At the beginning of the year, Lehman's stock price reached a record high of $18 per share, with a market value of nearly $60 billion.
Now, New Century Corporation has gone bankrupt, and then there are Merrill Lynch, Goldman Sachs and other wolves of Wall Street. Under the leadership of John Paulson, the wolf king, they suddenly attacked Lehman, and the market value immediately plummeted.
In just one day, a total of 5.7 billion US dollars evaporated!
It can be regarded as revenge for short-selling Penguin.
But revenge is only a small goal. Just like Goldman Sachs selling gold to short gold futures, the big goal of shorting Lehman is to shock the entire real estate and financial system and trigger panic.
The bigger the storm, the more expensive the fish!
The more panic the market has, the more expensive the CDS contract will be!
But what is puzzling is that until now, the ABX index has only fallen to 33 points, only falling 4 points.
On paper, the fund only made a floating profit of 1.6 billion.
"John, why is this happening?"
Lu Fei poked at the computer, and the screen showed the market trends of Fannie Mae and Freddie Mac. The stock prices both rose, climbing to 57 US dollars and 2 US dollars. Although they held a lot of Fannie Mae and Freddie Mac stocks, the increase even exceeded
150%, but——
It was obvious that 7 points of effort were used, but only 3 points of effect were achieved.
"Although Merrill Lynch, Bear Stearns, and Lehman have reduced their CDO risk exposures, they still aggressively acquire bonds in the real estate market." John Paulson explained truthfully.
"It's already this time, but you're still not running for your life!"
Lu Fei shook his head and laughed, "It's because he firmly believes in 'too big to fail'. Even if something goes wrong, the United States will take care of it, right?"
"At least Goldman Sachs doesn't think so. Not only does it package toxic assets and sell them at a low price to its peers, it is even shameless enough to sell them to mutual funds."
John Paulson's tone was full of disdain.
Quite disdainful indeed!
Lu Fei smacked his lips. Different from private equity funds, mutual funds are similar to China's public equity funds. They have different names.
According to American regulations, I want to become an LP of a private equity fund.
One of two requirements must be met, either an investment of more than $1 million or a net worth of more than $2.1 million.
Mutual funds do not have this requirement.
Just like the fund products on Alipay, you can buy them even with a small amount of 10 yuan or 20 yuan.
In the United States, there are more than 15 mutual funds with a scale exceeding one trillion US dollars.
There are even thirty or forty companies worth hundreds of billions of dollars.
Almost 40% of households in the United States hold various mutual funds in their hands.
Most funds circulate between U.S. stocks and U.S. bonds, with one-third of U.S. stocks and one-half of U.S. bonds. Strictly speaking, mutual funds are the real cornerstone of America's economy.
This is why if the U.S. stock market or U.S. bonds collapse, the country as big as the United States will basically go cold.
The investments and savings of 40% of the country's most middle-class families have all been wiped out in one fell swoop. It's a wonder they are still alive!
Therefore, the supervision and review of mutual funds are very strict.
However, even mutual funds, the last line of defense, have been completely dragged into the subprime mortgage pit, and with the addition of P2P landmines——
The explosion was even more shocking, the ground was shaken, and the ghosts and gods were crying!
"In order to save themselves, they have no bottom line."
John Paulson said with a gloomy face, "All bad news has been blocked. The media is full of rumors that there is no problem with subprime mortgages. They are cool, absolutely safe, stable and improving. Haha, fake news!"
As he spoke, he couldn't help but sneer: "It would be great if all the first-hand information we investigated could be exposed."
"Then you and I need to write a suicide note and a will in advance, because we might as well have an accidental plane crash one day."
Lu Fei shrugged, not even "The Big Short" could be published at this juncture, and planned to hit the final blow hard when obvious signs of the subprime mortgage collapse appeared.
"Well, we can only enjoy it alone."
John Paulson changed the subject: "But that's okay, give us enough time to clear out contracts and positions."
Lu Fei said: "There are also 'Fang and Freddie' stocks that must be polished in June and July and changed to all gold derivatives."
John Paulson nodded: "Unfortunately, this time short selling failed to use fear to make money as you said. If Lehman is really hit hard... How is the fund-raising performance of Richard Boy's Stick?"
I saw Lu Fei operating the mouse and opening the mailbox.
Li Fuzhen wrote back and gave an answer, and the negotiations broke down.
"Richard hasn't lost his mind yet and sold high-quality assets. Otherwise, as soon as the news becomes public, the credibility of Lehman's quarterly report will be immediately questioned."
While talking, John Paulson noticed Lu Fei touching his chin and laughing out loud from time to time: "What are you laughing at?"
"Oh, I remembered something happy."
Lu Fei looked at the baby photo attached to the mailbox. Feidudu's baby boy was sleeping soundly in the cradle, and the corners of his mouth could not help but raise.
"What happy thing?"
John Paulson was curious.
"My wife has given birth to a baby."
Lu Fei smiled.
"Really? Wow, Lu, congratulations!"
John Paulson enthused: “Must celebrate!”
"When we conclude the negotiation with Lehman and celebrate together, Richard, will you tell us how we can meet?"
"At Easter time, there will be a special party in New York."
…………
On April 25, the annual Easter Parade came to an end on New York's Fifth Avenue, and late at night, the lights were turned on.
The Waldorf Astoria Hotel brings together celebrities from all walks of life across the United States, especially wealthy Jewish families.
Zeng Li cannot drink alcohol and can raise her baby with peace of mind.
Lu Fei could only continue to let Yin Fanka serve as his female companion. There seemed to be a consensus among the upper class circles that Mr. Lu's car key should always be inserted into the key hole of Wang's luxury car with big headlights.
Yin Fanka wore a white cheongsam with a swaying skirt.
As soon as the two appeared, they immediately became the focus of the audience, like walking swords, exuding the aroma of capital.
Tonight’s guests are all high-net-worth individuals.
Their money is either handed over to private financial advisors, or to private equity funds and investment banking giants.
Today's Trisolaris Fund and Paulson Hedge Fund are simply the most popular among Wall Street funds. They have only been in business for more than two months——
For John Paulson alone, the first fund appreciated by 7% and the second fund appreciated by 8%.
Although the Three-Body Problem has not released data, how bad can it be?
Just look at the bunch of old money and new money who have received fund shares, toasting and chatting with Mr. Lu with enthusiasm on their faces. Without even thinking about it, it must be Qin Shihuang who touched the switch——
Win!
Such a high rate of return, such an exaggerated profit margin.
It's impossible for no one at the scene to be unmoved.
The political and business families and shadow families who had never thought of investing in the Three-Body Fund project before regretted it and couldn't wait to get a ticket and board Master Lu's ship.
And those who have already had their fill of meat and soup are eyeing multi-family offices, which include Buffett, Bill Gates and Lu Fei. If the Madoff Fund is an angel-level fund,
So, multi-family offices are God’s funds!
Mr. Lu, take me with you!
At this moment, the star-studded giant crocodiles looked at Lu Fei who was surrounded by them, with mixed emotions and mixed feelings.
"Damn it, Lu, you bastard! Bichi! Bullshit!"
Richard Fuld saw it in his eyes and felt sad in his heart.
He gritted his teeth and walked straight in his direction, but when he was walking halfway, he bumped into John Paulson and was pulled aside.
In my ears, I could hear the applause and cheers erupting from the crowd.
"Pa bang bang~"
Most of the guests in the audience applauded warmly.
Just because Lu Fei expressed his willingness to take everyone to play together.
Of course, it won't be like the Christmas party, where all comers are welcome, and the threshold set is surprisingly high, not just in terms of investment amount.
The key is, other resources and values!
Newhouse family, Cox family, Mars family, Wertheimer family, Kennedy family...
The Walton family is the first choice.
Wal-Mart is not only a strategic partner of Logic, but also a source of experience for Han and Tang Commercial Plazas.
Sun Hongbin only has experience in real estate sales and development, and no experience in commercial centers. Even poaching a ready-made team from Wanda is not enough. He needs a mature management model.
Coincidentally, Wanda learned from Walmart.
Lu Fei naturally also learned from Wal-Mart's centralized management model.
“A pleasure to work with.”
As the contemporary patriarch of the Walton family, Robertson Walton has a red face and holds his wine glass high.
“A pleasure to work with.”
Lu Fei effortlessly got Wal-Mart to agree to become the first heavyweight brand owner of Hantang Plaza.
Just as he took a satisfied sip of his wine, he heard Richard Fuld and John Paulson arguing not far away.
"The bankruptcy of New Century Company was just an accident!"
Richard Fuld roared like a bulldog: "The turbulence is only temporary. The delinquency rate of housing has increased to 4%. So what? The risks brought have been well controlled. For Lehman and for Lehman,
There was no impact on earnings across Wall Street."
"It really has no impact?"
John Paulson relentlessly questioned whether Lehman's quarterly report data fully disclosed subprime-related assets.
Do you know that I am suing you for slander?
I sue you for slander! He slandered me!
Richard Fuld became angry and said, "Have you been deliberately spreading rumors to affect Lehman's stock price so that you can short-sell? I will ask the Securities and Exchange Commission to investigate!"
"Okay, I think we can check both sides."
Lu Fei smiled and stepped in between the two of them, seemingly trying to persuade them to break up, but in reality he was trying to deflect the argument: "John also has good intentions. He just wants to guide you Lehman to improve its capital structure and face up to its losses."
"Don't you know whether it's a good intention or not?"
Richard Fuld snorted coldly.
"There are many people here, let's go outside and chat."
Lu Fei passed on the entertainment duties to John Paulson, and the two of them walked to the empty open-air balcony one after another.
There was no moon or stars in the sky, it was pitch black.
"Are you talking about peace or declaring war?"
Lu Fei said seriously: "Think clearly before you answer me."
Richard Fuld recalled the many difficulties in financing and was filled with emotion: "If on the day of the Christmas banquet, I invited you to dinner and played bridge, but Merrill Lynch or Bear Stearns made trouble for you, what would the result be?
no the same?"
"I don't like playing bridge."
"Want to learn? I can teach you if I have the chance."
"With Lehman's current situation, does he still have time to play cards?"
"That's not you! Just because of you, Lehman shareholders, employees, and even the entire financial system have suffered!"
Richard Fuld gritted his teeth: "Billions of dollars have evaporated. You made me lose miserably, Lu."
"Is it miserable?"
Lu Fei smiled and said, "Why didn't you say anything when you attacked the penguins? With your attitude, it's hard for me to forgive you."
"How on earth do you want to stop?"
Richard Fuld impatiently took a cigarette and lit it.
"I can stop shorting Lehman, and maybe I can also let you buy CDS at the current market price, but it depends on your attitude." Lu Fei took out a cigarette from the cigarette case and kept it between his two fingers.
Staring at him directly, the meaning was obvious.
"Saucy, saucy..."
Richard Fuld was a well-known tyrant on Wall Street. Only others would kneel down to admit their mistakes to him, but they would rarely make him bow his head. But when he thought of Lehman being in danger, he had no choice but to light a cigarette for him:
"Saori, Lu, I was wrong."
"This is the attitude of peace talks!"
Lu Fei blew out a smoke ring and said, "After all, I'm not like a Jew, a tooth for a tooth, a tooth for a tooth, and blood for a tooth. Chinese people like to take a step back when doing things so that they can meet each other easily in the future. If you are a Neon person, I will make you kneel down and say
Sounds like 'red bean paste dead Nimasai'."
Make me kneel down?
I am a decent person of the Zhengxing Banner, don’t even think about it!
Richard Fuld held his breath and felt uneasy, not knowing what harsh and humiliating conditions Master Lu would propose.
"But you are an American. You are not good at apologizing and are good at transactions. If you ask me to stop, what price should I pay?"
Lu Fei squinted his eyes amid the smoke.
Richard Fuld was so excited that he never expected that he would not make things difficult for him. Out of surprise, he decisively proposed——
Don’t you just want Lehman’s high-quality assets?
I give!
But he retained his final dignity and bottom line, "But I won't sell it to you, I will only sell it to the Huaxia Syndicate behind you."
"Can!"
Lu Fei had this intention. Anyway, the middlemen can also make a profit on the price difference, and they can also earn a big favor from the top and the four major banks.
After all, in the wave of listings, foreign investors treated it like a leek.
Finally, I can vent my anger and kill Wall Street!
…………
Returning to the banquet hall, the two looked at each other disgustedly and immediately separated.
John Paulson came up and asked in surprise:
"That's it?"
"Don't worry, I will never do anything that harms others but is not beneficial to myself!"
Lu Fei said: "Let me ask you a question, do you know why Lehman lost so miserably this time?"
"Because they roped in Goldman Sachs to deal with Lehman?"
John Paulson blinked.
"You just didn't kill me! I have the ability to kill him!"
Lu Fei said with a bad smile: "If you play him to death all of a sudden, it won't be fun anymore."
"Lu, Richard is not fun, be careful..."
"If you want to play, you must play! If you don't play, how can Richard relax his vigilance and continue to buy subprime bonds on a large scale? How can he completely bring down Lehman without debt acquisition? If he doesn't bring down Lehman, how can he detonate subprime mortgages? Subprime mortgages will not go bankrupt.
Lei, how can we earn a living?"
"Gulu."
John Paulson swallowed: "Lu, I don't want to be your enemy in this life."
“Right attitude!”
Lu Fei patted him on the shoulder.
The two then planned a bigger short-selling plan, focusing on Merrill Lynch, Bear Stearns and Lehman, and had a lively chat.
I drank all the wine in the cup and forgot about it. It was not until my mouth was dry that I suddenly realized that at this moment, two glasses of wine suddenly appeared in front of me, and the ones holding the wine were two unexpected women.
"Bichi! How dare you get ahead of me!"
Not far away, Hilton saw them arriving first, their eyes full of resentment. He turned his head and saw Yin Fanka, whom he envied and hated, chatting and laughing with the rich and famous.
Thanks to the strong publicity in magazines such as "Vanity Fair" and "Forbes", she has been included in the "100 Most Powerful Women List", "30 Richest People Under 30", etc.
As if, he has become "someone else's child" in the circle of celebrities.
Isn’t it just that he fell in love with Lu Fei?
Hilton was very unconvinced, rolled his eyes, and immediately had a crooked idea in his mind. He pretended to accidentally step on Yin Fanka, and he specifically picked out the sharp heels.
"you!"
Yin Fanka's brows knitted together in pain. She recalled the previous feud over drinking. Old and new grudges came to her heart. She was about to have an attack when she heard Hilton say in a strange tone:
"Hey, silly blonde girl, keep an eye on your man!"
"What, do you want to rob me?"
"It's not me, it's the maid who takes care of my wardrobe."
Hilton pouted.
Yin Fanka followed her gaze and saw Lu Fei being entangled with two women. The leader seemed to be named Kim Kardashian!
