America's Road to Fame

Chapter 33 John Paulson

In the end, Tom agreed and would help William Chen find a suitable teacher as soon as possible to teach him to write scripts and direct the scripts.

For Chen Weilian, it's easy to think about it, and he's used to it now. After all, it's a good thing to be willing to learn. It's better than he used to drink and fool around in Hollywood all day long.Sure enough, when a person's lower limit is very low, his room for improvement is particularly large.

But when Nelson called and said that he had arranged an appointment with John Paulson for William Chen, the other party was willing to meet him.

At this time, William Chen remembered that he almost forgot that he had entrusted the other party to help him meet the short-selling king.

But fortunately, he still has time to do these things now. It is best to get rid of this big short quickly and let him come to help him short the real estate market.

"William, you can't do this anymore." Before Chen William had time to meet John Paulson, Alicia approached him first.She came here specially to see William Chen this time because she was very dissatisfied with his financial situation.

Alicia will be in charge of William Chen's current tax coordination, so Alicia will regularly get William Chen's financial records so that she can make advance planning for William Chen's tax return next year.And Alicia also had a headache to find that William Chen's account transactions were too confusing.

"William, I hope you can clearly distinguish company and personal funds in the future. Although your Meta investment company is completely personal to you, if you always make frequent transfers between the company and your personal account , would be a disaster for your tax statistics.

Although there are many differences between Huaguo and the United States in terms of taxation, William Chen also managed a company in his previous life, and he knows that the simplest company funds and personal funds should not be confused.

But his real situation is a bit special. After all, he can't explain to others that he has a future bank, and during this period, he also needs the profits from investment to pay his bank debts.Therefore, it seems that there are frequent transfers between corporate accounts and personal accounts.

And the weirdest thing is that the future bank deduction records cannot be checked at all, so it looks like a sum of money disappeared out of thin air in my personal account, and a sum of money appeared out of thin air after a while. Fortunately, William Chen did not directly give Ai Licia's specific transfer records will only indicate the purpose in the account given to her, otherwise she will probably go crazy even more.

However, Chen Weilian did not know what method the Future Bank used. It seemed that no one had noticed this except his accident. Maybe it was as if this record did not exist, but everyone would ignore it inexplicably.

"Sorry, Alicia, but my situation is that some investment funds are borrowed from other places, and they are all short-term funds, which need to be returned in time, so this happens."

"If this is the case, William. There are two ways to solve this problem: one is to use personal funds as a company loan, but in this way, after the investment makes a profit, the company can return the principal of the loan and the appropriate interest, and cannot take If too much profit is transferred to a personal account, if that happens, it can only be marked as a dividend and requires personal taxation.

Another is that your investment company can form an investment fund, and then use personal funds as investment to participate in this fund. The advantage of this method is that as long as you do not redeem the fund or pay dividends, then as long as you hold the fund Over a year, your capital gains tax rate will be greatly reduced.

Moreover, for financial investment in the form of funds, the investment company only needs to pay very low taxes, because the process of fund investment is essentially that the company uses customers' funds for financial management. "

In Alicia's opinion, William Chen's investment talent is indeed very high.She came to such a conclusion through the profitability of the Meta investment company she saw.But at the same time, William Chen's understanding of the company's financial aspects.It simply doesn't match his status as a son of a rich family.

In the United States, when the rich are cultivating successors, they can ignore the other party's artistic accomplishment, cultural level, and even school grades, but financial and taxation knowledge will definitely be the most important skills to master.

However, considering that William Chen's parents were killed when he was still young, his behavior now is understandable.After all, considering the fact that the film projects he invested in before had suffered serious losses, he might not need much knowledge in this area.

Next, Alicia patiently explained some basic financial knowledge to William Chen, helped William Chen sort out his financial situation, and put forward many opinions on his future company structure.In general, William Chen still feels that he has benefited a lot from this conversation.

Of course, the matter of Alicia can only be regarded as a small episode.The next most important thing for Chen William is to arrange a meeting with John Paulson, after all, this is related to the benefits he can obtain in the upcoming subprime mortgage crisis.

The meeting between the two went smoothly. After an in-depth conversation, John Paulson finally accepted William Chen's invitation.He will join Meta Investment Company in the future. His most important task is to continue to study the situation of the real estate industry in the United States and prepare for shorting real estate bonds.

This result was also expected by Chen William. Now John Paulson's situation is not very good. After the fund he was in charge of before caused a huge loss due to shorting the real estate subprime bonds, he has been at home all the time.

During this period, he also took the initiative to look for job opportunities, but he has been rejected by various fund companies. Even if there are those who are willing to hire him, they just hope that he will do other jobs, and will not rest assured that he will be in charge of a small scale. investment funds.

So far, John Paulson still sticks to his point of view. He believes that there is a huge bubble in the American real estate market, and because banks cooperate with mortgage companies to package those subprime loans with bad credit into financial products for sale, It magnifies the size of this bubble.

Because the interest rate of the loan fluctuates according to the assets and credit rating of the lender, people with high assets and high credit will have lower loan interest rates, which is very reasonable, because their repayment ability is stronger, and the risk of the bank will be lower. , so they are also willing to lend to them.

And those who do not have qualified asset certificates and low credit ratings will have very high interest rates on their loans.In order to sell more houses and obtain more income, mortgage companies lowered their qualification requirements, and took out the most risky subprime loans, and cooperated with banks and financial companies to launch related financial products, because these subprime loans originally The interest rate is high. This kind of financial product called CDO is very popular after its launch because of its high income.

But there are leverages in the financial market. When the real estate market continues to partner, housing prices keep rising, and those who borrow to buy houses can make money, this game can continue to play.

Once this kind of prosperity cannot be maintained, with the large-scale default of subprime loans, and then gradually amplified, the final damage will be multiplied, and finally it will become a major crisis affecting the global economy.

Although it was too early for John Paulson's fund to short-sell this crisis, he has now become more and more certain through the various performances of the market that this increasingly large-scale bubble is about to usher in It's time to be punctured.

William Chen is the only person so far who agrees with his point of view and is willing to spend funds to let him personally short the real estate market. This is the biggest reason why John Paulson is willing to join William Chen's investment company.

Because he firmly believes in his own judgment, and his situation is that the fund he was in charge of before was dismissed without a chance to correct the error after he made a mistake in the operation. Many fund companies are worried that hiring him as a fund manager will cause losses to the company's funds because of his views, so they no longer trust him.

It was precisely because of this that he also took a deep breath in his heart, hoping to prove his judgment was correct with practical actions.

Through the eyes of the future, William Chen knew that the world's subprime mortgage crisis would erupt at the end of September.At the same time, he also understands that this kind of investment must be deployed in advance, and it is too late to start the deployment after the crisis breaks out.

Because once a crisis breaks out, many funds will respond quickly. In order to hedge their possible losses, they will carry out short-term operations accordingly, and the prices of those bonds will be greatly affected at that time.

Therefore, in his plan, after completing the investment in the international purchase price, he plans to take part of the profit immediately and hand it over to John Paulson to set up a fund dedicated to shorting the real estate market. profit.

…………

Erica came to William Chen's office again and started today's lecture.During the period, William Chen told her about his upcoming study plan.In Chen William's plan, when the script writing and other teachers that Uncle Tom found for him arrived in New York, he was going to start intensive study in six days.

Of course, it would be difficult to complete these studies in such a short time based on his current state, but his reliance was the experience boosting ring in the future bank inventory.With this, Chen William is willing to try the challenge.

In Chen William's plan, he will spend these six days like this: get up at 6:8 in the morning, run in the morning, and eat breakfast; then he will start the first course at 3:11, and after the [-]-hour course, he will Finish the first session at [-]:[-].

He then takes an hour for lunch and a short break before starting the second session at 12.When he finished the second course, it was 3 o'clock in the afternoon; he then started the third course, which was from 3 o'clock to 6 o'clock; he used another hour to have dinner and deal with some other things matter.

Finally, the fourth session starts at 7:10 pm and ends at 11:[-] pm.In this way, he still has an hour and a half to deal with things, take a bath and wash up, and finally go to bed at [-]:[-], so that the time left for him to sleep every day is exactly more than six hours.

(End of this chapter)