanese stock market, constantly hitting the Japanese stock market.

International speculators have followed suit.

But.

Gradually, they found that the number of stocks circulating in the market, especially the constituent stocks of the Nikkei index, was getting smaller and smaller, and that securities dealers had stopped lending stocks one after another......

Gradually, the Japanese stock market also stabilized its decline.

on this.

Japanese investors immediately cheered, claiming that this was a victory in the fight against international capital predators. The enemy ran out of ammunition to suppress the Japanese stock market, and they could slowly regain lost ground.

But.

How could this financial nuclear strike against Japan be dismantled so easily? The smile of the Japanese investors who celebrated the victory had not completely disappeared, and the United States had stepped in.

First of all.

The business elites of the United States, especially the bankers of Wall Street, have come forward one after another to seriously accuse Japan's capital market of being closed and not conducive to the maturity of Japan's capital market.

Then.

Congressmakers in the US political circles have jumped out one after another to criticize the practice of mutual shareholding within Japanese conglomerates or within the same industry. He urged the Japanese Government to earnestly implement the relevant agreement reached between the two countries on the comprehensive opening of the capital market during the elder Bush's visit to Japan last fall.

At this time, US congressmen have come forward to put pressure on Japan to fulfill the agreement on Bush Sr.'s visit to Japan, but this is of great significance. Because in this agreement, the practice of mutual shareholding of Japanese conglomerates is addressed. The U.S. has put forward specific requirements: reducing the shareholding standard for Japanese banks from 5% to 2%, and tightening the shareholding limit for subsidiaries to parent companies.

To put it simply.

The limit on the bank's stake in a large listed company has been reduced to 2%, and some subsidiaries are no longer able to hold shares in the parent company.

However, it is a common practice in Japan for banks and conglomerates to hold shares in each other, and most of the stocks are not circulated in the market, and the number of shares in circulation is small, so the long-term rise of Japanese stocks has been maintained. It is conceivable that once the Japanese government fulfills the agreement. Countless stocks will become illegal holdings and have to be sold, and the number of stocks flooding into the market will increase sharply in a short period of time, and it is inevitable that the stock price will plummet.

This will undoubtedly deal a heavy blow to the already turbulent Japanese stock market.

So.

This move by the United States has sinister intentions, and it hides infinite killing intentions, and it is a killing opportunity that has been laid in ambush for a long time......

Of course.

Japan will not give in easily, but the high-profile statements of the US political and business circles still exert unimaginable pressure on Japan. The stock market plummeted in response.

Day.

The Nikkei fell to 30,780 points, a whopping 3.82%! The price of Nikkei futures has also suffered again, and the already bitter bulls have been forced even harder.

For the shouting of American political circles. Japan did not dare to refuse, but it would not agree either. can only be pretended not to hear, play tai chi, and fool the past first. Privately, he made a clear statement to many Japanese consortia. In the short term, there will be no agreement to reduce the shareholding limit between corporate groups.

It can also be regarded as a reassuring pill for domestic investors.

The Japanese government is a turtle with a shrunken head, but the US congressmen have no intention of letting them go, even if the other side does not respond. also shouts through the media every day.

He demanded that Japan abandon the method of mutual shareholding between companies, and even threatened to impose sanctions on Japan. In short, it is constantly putting pressure on Japan.

And that's not all.

After Wall Street bankers and American political elites shouted one after another, the three major international credit rating agencies, Standard & Poor's, Moody's and Fitch, successively issued negative reports on the Japanese economy and warned that the Japanese economy was at risk of recession. In addition, he expressed concern about the Japanese bank, which has been rated as "very trustworthy", and although he did not downgrade the rating, he said that he would continue to follow up and observe.

Meanwhile.

The Bank for International Settlements (BIS) also "goodwilledly" reminded the Japanese banking industry to strictly abide by the Basel Accord and maintain a capital adequacy ratio of 8%.

The Basel Accord stipulates that all banks engaged in international business must maintain their own capital in their total assets at more than 8%, which was officially promulgated and implemented in July 88.

In fact.

The Basel Accord came against the backdrop of the frenzied global expansion of the Japanese banking sector and the 'siege of Japanese capital' around the world. European and American countries hope to curb the pace of expansion of Japan's banking sector by raising the capital adequacy threshold. Therefore, the United States spared no effort to push for the Basel Accord, because in their view, to hinder the expansionary nature of the yen is to maintain the dominance of the dollar system.

on this.

Rather than refusing to do so, officials at Japan's Ministry of Finance proposed a solution in 1989 by using 45 percent of the bank's off-balance sheet assets to cover the 8 percent capital adequacy ratio, which could easily reach the 8 percent capital adequacy standard for all kinds of stock assets held by the Bank of Japan in Japan's booming stock market. In this regard, the United States was very unwilling, but in the end it 'reluctantly' agreed with Japan's opinion.

Now that the Japanese stock market has plummeted, the 'off-balance sheet assets' of banks, which were inflated during the stock market bubble era, will shrink sharply, and no one can say whether the 8% capital adequacy ratio will continue to be maintained.

At this time.

It is also reasonable for the Bank for International Settlements to stand up and shout. But this shout does not matter, but it has dealt a fatal blow to the Japanese stock market.

This is because the Japanese banking sector has a huge supporting effect on the stock market. If the Bank of Japan fails to achieve a capital adequacy ratio of 8%, it could lead to a disruption or even collapse of the entire banking security system in Japan. That would be even worse for the Japanese stock market!

The launch of Nikkei put warrants led national speculators to frantically sell Nikkei index constituent stocks, the U.S. political and business circles pressured Japan to fully develop the capital market and forced the release of more stocks, international rating agencies began to short the Japanese economy, and the Bank for International Settlements showed a butcher's knife to the Japanese banking industry......

Under the careful arrangement and organization of the international financial predators, various means have been constantly displayed to strangle the Japanese economy step by step. (To be continued......)