Reborn Tech Maniac

Chapter 953 The Great Miracle Day
Xiangjiang's volley jump just happened to pass this hurdle, but it was by no means pure luck.

As one of the insiders, Dong Jianhua, the chief executive of Hong Kong, broke into a cold sweat with lingering fear. He felt more and more that the richest man who was once his boss was too unpredictable!I didn't expect a seemingly unrelated decision a few days ago to have such a magical effect.

When Tang Huan arrived in Xiangjiang, the Financial Secretary Zeng Yinquan, the President of the Monetary Authority Ren Zhigang, and the Secretary of the Treasury Xu Shiren joined hands to greet him at the airport; and he also went to the Government House, the official residence of the Chief Executive of Xiangjiang in the afternoon, and called on Dong Jianhua .

Obviously, the content of the conversation between the two was first and foremost about how to resist the attacks of international speculators on the Hong Kong financial market.

However, Tang Huan made Dong Jianhua bewildered and concerned about an irrelevant issue, that is, the arrangement of the next Hong Kong public holiday.

It is not difficult to imagine that the return of Xiangjiang is no less than a change of world, and there are too many places that need to be decolonized.

For example, although the official residences of the Chief Executive of Hong Kong and the Governor of Hong Kong are in the same place, they must not be called "Governor's Mansion", so they were renamed the current "Governor's Mansion".

There is a similar situation in Hong Kong public holiday arrangements, such as the "Queen's Birthday" celebrating the birthday of the Queen of England, commemorating the victory of the Allied Forces in the Second World War in [-], and the British retaking Hong Kong from a book. The "Xiangjiang Chongguang Memorial Day" also needs to be adjusted.

In fact, this job is not something that can be done directly by taking Xiangjiang Special to publish a one-size-fits-all article.Xiangjiang is indeed a small place, but there are many ways to do it.

To be precise, there are two main types of public holidays in Hong Kong, namely the [-]-day public holidays excluding Sundays per year stipulated in the Public Holidays Ordinance, and the [-]-day statutory holidays per year stipulated in the Employment Ordinance. .

In addition to the different days, public holidays and statutory holidays also have different applicable objects.

Generally speaking, banks, educational institutions, public agency offices and government departments have holidays according to the "Public Holiday Regulations", and their employees can enjoy [-] days of public holidays every year.

If the unit is not within the above scope, it only needs to take holidays according to the statutory holidays stipulated in the Employment Ordinance, and its employees are only entitled to [-] statutory holidays every year.

Of course, if such units are well-paid, they can also allow their employees to enjoy the seventeen-day holiday stipulated in the "General Holidays Ordinance".

Holidays with strong colonial colors such as "The Queen's Birthday" and "Hong Kong Memorial Day" fall within the scope of public holidays.

Needless to say, you can understand the truth. This kind of holiday can be "adjusted", but it can only be "replaced" with other names, and cannot be "cut off". Otherwise, it will definitely cause public resentment.

Okay, let's "replace" according to this guideline, but it's still not that simple. Interest groups that can only enjoy "statutory holidays" took the opportunity to ask whether "statutory holidays" and "public holidays" should be unified.

Well, then respond to this seemingly innocent request, but it is still not that simple, because this is only the voice of the "labor side", and the "management side" clearly opposes the addition of statutory holidays.

This can be regarded as a characteristic of Heung Kong, and Dong Jianhua, the chief executive of Heung Kong who has been restless because of the Asian financial turmoil, had to ponder over and over again, how to come up with a compromise plan that can be accepted by both "labor" and "management" Come.

The richest man made a request to Dong Jianhua: Isn’t August [-]th and August [-]th a Saturday and Sunday? You must make at least Monday, August [-]th, a public holiday.

Seeing what Tang Huan said was so precious, Dong Jianhua started thinking about the "Xiangjiang Chongguang Memorial Day" originally scheduled for the last "Monday" in August and the previous "Saturday", in the name of "Anniversary of the Victory of the Anti-Japanese War" , temporarily included Monday, August [-] and Tuesday, August [-] as public holidays.

Anyway, in the midst of all kinds of disputes, don't even try to come up with a new plan for public holiday arrangements that is acceptable to all parties this year. Let's try it out.

As soon as this announcement came out, no one in Xiangjiang felt it was sudden or unexpected. They thought it was a compromise arrangement tentatively introduced by the chief executive of Xiangjiang to see if it was feasible.

In fact, what everyone is really concerned about is the combination of "statutory holidays" and "public holidays", rather than which day is a "public holiday".

Ever since, on August [-]th, August [-]th, August [-]th, and August [-]th, from Saturday to the next Tuesday, the Xiangjiang Stock Exchange was closed for four consecutive days.

As a result, at this point in time, the Russian financial crisis broke out.

Specifically: after the Russian Duma rejected the reform plan proposed by the International Monetary Fund, it went on vacation; all senior Russian officials, including Russian President Yeltsin, also went on vacation; and then a statement was suddenly issued come out.

These include: depreciation of the ruble, default on domestically issued government bonds, suspension of repayment payments to foreign creditors, and more.

In vernacular it is: Anyway, Dad has no money to pay you back now, so what the hell are you doing!
The various European and American bank oligarchs among the Russian creditors did not expect such financial dishonesty even though they had experienced it extensively, but the fists of the fighting nation were hard enough, and they could only blow their beards and stare.

Furthermore, the degree of turbulence in the global stock market this time, let alone how serious it is.

Fortunately, the Xiangjiang stock market, which was closed, got a buffer and avoided the shock.

After the little cousin Meng Jing realized it, she couldn't help admiringly said to Tang Huan: "Brother, you are really Zhuge Liang who knows things like a god."

Zhuang Menghua said worriedly: "The Xiangjiang Stock Exchange will reopen soon. Even if the Hang Seng Index can escape for a while, it will still have to make a downward decision like other stock markets around the world in the face of the impact of the Russian financial crisis. It’s a natural reaction, and those international short-selling speculators will definitely not miss this opportunity.”

"It is true, but as long as we withstand this wave of attacks, the international speculators will be powerless." The richest man smiled slightly, "I am sure that this Russian financial crisis will quickly transform into a powerful impetus for the United States to strengthen financial control .”

……

I am afraid that many people may not be able to encounter such a spectacular sight as Russia's debt default in their entire careers.

Warren Buffett's direct reaction to this was: the global stock market plummeted, and the Hong Kong stock market was no exception; international speculators must have taken the opportunity to attack, and the Xiangjiang stock market collapsed; Tang Huan, who stubbornly participated in the resistance, miscalculated; he lent a large amount of money American banks suffered; their own investments were also implicated.

Thinking of this, Warren Buffett shook his head again and again, and quickly called the Bank of America headquarters in San Francisco.

Unexpectedly, the other side was quite tough: Compared to the losses caused by the Russian financial crisis to other people, our side is doing fine at least for now. If you don’t believe me, go check out the latest Yahoo News.

Warren Buffett was so choked that he almost dropped the Coke on the table, but he still collected himself and ordered his subordinates to collect more and more brilliant Internet media reports.

As the top hunter in the ecosystem, Warren Buffett currently doesn’t care much about the so-called latest reports on portal websites that do anything to compete for traffic.

Still, Warren Buffett gasped when he saw the Yahoo Finance News printout.

……

Deshao Group failed to invest in Russia, and its losses may reach US$14 billion.

……

Long-term capital management company failed to invest in Russia, and the loss is estimated to be at least 18.5 billion US dollars.

……

Warren Buffett can no longer scroll down calmly because he has more ties to Long-Term Capital Management than he has to Bank of America.

So, Warren Buffett quickly picked up the phone again and called John Meriwether, the founder of Long-Term Capital Management, but the phone line was busy; he changed the number and redialed, but the line was still busy!

Warren Buffett, who had to put down the phone temporarily, cried out inwardly: This is troublesome!

……

Among all the sad reminders who were turned pale by Russia, the one that really shocked Wall Street was none other than Long-Term Capital Management, and even the Federal Reserve held a special meeting for it to study the countermeasures for saving it.

There is no other reason. The key point is that Long-term Capital Management has dealings with almost all Wall Street bosses. It is not an exaggeration to say that it has kidnapped the entire Wall Street.

In other words, if LTCM collapsed on its own, it would spell disaster for the American financial community.

This is no exaggeration. The life and death of Long-Term Capital Management Company is so touching.

The founder of this fund, John Meriwether, was originally the vice chairman and head of the bond trading department of Salomon Brothers. By recruiting a group of mathematical geniuses from Harvard Business School and MIT, and combining financial models and computer technology Combined, they make a lot of money for Salomon Brothers every year.

But in 44, when John Merriwether was [-] years old, a trader under John Merriwether had an accident because of fraud, and he was responsible for it, which ruined his promotion space at Salomon Brothers , so he simply resigned and did it on his own, and Long-Term Capital Management was born.

John Meriwether's performance at Salomon Brothers was so successful that Long-Term Capital Management could only be described as bullshit from the beginning.

For example, for a newly established fund, the amount of financing in the initial stage is usually around tens of millions of dollars, but Long-Term Capital Management suddenly raised more than one billion dollars.

More importantly, John Merriweather's team is stronger than when he was at Salomon Brothers. In addition to those old subordinates following over, he also invited some leading figures to join him.

For example, two masters of finance: Myron Schuls and Robert Merton, who won the [-] Nobel Prize in Economics for their "Option Pricing Formula".

For another example, the vice chairman of the Federal Reserve, David Mullins, who is only behind the chairman of the Federal Reserve Alan Greenspan, was also pulled in.

According to the evaluation of "Business Weekly" at that time, Long-term Capital Management is a "dream team" with a strong lineup and momentum. I don't know how many blocks it has left the richest man who used supercomputers combined with financial models to hype it!

The same is true: In 1994, the first year Long-Term Capital Management was established, the annualized rate of return reached 28%; in 1995, the annualized rate of return was as high as 59%; in 1996, the annualized rate of return was 57%.

This year, the long-term capital management company with a total of more than 100 employees earned a total of 21 billion US dollars, which is more than McDonald's, which sells countless hamburgers all over the world.

In 1997, despite the Asian financial turmoil, the annualized rate of return of Long-Term Capital Management reached 25%.

There are so many elites in the American financial circles, and of course there are many sensible people, so some experts asked, "Where are your risks?"

As a result, Myron Schuls, the researcher of the "Option Pricing Formula", scratched his head, "No one saw where the risk went."

Ever since, Long-Term Capital Management used its own bullshit to attract countless business owners, celebrities, private universities, etc. in the United States.

Therefore, when Long-term Capital Management, which was too superstitious about mathematical models and ignored the small probability of human influence factors, the United States, which often shouted "non-intervention" after the Russian financial crisis collapsed, couldn't help but take action. .

Many people may not understand why Long-Term Capital Management, which has brought together so many elites among the elites, was also cheated.
Perhaps it can be described in one sentence, which can best explain the problem, that is: geniuses are not incapable of making mistakes, but they are different from ordinary people, they are only good at making fatal mistakes.

In addition, Long-term Capital Management also suffered another fatal blow that tore off all its gods, that is, it was revealed that it had evaded taxes of at least US$[-] million.

In order to avoid the collapse of the long-term capital management company with a trading volume as high as trillions of dollars, and the spread of Wall Street being dragged into a mess, on Sunday, August 1998, 8, the Federal Reserve convened the heads of major financial institutions for the first time in New York. In the meeting room on the tenth floor of the building, discuss matters together.

Mobil Bank, Bear Stearns, Chase Manhattan, Goldman Sachs, JP Morgan, Lehman Brothers, Merrill Lynch, Morgan Stanley, Salomon Brothers...

The Wall Street giants are so crowded that there are not enough comfortable leather chairs to sit on, and many bigwigs can only use folding chairs to condescend.

Just as these prominent figures were discussing how to save Long-Term Capital Management to prevent everyone from being involved in the disaster, Warren Buffett received a call from Tang Huan from Xiangjiang.

"Next week, I will push the Hang Seng Index back to above 28 points before the Hong Kong Index futures delivery date on Friday the [-]th. If you have short selling operations, stop your losses quickly."

Warren Buffett, whose hands trembled and almost dropped the phone on the ground, replied with a wry smile: "Thanks for the reminder."

……

On Friday, August 28, 1, the Hang Seng Index rebounded to [-] points in March this year despite the dying counterattack of international speculators, which was called the "big miracle day" by Hong Kong people.

The short-sellers who had planned to suppress the Hang Seng Index to [-] points suddenly burst into blood and ended badly!

(End of this chapter)