The Son of Finance of the Great Age

  Chapter 777 Serial Blow

  The large-scale riots in Greece shocked the whole of Europe, and the scenes of the turmoil were transmitted to every corner of the world through satellite TV, and Hong Kong was no exception.

   "Tsk tsk, stupid people, don't they know that if this continues, the only way for the Greek government to go is bankruptcy?"

Looking at the chaotic scene on the TV screen, Jiang Shan exclaimed in amazement, "If the government goes bankrupt, then whether it is shutdown, layoffs, or debt restructuring, it will follow today's old path, and the consequences will be far more serious than now. Much more. These people, for their own petty gains, actually plan to go against the general trend?"

   "No way, not everyone has the spirit of sacrifice and vision!"

  Zhong Shi frowned and looked at the TV screen. When he saw the scene of the conflict between the two sides, he subconsciously shook his head, "Fortunately, these countries are not in their hands, otherwise there will be serious trouble."

   "According to your estimation, will tomorrow's vote pass?"

Jiang Shan soon lost interest in the pictures on the TV, and began to seriously consider the subsequent impact of the whole incident, "It is said that more than 2 million people went on strike, more than 20% of the total number of people in Greece. Strikes are very rare in any country. This will inevitably affect the opinions of some members of the parliament. In this case, will they have the possibility of getting cold feet?"

"Won't!"

Zhong Shi resolutely replied, "Even if the people are stupid, but when it comes to congressmen, no one is easy to deal with. Except for those opposition parties who regard opposition as opposition, the ruling party will definitely unite as one to pass this parliament. , it’s not just about keeping the current Greek government, it’s about keeping them in place.”

   "Even if the person is dead?"

  Jiang Shan remained highly skeptical about Zhong Shi's conclusion, but he did not refute Zhong Shi's conclusion because it was meaningless, "Even if it passes, what should we do next?"

  Instead of questioning Zhong Shi's conclusion, it is better to follow Zhong Shi's thinking and see how he will operate next. Jiangshan is very clear that whether Greece passes or fails, it has dealt a huge blow to investors' confidence.

   "Just wait, you'll see soon!"

  Zhong Shi still maintains his usual mystery. He did not reveal all the plans, but deliberately let Jiang Shan think for himself, "If you were me instead, what would you do next?"

"I?"

  Jiangshan was taken aback, pointed to his nose and pondered for a long time, then frowned and replied, "Continue to instigate opposition in Greece and let them go on strike again?"

"anything else?"

  After nodding his head slightly, Zhong Shi showed approval on his face, and continued to ask, "Are there any other aspects?"

"other aspects?"

Jiang Shan's eyes lit up immediately after being dialed by Zhong Shi, and he replied overjoyed, "By the way, there is also the European Union. Even though the European Union announced to help Greece, according to their decision-making mechanism and the reactions of governments, we It can still create a wave of market panic.”

   "The response is quick, but what else?"

  Zhong Shi couldn't help clapping his palms twice, admiring Jiang Shan's reaction, but then asked persistently, "Apart from these, what else can you think of?"

"This…"

  Jiang Shan hesitated, lowered his head and pondered for a moment, but still got nothing. When he raised his head to look at Zhong Shi again, he had a questioning expression on his face, "Where else can we make a fuss?"

   "Actually, there are many more!"

   Zhong Shi cannot be said to be very satisfied with Jiang Shan's performance, but it is still within an acceptable range. After all, the opponent's structure is far inferior to his own. This is the reason for his experience and experience. However, as long as there is a little hint, Jiang Shan will definitely understand soon, after all, he is a smart person. At that moment, he stared at each other, and just said two words softly, "spread".

  Like Hong Zhong Dalu, Jiang Shan suddenly had a look of enlightenment on his face. After thinking for a while, he gave a thumbs up sincerely, and also said two words to Zhong Shi, "Gao Ming!"

  …

  On May 6, before the Greek parliament voted on the new fiscal austerity bill, the forces bearish on Europe began to take the lead!

  Rating agency Moody's released its latest assessment report on this day, directly and decisively indicating that the Greek debt crisis will spread to the banking industry in many European countries. Among them, Italy, Portugal, Spain, Ireland and the United Kingdom are among the most crisis-prone countries.

   This is another assessment after the three major rating agencies jointly downgraded Greece last month. Although S&P and Fitch did not participate, based on the current chaotic domestic situation in Greece, this report is like a blockbuster, directly causing uproar in the capital markets of several countries.

  Different from the previous evaluation of sovereign debt, Moody's this time directly targeted the banking industry of these countries, because the banking systems of these countries hold a large amount of national debt. Once a sovereign debt crisis occurs, the banking system will bear the brunt, and there is no possibility of avoiding it.

  With the announcement of this report, the capital markets of the named countries responded quickly. Among them, the stock market in Milan, Italy fell by 4.27%, and Italy's most famous Mediterranean investment bank fell by more than 8%, becoming the focus of attention.

  The London Financial Times Index fell 1.52%, and bank stocks generally suffered heavy losses. But what reassures the market is that London has not joined the euro zone, and they still have independent currency issuance rights, so the possibility of a sovereign debt crisis in them is far less than that of other countries named.

  The stock markets in Madrid, Edinburgh, and Lisbon also experienced declines to varying degrees, but none of them were as serious as those in Italy. Because before that, Italy was the third largest economy in the entire euro zone, second only to Germany and France, so once a disaster really happens to them, it can almost be concluded that the entire euro zone will not be spared.

  However, what gave the market a little bit of comfort was that later on the 6th, the Greek Parliament ignored the strong opposition of the public and forcibly passed a new fiscal austerity plan. Although the demonstrations continued on this day and three members of the ruling party voted against it, this did not prevent the Papandreou government from passing the plan.

   Passing this plan means that Greece can get assistance from the IMF and the EU Central Bank. Although there are still various speculations about the follow-up implementation, at least this means that the domestic contradictions in Greece have been settled.

  The next thing is the EU.

  But history is doomed that this day will not be a peaceful day. Although Greece passed the austerity package. But the follow-up bad news kept coming, and this time the protagonist was Spain.

Later, I don’t know where to start, the market suddenly started to spread wild rumors that the Spanish government intends to seek help from the European Central Bank, and will formally request the ECB European Central Bank to purchase Spanish government bonds in the near future to alleviate the current increasingly tight fiscal deficit situation.

   What happened still lies with the Spanish Ministry of Finance.

  On the same day, the Spanish Ministry of Finance issued a statement, announcing that it issued a 5-year national bond of 2.3 billion euros at an average yield of 3.58% on that day.

What makes the market feel weird is that this yield is much higher than the yield of the same government bond issued by the Spanish government in March. At that time, the yield of the 5-year government bond was only 2.5%. The current yield has skyrocketed compared to the previous issue more than 50%.

   This is a dangerous signal, that is, the number of institutions asking for prices of 5-year Spanish government bonds in the market has been greatly reduced, so that they have to lower the price to sell, otherwise they will not be issued at all.

   I would like to add that the issuance of government bonds is by way of auction. That is, everyone makes a preliminary estimate of the 5-year treasury bond, and then obtains the treasury bond from the Ministry of Finance in the form of bidding and pays the funds. The yield rate of this trip can generally be regarded as the basis of the interest rate. Although the yield level of 3.58% is not outrageous, compared with the yield of the previous period, the change is quite amazing.

  Under this background, the market suddenly became full of rumors!

Soon, a convincing news appeared in the market, that is, because it is difficult to cope with the rising yields of government bonds, and in order to cope with the growing fiscal expenditure at home, the Spanish government will make a request for assistance to Europe in the near future, that is, let the ECB Buy the treasury bonds they issue.

  Different from Greece, Spain, the fourth largest economy in Europe, did not experience unrestrained spending by the central government, but because of the rapid expansion of its real estate market, a bubble formed and then burst, leading to today's soaring fiscal deficit.

  To be specific, before 2008, the real estate market in Spain became extremely hot, and a large number of foreign capital poured into Spain. Spanish politicians brutally interfered with local savings banks for their own political purposes, which also caused a large amount of savings to flow into the real estate market.

   And when the subprime mortgage crisis spread to Spain, the disaster began, and the inflow of foreign capital was greatly reduced, or even reversed. Housing prices fell sharply, and the bubble formed quickly burst.

After the real estate bubble burst, it directly impacted two sectors, the lending banking industry and the highly labor-intensive construction industry. The construction industry brought a lot of unemployment to Spain, and many families had to give up housing due to the sharp drop in income. Making the banking industry a successor to these houses led to a lot of bad debts.

  The debt incurred by the Spanish government is to cope with the living allowance issued by the high unemployment rate. By May 2010, Spain's unemployed population reached about 20% of the total population. For such a huge group of people, the government has to distribute a relatively small amount of living allowance every month to maintain their livelihood. It is this fee that is issued every month that dragged down the Spanish government abruptly.

  The market exploded all of a sudden!

   Thanks to lightfish, stronger933, squinting at the sun, TinyBee, tanding and other book friends for voting monthly! Thanks to Nanquan 99 and Electromagnetist for their continued rewards! Thank you very much for the active support of all book friends during this period. I hope that next month will be a good start. Although some people can’t see the future clearly, I believe that with everyone’s support, the results of this book will definitely improve, and the author will still continue come on. It's the last day of this month, so don't say too much, let's vote if you still have votes according to the situation~~~

  (end of this chapter)