Franklin and Lerant were on the phone, and after making an appointment with Harden, they came out of the Michelin hotel and went directly to Harden of the Michelin Fed.

Harden is the secretary general of the U.S. Federal Reserve and a member of the National Assembly.

Franklin and Leland arrived at Harden in his office!

"Hello! Mr. Harden! We are so grateful that you agreed to meet us so soon! ”

Franklin and Lerant said gratefully to Harden.

"Sit down! Come, have a cup of coffee! ”

When Harden saw Franklin and Leland, he beckoned the office staff to serve them coffee.

"Thank you, Mr. Harden!"

In front of Harden, Franklin and Leland were still cautious and didn't dare to be casual.

"You two came at the same time, I don't know what's going on?" Harden looked at Franklin and Lerant, confused.

Harden knew Franklin and Leland, the CEOs of Fannie Mae and Freddie Mac, but he could not have imagined that the two of them would come to visit him together. Judging from the faces of the two of them when they walked into the office and their attitudes towards themselves, they must have something to ask for.

And Harden only has twenty minutes, and twenty minutes later, he and the chairman of the Federal Reserve Bank will go to the White House to meet the president, so Harden asked directly.

"Mr. Harden! Let's not beat around the bush, let's just tell the truth! ”

Frank Forestry took one look at Lerant and went straight to the point.

Previously, when they asked to meet with Harden, Harden only gave them twenty minutes. On the way, they received another call from the company, saying that there were many analysis articles in the "Wall Street News" analyzing the operation of Fannie Mae and Freddie Real Estate, and the results were extremely negative, and the analysis article pointed out that with the country's economic downturn, the number of credit defaults will surge, and Fannie Mae and Fangdi's main business is mainly subprime credit, and must bear the brunt.

The article goes on to write that due to the sharp increase in the number of subprime credit defaults, it is expected that Fannie Mae and Freddie Mac's MBS products will be liquidated. If the MBS products of these two companies are liquidated, the blow to these two companies will be fatal and irreparable!

As soon as the article came out, the stock prices of Fannie Mae and Freddie Mac plummeted, and on the way to visit Harden, Franklin and Leland, the shares of the two companies plummeted by 35% and 31%, respectively.

Harden gave the two of them a puzzled look, he hadn't received any news about Fannie Mae and Freddie Mac, so he didn't know the purpose of Franklin and Leland's trip.

Franklin and Leland had no choice but to get straight to the point.

"Mr. Harden, the situation is this, due to the economic downturn, the shrinking real estate industry, the number of credit defaults has surged, there is a certain risk in MBS credit products, and our two companies hope that the government can provide us with some liquidity! to relieve the pressure on the company! ”

The two of them directly proposed to Harden that the government inject liquidity to prevent the risk of MBS liquidation and a sharp drop in the stock price.

"Oh, it's so serious? Although the country's economy is now weak, there is no systemic risk, and the fluctuation of the stock prices of the two companies is a market behavior! If you want the government to provide liquidity, it has to go through a congressional hearing! ”

Harden didn't expect that when they met, they would like the government to inject capital to avoid a business crisis between the two companies.

Judging from what Harden understands, there is a certain risk in the real estate industry for ten consecutive years, but this risk is still controllable, and the Fed has not changed its interest intentions, and the market is still in a stable period.

But the fact that the CEOs of Fannie Mae and Freddie Mac came in quick succession to seek help from the government, shows that the situation is already very serious.

In the United States, the government respects the market very much, is a highly market-oriented economy, will not easily intervene in the market, will not easily inject liquidity into non-state-owned shares!

The U.S. government has very strict procedural requirements for market intervention, and even the president of the country cannot decide whether to inject liquidity, and only through congressional hearings and through the House of Representatives and Senate can it be possible to inject liquidity into a company.

Therefore, under normal circumstances, no company will apply to the government for liquidity injection, unless the company is very important to the economy of the United States, and it is on the verge of bankruptcy, and its bankruptcy may bring a heavy blow to the economy of the United States, they will apply to the government to inject liquidity to alleviate the crisis of the company, and the government will consider whether to intervene in the market.

"Just now on the way we came, the Wall Street News published an analysis article, which was extremely negative for our two companies, our company's stock price fell by more than 30%, and it was close to a crash, which affected other financial listed companies, all of which fell to varying degrees!"

Lerant solemnly told Harden that if these financial listed companies have a concentrated plunge, they will be pushed to the first domino, and the consequences will be unimaginable!

"You mean it's likely to shake the market? Will the consequences be unpredictable? ”

Hearing Lerant say this, Harden had to be cautious.

"Hmm!" Franklin and Lerant nodded cautiously.

Harden's face became solemn when he saw them so cautious.

At this time, his work secretary came in and handed Harden a document that Harden had asked him to prepare, an update on Fannie Mae and Freddie Mac.

Harden flipped through it, his face even more ugly, and Franklin and Lerant didn't bother him.

After reading it, Harden looked at the time again, and then said to Franklin and Lerant: "It's almost time now, I'm going to accompany Chairman Bernant to meet the president, and I'll report your situation to Chairman Bernant!" ”

"Thank you, Mr. Harden!"

Franklin and Lelander saw that Harden was going to accompany the president of the Federal Reserve to meet the president, so they had to get up and take their leave.

After coming out of Harden's office, Franklin asked Lerant next to him, "What do you think about this?" ”

Lerante thought for a moment and said: "If our company's stock price continues to fall, it may lead to a systemic crisis, and the government will be more likely to intervene!" ”

"Then our company's stock price fell sharply today, and the possibility of subsequent downward movement is very high! Moreover, with the emergence of other financial risks, it is very likely to trigger potential financial risks! Franklin analyzed.

"Although there is news today, the reaction of the stock price is too intense, and someone should be deliberately shorting the stock price!" Lerante said angrily.

He couldn't have imagined that someone would short their company and fall into the ground, which made him extremely angry.

"This matter, I've already asked people to investigate, or it won't be long before I know who is shorting, I want to see, it's the road fairy, eating bear heart and tiger guts!" Franklin also said viciously, as if he would throw him into the Atlantic Ocean to feed the sharks if he found him.

When Lerant heard this, he also sneered, with an expression that he wanted to eat the short-seller alive.

At the same time, JP Morgan Chase Bank President's Office.

John Morgan was smoking a cigar and reading a secret report. Gradually, his brows tightened, and he forgot to smoke his cigar.

The secret report, in which John Morgan asked the bank's investment department to collect information about Fannie Mae and Freddie Mac, showed that there had been speculative money that had been shorted at high levels, and that the timing was very accurate, and it was now very profitable.

This is not what shocked John Morgan, as the president of the world's top investment bank and the son-in-law of the world's top family, he is accustomed to these huge funds, and he can't get into his eyes at all.

But what shocked him was the origin of these funds, this secret report pointed out that these short funds are from companies controlled by Asians, although some companies are registered in Europe and the United States countries and regions, but the actual controllers of these companies are Asian Chinese, that is, the financial background of the short Fannie Mae and Freddie Mac Company are related to the Chinese.

That's where John Morgan was shocked.

In John Morgan's view, the Orientals have always been very rigorous, they have acquired industries and set up companies abroad, but they have rarely intervened in the financial markets on such a large scale. Even if they want to enter the financial industry, they will do so by participating in or holding financial companies, rather than being so shirtless and directly involved in the financial market to short the companies of the United States.

But now, the secret report shows that there are many shares of funds flowing into Wall Street from different Chinese-controlled companies, and they have begun to short on Wall Street, in addition to Fannie Mae and Freddie Mac, they have also shorted the world's top five financial and investment banks, including Goldman Sachs, Morgan Stanley, Merrill Lynch, Lehman Brothers, and Bear Stearns.

In John Morgan's view, these money controllers are undoubtedly going crazy! It's just crazy, not only short Fannie Mae and Freddie Mac, but also short the world's top five investment banks, including their own company, isn't this crazy?

At first, John Morgan suspected that there was something wrong with this secret report, but the more he saw it, the more frightened he became, and he even suspected that he was crazy and wrong, but he had to admit that the timing of this short fund was very accurate.

So far, none of them have made a mistake, and they have made a lot of money from shorting Fannie Mae and Freddie Mac, and they have gained little from shorting other companies.

John Morgan tapped his fingers on the table, lost in thought, staring out the window through the smoke of his cigar, wondering what the hell was going to be done with the short money.

If it's just short arbitrage, then they have already made a lot of money in Fannie Mae and Freddie Mac, they should take it when they see it, and make profits, but now, they don't have the slightest intention of retreating, but instead they have intensified their efforts and began to increase their positions in the five major investment banks. Or ignorance?