Chapter 252: Panic Spreads

Meanwhile, Jim. Chanos, Paulson, and others also carried out the same advocacy campaign as Bell Stone and Gross in Ireland and the United Kingdom.

Unlike Bell Stone, Gross and others, Jim. Chanos and Paulson are far more well known in the British Isles than they are. After all, Britain is a country with high ties to the United States and speaks the same language.

Be booked up!

Naturally, unlike others, Paulson is not advocating a debt crisis in the UK, because England is not a eurozone country, they have their own independent currency issuance, and there is no concern about the credit rating of government bonds.

Paulson was talking about the outlook for the British economy, and of course he had to talk about the state of the eurozone economy, because 60% of England's trade imports and exports are closely related to the eurozone economy, which naturally cannot avoid the hottest topic of the recent debt crisis.

And in Dublin, Jim. Chanos had no such concerns, and he bluntly declared that Ireland faced the same problems as Greece, and in some ways even worse. In the worst case, Ireland is likely to leave the eurozone due to the debt crisis.

These words naturally caused an uproar.

The next day, what these people said began to be published in the media.

The headline on the front page of the Portuguese newspaper Express: "The King of Bonds" appears in Lisbon to talk about the economic crisis.

In the article, the journalist writes:

The investor, who enjoys fame in the bond market, did not know why he appeared at the US Embassy in Lisbon. In front of dozens of guests, he declared that there would be problems with Portugal's national debt. Although, so far, it is not understood what his motives were. However, we still faithfully record the full text of his speech for readers to analyze for themselves. ”

Next, there is Gross's tirade.

in Spain. Here's how the Herald reported:

"This newspaper excludes that last night at the US Embassy, a financier from Hong Kong delivered a monstrous speech. In his speech, the man, Bell Stone, declared that Spain's economy could be in trouble. As a result of our investigation, the financier was once charged by the SEC. Although it eventually failed, the financier's credibility was also dealt a huge blow. Some analysts believe that this kind of rhetoric is generally intended to attract attention. At the same time, the newspaper confirmed that the man had personally claimed that the purpose of these remarks was to attract the inflow of funds. ”

For the Spanish-speaking region, Bell Stone was far less famous than in the English-speaking region, so the report caused only a small impact among professionals, and then went silent.

And in the British media, Paulson and Jim. The repercussions caused by the two Chanos were much greater.

The Sun, a well-known British tabloid, described Paulson as follows:

"He's not tall. The figure is not burly, and there is a bookish atmosphere. But this is such a guy, who made a full $20 billion two years ago, is the emperor of the entire financial world. At a reception at the US Embassy, he told the guests that the eurozone would fall apart! Yes, you read that right, it's falling apart! ”

And on the Irish side. Compared to The Sun, The Irish Observer is much more cautious in its wording:

According to reliable sources in this newspaper. The famous short Jim in the international financial market. Chanos appeared in Dublin a few days ago and gave a speech in private about the possibility that Ireland might follow in Greece's footsteps. Judging by the professionals, Jim. Chanos has always been known to be bearish, so what he said could be exaggerated or contain unknown motives. What exactly is the situation. We can't tell. ”

……

Regardless of the differences in style and reporting stance, these newspapers have one thing in common, that is, they have a large circulation, which is basically the first or second largest circulation newspaper in their country. As a result, these stories are quickly picked up by heavyweights such as Bloomberg or the Financial Times.

Soon. The news spread throughout the financial world.

Although the most of these reports are the Portuguese Express, which is a complete record of Gross's speech. Others, on the other hand, are either more exaggerated and eye-catching, or vague. But for the financial markets, these people are all famous figures.

Where they appear, that's where the market is focused.

The bond market in Europe soon underflowed and money began to flee in droves, especially in the Iberian Peninsula of southwestern Europe, where Portuguese and Spanish government bonds fell almost in response, albeit by a small margin, but yields were rising to the discerning eye.

In the foreign exchange system of these countries, net outflows have also begun to increase slowly. Of course, this magnitude is almost negligible compared to the size of their economy. But these signs fell in the eyes of Zhong Shi and others, but they became a different scene.

At the same time, in the foreign exchange market of the euro and the dollar, the positions of short euro positions are also slowly increasing, while the positions of the dollar are gradually increasing. Again, these signs are subtle, but in the eyes of professionals, they are all visible.

……

"Initial strategic goals have been achieved!"

A week later, Zhong Shi held a conference call and told the crowd, "Let's move on to the next step of the target strategy!" ”

"What's next?"

Paulson asked, puzzled, "What's next so far?" We just have to wait quietly and wait for the countries of Europe to declare their fiscal deficits! ”

"That's right, I'm afraid the ones I did before have fallen into the eyes of people with hearts, we should stop a little bit during this time!"

Gross agreed.

This time, the full text of his speech was leaked, which he did not expect. But that's fine, he is at least justified in talking about bonds. Unlike the others, the conspiracy is too strong.

"You're right, we're going to keep a low profile in the next phase."

Zhong Shi knocked on the table and agreed with their proposal, "In the coming times, our main focus will be on the gold and foreign exchange markets. Aim to complete all the preparatory work before they publish the data. ”

“……”

Everyone was silent, indicating that they had no objection to Zhong Shi's words.

"At the moment, the COMEX market, thanks to the decline in the past few days, has put a lot less pressure on us to open positions, and gold closed today at $1,141 an ounce. But these positions are not enough to support our ambitions. So. I ask you to do your best in the next three days to push the price of gold to around $1,100. ”

"What?"

"This ......"

There was a commotion.

It seems that the price of gold will be suppressed by about $41 in three days, but when you calculate the decline, it is about 3.6%, and on average, it is only about 1.2% per day, which seems to be easy to complete.

But for the gold market. If there is no obvious news impact, it could cost hundreds of millions or even billions of dollars to complete the 1.2% decline.

As soon as Zhong Shi's suggestion was proposed, it immediately caused a backlash from others.

"Gentlemen, if you don't agree, then I'll have to open a position myself!"

The corners of Zhong Shi's mouth twitched violently, and he suddenly clenched his fists, feeling very speechless at the short-sightedness of these guys. Before making a decision, though. He had to inform the guys so as not to "accidentally injure friendly soldiers." So the current situation made him quite helpless, and he had no choice but to say, "Although the long-term trend is optimistic, if you don't take action, Tianyu Fund will also take action during this time." If any of you close or open a position because of this, don't blame me for not reminding me! ”

"Mr. Chung. Can I ask you a question? ”

For Zhong Shi's tough answer, the others also felt speechless for a while. Indeed, Zhong Shi could have left them behind and acted on his own. Although the other party told them, they had a dispensable attitude towards them. It really makes them hate it so much that the roots of their teeth itch.

After being silent for a long time, they quickly understood the gains and losses, and had no choice but to bow their heads.

Ackerman was the first to react, and before everyone else, he asked Zhong Shi, "What is the most reasonable range for the price of gold in your mind?" ”

"Reasonable?"

Hearing this, Zhong Shi immediately smiled, "There is nothing reasonable or unreasonable, only that it is not under our control." To be honest, so far, Tianyu Fund has about 170,000 long orders, but it is not enough to meet our goal, I will at least absorb more than 250,000 long orders in the market. ”

"What?"

"Are you crazy?"

"This ......"

The crowd waiting next to the telephone was horrified again.

At the current gold price, one contract is worth about $114,000, and the long orders that Bell Stone has absorbed are worth nearly $20 billion so far. And he still has to absorb 250,000 long orders, which means that he still wants a position of about $28.5 billion, and the sum of the two is close to $50 billion, which is a very terrifying number.

Of course, because of the margin problem, the actual funds used are not 50 billion US dollars, maybe not even 5 billion US dollars, but in the face of 50 billion US dollars of fluctuations, in order to maintain this huge position, the excess margin that Zhongshi has to prepare will also be astronomical.

"How much money do you have on board?"

Directly shocked by Zhong Shi's generosity, Ackerman was silent for a long time, and then asked cautiously, "A fluctuation of one point means that 500 million US dollars will be credited or disappeared, your scale is too huge, I'm afraid no one else can afford to play except you!" ”

At the end of the day, he was frustrated.

The others were silent, including Dario.

For a long time, Dario thought that he was not much different from Bell Stone, but judging from today's performance, he clearly realized how far he and the other party are.

"About $20 billion!"

Zhong Shi replied lightly, "Take it easy, my friend, now is the time for the panic to gradually spread, and it is a good time for us to build a position in a big way while everyone has not reacted in the early days, and if we miss it, I don't think there will be such an opportunity in the future." ”

"If all the $20 billion is lost, I will admit it. But I trust my own judgment on the market. Gentlemen, my plan has been told to you, and it is up to you whether you decide to follow it or not! ”

"I agree!"

Paulson was the first to jump out and said excitedly, "As the so-called wealth is in danger, I have already won a bet, and it is a big deal to start all over again." I believe that Mr. Chung, gentlemen, listen to me, there is nothing wrong with that! ”

It's a pity that, despite his enthusiasm, no one spoke.

"Well, according to the previous voluntary principle, those who are unwilling to operate do not force it. However, if someone enters the gold market, please be sure to keep in communication with Tianyu Fund, otherwise don't blame me for being injured by mistake! ”

Zhong Shi's faint tone couldn't hear any emotion, which made everyone's hearts tense again, but before they could reminisce, Zhong Shi continued, "There is not much time left for you. But before you decide, we have one more thing to do! (To be continued.) )

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