The Son of Finance of the Great Age

  Chapter 761 Europe's first stage counterattack (1)

  The price of gold did not reach the lowest level on this day. On February 5, the price of gold continued to fall, and at the lowest point it once broke through the $1,050 mark. However, because of the strong emergence of the main bulls, the price of gold finally stood firmly above $1,050.

  After this global market slump, Tianyu Fund once again absorbed more than 100,000 long orders in two days of market operations. In this way, their strategic goal has basically been achieved.

  In the next few days, as the panic gradually eased, the gold market, like other capital markets, began to rebound slowly.

However, all of this is no longer within the scope of Tianyu Fund’s main operations. After more than a week of high-intensity work, Zhong Shi and Jiang Shan were exhausted. After two days of rest, they appeared again on February 8. In the office.

   "What should we do next?"

  Jiang Shan was very excited. He had a sense of accomplishment because he had adopted his suggestions in the operation of the previous two days. At this moment, he leaned in front of Zhong Shi and asked flatteringly, "Is there anything else I can do to help?"

   "Help?"

  Zhong Shi smiled, looked away from the computer, looked at Jiang Shan with a half-smile, put his head in his hands, lay down on the chair behind him, and joked, "Tell me, what can you do to help?"

"This…"

  Jiang Shan was at a loss for words. After thinking for a while, he replied cheekily, "I know a little about everything, you know that."

"it is good!"

  Regarding his perfunctory answer, Zhong Shi rarely refuted and continued to tease, but pointed to the computer screen and said, "There is really something going on right now. You should take a look and tell me what you think later."

"what?"

  Jiang Shan was also taken aback, his eyes involuntarily glanced at the screen, but he kept muttering in his heart, "What happened?"

  In Zhong Shi's mailing list, an email was lying there quietly, and it was obvious that this was what Zhong Shi wanted Jiang Shan to read. Jiang Shan just read a few sentences, and his originally laughing face disappeared immediately. After he glanced at Zhong Shi complicatedly, his face gradually became serious.

"What does it mean?"

   After a full ten minutes, Jiang Shan sighed and asked hesitantly, "What does the person who published this report mean?"

   "That's what you understand!"

   At some point, Zhong Shi lit a cigarette and said leisurely, "The Goodman company has been thrown out, at least what it did before, was thrown out."

   "Where is this mail from?"

  Jiang Shan pointed to the screen and asked, "Is it related to Europe?"

   "Sent from the United States, it will be published in the newspaper tomorrow!"

Zhong Shi replied indifferently, "Not only the United States, but the Financial Times will follow up. And once this matter is exposed, I am afraid that the European side will not let it go so easily, and maybe they will pursue Goodman's legal actions. Responsibility."

"so serious?"

  Hearing Zhong Shi's words, Jiang Shan gasped, "They will do this?"

   "Maybe it will, but it depends on the subsequent development, but what will happen in the end, who knows?"

  Zhong Shi suddenly showed a smile on his face, and laughed, "They have found the wrong target this time. With a company like Goodman standing in front of us, we are safe!"

"This…"

  Jiang Shan couldn’t laugh at all. After looking at Zhong Shi for a long time, he suddenly let out a long sigh, “How did they do it?”

   "Currency Swap Agreement!"

Zhong Shi continued to smile, "I believe that when Goodman makes these agreements, it will definitely be clean, at least there will be no flaws in the law. If they are determined to trouble Goodman, I'm afraid it will take a year or two!"

   "But how do they operate?"

  Jiangshan is still deeply involved in the so-called "currency swap agreement", and has not noticed the meaning of Zhong Shi's words for a while.

   It turned out that in that email, it was an upcoming press release. The main content is that between 1999 and 2000, it was necessary to help the Greek government reduce its debt ratio in euros in order to smoothly join the European Union. Goodman, a well-known Wall Street investment bank, helped the then Greek government design a series of complicated agreements to restructure the Greek government's debts, and finally reached the standards for joining the euro zone countries.

  In the press release, the author boldly predicted that this series of operations may have violated the laws of the Eurozone and involved the use of accounting standards. Moreover, neither Goodman nor the Greek government disclosed relevant information on their balance sheets or sovereign debt sheets for ten years, which may involve the issue of moral responsibility for concealment.

  Although ten years have passed, the author is still relentless, and even attributes today's Greek debt crisis to the secret operations of Goodman Company back then. He also hinted that perhaps today's debt crisis is caused by the big capital on Wall Street.

  Obviously, the European side has begun to investigate the origin of today's debt crisis, and the first one to target is the well-known Wall Street Goodman Company.

   This is also the reason why Jiang Shan's face changed drastically, and he smelled a sense of crisis from it.

   "According to my guess, these agreements are not too difficult, they are just gambling agreements using the foreign exchange market."

Zhong Shi's tone was very flat, and he explained slowly, "After the official appearance of the euro, some countries not only borrowed at home, but also raised funds in foreign markets. Strong currencies like the Japanese yen and the US dollar, It will definitely be favored by the Greek government."

"But the problem is that when the Greek government decided to join the eurozone, the scale and proportion of their foreign exchange debts on hand would be reduced. This is a rigid regulation of the eurozone. None of the qualifications. So in this case, they have to find some investment banks to help."

"At that time, the EU's regulations were that if there was no hedging debt, it would be converted into euro-denominated debt based on the exchange rate at the end of the year. At that time, because the EU had just been established, there was not much demand for the new currency in the market, which also This directly led to the strengthening of major currencies such as the US dollar and the Japanese yen."

"If the year-end exchange rate is simply used for calculation, then Greece's debt will increase significantly, and it will not meet the EU's standards at all. But the problem is that the exchange rate fluctuations throughout the year will not be based on the year-end exchange rate, so leave it alone. There is a lot of room for manipulation. Therefore, according to this feature, Goodman Company has formulated a currency swap agreement, that is, when the euro is exchanged for the US dollar/yen to a certain point, they will exchange it at a fixed rate at the end of the year. price to exchange this part of the debt.”

"On the other side of the agreement, it is natural that Goodman Company helps them convert their foreign currency debts into euro debts, but they may suffer a little loss in terms of exchange rate, so you understand? That is, regardless of the exchange rate of euros to dollars or yen The Greek government can exchange this part of foreign currency debt at a relatively stable exchange rate, but what will happen in the end depends on the performance of the foreign exchange market.”

"As for Goodman, they can not only earn the foreign exchange price difference with a high probability, but also earn a certain agreement fee from this agreement. If the year-end exchange rate is lower than the minimum in their VAM agreement If there is an agreement, their agreement is a win-win situation, and the larger the scale, the more Goodman will earn. But if the exchange rate fluctuates within the range of their agreement, then Goodman will suffer losses, but they We can also get an agreement fee, so it is hard to say whether we will lose money in the end.”

   "So it is!"

  Jiangshan finally understood, "Is there anything similar to Huaxin Pacific's foreign exchange contract?"

   "Yes, but different!"

  Zhong Shi went on to explain, "After all, the transaction with the other party is a sovereign country, so an unequal contract like Huaxin Pacific is impossible. After all, even Goodman Company dare not easily offend a sovereign country."

  The Huaxin Pacific incident they mentioned happened more than a year ago, and the red-chip company Huaxin Pacific suffered a huge loss in foreign exchange. At that time, in order to cope with the loss of the company's business due to the fluctuation of the Australian dollar, CEFC signed a foreign exchange cumulative option gambling agreement with HSBC, Citigroup and other banks, and the agreement period was one year.

   Originally, Huaxin Pacific was to lock in the exchange rate of the Australian dollar, but the situation of the Australian dollar has undergone major changes this year, from strong to weak. After breaking through the limit stipulated in the contract, Huaxin Pacific had to continue to buy the depreciated Australian dollars in accordance with the agreement, and finally did not disclose it until it was too late. By this time, Huaxin Pacific had already lost 150 million yuan. billions of Hong Kong dollars.

   This matter attracted the attention of the whole Hong Kong at that time, and finally the whole matter ended with the resignation of the company founder and managing director, and Huaxin Pacific was acquired by the parent company. Although the whole matter was resolved satisfactorily in the end, it also sounded a heavy alarm to all investors, that is, the foreign exchange gambling agreement is really terrible.

   But no matter what, even the Goodman Company would not dare to do such a thing to a sovereign country. Even if they are bold, after all, no matter how bad Greece is, it is still a country in the European region.

  In fact, the Goodman Company is indeed bold. Maybe they dare not do this in Europe and America, but they did do this in Africa where chaos and lack of rule of law. A certain African country entrusted Goodman with a sum of funds. As a result, within a few years, the funds shrank by 95%. The leader of that country was so angry that he threatened to teach Goodman a lesson.

   "The reason why they didn't do this is because of legal issues, and secondly, in the Eurozone at that time, there were other countries asking them for help, so..."

Tapping on the table, Zhong Shi pouted, with a half-smile on his face, "Not just Greece, maybe Spain, Italy, and some other countries. So I have to say that the EU counterattacked, saying Maybe to some extent, it has accelerated the outbreak of other countries' problems faster!"

   "So what about this?"

  Jiangshan’s attention is not on this aspect, but he still pays attention to Goodman Company, "If they are sued, will the stock price drop? Are we considering shorting some of their stocks?"

   "It's not necessary!"

Zhong Shi waved his hand, "We are now in the honeymoon period with the United States. There is no need to offend them because of this profit. And Goodman Company must be deeply involved in the European debt crisis. I don't believe that they have done nothing. It's just now Introduce a scapegoat, but I believe that Goodman will definitely have a way to deal with it."

"The meaning revealed behind the whole incident is that Europe has begun to be vigilant. Although it is only a part, their capital and public opinion tools may be activated in the next step to eliminate the negative influence on public opinion brought by the United States. The real The battle has just begun!"

   "The whole thing is getting more and more fun!"

  Zhong Shi walked to the window, looked at the still extremely bustling port, and sighed sincerely. At the same time, what appeared on his face was an expression of eagerness to try.

   Thanks to the book friends Lao Nafahao Takong and apo11o for voting for the monthly ticket! Continue to work hard and update, I hope everyone will vote for the author's continuous hard work, and hope that more book friends will actively recommend and collect more, thank you~

  (end of this chapter)