Rebirth of the Financial Overlord

Pound to mark, 2.4200 sold flat 30000

Like a bomb dropped into a calm lake, the exchange rate between the British pound and the Mark was instantly raised by 400 basis points. Wire.

But it didn't end there. The dense liquidation followed closely like an ant colony smelling a crisis. In just one minute, the pound rebounded again by more than 300 basis points.

2.4558 sell flat 1

2.4560 sell flat 1

2.4559 buy 1

Pound to mark, 2.4559/+9.78%.

GBP/USD, 1.7868/+7.68%.

Chicago, Financial Exchange Building.

Lance Laura, the manager of the Laura Monetary Fund, looked at the British pound price on the screen, as if he had been hit by Thor's hammer, and his mind went blank.

The Bank of England has lowered the interest rate by 2.5%. With such a huge negative interest, the British pound will release at least hundreds of billions of currency in circulation to the market. As the supply increases, the short trend of the British pound will inevitably accelerate its decline.

Supply and demand determine price factors, don't they?

But what is it now? -

78985042$!

The huge losses in the fund account and the divergence between reality and ideals made Laura feel that the world was extremely false.

Laura. Shall we cut out some positions, the market is very bad for us right now.

No. It's just a technical adjustment. The whole world knows that the price of the pound will fall, and the pound can't go up.

Then what shall we do?

Adding positions. The Bank of England has lost enough foreign exchange reserves that it can only let the pound go into free fall. This must be a bluff to scare the bears in the market.

.

The Bank of England has lost sufficient foreign exchange reserves, and has reduced profits by another 250 points. The pound is in a bearish trend like a butcher's knife. How can it really continue to rise.

There is no reason for the pound to rebound, and if it does, it must be a technical correction.

Lance Laura is convinced of this.

Brooke Conney, the chief trader of Arcas Investment Management Company, also believes in this.

London, an international financial center.

Brooke Conney took a deep puff on his cigarette and issued an order to increase his position. He thought about all the reasons, but he couldn't find any logic for the pound to rise.

This can only mean that the rebound is giving more reasons to get in the car.

The whole world knows that the pound will fall, and under this general trend, the pound will inevitably fall.

Almost at the same time, managers of many monetary funds around the world and traders in convergent trading have made the choice of increasing their positions or short selling. As professional speculators, they know very well that such an obvious short trend of the pound makes sense to rebound .

But it's a pity that they don't know that there are so many idioms in Huaxia.

The extremes of things will be reversed and the general trend will be reversed.

It is true that no one can stop the roaring flood, but the hero creates the situation, and no matter how violent the tide is, it can also be diverted.

East Street, National Westminster Bank.

President Danny Clarke stood at the door with his hands clasped like a butler, but he did not have the humility and low-keyness of a butler. Waiting for guests.

After an unknown amount of time, a modified new Rolls-Royce stopped at the entrance of the bank. When he saw Shen Jiannan and his party coming down, a smile appeared on Danny Clarke's face.

Soon, the two sides got together.

Shen Jiannan reached out his hand and greeted Danny Clarke.

Mr. Clark, hello. I'm sorry for the delay on the road just now.

Mr. Shen is really too polite. It is my honor to serve such a distinguished guest as you.

.

The two sides exchanged simple politeness, and a group of people walked into the top VIP reception room of the bank under the leadership of Danny Clarke.

The huge reception room looks like a box in a coffee shop. It is covered with bright yellow carpets. The environment is extremely elegant and quiet. Standing by the window, you can have a panoramic view of half of London, and look at the sea in the distance. The sea water and the sea and sky line are simply a luxury.

After the group sat down, the bank staff who had been waiting for a long time came over with coffee. Their respectful and humble attitude made people feel their thoughtfulness and thoughtfulness.

Mr. Clark, we are here today because we want to repay the funds we borrowed from your bank.

.

If you borrow sterling, you will naturally have to pay it back.

But now, since all the previously borrowed pounds have been sold, in order to get it back, you have to buy back the pounds you once sold.

Seems like a bit of a hassle.

But for a bank as big as National Westminster, none of this is a problem.

Soon, under the arrangement of Danny Clarke, Capital One bought £518.7 million for 1.276 billion marks and returned it to National Westminster Bank.

Shen Jiannan and his group got into the car and left. Danny Clarke stood at the door and waved at the car going away, then walked quickly into the market trading department.

Conn. Liquidate all our sterling positions, immediately.

.

In the next few trading days, the exchange rate between the British pound and the Mark once rebounded to 1:2.5900, making Shen Jiannan buy back up to 16 billion pounds in the market at a price of 1:2.52.

The profit of 4.7 billion U.S. dollars was evaporated out of thin air to 900 million U.S. dollars, but the profits at this time were all real money.

After deducting the interest on these loans, the final income of Capital One, Kamandy, and Gorman stayed at about US$4.632 billion.

This is definitely a scalp tingling number.

You must know that in the capital market, the more funds you have, the fewer ways you can invest, and the less you can get greater benefits. Because of this amount of funds, no matter which market they enter, it will cause drastic changes in market prices.

A week after the UK announced its departure from the peg, speculative sterling funds began to buy sterling to close their positions in the market, which to some extent pushed up the exchange rate of sterling in the short term. If the Bank of England did not cut interest rates again, this I am afraid that the scale of profits will continue to shrink.

But for the global monetary fund, it is simply the arrival of the end.

Boston, on the Charles River.

Mike Gates, a former professor of economics and finance at Harvard University, stood by the river, his eyes were dull, his hair was disheveled, and he seemed to have lost his soul.

Five years ago, with rich economic research and financial concepts and reputation, Mike Gates established the Gates Money Investment Fund.

In the past five years, from the initial 10 million US dollars, with an annualized return of 15%, the amount of funds managed by Gates Monetary Fund has rapidly expanded to one billion US dollars half a month ago.

But now, all that is gone.

In the morning, because the Gates Fund lost more than 50% of its positions in the British pound, its customers quickly asked for forced liquidation. Mike Gates, the actual infrastructure manager, was also jointly sued and was facing unpredictable punishment.

resist?

As an American, he knows very well that with 500 million dollars, he has no right to resist at all.

And the only thing he can do is die.

thump--

The slow-flowing Charles River splashed a huge wave, and Mike Gates, who was standing by the river, sank to the bottom of the river.

The cold river water choked from the organs to the lungs, bringing waves of unbearable pain.

But compared to the physical pain, Mike Gates has a problem that he can't figure out, why the subject he has studied all his life has changed at this critical moment.

The river gradually calmed down, but in this world, there is no longer Professor Mike Gates, who was once sought after by countless people.

Huge wealth brings unbearable excitement and excitement.

Similarly, a huge loss is like a heart-piercing sulfuric acid, enough to corrode the will of too many people.

That feeling of falling from heaven to hell in an instant, that kind of coldness that freezes people's souls more than a stormy night, can make too many people collapse.

The GBP/DM rate turned down again after bouncing to 2.59, but all the traders who had bet their careers and their luck on the convergence trade were wiped out that day.

Many fund managers and speculators lost their fortunes on this day, and the reported suicides alone make people feel trembling.

Kathleen Morris.

Global 'Money Funds' Collapse, Mutual Fund Watch, September 19, 1992.

That day was also the beginning of the end for the aforementioned short-term international money market funds. Virtually all those funds disappeared as quickly as they entered the investment arena.

The full cost to the HM Exchequer has never been disclosed to the UK taxpayer, but it is conceivable that it must have been in the billions.

I made a profit of $4 billion due to the collapse of the pound.