There is no limit to the rise or fall of U.S. stocks, so a circuit breaker mechanism is needed, resulting in a fifteen-minute cooling-off period.
The last circuit breaker in the U.S. stock market occurred in 1997, which was triggered in the ninth year of the implementation of the circuit breaker mechanism.
That year was also the financial crisis.
The reason why the financial crisis of 2008 did not trigger the circuit breaker threshold of the US stock market was because the circuit breaker rules of the last century were still adopted at that time.
The reference level of the circuit breaker threshold triggered by a decline is not determined by the previous trading day, but is determined by the New York Stock Exchange at the beginning of each quarter based on the daily closing average of the previous month.
The circuit breaker threshold at that time was 10%, and it was still based on the Dow Jones Index. In those days in 2008, it did not exceed 8% at most, so the circuit breaker mechanism was not triggered.
After changing the rules twice in 2012 and 2013, it is now 7%, still based on the S&P Index.
Currently, the S&P Index has fallen by -4.9%, which is very close to the circuit breaker threshold of -7%.
If Quantum Fund dares to make a big bet, it will definitely hit the circuit breaker threshold.
There is a saying that has been circulating in the financial market.
Stock market crashes come around every ten years, 97,08, and this year happens to be another ten years.
If many BUFFs are superimposed, once the meltdown threshold is triggered, it will inevitably cause a second meltdown, or even a third meltdown.
A fifteen-minute cooling-off period will not have any effect at all. By then, the entire market will be in panic and funds will flee in a stampede.
A new round of global financial crisis may break out.
Lu Beifeng's throat was a little dry and his shoulders were a little sore.
Damn it, it’s a bit hard to take such a big blame.
It doesn't matter if he makes a lot of money, but with this small amount of money, he can take such a big blame. How can he reason with him?
I am afraid that like Lehman Brothers ten years ago, he will become the creator of the global financial crisis and will be passed down in the world's financial history for thousands of years.
"Being too old to die is a thief. Soros, this old bastard, really gave me a big problem."
Lu Beifeng's face was as gloomy as water, and his head hurt. After much thought, he couldn't think of a solution at all.
There is no solution for things to develop to this point.
It is absolutely impossible for him to give up his own interests and go long Tesla backhand. Moreover, the short-term trend has become established, and going long at this time is pure courting death.
It's one o'clock in the morning China time.
When the S&P index fell -4.9%, it has corrected slightly and is now -3.85%.
There are still people who are bargain hunters.
The circuit breaker mechanism has not been triggered for twenty-one years. Normal people would never think of such a thing.
Many people still have hope.
Lu Beifeng knew that this was the last moment of reflection, and there was not much time left for them to prepare.
I had no choice but to make a harassing phone call and report it to the leader. At least he had someone to back him up.
The call was connected, and the leader's voice came: "Beifeng, has something happened?"
He knew that something very important should happen, otherwise at this point in time, he would have gone to bed early, and Lu Beifeng would not have been able to call him if he could solve it by himself.
Lu Beifeng tried his best to pretend to have an innocent voice, and said aggrievedly: "Boss, it seems that I have caused trouble."
Then he talked about the whole story and his personal speculation on the purpose of the Quantum Fund.
The leader was silent for a long time and laughed angrily: "I've let you mess around like this every day, but today I finally let you poke a hole. Are you satisfied?"
There is no need to guess at the goals of the Quantum Fund.
The behavior and motivations are all here. It is obvious that it is to trigger the circuit breaker threshold of the US stock market, create panic, and thereby harvest global wealth.
Because the total amount of market wealth remains unchanged, it cannot evaporate out of thin air, it can just be pocketed by others.
So what if short-selling index funds are not difficult to trace?
Lu Beifeng will never be able to get rid of the blame. Others will only think that he is the cause of this financial crisis.
"What to do?"
Lu Beifeng was melancholy. He was thinking about whether he should take his girlfriends to find a place in the mountains and valleys to cultivate themselves for a period of time and avoid the limelight.
The leader seemed to see through his heart and snorted: "Want to hide? There is no way!"
"What's the matter, am I that kind of person?" Lu Beifeng sneered, and couldn't help but curse in his heart. It was like a roundworm in his belly. He knew him better than his own father.
The leader was silent, thought for a moment and said: "This matter may be big or small, but you must bear this responsibility, because the whole thing happened because of you."
Lu Beifeng suppressed his smile and assured, "I know."
"Actually, it's not as serious as you think." The leader chuckled and comforted, not wanting to put too much pressure on Lu Beifeng. After all, he was only twenty-four years old. He was really young. The future world belongs to young people.
It is actually a good thing for young people to make mistakes.
Lu Beifeng is a smart and good boy. He will learn from his mistakes and grow.
These old guys are alive today not because they are reluctant to give up the rights they hold, but because the younger generation has not grown up yet.
The purpose of their existence is to provide these younger generations with opportunities for trial and error.
If the sky falls, as long as they don't die, you can help them hold on and give them enough time to grow.
Just like decades ago, even if they are extremely tired, they are still willing to fight a few more wars to end the pain of war from their generation and prevent the next generation from being threatened by war.
Every generation has its own responsibilities, and the original intention should always be remembered. The purpose is to make the next generation live a better life.
The leader smiled and said: "It's another ten years, and we are really strong now. It's not like ten years ago, when we couldn't resist and could only help the international market to take over."
"Confirming the identity of the creator of the financial crisis will do more good than harm to our immature market."
"With you, a great Chinese god, sitting in the market, the foreign people will always try to take advantage of our market."
"I know what to do, and the leader, please stop teasing me and go to bed early." Lu Beifeng smiled bitterly, and the leader had already told the solution.
yes,
Another decade has passed and we are not what we used to be.
This world is really not something that Americans can say alone.
As long as Rabbit disagrees, the financial crisis sweeping the world will never happen.
"After the conference, come back to Shanghai as soon as possible." The leader said softly, and then hung up the phone.
He has no rest and no time to wait for me. Every time the enemy is weak, it is a good time for them to develop.
All units were convened overnight to set up a special research team to prepare for the coming financial crisis.
Lu Beifeng made several phone calls in succession and was away from the camera for almost an hour.
Tesla has been falling steadily, currently down -38%, and its stock price is 460.41 yuan.
The S&P index once again fell from -3.85% to 5.28%. The falling K-line has no bottom.
When Lu Beifeng came back, his expression was not very good.
Zhou Chongming asked curiously: "What's wrong?"
Lu Beifeng didn't say much and said with a chuckle: "The U.S. stock market is probably going to trigger the circuit breaker threshold."
When Zhou Chongming heard the news, his reaction was similar to that of Lu Beifeng, and he was a little dry-mouthed: "No way, they are so ruthless, are they not afraid of causing the financial market to collapse?"
Lu Beifeng said softly: "As long as the U.S. dollar remains the mainstream currency in the world, U.S. stocks will not be able to rise."
Monetary hegemony can really do whatever it wants.
Who made most countries in the world value the U.S. dollar more than their own currencies?
As long as others recognize the US dollar, they can print money like crazy regardless of the cost.
Zhou Chongming's scalp went numb when he thought about the consequences of the fuse: "Then what should we do?"
Lu Beifeng showed a ferocious look and said in a cold voice: "Everyone is playing so hard, we can't lag behind others. Let's add some oil to make the fire burn brighter."
"There are still 2.5 billion stocks on the account. Now sell them all, regardless of the cost. It is best to smash Tesla to pieces."
"The 400 yuan repurchase plan is cancelled. The price at which the shares will be repurchased depends on the situation. As for the Sumitomo Group, it doesn't matter."
"Once the U.S. stock market triggers the circuit breaker threshold, everyone will be busy harvesting the world's wealth. Who will care about verbal agreements by then?"
"It's just flipping the table, who can't do that?"