America's Road to Fame

Chapter 90 Goldman Sachs in Action

John Paulson is not alone in seeing that the real estate market is now on the brink.

Goldman Sachs.

Chief analyst Danielle Cardoso knocked on the door of CEO Lloyd Blankfein's office together with Carsten Bond, head of investments.

Once inside, the two reported back to him on their recent analysis of the real estate market.

"Ten days ago, we began to reduce our holdings of CDO bonds and began to purchase CDS bonds as a hedge. However, we still hold a lot of CDO bonds. After analysis, because the Federal Reserve continues to raise interest rates, now The enthusiasm of homebuyers is obviously dissipating, and we believe that the entire real estate market has reached a very dangerous time and needs to speed up."

"What's the mood in the market right now?" Lloyd asked.

Carsten looked at lead analyst Danielle and motioned for him to answer the question.

"There have been voices that are not optimistic, but they have not yet become the mainstream. But I think that under such circumstances, the huge financial pressure is accumulating, and the market may not last long. And we have also found that there is a huge short-selling of CDO bonds. Funds come in."

"What kind of funds are they?" Lloyd asked with interest.

"Some are fund risk hedging strategies, but one thing is very interesting, that is, the funds from Meta Investment Company, they seem to be purposefully short-selling, and some of the short-selling orders of CDO bonds are signed with us." Daniele Er continued.

"Meta Investment Company?"

Hearing the CEO's question, Carsten, the head of the investment department, said: "That is the company of William Chen, who is known as the prodigal son. His fund manager is an acquaintance of ours. John, who followed the trend and shorted CDO bonds two years ago. Paulson. Shall we teach them a lesson, eat their money and contact other people, like we did two years ago?"

"Do you think you can do it now?" Lloyd asked rhetorically.

Now Carsten thought about it and stopped talking.

"We succeeded two years ago because we were stronger, so we were able to swallow the kid who jumped out and wanted to make trouble. But it's different now. We pushed a boulder and climbed to a higher peak. It took too much effort, so it's not allowed to do that anymore."

Lloyd continued: "Come on according to the plan, speed up the reduction of CDO holdings, suspend the short-selling service for CDOs, and buy CDS. We must take precautions to reduce losses. Maybe we can make another fortune. "

"But Lehman Brothers are still optimistic, and many other banks are also continuing to invest funds. Do we need to reach a consensus with them?" Carsten hesitated and asked.

"Leave them alone, it's better for them to have different opinions, so that we have room to turn around, and when everyone starts to turn around, then we can only be blocked in a dead end. Remember, if you change to them today, it will also be the same. They won't care about our lives!" After warning them, Lloyd sighed and said, "Go ahead, do it as fast as possible, and try to be as concealed as possible."

After they left, Carsten went to the window and looked out.

Today's weather is gloomy, with black clouds billowing in the distance, and he knows that heavy rain is coming.

……

"William, I have an idea, but I don't have much data to support it. I want you to give me a reference first."

In the morning, Ivanta still had some aftertaste on her face. She leaned on Chen William's arm and said softly.

After getting up, William Chen went to the gym to exercise for a while, and after he came back to take a shower, he originally wanted to wake Ivanta up, but he couldn't hold back for a while...

Now that I heard her words, I asked, "Tell me."

"I have observed it specially in the past few days. It feels like you said that Huaguo is now full of vitality and has great potential. And I can also see from the chat with Wendi that Huaguo has changed a lot in recent years. You said that if I put How about the development of the family’s business in Huaguo? Now that there are more and more rich people in Huaguo, I think there is great potential in both commercial real estate and the entertainment industry.”

Ivanta didn't do this on a whim. In fact, since she came to Huaguo and saw a thriving scene that was completely different from what she had imagined, Ivanta had this idea. These days, when she was playing, she also paid special attention to it. I have experienced many emerging real estate projects and hotel projects in Yanjing, so I will express this idea today.

"I believe that Huaguo's potential has actually been seen by your family a long time ago. From your point of view, I agree with it very much, but I don't think your idea can be realized, at least it is difficult to get the family's approval. agree."

When William Chen said that, Ivanta sighed after thinking about it after hearing it.

Because her family company has not thought of exploring the Huaguo market. In fact, last year, when the vice president of Hengda Real Estate went to the United States to find a partner, he chose the Trump Group, and the two hit it off.

Even when they signed the contract at the Trump headquarters building, the three children, including Ivanta, were present and saw their father talking happily with each other.

The first project they cooperated at that time was to jointly bid for a high-rise landmark building in Yangcheng, Guangdong Province. As a result, the project ended in failure, and the building was bid by a HK company halfway at a low price.

As a result, the subsequent cooperation between the two parties did not continue, and Ivanta's family business also turned its attention from the Huaguo market to the United States, where real estate is hot.

Therefore, if Ivanta proposes to open up the Huaguo market at this time, the result may not be optimistic.After all, she is only the vice president of the group now, and she is not the one who can really make decisions.

Seeing that she looked a bit disappointed, William Chen hugged her and said, "But don't worry, my dear, you can use this time to do a good job of research to make the plan more feasible, even if you don't get the family's approval by then , I will also support you. Because I agree with your views and are very optimistic about the development of Huaguo."

William Chen saw some opportunities from Ivanta's proposal.And he knows that the subprime mortgage crisis is coming soon, and the real estate market in the United States is about to enter a long-lasting recession. In contrast, the real estate industry in Huaguo still has a golden period of 8-9 years of rapid development. It is a very good time for the real estate group to shift its focus from the United States to here.

"You support me?" Ivanta asked with some doubts.

"Yes, don't you believe me? Darling, you'll see that day soon. But before that, I hope you're ready."

……

Just when Ivanta excitedly changed her itinerary and began to study the development status of Yanjing's real estate and hotel industry, Chen William also lamented that this woman was more ambitious, but at this time he was also happy to see this occurrence of such a situation.

But his good mood didn't last long.

"William, why did I find that I can't access Twitter?"

Ivanta was talking, and showed William Chen the interface of her phone. After clicking the white dove icon, the interface kept circling without displaying any content: "Is there something wrong with my phone? Try yours."

At this moment, William Chen seemed to understand what happened. Sure enough, after he turned on his phone, he saw the same situation on his Twitter.

"It's okay, my dear, let me ask about the situation. You go shopping first, and I will go to find you later." William Chen pointed to the coffee shop next to him, and then walked in.

After finding a seat to sit down, William Chen directly picked up his mobile phone and called Williams, the CEO of Twitter, only to find out that Twitter was banned from accessing.

It turns out that Huaguo had warned Twitter a long time ago, requesting to regulate user content in accordance with its own laws and regulations, but Twitter has always used freedom of speech as an excuse and did not take it seriously at all, which led to the current result.

"F**K, Williams, here you put away your shitty freedom of speech. Twitter is a company, not the United Nations, and it's not a shitty American politician. When we enter any country, we first abide by the local laws. Regulations, don’t let me teach you this, not to mention that the United Nations is not as wide-ranging as you manage, and you have not given the minimum respect to a fast-growing big country!”

"I bought Twitter to develop it well, not to export your set of values. I hope that after I return to the United States, I can get a detailed explanation on this matter. And from now on, I need you Start to develop a content identification and review system for me, display the corresponding content according to the laws and regulations of different countries and regions, block the illegal content, and don’t let me see this kind of thing happen again.”

(End of this chapter)