The Great Sage Returns from Ten Years of Imprisonment
Chapter 114 Explosive Profit Target
After discussing the matter of SZ's special assignment to dispatch additional special forces to protect Lingyun, Deputy Director Zhang handed over the initiative in the conversation to the other two.
Then, Director Li began asking questions.
"Xiao Ling, our country holds a huge amount of Fannie Mae and Freddie Mac bonds; we cannot afford to lose them."
"Do you think the US will keep its promises and bail out Fannie Mae and Freddie Mac, ensuring our interests? The credibility of these foreign companies is truly worrying!"
"Haha, you're absolutely right. These damn foreigners only care about profit; they have no concept of credibility!"
Ling Yun smiled and nodded in agreement.
He then gave his conclusion decisively.
"We don't need to worry about Fannie Mae and Freddie Mac. The U.S. Treasury or the Federal Reserve will definitely bail them out, and may even nationalize them."
"Fannie Mae and Freddie Mac hold over $5.4 trillion in mortgage-backed securities, representing more than 40% of the total U.S. mortgage market. Including leverage, this figure could very well reach around $20 trillion."
"If Fannie Mae and Freddie Mac were to go bankrupt, this financial crisis would spiral completely out of control, directly destroying the dollar's hegemony. Neither the US government nor Wall Street could afford such a result, and they would absolutely not dare to let Fannie Mae and Freddie Mac go bankrupt."
"From this perspective, although our holdings of Fannie Mae and Freddie Mac bonds are suffering significant unrealized losses, we will not incur losses in the long run because the US government and the Federal Reserve will definitely bail them out."
"Not only that, we can take advantage of this opportunity to short Fannie Mae and Freddie Mac bonds and stocks, and make a fortune in the financial markets until the U.S. government nationalizes Fannie Mae and Freddie Mac."
Director Li and the others exchanged a glance and secretly breathed a sigh of relief.
The next moment, Director Li smiled and nodded.
"As long as Fannie Mae and Freddie Mac don't go bankrupt and liquidate, at least we can be sure that our investments in their bonds won't become worthless or result in huge losses!"
"As for taking advantage of the situation to short Fannie Mae and Freddie Mac, that needs further discussion. As far as I know, you're already shorting Fannie Mae and Freddie Mac, and other struggling US financial institutions, right?"
Ling Yun chuckled and nodded in acknowledgment.
"Indeed, I certainly wouldn't miss such a golden opportunity!"
"By shorting European and American financial institutions on a large scale, the Hong Kong branch of Yuanta Group has made a fortune, with current investment profits exceeding HK$400 billion."
"The joint securities investment team comprised of China Aviation Oil, China Investment Corporation, and China International Capital Corporation (CICC), although entering the market later, has also reaped considerable rewards!"
Even though they already knew the outcome, Director Li and the others were still astonished when they heard Ling Yun say it.
Immediately afterwards, Director Li smiled and made a few remarks.
"Mr. Kong is right. You really have a Midas touch. Without your behind-the-scenes guidance, those companies could never have achieved such amazing investment results!"
"You've made a fortune yourself. Right now, you're probably the fastest-rising billionaire in the country, and you'd be among the top in the world!"
Ling Yun wasn't surprised at all that Director Li and the others knew about this.
He knew perfectly well that the fact that he was receiving such exceptional protection from the Ninth Bureau's special agents meant that he had been thoroughly investigated, and his entire family history was implicated!
"That's right. Through cooperation with Broad Group and various airlines, I have indeed made a lot of money!"
"I can guarantee that every penny I earn is clean and honest, can withstand investigation, and I have paid every penny of the taxes due."
Ling Yun said frankly.
The three leaders chuckled, and Deputy Director Zhang nodded in agreement.
"Very good, Xiaoling. As long as your income is legal and compliant, it won't be a problem no matter how much money you make."
"You can rest assured about that. Go ahead and do your best to earn more money from the international financial market, contributing to the country's economic development!"
As soon as he finished speaking, Ling Yun nodded confidently.
"Please rest assured, sir, the vast majority of the huge profits I've made from investments in the international financial markets will be reinvested in domestic economic development!"
"I will continue to invest heavily, especially in high-tech scientific research and manufacturing, to contribute to the nation's scientific and technological progress and productivity advancement!"
Hearing his statement, the three leaders were very satisfied and appreciative.
After chatting for a while, Director Zhang raised another question.
"In your previous report, you stated that Lehman Brothers was doomed to collapse, potentially triggering a global financial crisis!"
"During this period, the Financial Stability and Development Committee organized a team of experts to conduct in-depth research on the situation of Lehman Brothers and believes that your analysis is very accurate."
"Lehman Brothers' bankruptcy was inevitable, but now a new problem has arisen: according to reliable sources, Barclays Bank of the UK is interested in acquiring Lehman Brothers."
"If this major acquisition goes through, Lehman Brothers might be able to escape bankruptcy liquidation. Do you think this acquisition will actually happen?"
Without the slightest hesitation, Ling Yun shook his head dismissively.
"Absolutely impossible. Barclays Bank simply didn't have the capacity or the appetite to acquire Lehman Brothers; it was just wishful thinking!"
"More importantly, the British financial authorities will never allow Barclays to commit suicide; instead, they will find ways to participate in the dismantling of Lehman Brothers..."
The meeting lasted for more than twenty minutes before it ended.
After leaving the lounge, Deputy Director Zhang took his leave and went back to report to SZ.
Director Li and Director Zhang stayed behind to listen to Ling Yun's summary report on the past week's work, as well as his analysis and outlook on the investment strategy for the coming week.
As the financial crisis looms ever closer, higher authorities are paying increasing attention to Lingyun's accurate judgments and analyses.
Once seated at the conference table, Mr. Kong, who was chairing the meeting, immediately got to the point.
"Xiao Ling, under your leadership, the joint investment team achieved outstanding results in the international crude oil futures market over the past week. Congratulations!"
"The joint team made 1.3 billion this time, and with the profits earned by the investment departments of various airlines, it may not be long before they can escape this insidious trap set by Goldman Sachs."
Ling Yun smiled calmly and quickly exchanged a few polite words.
"This is the result of the collaborative efforts of the entire team; I dare not take credit for it. The trend of international oil prices has also been very cooperative!"
As he spoke, he suddenly changed the subject.
"In the coming period, international oil prices will enter a phase of violent fluctuations, accumulating energy for the next round of sharp declines, followed by an even more severe crash."
"For us, this is a golden opportunity. If we handle it properly, we might be able to earn enough to cover the breach of contract penalties we have to pay Goldman Sachs in just half a month."
"In this way, when the real plunge in international oil prices arrives in mid-to-late September, all the investment profits we've earned will be in our own pockets."
Upon hearing his words, Mr. Kong and his colleagues were immediately overjoyed.
Just then, Mr. Sun suddenly interrupted.
"Xiaoling, you just said that international oil prices will fluctuate wildly. Does that mean that starting next week, international oil prices will rebound sharply?"
"This morning you specifically reminded the investment directors of all airlines that the risk of this rebound is very high, and advised the investment departments of each airline not to take risks. Could you elaborate?"
Ling Yun looked at the CEO, thought for a moment, and then gave a response.
"That's right, Mr. Sun. I predict this corrective rebound will come quickly and go even faster; the rally will probably only last two or three days!"
"The decision-making processes of each airline's investment department mean they have difficulty reacting quickly, which is why I advised them to temporarily step back and observe!"
"The joint investment team doesn't have this problem. With this strong rebound, I'm confident I can make around four billion in investment profits in one go..."
One stone caused a thousand waves!
The moment this profit target was announced, it caused an uproar!
"Splash!"
Mr. Sun, along with the general managers of China Southern Airlines and China Eastern Airlines, all pushed back their chairs and stood up as if electrocuted.
They all stared wide-eyed at Ling Yun with great excitement.
"What?! You made four billion in one go? Did I hear that right?"
"Good heavens! Money can be made like this? If we really achieve this profit target, we can immediately escape the trap set by Goldman Sachs!"
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