blackstone code

Chapter 2653

"Stocks are a double-edged sword!"

Lynch sat in a chair and chatted with Conner and several members of Congress about the issue.

With the federal government and Congress having almost no recourse, Lynch took less than a month to dismantle Schepp Industries' defenses, and it seemed as if he had done nothing.

After a few words and a few phone calls, a billion-scale super battleship was about to sink!
Connor, the members of the investigation team, they can understand part of it, but at the same time they are also full of shock in their hearts.

So they planned to talk to Lynch. Of course, Connor also wanted to hear more content that he didn't know, so that he could use it when bragging to others afterwards.

"Stocks are the most effective way for capitalists to plunder and harvest market wealth. This has always been the case!"

"I have a company. Although its current market value is only 100 million, I think it will have a market value of 100 billion in the future!"

"I will convey my ideas to people and let them stand on my side, believing that it can really have a market value of 100 billion."

"Then this company, which is only worth 100 million, is worth at least 80 billion in the capital market."

"It is worth whatever it is worth, because when we evaluate its actual value, we will only consider how many realizable assets it has, rather than unrealistic added value."

"People's confidence is a symbol of money on the exchange, but in reality, it is not worth a penny."

"Now even if we dismantle the entire Shep Industry and value everything that can be monetized, I think a few hundred million or more than a billion would be the limit."

"But the market and investors don't care about this. They only see a company with a market value of several billion, and in an instant, only a billion is left."

"This will create a feeling of panic, more people will join in, and the chaos in the equity will make these hundreds of millions or more than one billion not completely belong to Schepp Industries."

"So today's scene will appear..."

"This isn't the first time this has happened, and it won't be the last!"

Lynch gave it a very fair evaluation!
In fact, this kind of thing happened many times in the history of the Federation, many times!

Especially during the Great Depression, it basically happened every few years.

Capital has to pass on its losses to investors and stockholders, and they have to find ways to harvest the wealth of these people to make up for their own losses, or to increase their own wealth.

Large-scale financial scams have actually existed since the birth of the Federation, but in the past hundred or so years, they have gradually begun to be perfected and even become systematic!

If an unfamiliar company suddenly goes public with a high profile, they will come up with many fresh and never-before-seen concepts to shock the entire market.

For example, a super powerful specific drug has been developed that can treat some diseases that are currently incurable, or it can be used to treat several diseases that have the largest number of sick people.

Or maybe they started building fucking railroads or roads again, which was also a common fixture in early federal financial scams!
In short, their development prospects are very good. They are unicorn companies and will soon start making crazy money. Now is the last time to get on board to make big money.

During this process, some companies, well-known companies, will stand up to support these scammers and deepen people's trust in them.

Then the capital market began to pursue these companies, and they presented investors' money and bank loans to the market as early profits.

Many people who don’t know the inside story look at it and wonder how much money they have to make to make so much profit in such a short period of time. What the hell am I waiting for?
As a result, a large amount of money began to pour in, and a shell company was speculated to an astonishing scale.

At this time, these scam organizers have actually completed the realization, and then they began to withdraw.

After all, this bubble will always be burst one day. Rather than being burst uncontrollably, it is better to be burst by themselves when they can control it!
As a result, the market value of this company began to collapse, and then when people began to look at it seriously and rationally, they found that it was an empty shell with nothing!

And those companies that cheered for it at the beginning turned into "victims" as soon as they turned around.

They were also the ones who were deceived!
The president of the company, or someone, or a small group, will eventually be tried for financial fraud and locked up.

However, this crime is not a felony in the federal government and will not kill anyone.

They will soon be transferred to private prisons to serve their sentences, and then after the situation has completely subsided and they have been forgotten, these people will change their identities and return to society.

And those who have been defrauded of their wealth will never get their wealth back!

In the past 50 years, federal capitalists have harvested more than 4000 billion in wealth in the financial market through this method!
Although the banks say they were not involved, only they know whether they were.

Although Shep Industries is not a liar, as long as they are treated and treated as liars, they will definitely suffer.

After all, the value of confidence is not the actual value, and this is the scariest part of financial games!

A stone is always a stone. When people start to look at it rationally, it is a stone, not wealth!
No company, including Lynch's own, can actually afford such a torment.So can this trick be used in all enterprises?
This is true in theory, but it is still difficult to operate. First, you have to convince the market and investors that the company you are talking about is not worth the value it shows!
How to win the trust of the market and investors is the key!

In this world, or indeed in any world, there is no shortage of companies that have taken off and declined because of a policy, a person's words, or a bank's attitude.

The person who can decide all this is the person who is the "chief surgeon". Whether he has prestige in the investment field and the market!

There is no doubt that Lynch is such a person. The Blackstone Group and the Light of Tomorrow Investment Group have the glory of the two major consortiums, plus the myth of being undefeated.

What he said and his attitude in the financial field are more effective than Connor!
After removing the "expected value" of a listed company, people analyze the "actual value" too rationally. All companies are basically "virtual" and their valuations are much higher than their actual values.

No one is pushing it, it just goes up and down.

If someone pushes it, it will be a financial disaster!

After Connor and several congressmen basically figured out the causes and consequences of these things, Connor couldn't help but sigh.

But he felt that this didn’t surprise him too much, after all, this was Lynch!
With his current successful status and his past brilliant results, it would be questionable if he could not do this!

"Then the federal government and Congress are going to get involved, and you can start to look into it more deeply as a whole under the guise of 'investigating financial issues.'"

"If they stop you, I believe the Department of Justice will give you some help and advice to help you solve these problems."

Financial fraud is very troublesome for these wealthy people. The wealth they own may be "stolen money". Now there are only two ways in front of them.

Either they take the initiative to portray themselves as the perpetrators of financial fraud, and then go to jail and lose a large part of their property.

Or you can portray yourself as a victim at the same time and accept comprehensive scrutiny. Although it doesn't look good on face, at least it can retain the actual benefits.

As for the relationship with the Peleus family?
I'm going to be fucking broke and I still care?
Even at this moment, they hope that the federal government will point its finger at the navy again and let them go!
The congressional investigative team soon followed Lynch's suggestion and used the "financial security investigation" as a reason to comprehensively investigate Schepp Industries.

Because the stock price has plummeted, investors have begun to block the door of Schepp Industries.

And those low-level boat workers who had heard that the company's top executives had secretly transferred assets long ago and were ready to abandon the company now did not bother to trouble the investigation team, but began to besiege the company.

What they want is simple, the truth!
They can't find the truth themselves. They don't have the ability. If they can understand the account books and financial reports, they will not be the bottom ship workers.

So what they can ultimately rely on is the federal government and the congressional investigation team.

As expected, these workers who obstructed the investigation team's investigation immediately became the investigation team's closest partners.

Many people began to provide further clues to the investigation team, as well as some inside information that had not been grasped before.

Top executives of Schepp Industries were also ordered to be prohibited from leaving the federation. These wealthy tycoons also began to use some methods to hope to reach reconciliation with the federal government and Congress.

After all, if a company does go bankrupt, it will go bankrupt. It doesn't mean they are doomed.

But if they really go on like this, not only will they go to jail, but their wealth will also be in vain.

For a time, the progress of the investigation was developing rapidly, and Connor and Congress did not overly embarrass these people. The two sides reached a private settlement in mid-August.

On the surface, the work will continue. After all, we need to give the people a "truth" and give them "justice," so the investigation will definitely continue.

But what the outcome will be is hard to say.

No one can tell where the billions that have evaporated have gone.

After the investigation team obtained some actual evidence of benefit transfer, the investigation team found the navy again and found Peleus's family.

Peleus's grandfather, as the former commander of the Central and Southern Military Region, was also an important link in the transfer of benefits and was the first to be investigated.

The investigation team believes that it is too early to influence the admiral, and even the navy's belief.

At the same time, they also need to improve their deterrent effect and have to use a big shot to make people understand the seriousness of this matter.

Therefore, General Peleus, the retired grandfather, became the best entry point.

At the end of August, the retired army general was invited to the office where the investigation team was located to accept the investigation...

(End of this chapter)