Taking the Rose Fund as an example, Wei Dongsheng's original funds and accumulated funds from the realization of Spring and Autumn Network and Spring and Autumn Search Equity accounted for less than one-fifth, and the rest of the funds came more from the financial investment of high-end customers such as celebrities from all walks of life in the United States.

If the Rose Fund is not doing well and there are signs of low profits or even losses, these customers will definitely be angry and demand to withdraw their funds.

At the same time, the Rose Fund needs to pay insurance premiums and other fees for short contracts every month, and if the client withdraws funds and shorts the liquidity, the Rose Fund cannot pay the insurance premiums and other expenses for the next month within the specified time, and must be transferred to other hedge funds in a timely manner; If other hedge funds are unwilling to accept it, the short contract suddenly becomes a piece of waste paper, and all the insurance money paid before is fed to the dog.

Article 213 is house arrest in disguise

Fuld also contacted many banks and funds, including Korea Development Bank, British Barlake Bank, Bank of America, and Huaguo Investment.

In any case, Lehman Brothers is also one of the top five investment banks in the United States, and various banks and funds have the idea of picking up leaks, hoping to take the opportunity to cut Lehman Brothers to have a full meal. Lehman Brothers' share price is currently hovering between $10 and $20 per share, and people are more than happy to buy a stake in Lehman Brothers at that price or a little higher, such as the Korea Development Bank's offer of $6 billion to buy 25% of Lehman Brothers. However, Fulder's attitude was very tough: "Lehman Brothers is not Bear Stearns. ”

Warren Buffett's offer of $40 per share was seen as an insult by Fulder, not to mention the offer of the Korea Development Bank? Fuld refused to buy at a low price, and Fuld was convinced that Lehman Brothers' assets were very good, and all negotiations were deadlocked: other banks and funds were here to pick up the leaks, but Fuld was adamant that he would not cut the meat.

From the beginning of the Yenching Olympics to the end of the Yenching Olympics, Lehman Brothers has never been able to find the partner that Fuld wants.

Of course, the Rose Fund is not having a good time.

If the Rose Fund did not widely absorb celebrity investment, and if the helmsman of the Rose Fund was not Gong Qiuqiu, who had not been dismantled by non-market economic factors. Even with Gong Qiuqiu in charge, the flow of funds of the Rose Fund was supervised by the cooperative banks, and they did not allow the Rose Fund to cash out funds to flee the United States, which indirectly led to all the short profits of the Rose Fund staying on paper.

In September 2008, Fannie Mae and Freddie Mac were mired in a deep liquidity dup, helpless in the face of short-term debt that had matured. If the Fed does not do anything about it, Fannie Mae and Freddie Mac can only declare bankruptcy, which in turn will lead to the destruction of nearly a trillion dollars of investment in countries around the world, including the Chinese government. Everyone gradually felt that the rain was coming, and even Barack Obama (Barack_Hussein_Obama), who was the leader in the 2008 US presidential election, expressed concern in his speech: "If Fannie Mae and Freddie Mac cross, the financial system will have catastrophic consequences." ”

Under pressure from all sides, the U.S. federal government has been slow to announce the takeover of Fannie Mae and Freddie Mac, and the government has funded the hole dug by the financial giants.

However, the crisis is not over.

Merrill Lynch and Lehman Brothers, like Fannie Mae and Freddie Mac, are also mired in a liquidity dried.

When Wei Dongsheng contacted Gong Qiuqiu that night, Gong Qiuqiu expressed concern: "The contracts we hold between Merrill Lynch and Lehman Brothers should be sold as quickly as possible. ”

Qualified short-selling players must consider the other party's ability to perform the contract before shorting, and bet against a small citizen family with a monthly salary of 10,000 yuan against 10 billion US dollars, and the end will definitely be that if the bet wins, you will not get the money. Therefore, the short contracts of the Rose Fund are all directed at the big players on Wall Street, and at the current market price, Lehman Brothers owes about $2 billion to the Rose Fund, and Merrill Lynch owes about $3 billion to the Rose Fund.

The overthrow of Bear Stearns has refreshed Gong Qiuqiu's cognition, she never had a financial turmoil that was so serious that Merrill Lynch and Lehman Brothers might also collapse, and she never thought that Bear Stearns, Merrill Lynch, and Lehman Brothers were so embarrassed that they could not afford to play the gambling game.

If Merrill Lynch and Lehman Brothers collapse or are bought at a bargain price, the $5 billion debt will also shrink and depreciate significantly. The reason why the financial turmoil is getting worse is because Wall Street is full of similar routines. When the market is normal, banks and funds frequently trade with each other, invest in each other, pledge each other, and hold assets with each other. If one of them loses money on a large scale or even goes bankrupt, such as Lehman Brothers, the assets previously held by other banks and funds will depreciate sharply, and its quarterly performance will also show huge losses that the capital market cannot tolerate.

In addition, both investment banks and hedge funds are very vulnerable.

Taking the Rose Fund as an example, Wei Dongsheng's original funds and accumulated funds from the realization of Spring and Autumn Network and Spring and Autumn Search Equity accounted for less than one-fifth, and the rest of the funds came more from the financial investment of high-end customers such as celebrities from all walks of life in the United States. If the Rose Fund is not doing well and there are signs of low profits or even losses, these customers will definitely be angry and demand to withdraw their funds. At the same time, the Rose Fund needs to pay insurance premiums and other fees for short contracts every month, and if the client withdraws funds and shorts the liquidity, the Rose Fund cannot pay the insurance premiums and other expenses for the next month within the specified time, and must be transferred to other hedge funds in a timely manner; If other hedge funds are unwilling to accept it, the short contract suddenly becomes a piece of waste paper, and all the insurance money paid before is fed to the dog.

The Rose Fund was not operating well and the client requested to withdraw its capital; The Rose Fund lacks liquidity to maintain the contract, and the contract becomes waste paper, resulting in more losses; The deficit has intensified, and customers have become more and more distrustful of the Rose Fund and strongly demand divestment...... It's a vicious circle.

When something goes wrong in one place, it immediately causes a myriad of cascading problems.

Merrill Lynch and Lehman Brothers were caught in a similar vicious circle.

Merrill Lynch and Lehman Brothers are very, very short of money at the moment, while their big clients are demanding divestment.

Merrill Lynch and Lehman Brothers tried desperately to cover up their quirks that they were in good financial shape, but their inability to fulfill their contracts had exposed his weakness and hypocrisy.

Gong Qiuqiu was already mentally prepared for Merrill Lynch and Lehman Brothers not being able to fully fulfill the contract, and she was worried about the bankruptcy of Merrill Lynch and Lehman Brothers, but she was not afraid of Merrill Lynch and Lehman Brothers going bankrupt. Just like the short-selling of Indymac Bank, despite the surprise that Indymac was suddenly seized by federal regulators, Gong Qiuqiu still smoothed out the accounts in time.

Without it, the Rose Fund entered the market early to short, and the fault tolerance rate brought by the lower cost was much higher than that of other hedge funds.

Even if Merrill Lynch and Lehman Brothers go bankrupt together, they will only make less or no money.

Gong Qiuqiu sighed with emotion about the recent changes on Wall Street, and was still in the mood to care about Wei Dongsheng: "I heard that you are under house arrest in Yanjing?" ”

Wei Dongsheng shrugged: "It's okay!" ”

Gong Qiuqiu: "Quite optimistic? ”

Wei Dongsheng smiled and said: "It's not too late to be pessimistic when you go to prison." ”

Gong Qiuqiu was not joking.

Wei Dongsheng was indeed under house arrest in Yanjing.

Wei Dongsheng stayed in Yanjing for a few days before slowly coming back to his senses, and it turned out that the invitation of the cabinet chief assistant was not to appreciate him and reuse him, but a kind of euphemistic form of disguised house arrest. Wei Dongsheng is currently forbidden to leave Yanjing, and the reason given by Secretary Wu is that the cabinet chief assistant may meet with Wei Dongsheng at any time, but from the beginning of the Olympic Games to the end of the Olympic Games, the cabinet chief assistant has never "had time" to summon Wei Dongsheng.

When Wei Dongsheng thought of this, he couldn't help but sigh at the cunning of politicians.

Looking at the meeting after the opening ceremony of the Olympic Games, how kind and amiable the first assistant of the cabinet was when he talked to Wei Dongsheng, who would have thought that after the kind invitation, it would be a cold house arrest. And this kind of house arrest, Wei Dongsheng can't even say it clearly. If Wei Dongsheng publicly accuses the cabinet chief assistant of house arrest in disguise, public opinion will definitely attack Wei Dongsheng in an uproar: "Who do you think you are!" Shoufu is busy with all opportunities, busy with this and that, what's wrong with seeing you for two days? ”

The cabinet chief assistant will also not admit to putting Wei Dongsheng under house arrest. Waiting for the matter to end, the cabinet chief assistant met with Wei Dongsheng again, and simply excused himself from the recent busy state affairs, and Wei Dongsheng immediately had nothing to say. Even if Wei Dongsheng did not politely point out Secretary Wu's restraint prohibiting Wei Dongsheng from leaving Yanjing, the first assistant of the cabinet could pretend not to know and calmly ask Secretary Wu. At that time, Secretary Wu really carried the black pot, bowed his head and admitted that his handling method was mechanical and stiff, and this matter must have passed like this.

If Wei Dongsheng held on to it any longer, he would show that he was stingy.

It's a dumb loss.

Gong Qiuqiu found that Wei Dongsheng was optimistic, and reassuring him turned into a joke: "Are you afraid? ”

Wei Dongsheng: "What are you afraid of?" ”

Gong Qiuqiu smiled and said, "I'm afraid of going to prison." ”

Wei Dongsheng said frankly: "Some people want me to die, but there are also people who don't want me to die." ”

"Spring and Autumn, Zhiyu, Zhixing, Zhuwei and other enterprises can be united through me. If I were killed, the four companies would fall apart and immediately fall into a liquidity crisis. Spring and autumn may be easy to pick peaches, but I wish it ...... It was a low-profit project that consumed a huge amount of investment, and if I lost my capital turnover, I would inevitably go bankrupt in an instant. And Zhu Wei has 610,000 employees, even if the state is willing to take over, the cost of settling 610,000 employees must be very high. ”

"Moreover, Zhiyu and Zhixing have never liked to eat alone, but to take the mobile phone business as an opportunity to support BOE and other friends. If Zhiyu, Zhixing, and Zhuwei go bankrupt in the grand split, it will be a short-term collapse of the entire industrial chain, and the impact on Huaguo will be far greater than that of other rich people. ”

"If they are determined to ignore the collapse of the industrial chain and the unemployment of 610,000 employees to destroy my industry, it is useless for me to be afraid."

"Otherwise, what am I afraid of?"

Gong Qiuqiu stopped joking and comforted Wei Dongsheng and said, "They don't have that kind of determination. ”

Gong Qiuqiu explained: "I talked to my uncle on the phone just now, and my uncle asked me to tell you not to think too much. ”

The uncle in Gong Qiuqiu's mouth is Gong Qixing, the elder of the cabinet.

Wei Dongsheng smiled and said, "I didn't think much about it. ”

Gong Qiuqiu: "Uncle said that the financial turmoil in the United States has caused a comprehensive alert at the national level, and the country is ready to grasp typical tough measures to stabilize the market. Some people want to take advantage of the opportunity to expand, accusing the Rose Fund of entering the market in July 2006 and exiting in August 2007, taking advantage of the sharp rise and fall of the stock market to sweep away the hard-earned money of countless shareholders, and trying to convict us for manipulating the stock market. Keeping you in Yanjing and Beihai is actually a kind of political protection. ”

Wei Dongsheng smiled, not fully believing the explanation given by Gong Qiuqiu.

Wei Dongsheng came back to his senses before and understood that he was under house arrest in disguise, so he hurriedly and secretly activated the computer intelligent life monitoring system to traverse the relevant information. Although limited by his low political wisdom, Wei Dongsheng could not see the true thoughts of the various forces, but through relevant confidential information, he understood that the house arrest in Beihai was not the personal opinion of the cabinet chief, nor was it the political protection in Gong Qiuqiu's mouth.