Chapter 295: The global finance exploded, and the stock market of the island country collapsed
As the Federal Reserve issued the document, financial institutions and securities investors who had not received inside information in advance panicked.
The Magic City of Dragon Kingdom.
In a certain luxury villa area.
Li Daxiao, an economist who has accurately predicted the direction of the stock market several times and is well-known in the financial circle of Longguo, is staring at the computer screen in disbelief, unable to calm down for a long time.
Does the US dollar increase deposit interest by 5%?
What do you want to do?
What does Lao Mi want to do?
Devastate global finance?
Maybe ordinary people have no idea about US dollar interest rate hikes, but who is Li Daxiao?
economist!
To put it bluntly, economists predict future financial trends. Does he have no idea about US dollar interest rate hikes?
This is obviously impossible!
After waiting for a full three minutes, Li Daxiao's dull eyes gradually recovered and murmured to himself: "The deposit interest rate has been raised from 0% to 5%. A large amount of foreign U.S. dollars will flow back to the United States, and the circulating U.S. dollars will If it decreases, the entire world's financial system will be affected. "
As an economist, he is very sensitive to financial trends.
Because the US dollar is linked to the "gold standard", global foreign trade only recognizes the US dollar. Without it as a trading medium, other countries would not be able to complete trade settlements at all.
This is like if you have a cow and Lao Wang next door has a pig. If you want to eat pork, you will obviously lose money if you directly exchange the cow.
The best way is to find a middleman, and this middleman has something that both parties agree on, such as gold, gems, etc.
The U.S. dollar acts as a middleman because it is linked to gold, a precious metal recognized around the world.
For a normal international trade, both parties need to have U.S. dollar reserves, or exchange them for U.S. dollars for transactions.
If I use other currencies, such as Thai baht, rubles, and rupees, are there any financial risks for settlement in these currencies?
Obviously the risks are huge.
Take the Thai baht as an example. If transactions are conducted using the national currencies of both parties, if one party's currency suddenly depreciates significantly, it will be similar to the international giant's short selling of the Thai baht. Will the countries trading with Thailand lose money?
The 100 baht you just paid will depreciate to only 50 in the hands of others. Which country can accept this?
So the use of US dollars for settlement is recognized in world trade. This is the fundamental reason why the increase in the US dollar can indirectly affect the world.
“Buzzing——”
The phone in Li Daxiao’s hand vibrated twice.
Before he could check, a WeChat video call had already been made, and the name on it was "Yang Delong".
If you have played in finance or bought stocks, you will be familiar with this person.
Because Yang Delong and Li Daxiao have accurately predicted the stock market many times, they have gained a large number of fans.
In particular, Yang Delong was the top scorer in science in 1999. He came from a privileged background and possesses a large amount of financial insider information.
As the video call was connected, Yang Delong spoke very quickly and anxiously: "Did Mr. Da Xiao read the Fed's announcement?"
"You know, I have always had it. The habit of paying attention to US financial news." Li Daxiao took a deep breath and responded.
Seeing that Li Daxiao knew about the interest rate hike, Yang Delong also went straight to the topic: "The U.S. dollar's interest rate hike and the return of funds will affect the global financial market. If the situation cannot be broken, it is possible to fall into the Great Depression in the next ten years. Do you think we should do something?”
Both of them are big influencers on Weibo and have certain social influence.
But this is the general trend. Li Daxiao sees no hope of breaking the situation at all. He shook his head and said: "All we can do is to remind investors, but I am very confused about whether to post a video."
"Why do you say that?"
Yang Delong wanted to remind him.
In his opinion, foreign capital will definitely withdraw wildly tomorrow. If we don’t seize the opportunity to run away, retail investors will be trapped in it.
For economists, money is really just a bunch of numbers, and they can take it out of the market at any time if they want.
Li Daxiao took a deep breath and sighed: "If investors are reminded, not only foreign capital will flee tomorrow, but also domestic retail investors' funds will withdraw from the stock market, creating panic selling pressure..."
He After pausing for half a second, he gave another example: "It's like a snowball. Everyone wants to escape, and no one can escape the harvest. In the end, the downward trend will get bigger and bigger."
"Then let it go. "?"
Yang Delong asked.
"No!" Li Daxiao shook his head, closed his eyes and said: "It depends on how the village responds. If there is no effective response, this will be the beginning of the stock market crash."
"Village" is a slang term in Longguo's financial industry, referring to the China Securities Regulatory Commission.
If the China Securities Regulatory Commission takes action and expresses its specific attitude, Li Daxiao will know how to remind investors. If they rashly remind investors to flee, it will only lead to a financial "stampede".
Take a stock with a stock price of 10 yuan, for example. One day, it suddenly dropped to 5 yuan. There was also bad news about foreign capital fleeing, and big V called for fleeing, saying there was no support. If you hold shares Retail investors, are you going to run?
Obviously.
Someone will definitely cut the flesh.
If someone cuts the meat and runs away, the stock price will continue to fall. When it reaches 4 yuan, another group of people can't bear to cut the meat. The stock price reaches 3 yuan. After 3 yuan, another group of people will cut the meat. If this goes on and on, a financial stampede and stock market crash will come. .
"In this case, I will not issue a reminder and focus on cleaning up my own assets." Yang Delong agreed with Li Daxiao's statement. Now it depends on how the China Securities Regulatory Commission will respond.
With the interest rate hike on U.S. dollar storage, you can earn 5% every year. Who will play venture capital with you?
Both of them predicted that as long as A-shares and Hong Kong stocks open normally tomorrow, it will definitely be an epic avalanche scene.
......
While Li Daxiao and Yang Delong were discussing, the China Securities Regulatory Commission also got the news and held an emergency meeting.
The current "Village Chief" Xiao Gang looked solemn, rarely put on his glasses, glanced at the people in the conference room and said: "The Federal Reserve announced an interest rate hike, which is an impact on the global financial system and also on the global financial system. The impact on our stock market.”
“We are convening this meeting urgently tonight. Among other things, we want to ask for your opinions on whether there is any way to reduce the damage of this financial sickle.”< br>
The words fell.
The expressions of all the members in the conference room changed suddenly.
"Did I hear you right? The U.S. dollar is raising interest rates?"
"Has the United States forgotten the financial crisis in 1997? The root cause is U.S. dollar inflation. Now raising U.S. dollar interest rates is to make the world once again It’s a financial crisis!”
“What a fool!”
“Something may happen this time. If the U.S. dollar really raises interest rates, the stock market may collapse, first with leverage, and then with financing. , and then there are the stocks pledged by major shareholders. If we don’t stop it, it may really cause financial risks.” What a piece of shit!”
Experts from the China Securities Regulatory Commission whispered among themselves and discussed the US approach.
Because they know a lot about the financial system. They know a little bit about every financial crisis.
After a few minutes of discussion, a gentle man in his thirties stood up and suggested: "My suggestion is to suspend stock market trading to prevent foreign capital from stampeding and fleeing."
"No way. !”
As soon as he finished speaking, someone immediately retorted: “If the stock market trading is suspended, it will only accumulate panic among investors.”
"Once panic spreads and trading is opened, it will be an avalanche. We should not restrict trading now, but let market funds take over the foreign funds that have been withdrawn."
In his view, foreign capital The withdrawal of funds will indeed have an impact on the stock market, but as long as we absorb the selling pressure, we can survive this crisis.
But some people don't think so and retort: "You want retail investors to take over foreign funds? This is a bit fanciful."
"Now our A-share foreign funds total 170 billion , It is impossible to rely on retail investors to take over the market, and the Hong Kong stock market is the hardest hit area. If the Hong Kong stock market falls, it will also drive us. This is an unsolvable situation."
"Then we cannot sit idly by."< br>
“We can only intervene.”
At the China Securities Regulatory Commission meeting, every expert expressed his or her own thoughts, and the village chief Xiao Gang was also listening to the opinions of all parties.
This is the first time for him to deal with such a big scene of global finance, such as the U.S. dollar's interest rate hike, and he finds it very difficult. Seeing that the discussion was still fruitless, he also called the "old village chief" Guo Qinglin under the pretense of going to the toilet.
The moment Guo Qinglin received the call, he fell into silence.
Fortunately, he resigned, otherwise he would have been responsible for handling this financial risk, which gave him a slight sigh of relief.
After understanding what happened, Guo Qinglin gave a hint: "The withdrawal of foreign capital may indeed cause a financial stampede, but as long as investors have enough confidence, they may not be able to turn danger into safety and make good use of the rights in their hands."
“The right in my hands.”
Xiao Gang suddenly had a flash of inspiration.
Yes!
He is the village chief now!
In addition to restricting transactions, it can also reduce stamp duty collection.
Perhaps many people don’t know what stamp tax is.
This is actually the "seal" fee, or intermediary fee. When two people trade stocks, the China Securities Regulatory Commission and the exchange witness the seal, making the transaction legal.
At the same time, stamp duty, if you make a profit in the stock market, it is also equivalent to paying personal income tax, and you can withdraw money directly to your bank card.
"Think about it carefully." Guo Qinglin reminded, and then added: "You'd better communicate with the bank so that more funds can flow into the stock market."
Communicate with the bank, The sentence of letting funds flow into the stock market is obvious, that is, let Xiao Gang lobby banks to lower deposit interest rates and release more funds.
An increase in interest rates on deposits can allow depositors to save. If interest rates on deposits are reduced, some depositors will naturally take out their money to invest.
This is just like the 3% interest suddenly dropped to 1.5% interest. There are definitely people who look down on this little money and take the money to invest.
Just like the United States, with 0% deposit interest, who would put money in a bank? Basically they are put into the stock market.
“I understand.”
Xiao Gang has found his direction.
……
At the same time.
The other side.
Neon Island Securities Regulatory Commission next door.
After the Federal Reserve announced the US dollar interest rate hike, they only realized it later and did not receive any inside information at all.
“This is bad news. As long as the stock market opens tomorrow, there will be an avalanche.”
“Damn it, we have only had a collapse in the property market once, and the financial system must not collapse. We need to stabilize foreign capital."
"It can't be stabilized. We just lent a large amount of stocks to Wall Street giants yesterday. They came prepared."
"Damn it. ! They want to harvest us?”
“It’s obvious.”
Until now, they didn’t know why Wall Street financial giants bought large amounts of Japanese stocks and borrowed them at any cost.
You don’t have to think about it to know that those people will definitely smash the market when the stock market opens tomorrow, and then get a lot of profits from it.
What can they do now?
The United States has troops stationed in Neon Island Country.
Now instead of condemning, we can only silently digest this crisis ourselves and help financial giants harvest the wealth of the people of Neon Island Country.
Less than two hours after the Federal Reserve announced a US dollar interest rate hike, panic has already appeared in global financial markets.
The little bluebird who spoke in "Freedom" has already been occupied by US dollar interest rate hikes on the hot search list, and the popularity has already taken the lead.
Because it is an international information platform, the entry of "USD Interest Rate Increase" has reached the top of the list, making people around the world aware of this financial information.
Of course.
The entry can reach the top quickly without the help of the "mastermind".
In the third-in-command's office at the headquarters building of Balay Group, Maria is sitting at her desk, quietly admiring this financial feast.
Fight them?
Don’t even look at who is behind them!
…
At the same time.
Washington, Conference Hill.
The current Speaker, Renato Marotta, is also waiting for the financial feast to arrive. He swears to God that this is the craziest thing he has ever approved.
From 0% deposit interest to 5%, he can already foresee the tragic situation of the global financial system in the future, and the world may fall into a state of deflation in the next ten years.
In order to witness history, he decided to stay up late to process documents and wait for dawn to personally witness the opening trend of rice stocks.
Those who have the same idea as him are Apple CEO Jack Pocket, Gaotong CEO Mollenkopf, Korean Star Group Chairman Lee Jae-yong, TSMC CEO Zhang Miu...
Not at all It is an exaggeration to say that the whole world has turned its attention to Migu.
Because rice stocks will bear the brunt of US dollar interest rate hikes, high deposit interest will definitely make a group of conservatives put their money in banks, which has never caused a drop in stock prices.
Maybe…
The meltdown of rice stocks will appear again.
However, as the time came to 9:30 in the morning, a group of retail investors did rush to flee the stock market on the New York Stock Exchange.
But as soon as they sold the stocks, they immediately had funds to take over.
Not only did the index of rice stocks not fall, but it rose slightly, which left countless financial people scratching their heads.
Rise instead of falling?
What is going on?
Many financial people in other countries still don’t know that if you want to get 5% deposit interest, you need to sign an investment agreement with a bank.
To put it simply, after the money is taken out of the stock market, it goes around in a circle and flows back into the rice stocks.
And because a large amount of funds began to flow back, banks also increased their investment in rice stocks, which caused the rise.
Many uninformed people have not yet breathed a sigh of relief. Neon Island Country, located in the East 9th District of Tokyo, opened one hour earlier than Longguo A-shares in the East 8th District. As the Neon Island Country stock market opened, financial The power of the sickle gradually became apparent.
Sony, down.
Toshiba, down.
Panasonic, down.
Toyota, down.
Looking at the entire stock market, not a single stock is rising. The Wall Street financial giants had already raised their sickles three days ago and are now ruthlessly harvesting wealth.
On the Tokyo Stock Exchange, all the stockholders of the neon island country were stunned in place.
10% drop at the opening?
Is this a stock market crash?
No!
This is a disaster for the stock market!
I saw a well-mannered stock investor in a suit and leather shoes, kneeling on his knees and kowtowing crazily to the LED screen hanging in the trading hall, with the numbers constantly falling and beating: "Oh no! Don't fall, I beg you, don't fall!" !”
(End of this chapter)