The winter night in Los Angeles is cold and windy.
As soon as the Golden Globe Awards ceremony ended, Zeng Li returned to the mansion with a fireplace, took off her clothes and handed it to the housekeeper:
"Where are the others, sir?"
"He's in the study."
"Still in the study room."
Zeng Li looked in the direction of the study, and the door was closed.
The new year has come, and the Lu family office is holding a meeting.
"Last year, our subprime mortgage funds increased by 75% in September, 56% in October, 51% in November, and the lowest in December, with an increase of only 35%..."
"Just relying on ABX and short selling, as well as CDO and CDX, the total amount in 2007 was US$8.42 billion!"
Xu Xin folded her legs and reported on the profit and loss of the Trisolaris Fund.
"How much stock do we have left?"
Lu Fei held a pencil with a red end and a blue end, and used the red tip to draw circles on the numbers on the document.
"We and the Paulsons sold goods worth 24 billion this time and made a profit of 15 billion U.S. dollars. We still have 20 billion U.S. dollars of goods waiting to be released this year. It is expected that the entire subprime mortgage short-selling plan will generate at least 27 billion U.S. dollars this week.
of revenue.”
Xu Xin smiled and raised her wine glass, "A Fei, congratulations."
Lu Fei took a sip of his wine and said, "Not only, not only, the current CDS price depends entirely on the fraud of Bear Stearns, Lehman, and Merrill Lynch. As long as one of them cannot hold on, once the subprime mortgage breaks out, CDS
But it’s not the current price.”
"The Fed can cut interest rates to save the market."
Xu Xin said: "This time it was reduced by 75 basis points in an emergency."
"so much?"
"No, it's the largest interest rate cut since the 1980s, and the insurance regulators provided $15 billion in financial assistance to bond insurers, which in disguise solved the urgent needs of Bear Stearns and Lehman in the hardest-hit areas. Otherwise, Bear Stearns'
The stock price will not remain at $77.43 now."
"We can only let them get through this year. Bear Stearns' P2P platform is about to explode."
"If that's the case, CDS will absolutely skyrocket."
Xu Xin breathed out, "Especially Bear Stearns' CDS, which increased tenfold last year. Now the unit price of a swap contract per $10 million is $336,000. It may even increase by five times. Lehman is about the same."
, every $10 million contract costs $268,000..."
"But this time I have to do it quickly."
Lu Fei shook his glass, "Last year, I had a lot of time to trick others and speculate on CDS, but I won't have it this year. Once the financial crisis completely breaks out, contracts that cannot be honored will be useless paper."
"Don't worry, Blossom and John are professionals." Xu Xin reached out and handed over the asset allocation plan.
Lu Fei looked from top to bottom, looking at ten lines.
The profits from the entire short-selling campaign were due to the need to form a community of interests and distribute the shares as favors to old money, new money, and members of the China Banking Group and Renaissance Society. John Paulson also held 50 in his short-selling fund.
% share of revenue.
Our own Three Body Fund accounts for 80%.
After two years of planning, it still has 17 billion U.S. dollars.
9.5 billion will be used for investment, and 7.5 billion will be reserved to cooperate with the logic of acquiring manufacturers with patented technologies in storage, communications, etc.
"In addition to investing in gold, I made a bargain hunting plan after the subprime mortgage crisis as you requested. After all, if nothing else happens, the United States will definitely survive the crisis by printing money. At that time, so much hot money will definitely flow into the U.S. stock market, especially
It's banking stocks and technology stocks." Xu Xin put the list in front of him.
"Citigroup, Amazon, Netflix, Google, Apple..."
Lu Fei scanned them one by one, discussed with her the priority of investment and the amount of investment, and divided the order, severity and amount.
"Then let's settle it like this first, and then we can change it depending on the situation." Xu Xin took the document back into her wallet, "Just like John, he is planning to short-sell the stock prices of Bear Stearns and Lehman."
Lu Fei was surprised, "Bear Stearns is his old employer and the financial backer from which he started his career. How could he be so ruthless?"
"It's not that Bear Stearns angered him. He has been manipulating CDS prices behind closed doors with Lehman and others, which has cost us billions of dollars less. It's like killing people's money and killing their parents."
Xu Xin took out another stack of bills and contracts from her bag.
"Too."
Lu Fei touched his chin, and the next step was to process large and small documents, such as the Maserati M12 bill, signing each one.
"A Fei, you don't understand this investment of yours very well."
Xu Xin smacked her lips, "It's okay to invest in Tesla. Just like BYD, you are investing in the future of new energy vehicles. What's the point of investing in rockets? Do you want to build private rockets like Musk? Are you kidding me?
Bar?"
"What do you think, Sister Xin?"
"Haha, you are crazy about going to heaven. 100 million RMB is not enough to launch a rocket, and 100 million US dollars is about the same. Besides, I have investigated SpaceX, and the employees there are not even 100%, but at least 50%
He is a former NASA employee, and all our excellent aerospace talents have been handed over to the country."
"No way, why can't we invest in SpaceX?"
Lu Fei spread his hands, "But I'm different from Musk. He can build rockets directly. I'm thinking about building supporting equipment first, like a space drone or a Mars drone. Hey, I'll build a research and development platform first. As for what I can do
If we can't build a rocket, I don't have much hope. The key is to give capital a new investment direction. I have invested in it. There will definitely be capital willing to follow up, which can also be considered as a disguised support for our aerospace industry."
"So, you still want to invest in drones?"
"Hey, I really found a family."
"It's your money anyway, so you can do whatever you want with it, but I would like to remind you that the space economy can be illusory, so remember to stop your losses in time." Xu Xin shook her head and smiled, her eyes full of endearment.
Regardless of rockets or drones, treat them as his toys!
"It's hard to say, maybe we will land on the moon in 2030."
Lu Fei made an "OK" gesture.
"2030? Haha, moon landing?"
Xu Xin's face was full of disbelief, and she didn't answer. Instead, she took out the sample book of "The Big Short" from her bag, "Friedman said it will be published in about two years. Do you want to hold a new book launch conference?"
"I won't be famous anymore. People are afraid of being famous and pigs are afraid of being strong. I have both. Leave the press conference to Lewis."
Lu Fei stood up and sent Xu Xin out of the study.
Zeng Li walked out of the kitchen carrying steaming pasta, and happened to meet her face to face. "I asked someone to make a midnight snack, why don't you eat before leaving?"
"I won't compete with Ah Fei for food, I'll leave it all to him."
Xu Xin walked away with a meaningful smile.
As soon as the door opens, the cold air blowing in is refreshing.
The security team strictly guarding the outside has changed again. Now it is Wang Ben's turn to take the lead, and there is a sense of security.
"Smell, what else?"
Lu Fei and Zeng Li were sitting across from each other in the restaurant. On the table were French fries, fried chicken, fried dumplings, and red pasta.
"Pfft."
Seeing his mouth full of sauce, Zeng Li laughed out loud.
"So happy, did you win an award at the award ceremony?"
Lu Fei rolled the noodles with a fork in one hand and fried the dumplings with a kuaizi in the other.
"No, I didn't play many roles in "Iron Man", so how could I win an award? I was nominated for a Golden Globe Award, but I'm very satisfied. Ziyi has just been nominated for a Golden Globe Award." Zeng Li
He took out the tissue and handed it over.
"When will your mother and Xiaoyu come?"
Lu Fei took the tissue and wiped his mouth.
"The flight ticket is booked for February 4th, which is only a few days away."
Zeng Li frowned slightly, showing worry.
"I will accompany you to pick you up at the airport then."
Lu Fei put the fried dumplings dipped in vinegar into her bowl.
"Mom should agree with us." Zeng Li picked it up, put it down, then put it to her mouth and said, "I think she will."
"It's not a should, it's a yes."
Lu Fei patted the back of her hand.
At this moment, the ringtone of the mobile phone broke the atmosphere.
The caller was Guo Xing. It doesn’t matter whether things are important or not. Morgan Stanley and Citigroup formed an investment team and took the initiative to find Logic. They spoke in high-sounding terms and wanted Logic to have a better development environment, especially
In America.
In fact, I want to share Logic's equity and promote Logic's listing.
"I'm too lazy to meet them. I have to pick them up at the airport, so I'm not free."
Lu Fei curled his lips, and the abacus beads fell on my face.
"What they say is very tempting. They say that if you can use Logic to achieve a market value of 100 billion like Apple and Nokia, you will automatically become the richest man in the world." There was a hint of disdain in Guo Xing's tone.
"Haha, if you wanted to go public, you would have been able to do it a long time ago. You still need them to worry about it. You tell them that Logic will not go public and will not even accept any capital. I am not short of money, and Logic is not short of money either.
As for the world’s richest man…”
Lu Fei said: "Doesn't it make sense that if I don't go public, I won't have this opportunity? Haha, don't pay attention to these people, and you don't need to pay any attention to them. Just send a vice president to deal with it and that's it."
"I understand, then I will send Tianmei."
As soon as the phone was hung up, Zeng Li leaned forward:
"Did the airport pick-up delay you?"
"No, senior. Instead, Mom and Xiaoyu gave me a good excuse. I don't want to see them at all."
"Don't they all say it's good to go public?"
"It depends on who it is. With the logical ownership structure and operating model, it is impossible to go public in this life. Once capital is introduced, it will most likely get out of control, especially if it is American capital."
Lu Fei does not want to make the same mistake as ZTE.
Although the listing is quite tempting, Apple's current market value is more than 164 billion U.S. dollars, Nokia has 115 billion U.S. dollars, owns Yangtze Memory and Multicore Semiconductor, plus its own body, no matter how weak the logic is, it still has about 100 billion U.S. dollars, regardless of Citigroup, Goldman Sachs, or
Other securities companies are basically only high but not low.
With a market value of hundreds of billions, if you don’t want it, don’t…
Although Zeng Li didn't understand it, she was greatly shocked.
"Besides, if you ask me to go public this year, you think I'm stupid."
Lu Fei smiled coldly, Yingjiang is very bad.
………………
In early February, the subprime mortgage situation was as cold as this winter.
Even if the Ministry of Finance tries every means to save it and joins hands with the Department of Housing and Urban Development to create a rescue project, the Hope Alliance.
Use refinancing to convert home buyers' subprime mortgages into low-interest fixed-rate loans, that is, convert 1 million home loans into low-interest loans, of which 680,000 are subprime loans.
This did alleviate the crisis, but it was far from enough.
Investors are not fools. They abandon ship and run away one after another, fleeing the American financial market and heading for the safest investment——
U.S. Treasury Debt.
Wall Street giants, even Goldman Sachs, which turned from long to short midway, are seeing losses continue to expand, and no one is immune.
Just as the New York Times warned of "market liquidity decline," rumors about Bear Stearns gradually spread, and an unknown insider revealed that it was experiencing liquidity problems.
This is equivalent to investors withdrawing their capital one after another, and cash is about to bottom out.
At first, everyone laughed.
Bear Stearns is one of the five largest investment banks on Wall Street.
Although he is the smallest, his behavior is very fierce. He often uses extremely high leverage to fight his way in and out of the huge fluctuations in the market, earning profits from the low valuation of assets.
A typical person who "recognizes money but not people" and does things in his own way.
John Paulson inherited the Bear Stearns gene. He was determined to kill and was able to do it. With the help of YouTube, Facebook, Twitter and other media, public opinion was completely boiling.
If you repeat a rumor a hundred times, it will become the truth!
The Wall Street Journal, Bloomberg Businessweek and other authoritative business media were like sharks smelling blood, pounced on Bear Stearns and analyzed its operations from the inside out.
Bear Stearns immediately proved his innocence.
With $18 billion in cash and highly liquid securities!
Suddenly, financial self-media "coincidentally" exposed the crisis of Bear Stearns, Lehman, Merrill Lynch and other P2P platforms.
Bear Stearns had no choice but to let go and launched various activities, such as signing up to receive prizes, phone bills, experience money, etc...
But it still couldn't stop the stock price from falling.
John Paulson preyed on short selling, and Lu Fei preyed on public opinion. The combination of left and right punches was so neat that Bear Stearns, Lehman, and Merrill Lynch could only secretly seek help from the Federal Reserve——
Dad save me!
The Federal Reserve was alarmed and cut interest rates by another 50 basis points.
Even at this year's G7 finance ministers and central bank governors' meeting, the core topic was the subprime mortgage crisis.
Lu Fei sat in the VIP lounge at the airport and remotely arranged for Carlson Bullock to hand over the first quarter research reports on Bear Stearns and Lehman, especially P2P, to top business schools like Wharton and Harvard.
Come and do it.
If P2P doesn’t explode, how can Bear Stearns and Lehman explode?
If Bear Stearns and Lehman don't blow up, how can subprime mortgages blow up?
Therefore, the thunder of P2P is going to explode!
Still moving!
Still crying ghosts and gods!
"Choose a good time and choose a good media."
Just as Lu Fei hung up the phone after explaining, Guo Xing called again and told him that the Morgan Stanley investment team was very angry.
After all, as one of the largest investment teams in the United States, they are always aloof and superior almost everywhere they go, especially in Japan and South Korea. That is simply the treatment of a father, but this time their logic is deflated.
"He told Tianmei that it was completely unwise for us to reject Morgan Stanley and Citigroup. What we rejected was hundreds of billions of dollars. He also threatened that it would not take long for us to regret it!"
"They can survive in subprime mortgages first."
Lu Fei suddenly felt his wrist being grabbed by Zeng Li, and saw a Boeing landing on the runway on the apron outside the window.
"big beauty!"
"Ah, Ah Fei, please come and pick me up at the airport."
Zeng's mother said hello and got into the car with Zeng Yu.
"Auntie, it's not troublesome at all."
Lu Fei and Zeng Li were sitting in the same row, and Zeng Yu deliberately stepped between them, looking left and right.
Finally, he looked at his great-mother who was looking at the extended version of Lincoln, and asked in a low voice: "When are you planning to show off with Mom?"
"It's too late this year."
Zeng Li is smiling.
"That's fine, otherwise you won't be able to eat the New Year's Eve dinner in a down-to-earth manner." Zeng Yudu mumbled and moved closer to Zeng's mother.
Zeng Li and Lu Fei looked at each other and smiled.
After about half an hour, the car slowly stopped.
As soon as Lu Fei got out of the car, Guo Xing called again.
"Mr. Lu, something happened. Micron officially filed a lawsuit in California court against Toshiba and our Yangtze Memory, claiming that Toshiba stole its memory chip intellectual property, including the key technology of the memory chip, and transferred it to Yangtze Memory."
"What did you say? Say it again?"
“Micron sues YMTC and Toshiba for infringement!”
"Hey, Elpida really got it right."
Lu Fei squinted his eyes. He had just rejected Citigroup and Morgan Stanley's proposal to go public, and then Micron sued them for infringement.
