Chapter 820: Selling Oneself Short
Eleven o'clock at noon, a certain building or an office on Wall Street.
“Goldman Sachs system failure, Morgan Stanley server crash, Commonwealth Bank outage…”
Hearing what Michael Bray described as the reasons given by investment banks for their temporary inability to pay CDS, Luo An couldn't help but twitch his lips.
It can only be said that Wall Street is worthy of the spirit of contract, and high-end business wars are really simple and unpretentious.
“Motherfu-ker…”
Michael Bray picked up the coffee and drank it in one gulp. The expression on his face was very ugly. He cursed a few times in a low voice. When he looked up and saw that Luo An looked calm, his eyes suddenly lit up and he quickly asked:
“Luo An, do you have any good ideas?”
“Don’t be anxious, stabilize your condition first, and don’t let negative emotions control your brain.”
Roan picked up the coffee and took a sip. After Michael Bray took a few deep breaths and the expression on his face slowly calmed down, he said:
“New Century Financial Corporation went bankrupt, and federal housing prices fell. The people who were most anxious were not us, but the investment companies and banks of Goldman Sachs, because they held a large number of junk financial products.
Think about it for a moment, if Michael were a management member of Goldman Sachs, what would you do now? "
Michael Bray’s eyes flashed and he subconsciously replied:
“Deceive the downstream, sell out all the junk bonds you still hold, and you must not continue to lose money...”
Michael was refreshed when he said this. He suddenly raised his head and looked at Luo An. The two of them said in unison:
“Goldman Sachs will short its own position!”
Investment banks such as Goldman Sachs have only one fundamental purpose, which is to make money.
As for social stability and the stability of the federal government, they are completely outside their consideration.
At present, federal housing prices are falling, and those who hold a large amount of federal housing system bonds will inevitably be severely affected. The decline in company stock prices is inevitable.
Since you are sure that your company's stock price will fall 100%, it is not too difficult to understand why you are shorting yourself. After all, the fundamental goal is to make money.
As a fund manager who has worked on Wall Street for many years, Michael Bray heard Luo An’s reminder and instantly clarified the context of the matter in his mind. The expression on his face became excited. He slapped the table and said excitedly:
“This is a rare opportunity. We can also short the stocks of investment companies such as Goldman Sachs and Morgan Stanley and make another fortune!”
“That’s right.”
Luo An nodded with satisfaction and then asked:
“How much is left of the US$80 million transferred a few days ago? Do you have enough funds in hand?”
“There is no need to use the money.”
Michael Bray, who was reminded by Luo An to clarify his thoughts, once again became a professional manager. The corners of his mouth were raised, and the smile on his face was very confident, and he said:
“Now that New Century Financial Corporation has gone bankrupt and federal housing prices have begun to decline, CDS, a financial product, will be the hardest hard currency on Wall Street in the next period of time!
In the past two years, except for you, Luo An, other investors in the company have not believed in my judgment and have repeatedly requested to withdraw their capital..."
Roan smiled and nodded, then continued what Michael Bray said:
“Now it’s time to redeem the CDS and collect the proceeds, it’s the turn of these people to contribute.”
Those who invested in Michael Bray's company are all wealthy people, and the combined connections and energy behind them cannot be underestimated.
When they were losing money before, these people cursed Michael Bray. Now that it’s time to make money, it’s time for them to charge ahead of Michael Bray and demand that investment banks such as Goldman Sachs and Morgan Stanley pay CDS as a “gamble capital”. .
"Hahaha…"
Michael Bray raised his head and laughed, all the depression in his heart was swept away. He stretched out his hand and shook hands with Luo An, and said with a serious face:
"Of course." Luo An took a deep look at Michael Bray and said with a smile:
“I have always believed that Mr. Michael Burry is the best fund manager on Wall Street.”
The two looked at each other and smiled, and exchanged a few simple greetings. Luo An left first, and Michael Bray also picked up his mobile phone and started to contact the rich people.
It has not been long since the bankruptcy of New Century Financial Corporation, and federal housing prices have just begun to fall. Investment companies such as Goldman Sachs and Morgan Stanley cannot cash out CDS immediately. At least they have to wait until they finish handling their internal matters.
This period of time will not be short, and Luo An cannot focus too much on Wall Street. It is just right to leave it to Michael Bray, an experienced real estate manager.
However, Luo An also invests in other stocks on Wall Street, such as Apple, Amazon, Google and other Internet companies.
The financial crisis in 2008 also had a considerable impact on the stock prices of Internet stocks. For example, the stock price of Google once fell as high as 56%.
There was still time, and the stock prices of Internet companies and other companies had not yet fallen. Luo An decisively sold the stocks of Apple, Google and other companies at hand at high prices in exchange for cash and kept it in the bank. At the same time, he called Mona and Lacey to explain the situation. .
Hearing that Luo An suggested that they sell all the stocks of these companies within the next few days, Michelle, Winslow, and Chenie suddenly opened their eyes and were very surprised.
Considering Luo An’s past performance, Michelle, Winslow and Chenelle looked at each other and sold them all without hesitation.
As for Mona and Lacey, they acted very quickly. Without asking why, they did not hesitate at all after hanging up the phone. They directly took out their mobile phones to contact the stock traders on Wall Street and asked them to transfer all the stocks they held. Sold.
That afternoon, Luo An left Wall Street in New York and drove back to the investigative team building in Washington, D.C. When he walked into the office area, a group of agents were discussing stock returns.
Winslow and Cheniere have been members of the special investigation team for the shortest time. In addition, the investment amount was not high and the investment time was not long. They made about US$700,000 from selling those stocks.
Michelle lasted a little longer, earning more than $900,000.
Mona didn’t elaborate, and they didn’t plan to ask too much. As for Lacey, she looked at her phone and laughed as soon as she received the text message from the bank, as if her IQ had cleared.
“How about a bet?”
Seeing Lacey's silly smile and Winslow's head full of black lines, he patted Chenelle on the shoulder and whispered:
“I bet ten dollars that when Luo An comes back later, this guy will definitely be the first to pounce on him.”
“I’ll bet ten dollars too.”
Chenelle rolled her eyes and whispered:
“I bet when Lacey pounces on her, Roan will slap her aside.”
"make a deal."
Not long after, Luo An pushed the door open and said casually:
“Everyone, I’m back.”
“Luo An!”
As soon as he finished speaking, Lacey suddenly jumped up from the chair, jumped towards Luo An, and said excitedly:
“You are the most handsome man in the world!”
“Thank you for the compliment, but there’s no need to tell the truth.”
Luo An responded casually, took a step to the right to avoid Lacey's surprise attack, then grabbed Lacey's clothes and threw her onto a chair nearby.
In the office area, Winslow and Chenelle nodded as expected, then each took out ten dollars and handed them to the other.
“…”x2
Seeing the actions of Winslow and Chenelle, Mona and Michelle looked at each other and saw the speechlessness in each other's eyes. They felt that the people in the investigation team seemed to be getting more and more outrageous.
After a moment of silence, Mona raised her hand and said:
“Luo An, I have something to ask.”
(End of this chapter)