The Great Sage Returns from Ten Years of Imprisonment

As news broke that the U.S. Treasury and the Federal Reserve were jointly rescuing AIG Group, the decline in the three major U.S. stock indexes began to narrow rapidly.

By the time the market closed at 4 a.m., all three major U.S. stock indexes had risen, with gains exceeding 1%, indicating a preliminary reversal of the extremely panicked market sentiment.

Unfortunately, stock markets across Europe had already closed by then.

European stock markets can only hope to rebound on this major positive news after the market opens tomorrow afternoon.

But do they have that opportunity? Lingyun doesn't think so!

Just after 3 a.m., as the three major US stock indices surged forward, Ling Yun suddenly grabbed the microphone and announced loudly:

"Attention all traders: Starting now, sell all your stock holdings in batches, leaving none behind, to lock in the profits from this bullish move."

"AIG Group stock should also be shorted. With significant positive news, AIG Group stock trading volume has increased at least fifteen times, making it easy to unload shares."

"Complete the liquidation by 3:30, take a ten-minute break, then switch to a full-scale short position, continuing to short major European and American financial institutions. I will immediately distribute the short-selling list to each team..."

This sudden reversal caught everyone off guard.

After a brief moment of shock, the entire trading area erupted in chaos.

"Holy crap! Another complete reversal of fortunes, he's going to turn the tide completely! This young master is going to destroy the European and American financial markets!"

"Wow! Isn't this constant harvesting a bit too crazy?"

"It's more than insane! If those big financial institutions on Wall Street knew they were being treated like lambs to the slaughter, they'd probably be furious!"

Everyone started discussing it, amazed but also completely baffled.

Just then, Ling Yun's cold voice came again.

"Execute the trading order immediately. If you have any questions, you can contact me to discuss them after the US stock market closes!"

"Anyone who questions my decision now can pack their bags and leave. Time is money, and I don't have time to waste on you!"

Upon hearing this, everyone's hearts tightened.

Outside of the transaction, Ling Yun, who is usually very friendly, showed such coldness for the first time!

Many traders looked in his direction with surprise, and then responded in unison.

"Received, will execute immediately."

Before the words were even finished, everyone sprang into action, their fingers flying across the keyboard as they began to sell off their holdings, preparing for the next step of a full-scale shift from long to short positions.

Standing not far behind Ling Yun, Lou Dong and the others were equally astonished.

Just as they were about to step forward to inquire about the situation, Ling Yun took out his encrypted phone and started calling President Wang of Yuanda.

He was instructed to immediately notify the Far Eastern Group's Hong Kong Island branch to begin shipping and prepare for another round of short selling.

Upon seeing this, Chairman Lou immediately stopped and did not continue forward.

After a moment's hesitation, he suddenly raised his hand and called over his secretary and the investment director of CIC, whispering a few words of advice to them.

"Notify other investment teams within the company to follow suit immediately, and also notify other state-owned investment teams!"

"Although I don't know Lingyun's reasons for making this decision, his past investment performance tells me that he is very likely right!"

"Yes, boss."

The investment director and the chairman's secretary of China Investment Corporation nodded in unison, without asking any further questions.

Seeing Lou Dong's actions, General Manager Wang of CICC and General Manager Sun of China Aviation Oil, among others, followed suit and took action.

As they were talking, Ling Yun had already finished the call.

Then he turned to look at Chairman Lou and the others, and explained a few words in a low voice with a smile.

"Distinguished leaders, I know you are all very curious as to why I decided to switch from a long to a short position across the board, given the strong rebound of the three major US stock indices?"

"The reason is simple: this rebound in the three major US stock indices was driven by major positive news, and it's just a brief resurgence!"

"The fundamental problems of this global financial crisis have not been resolved, systemic risks have not been eliminated, and global financial markets will continue to plummet!"

"The US Treasury and the Federal Reserve's joint rescue of AIG will inevitably involve exorbitant demands. Once AIG is effectively nationalized, a sell-off is highly likely..."

As he explained, the doubts in Lou Dong and the others' minds quickly dissipated, and they nodded repeatedly in agreement.

They quickly figured out Lingyun's reasons for doing this.

Before long, Ling Yun's words were quickly put into writing and appeared in several places, including the State-owned Assets Supervision and Administration Commission, the Financial Stability and Development Committee, and even the General Office!

When it got light, they were immediately sent into the lake.

The subsequent developments in the international financial market were largely as Lingyun had predicted.

At 3:30 a.m., the investment teams quickly sold off their holdings of stocks in major European and American financial institutions, turning from long to short again!

In the last half hour, they aggressively shorted major financial institutions in the US stock market, quickly completing their short position building.

At 4 a.m., US stocks closed higher.

All three major indices rose by more than 1%, with the S&P 500 surging by 1.75%, indicating a rapid improvement in market sentiment and widespread jubilation.

But people were happy for less than an hour before they could no longer laugh!

Around 5 a.m., the plan for the joint bailout of AIG Group by the U.S. Treasury and the Federal Reserve was finally unveiled.

With the support of the U.S. Treasury, the Federal Reserve authorized the Federal Reserve Bank of New York to provide AIG Group with an $850 billion revolving loan for a period of two years!

The AIG Group paid a heavy price for this, firstly with exorbitant interest rates, and secondly by pledging 80% of its equity and dividend veto rights to the U.S. Treasury.

This is tantamount to de facto nationalization. From now on, the fate of AIG Group will be in the hands of the U.S. Treasury Department, not the board of directors and investors.

The first thing the U.S. Treasury did after acquiring 80% of the shares was to immediately fire the CEO of AIG Group, followed by a massive purge of the management team!

Immediately afterwards, the U.S. Treasury Department issued a statement halting AIG's dividend payments, completely shattering shareholder expectations for returns.

However, AIG's exposure to more than $4400 billion in CDS and the issue of write-downs of subprime-related assets have not been resolved, and the short-term liquidity crisis still exists!

The release of this series of news has caused an uproar in the international financial markets!

Almost all financial analysts have pointed out that AIG Group has been nationalized by the U.S. Treasury Department, losing its independence and setting a very bad precedent!

As a result, the New Zealand and Australian stock markets, which opened earliest, fell first, and the expected rebound never materialized!

Compared to the dramatic fluctuations in European and American stock markets, international oil prices have remained relatively stable, continuing to hover at low levels.

Seeing this result, everyone admired Ling Yun immensely.

No one had any doubts about his investment decisions.

Around 7 a.m., after holding two debriefing meetings and formulating investment strategies for several investment teams for the day, Lingyun packed up her things and prepared to go home to rest!

Just then, Deputy Director Zhang from the General Office suddenly called.

"Xiao Ling, give me a call after you wake up from your nap at noon or in the afternoon. Several people in Shenzhen want to hear your analysis and opinions on the future trend of the financial crisis."

"Come to the lake then. This report won't take long and won't interfere with your afternoon and evening work!"

Lingyun couldn't bear to refuse such a good thing, and nodded in response hastily.

"Okay, Director Zhang, I'll contact you as soon as I wake up."

"If I weren't in such a terrible state right now, covered in sweat and smelling terrible, I would really like to go to the lake to report on my work right now."

Before he could finish speaking, Deputy Director Zhang chuckled.

"Haha, SZ, I know you've been up all night again, managing several investment teams simultaneously and battling wits with countless international speculators. It must have been incredibly tough!"

"That's why we scheduled the report for the afternoon, to ensure you get enough sleep and are in good condition!"

"Thank you for your concern, SZ. I am honored."

Ling Yun quickly replied politely.

After exchanging a few more words, Deputy Director Zhang ended the call on his own initiative.

Only then did Ling Yun pick up his backpack and leave the office, ready to go home and rest.

As he walked out of the office, the numerous traders who had just finished their shift change immediately turned to look at him.

A significant number of them unconsciously stood up and stared at him!