Chapter 397: Cutting Leeks in the United States
Lao Bai sold his shares in the gray matter company to Graitsyn and Elliott for a mere 5,000 dollars, and now, the market value of the gray matter company has reached 2 billion US dollars, Lao Bai has missed hundreds of millions of dollars in profits, every time he sees the name of the gray matter company, or hears 5,000 dollars, he will be unwilling.
"Good luck!" Lao Bai raised his glass and touched it again with Shen Long, but he didn't know why, the wine in the past became bitter today, Lao Bai was spoiled by the words five thousand dollars, and he didn't sit long before going home.
Shen Long also turned to leave, rested at the hotel for the night, and drove west along the famous Route 66 to the next door Arizona early the next morning, Albuquerque has flights to all parts of the United States, but since the time is not so tight, Shen Long does not mind taking this opportunity to visit the United States.
Across the vast arid prairies, into the colorful hills of Arizona, and north on the border between Arizona and California, into the familiar and unfamiliar state of Nevada, which is your base in the world of The Godfather, only now and very different.
Coming to Las Vegas, Shen Long collected a little information, went to the casino to win a little money, and then signed up for a high-prize Texas Hold'em tournament, the first place in this game will receive a prize of 10 million US dollars, it is not technically difficult to win 10 million US dollars in the casino, but it will cause some unnecessary trouble, there is no such problem in participating in the competition, anyway, it is not the casino's money to win.
After paying a registration fee of 10,000 US dollars to enter the game, after a long battle, Shen Long defeated many legendary big sharks, easily got the bonus of 10 million US dollars, and got enough start-up capital.
However, relying on this 10 million dollars to acquire a small company may not be a problem, but it may still be a little far from helping Lao Bai realize his wish, so Shen Long took another flight to New York.
Wall Street is now in turmoil, the subprime mortgage crisis that broke out last year swept the United States, the European Union, Japan and other major financial markets, so that those high-flying giants suffered heavy losses, and now the subprime mortgage crisis has not eased, but also has an intensifying trend, Wall Street is wailing.
Merrill Lynch had a net loss of $1.96 billion in the first quarter, Citigroup had a net loss of $5.11 billion in the first quarter, and the International Monetary Fund said that so far, the global losses due to the subprime mortgage crisis have exceeded $1 trillion.
However, this is still not the point, there are bigger bombs that have not been detonated, but no matter what kind of market environment, someone can make money from it, how terrible the financial crisis of 1929 is, Wall Street bear Livermore can make $100 million by shorting, and this time Shen Long intends to play the role of Livermore, to cut the leeks of Americans.
After finding a reputable securities company and asking them to open an account for themselves and provide leverage and traders, Shen Long personally sat in the trading room and announced his goal, "From now on, I want to short Lehman Brothers' shares." ”
Lehman Brothers, with a history of 158 years, is one of the top behemoths in the financial market, once ranked fourth among the U.S. investment banks, up to now, Lehman Brothers has assets of $639 billion, although the performance has been declining in recent years, and affected by the subprime mortgage crisis, but who would have thought that this behemoth would collapse with a bang?
The representatives of the securities company did not try to persuade Shen Long that now that the market is in a depression and there are better short-selling targets, why should he target Lehman Brothers? If something goes wrong with such a behemoth, both the US Treasury Department and the Federal Reserve Board will come to the rescue.
But Shen Long knew that the U.S. Treasury Department and the Federal Reserve Board did not save Lehman Brothers, but invested money in Bear Stearns, and finally Lehman Brothers had to file for bankruptcy protection, and the U.S. stock market ushered in the largest single-day drop after 9.11.
At Shen Long's insistence, the trader still did what he asked, and it didn't take long for Lehman Brothers to fire two executives, and then announced that it was expected to lose about $2.8 billion in the second quarter of this year, and on the day of the announcement, Lehman Brothers' stock price fell 4.42% to close at $22.70 under the stimulus of multiple unfavorable news.
By the end of June, Lehman Brothers' stock price had fallen to $19.81, an 11% drop. At this point, the company's share price has fallen to its lowest point since May 2000.
All the investors who held Lehman Brothers shares wept bitterly, but Shen Long made a lot of money and cut a wave of American leeks fiercely.
Then he decisively chose to withdraw, although in a few days, Lehman Brothers stock will fall to $14.49, but now everyone is on the verge of despair of Lehman Brothers, and I am afraid that shorting may not find anyone willing to take over.
Moreover, Shen Long's mission this time is not to become the richest man in the world, the current income is basically able to meet the needs of the mission, and Lao Bai's lung cancer can't afford to delay, he has to go back to Albuquerque as soon as possible.
"Mr. Shen, aren't you waiting any longer? Wait any longer, and your earnings will definitely be higher! Previously, the people in the securities company also persuaded Shen Long not to short Lehman, but now they have begun to persuade him to continue.
"No, I just entered the stock market to raise money, and now that I've raised enough money, why continue to take risks?" Shen Long resolutely refused.
The securities company can only endure the distress and let him go, and now the stock market is bleak, customers like him who can make money are really rare, and even fewer can make so much, and letting them go is also their loss.
In the subprime crisis, more than a dozen hedge funds that shorted subprime bonds made tens of billions of dollars, including $24 billion for Paulson and $4 billion for himself.
They provided Shen Long with cover so that Shen Long could avoid the flashing lights and return to Albuquiki with a relaxed mood, getting off the plane and looking at the familiar city, Shen Long showed a hint of a smile.
When he left here more than two months ago, he only had 5,000 dollars from drug dealers, and now, he has hundreds of millions of assets.
So, it's time to start thinking about buying a company, but I'm not familiar with Abququake, so who should I ask to help me buy it?