Rebirth of Hong Kong's tycoons, shorting Eagle Sauce

Cayman Capital entered the game several months in advance.

The extremely responsive old Suo borrowed a large amount of pesos with the United States' national debt as collateral.

Seeing the calm Mexican foreign exchange market, old Suo couldn't help but smile like an old fox.

"Looking at this situation, Cayman Capital is one step behind me, old Suo."

"I, old Suo, am I the real king of short selling!"

He was complacent for two days, and Tiger Fund heard the news and came.

"Old Suo, is our big brother really not here?"

"It should be... right."

Old Suo's tone was not very firm, because if Tiger Fund could find out, could Cayman Capital really know nothing about it?

"Maybe he doesn't care about this little money anymore."

Mexico's short-selling space is indeed not big, at most it's such a big market.

Thinking of these two people, they were a little lonely.

"What are you waiting for, let's get started!"

The two short sellers tacitly sold the borrowed pesos together and exchanged them for US dollars.

At this time, several months had passed since Lebanon entered the market. The peso was falling at a weak trend every day. When the two major short sellers entered the market, it had fallen to 3.4 to 1.

A large amount of currency was converted into US dollars in a short period of time, which finally alarmed the Mexican authorities.

The other party realized that someone was shorting the peso!

Without any experience, they finally realized that Mexico had a huge trade deficit and the actual purchasing power of the peso was greatly overestimated.

They held a meeting overnight to think about how to deal with the upcoming crisis.

People's cognition of things is always limited by the times.

Mexican economic experts first thought of learning from the excellent experience of foreign powers.

The most instructive thing was Longguo's active devaluation of the currency in January this year.

Longguo realized that the exchange rate was higher than the black market. In order to prevent foreign capital arbitrage, solve the problem of imports exceeding exports, and protect domestic enterprises, it actively devalued the exchange rate against the US dollar.

They instantly felt that this was a good way to imitate.

Conservatives also think divergently, thinking of cherry blossoms and the Hiroshima Agreement of the United States. In order to solve the problem of excessive imports, the United States also took the initiative to devalue the US dollar!

They think it's okay, we don't need the short sellers to make any articles to trick us, we just take the initiative to devalue the peso.

What the big brothers can do, we can do naturally.

It's better than others to short.

The method is right, but the bad thing is that they are too indecisive and a little slow to react.

The bullet has been fired, and you said you want to surrender, and you also asked for surrender and lose half.

Isn't it a little late.

On December 20, Mexico announced that the peso will devalue by 15%.

15%?

The short sellers all laughed, and they were too lazy to even make a short report, and just watched the Mexican financial shock silently.

Even a fool realized that there was a big problem with Mexico's economy. Wouldn't you run away and wait for death at this time?

Almost everyone was taking advantage of this time to sell pesos and buy other currencies.

On the 21st, the peso fell 13%, and on the 22nd, it fell another 15%!

In just two days, Mexico lost $5 billion in foreign exchange reserves, leaving only $3 billion in reserves.

Mexico's foreign exchange can no longer withstand the run.

Under unprecedented pressure, the Mexican government gave up resistance and directly laid flat, announcing that it would abandon the fixed exchange rate and let the market determine the decline in the exchange rate.

This made the situation worse.

People doubted Mexico's ability to repay short-term debts.

The psychological defense line collapsed, so there was a new round of selling pesos, and the peso depreciated by another 15%.

More foreign capital fled Mexico.

As a result, the peso exchange rate fell to 5.9:1 in just one month, almost depreciating by half.

Of course, Cayman Capital doesn't look down on these small amounts of money. A mere 2 billion US dollars can't satisfy the appetite of big shorts.

Their real money-making business is shorting the Mexican stock market.

To short the stock market, you must rent the other party's stocks and bet against the insurance company, so you can't keep a low profile anymore.

When Lao Suo and Tiger Fund tried to do this, they found that someone had already taken the lead.

"MD, I don't know when Cayman Capital has created a new vest, and it has gotten ahead of us again."

When Lao Suo said this, it would be a lie to say that he was not discouraged. ,

Cayman Capital is like a mountain, pressing them so hard that they are a little breathless.

The key is that Cayman Capital didn't even leave them a little soup.

If you want to blame someone, blame the fact that Mexico's financial market has only been started for a few years, and it is not that big. Robert just exerted a little effort and ate up the entire short-selling market..

Lao Suo and Tiger Fund could only watch the Mexican stock market collapse again and again, and fall again and again.

You should know that most of the stock market investors in Mexico are American investors (low interest rates and low taxes have created an investment boom).

They suffered heavy losses in the financial crisis in Mexico, and many people were slow to run and were deeply trapped in the stock market.

The biggest feature of American people is that they like to double-standard others. They know that Cayman Capital has made a few billion dollars in speculation in Mexico.

But their own institutions have lost billions of dollars.

Many small institutions have closed down because of this, and they immediately became angry.

They found the Financial Industry Authority, the Securities and Exchange Commission, the Office of the Comptroller of the Currency, the Federal Reserve...

They complained to all the regulatory agencies that could complain.

Lao Suo suddenly no longer envied Big Brother. So many institutions put pressure on the authorities, and Cayman funds were infuriating.

Hearing this news, Wang Lei couldn't help but sneer:

"Are these people all brain-dead? It's not us who caused their losses. It's their greed. Their poor investment led to the outbreak of the financial crisis.

Even without us short sellers, the peso will fall sooner or later. Do they still expect the stock to rise forever?"

If you lose the bet, blaming others for patting your shoulders is just looking for trouble.

Listening to the boss's complaints, Robert smiled and said:

"Boss, they are just jumping around. We haven't violated any laws. We pay taxes according to the law. What can they do to me?"

According to Robert's temper, he doesn't want to pay attention to these unreasonable people.

It is unrealistic for these people to ask for sanctions on Cayman Fund.

The IRS of the United States is the first to disagree.

Where can you find such a good company that cooperates in paying taxes?

What should I do if my big taxpayers are disturbed? Of course, I will knock on the door and say hello?

Don't forget that the tax department of the United States also has guns, and its force is comparable to that of a mountain division. When those who wrote the complaint letters were targeted by a team of IRS guns, they panicked.

"You didn't pay taxes to the federal government on time, and now you are under arrest!"

Uh...

The people who caused the trouble were arrested and investigated by the IRS, so naturally there was no problem for Cayman Capital.