Rebirth in 1998 starts with the stock god

Chen Mo took a deep breath and said seriously: "The solution is very simple, that is to confront them head-on! They will be killed in seconds if they show their heads!"

Ji Longxiang's mouth twitched: "Show your head and kill him in seconds? Are you kidding?"

Chen Mo said with a playful smile: "Hahaha, it's indeed a joke. Those who don't show their heads will also be killed in seconds."

Ji Longxiang: “…”

Feng Hongyang: “…”

Chen Mo said seriously, "As long as we can wipe out these bastards who dare to show their heads and follow us, and disband this so-called protest alliance, won't the problem be solved?"

"Give me a month, and I promise that no country will dare to protest with the Tyrant Country again!"

Feng Hongyang asked repeatedly before confirming that Chen Mo was serious.

But no matter how I listen to it, it seems like nonsense!

Whoever follows up will be killed in seconds. It sounds very domineering.

But do you have that ability?

I’m afraid that even the Great Xia Kingdom doesn’t have that strength?

Can you do it alone?

"Be more specific, what are you going to do?" Feng Hongyang asked.

“Wasn’t the Greek nation the first to jump out and become the dog of the hegemonic nation?

Then let’s take down Greece first!

I decided to short the entire Greek nation and make it bankrupt!"

Chen Mo said.

Gudong~~~~

Feng Hongyang swallowed his saliva, his voice trembling slightly: "Let Greece go bankrupt? Xiao Chen, do you know that Greece is a developed country? Do you know how prosperous its economy is?"

"It is still a member of the Owl Alliance. If you short it, the Owl Alliance will not sit idly by."

"Let alone you, even if I mobilize the whole country of Daxia, I'm afraid I won't be able to bankrupt Xi, right?"

Ji Longxiang echoed, "Xiao Chen, can you tell me what you think? We don't want you to act impulsively."

Chen Mo nodded: "You two elders should know that Ouzhou is the largest investor in MBS and CDO, right?"

Feng Hongyang nodded: "Well, after all, an annual return on investment of 880% is simply irresistible to a developed area like Ouzhou."

Chen Mo: "In July 1988, the Barçael Banking Supervision Committee under the Bank for International Settlements passed the Barçael Agreement 7, which stipulates that the capital ratio of large international banks shall not be less than 1%."

"That is to say, if you want to invest a total of 100 million, your own principal must not be less than 8, and the maximum leverage is 12.5 times. This is to prevent the leverage ratio from being too high and causing risks."

"But in 2004, when the hegemonic MBS and CDO triggered a global financial frenzy, the Barca Air Committee passed the Barca Air Agreement 2. The capital ratio was already 8%, but the leverage requirements were relaxed in two ways."

“First, the capitalist weighting coefficient for mortgage bonds has been directly reduced from 50% to 35%, which is to encourage banks to make more mortgage bond investments.

Second, when investing in mortgage bonds, as long as a certain amount of financial products are purchased to hedge risks, the capital requirements can be offset.

This regulation has caused the countries in Australia to leverage their assets to buy MBS and CDOs."

“The leverage ratio of Bears and other banks that I shorted before was 45 times, the leverage ratio of Lehman Brothers that I am currently shorting was 75 times, and the leverage ratio of the two housing agencies was 108 times.

The average leverage ratio of financial institutions in the hegemonic country is 30 times. Guess what the average leverage ratio of Ouzhou Bank is under such a loose agreement?"

Feng Hongyang and Ji Longxiang looked at each other.

Feng Hongyang guessed a number: "35 times."

Ji Longxiang was more daring: "40 times!"

In their view, an average leverage ratio of 40 times is already an astronomical figure.

After all, Daxia Bank's leverage ratio is absolutely not allowed to exceed 10 times.

Chen Mo smiled slightly: "It's 50 times."

The two elders' mouths twitched.

The average leverage ratio is 50 times? !

If the subprime bond market drops by just 2%, it will cause countless banks to go bankrupt!!!

Not to mention this is an average!!!

"The banks with the highest leverage ratios in the European countries are now comparable to the two housing agencies. During the subprime bond frenzy, they entered the MBS and CDO markets in the United States to grab profits.

Even Ouzhou is immersed in the beautiful dream that the housing prices in the country will never fall! "

"It's a pity that leverage can magnify their gains, but it can also magnify their losses."

“If their investment goes down 2%, they lose everything.”

“And my short selling principle is based on this.”

Chen Mo said lightly.

“But I heard that Greece’s economy is booming, and it seems that Greece has not followed suit in speculating on subprime bonds?

If you are shorting the country based on the other party's speculation on subprime bonds, then I can tell you responsibly that your idea of ​​shorting Greece is impossible to achieve."

Feng Hongyang shook his head in disappointment.

He didn't expect that Chen Mo simply copied the method of shorting the Ba State to short the Xi State.

Chen Mo stretched out a finger, shook it, and said "tsk tsk tsk tsk":

“Listen to me first. The investment principles of banks in European countries are: low cost, high return, and not putting all eggs in one basket.

Their investment targets are not limited to MBS and CDO of the hegemonic country, but also include investments in various industries in the countries of the OU Alliance.

The bankers of these countries increased their leverage to invest in Greece, Croatia and other countries. Huge amounts of funds flowed into these countries, and their people also made money from economic development.

And then where did they invest their money?

Give you three seconds to think about it.

3!2!1! ”

Chen Mo uttered three words calmly: "Real estate!"

"If you have money, you can speculate in real estate. This is the same all over the world. House prices in Greece have skyrocketed, and the annual return on real estate investment is as high as 30%!

This has led bankers from various countries to join the Greek real estate speculation craze.

Although a 30% return rate is far from an 880% return rate, it is still much better than other investments.

在2001年到2006年期间，霸国平均房价上涨126%，同期希国和牙国分别上涨了200%和260%。其他各国的房价也都在不同程度的暴涨。”

"In those two years, people speculated on real estate, banks speculated on CDOs and MBSs, and everyone was desperately increasing leverage, which created a huge bubble.

Leverage is debt, and behind prosperity is huge debt expansion.

Last year, the bank debt of the Crested Ibis and the Kingdom of Ireland reached 3 times of their GDP, the French Empire and Croatia 4 times, and the Patriotic Empire 7 times. Can you guess how many times the Greek Empire is?"

The number that Chen Mo blurted out made Feng Hongyang and Ji Longxiang tremble with fear.

The two of them had no idea and no channels to learn about the debt situation of the countries in the Gui Alliance. They could not imagine that the debt ratio there was so outrageously high!

"Could it be... 10 times?"

Feng Hongyang said a number that he thought was so scary that it would make people's scalps tingle.

A debt ratio that is 10 times higher than the country's GDP... This means that this country is an empty shell that will burst with just a poke!

Chen Mo smiled slightly: "It's 12 times."