Era: Starting from divorce from female college student
Chapter 478 Over Half-Old
Sam, New York, Wells Fargo headquarters securities division.
"God, these past few months have been really strange. So many institutions have come to us to borrow shares to short General Motors, General Electric, Ford, IBM, Motorola, and other companies."
"Are these organizations just throwing money away?"
Paul York, the manager of the securities department, said with a faint smile.
A vice president standing nearby, Ed Yat, shook his head and said:
"They certainly have a lot of money. Our Sam's stock market is incredibly stable and reliable. How could there possibly be a crisis of stock price crash? Anyway, I don't see any risk at all. They're willing to give us money, hehe, why shouldn't we take it?"
Whether it's Paul York or Adjad.
These people were completely unaware that Sam was indeed in grave danger at this moment.
The bubble economy, characterized by a false prosperity, is something many people cannot imagine.
Unlike Wells Fargo, at the Berkshire Hathaway headquarters, Warren Buffett, known as the "Oracle of Omaha," was currently researching information on Romano Corporation.
"Do you think we should become a multi-Solomon Company?"
Buffett is analyzing this matter with his partner.
Before making any major decision, Buffett always thinks and analyzes the situation first, and then discusses it with his partners.
This is the case this time; the details of Solomon Company itself are already very clear.
But is it feasible to go long on this company at this time?
It's important to know that Berkshire Hathaway now has a lot of capital backing it.
With his vast wealth, Buffett is now looking to invest it all, as he has a responsibility to his shareholders.
In fact, in the original timeline, Buffett invested in Salomon Brothers just before October, going all-in on the company.
The current US stock market has actually been in a bull market for half a century.
Although there were some fluctuations in the middle, those are all perfectly normal things.
According to the economic development laws of capitalist countries, things will inevitably decline after reaching a certain point of development.
However, at this time, the US economy was still very prosperous, and its upward trend was very stable.
Therefore, many people have not realized the potential crisis behind it.
While Buffett was considering whether to invest in Salomon Brothers, Ray Dalio, founder of Bridgewater Associates, was researching something else entirely: whether to short US stocks.
Yes, Ray Dalio has his own set of investment theories.
In his view, the US stock market may have reached its limit.
But he didn't know when a stock market crash would occur.
Therefore, he needs more information to conduct his research, and only after reviewing it can he make a decision.
It's already August, and Ray Dalio can already sense that the US stock market is as hot as this summer, and it may not be long before it suddenly enters winter.
As is well known, most of the mountain ranges in North America run north-south.
Such mountain ranges are prone to causing one thing: when the north wind blows, it can sweep across the entire continent in an instant.
Therefore, even in Texas, which is located at a low latitude, it is possible for winter to arrive overnight.
Ray Dalio had such concerns at this time, after all, the US economy had reached a certain bottleneck.
Under such circumstances, if he needs to lead Bridgewater Associates to short US stocks, he needs to proceed with caution.
So, should we short sell or not?
While Ray Dalio was still searching for information to support his investment theories and ideas.
On the other side of Manhattan, in a luxurious penthouse office in a high-rise building, George Soros, head of the Quantum Fund, was on the phone, giving clear instructions to his manager in Tokyo, Kimura.
All funds must be withdrawn from Kimura before September.
why?
This is based on the analysis conducted by Soros and his partners.
That is, Kimura's economy will decline in the coming period. Soros is unsure of the situation, so he is withdrawing first.
As for how these funds will be invested after they flow back to Wall Street, that will be studied later.
While Wall Street giants such as Berkshire Hathaway, Bridgewater Associates, and Quantum Fund are all actively taking action, other giants such as Magellan Fund, Goldman Sachs, and JPMorgan Chase are also busy with their own projects.
Zhao Mancang's Wall Street Wolf companies had already completed their strategic planning several months ago.
This wave will bring an unprecedented stock market crash to the US stock market.
In the original timeline's history, this was a stock market crash known as Black Monday.
On the day the stock market crash occurred, US stocks lost $500 billion in just six hours.
Yes, that's an astonishing number.
Why is this so?
In fact, besides the reasons Zhao Mancang analyzed earlier, there is also the trend of economic globalization, and most importantly, the over-issuance of US dollars.
Especially in this time and space, the massive amount of US dollars under Zhao Mancang's name played a significant role.
To put it simply, the super dollar completely disregarded any obstacles and rules, and was directly poured into the market.
In the original timeline's history, at this point in time, the US dollar's monetary base was only around 800 billion US dollars.
But in this time and space, the US dollar base money has already exceeded one trillion US dollars.
Even the latest version of the US dollar issued a few years ago has already been issued simultaneously by Super Dollar Factory.
In conclusion, the increase in the total amount of the US dollar base money supply has a significant impact on the global economy.
When everyone's total amount of money increases, there must be sufficient investment channels; otherwise, currency devaluation will become even more severe.
However, in reality, starting in 1985, both the Plaza Accord and the Louvre Accord resulted in a significant devaluation of the US dollar relative to the Deutsche Mark and the Japanese yen.
Even though the US dollar has already over-issued currency, and even though the Plaza Accord and other agreements have already devalued the dollar.
However, it hasn't depreciated to a frightening degree that would prompt the Federal Reserve to reduce or stop issuing excessive amounts of currency.
This is the result of the global economy being a large, interconnected system.
With such a large money supply and a sustained bull market in US stocks, it's natural for a large amount of international capital to flow into the US stock market.
This is another important reason for the false prosperity of the US stock market.
Hong Kong Island, Deep Water Bay Villa Estate: Today, Zhao Mancang is having a meeting with his children.
Little Baozi, Little Peach, Zhao Jinshi, and the other children sat in different directions on the sofa.
When having a family meeting, it's naturally not as formal as a meeting with a leader.
Even though Zhao Mancang has a so-called family business, he actually has no intention of letting them take over the family business.
Firstly, their individual abilities are all relatively ordinary; in any case, Zhao Mancang hasn't seen any people with exceptional business acumen.
Preventing them from taking over their business empires is also a way to protect them.
Secondly, Zhao Mancang himself is still young.
Even though he is already 53 years old this year, in many people's eyes he is actually very old.
After all, he was already over fifty. However, Zhao Mancang didn't think he was old.
Therefore, he will continue to control his business empire, and for the time being, he will not pass it on to his children.
Finally, he has quite a few children.
He loved every single child.
Therefore, in previous years, he had already consciously cultivated their views on wealth and their business acumen.
For example, when he shorted US stocks this time, he brought his children with him.
Lin Wan has nine children: Zhao Huijun (Little Glutton), Zhao Jingrou (Little Bun), Zhao Juntao (Little Peach), Zhao Jinshi (Little Stone), Zhao Pingan (Little Fatty), Zhao Siyu, Zhao Yuechan, Zhao Tianyi, and Zhao Xinyi.
There are mostly girls; there are only two sons, Zhao Jinshi and Zhao Ping'an.
Liu Baochan has six children: Zhao Zhicheng, Zhao Zhirui, Zhao Jinxi, Zhao Sihui, Zhao Leyong, and Zhao Linlin.
Three sons and three daughters.
But Zhao Mancang treated both girls and boys equally, without discrimination.
"Dad, how could a stock market crash happen in such a prosperous and economically developed country like Sam?"
As soon as Zhao Mancang finished speaking, Zhao Huijun, the eldest sister, immediately raised a question.
She was a celebrity, but in recent years she has gradually faded from the public eye.
The reason is quite simple: one is that after spending too much time there, it becomes meaningless.
Secondly, participating in commercial performances is not as good as doing business.
The fourth son, Zhao Jinshi, had some business acumen, although Zhao Mancang considered him mediocre and incapable of taking over his business empire.
But in Zhao Huijun's view, this is definitely a super business genius.
After all, Zhao Jinshi's total net worth now exceeds 15 billion US dollars.
Yes, US dollars!
His enormous wealth also made him the richest of Zhao Mancang's many children.
Why? Because he seized the opportunity to make money several times before.
Zhao Jinshi seized opportunities presented by economic developments such as the Plaza Accord, the Louvre Accord, and the Saudi Arabian Empire's oil price crash.
He was very bold in going long or short, which caused his wallet to swell very quickly.
Zhao Mancang considers a net worth of $15 billion to be quite ordinary.
However, in the eyes of Zhao Huijun and other young people of the same generation, she is already at the pinnacle of achievement.
Therefore, based on these two points, Zhao Huijun withdrew from the entertainment industry, intending to enter the business world and develop her own career.
"Really? Why don't you think about it yourself before asking questions?"
Zhao Mancang asked with a smile, then replied:
"Alright, this time I'm not discussing this issue with you, nor is it homework, so just follow along and invest."
"If you have money, then invest it; if you don't, then forget it."
“Yiyi, Linlin, you are still young. You can ask your older brother to help you invest when the time comes. If that doesn’t work, I can help you.”
"In short, while you need to be cautious and most importantly keep this shorting of US stocks a secret, you don't need to worry about a stock market crash."
"I've already made the necessary arrangements; you can just follow along."
Sam's stock market is bound to crash.
Even after Zhao Mancang and his group of funds entered the US stock market, it wasn't because they were bullish on US stocks, but rather to add icing on the cake to the already falsely prosperous US stock market.
However, a large amount of international capital is still flowing into the US stock market.
Therefore, Zhao Mancang had no worries about these trivial matters.
After making the arrangements, Zhao Mancang left Hong Kong.
His children were all bewildered, some even unable to believe it.
However, after they came to their senses, they all looked at Zhao Jinshi.
Of all the children present, Zhao Jinshi is the one who most resembles their father, Zhao Mancang.
With a net worth of $15 billion, Zhao Jinshi is incredibly wealthy.
"You don't need to look at me. Anyway, Dad just said that the US stock market is bound to crash, there's no doubt about that."
After a pause, Zhao Jinshi continued:
"I'm going to invest in short selling anyway, but I won't use leverage this time. If you want to, contact the trader yourselves."
"By the way, according to what Dad just said, we should get into the market sooner rather than later. If there's a crash in October, it's already almost September, and we don't have much time left."
Zhao Mancang certainly didn't instruct everyone to rush into shorting US stocks this time.
Instead, it will be done in batches.
For example, the earliest ones were his own financial companies.
For example, financial companies like The Wolf of Wall Street, and dozens of financial companies in Yunlan City.
These companies will not choose to increase leverage, nor do they need to, because they have plenty of money.
Moreover, in order to maintain secrecy and achieve a subtle and gradual approach, avoiding leverage is the best option.
Following closely behind were the notices issued by Zhao Mancang in cities such as Beijiang City, Shanghai, Beijing, and Baiyun City in the past two months.
With so many cities and financial institutions in China, it will naturally take time to bring them in.
Now that September is approaching, he has once again informed his children.
Given the size of Zhao Jinshi and his group's funds, they could raise at least 20 billion US dollars to short US stocks.
Such a large sum of money may seem to have a significant impact on the market, but in reality, it's not that big.
"I understand. I'll get ready as soon as I get back."
Zhao Huijun nodded immediately.
This time, it will surely be her time to shine. She needs to prove that she can also become a true queen in the business world.
"Fourth brother, don't leave yet, I want to talk to you."
Upon hearing his older sister call him, Little Stone quickly replied that it was no problem.
More than ten minutes later, the other siblings had finished discussing and then Zhao Jinshi and his eldest sister went to the study to chat alone.
Sure enough, his older sister got straight to the point and said she wanted to borrow money.
"Big sister, how much do you need to borrow?"
Three billion US dollars!
hiss!
Even though Zhao Jinshi was very wealthy, he still couldn't help but gasp when he heard about the three billion US dollars.
"Big sister, I remember you seem to have a lot of money on you, right? You..." (End of Chapter)
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