The US stock market is becoming more and more weird now, rising and falling, and there is no rule to follow. Any rumor on Wall Street may even bring about turmoil in the stock market.

Badstone is very clear that this is caused by general anxiety in the market. Everyone feels that something is wrong, but they find out what is wrong, so this kind of worry and anxiety, or suspicion is more appropriate.

"Boss, our large number of acquisitions of cheap cds on the market have attracted the attention of some people. Some people even went to the company to find out the news. Although some people have some doubts, the abx (real estate subprime mortgage index, the so-called short selling, that is, the index needs to fall sharply) is still stable. S&P has not lowered the cddo rating. The price of cds is also very cheap now, but there are some concerns in the market."

After Budstone finished telling the latest situation, Andy looked at the detailed data on the table, debt-secured bonds, CDO and credit default exchange CDS. The relationship between these two products is that the higher the risk of CDO, the higher the value of CDS guaranteed it. But during the booming real estate, since most people do not think that CDS will have any risks, the price of CDS is very low.

And what Andy is doing now is to short the dangerous cdo while purchasing cheap cds.

Andy closed the document, his lips curled up, with a smile, as if sarcastic and happy, "The whole world is in a false carnival, and a few outsiders and geniuses may have unique eyes. Investors are greedy and bankers are greedy. Once they sit on Wall Street, greed becomes what they should be, which can almost be regarded as an obligation.

Are there really no smart people here? No, this is a vicious circle. The closer you get to the market, the harder it is to discover its stupidity!

What we are doing now is to engage in bond trading gambling. The line between gambling and investment is artificial and very thin. The most stable investment also has a certain gambling nature, and the most bold and arbitrary speculation also has obvious investment characteristics. Perhaps the best definition of "investment" is "gambling where odds are good for you."

"Haha, boss, the scale of our investment this time is not smaller than that of some Wall Street investment banks. Even Facebook shares have been mortgaged for US$200 million. We now hold US$700 million in cds, US$200 million in short cdos, and 150 million in margins are available in JPMorgan Chase. They use the interest generated to fill the losses. Once the real estate collapses, boss, you will create a new wealth myth!" Alvetre admires Andy's courage from the bottom of his heart, which is a big bet that bets almost all his wealth.

Al's words made everyone in the conference room turn their hot eyes on Andy. After all, the things that everyone sitting there have been busy for the past period of time are researching around the real estate market. They are confident about the collapse of the real estate market, and it is only a matter of time before their boss creates the wealth myth.

"Haha, this is inseparable from your work during this period. I am not a stingy person. You will get good bonuses and plenty of vacation time because of your hard work during this period." Andy was very clear about his subordinates' ideas. He was indeed not a stingy person. Isn't it just a generous bonus for Wall Street? The annual salary specifications are really not very high in order to avoid the government's attention.

The rigorous and reserved Wall Street Englishmen did not have messy cheers or whistles, but just clapped hard with joy.

"Haha, why do you give me the feeling that you are sure to win? If everything goes well, you will need your hard work next. I hope everyone can cheer up. In the future, we will witness miracles and changes in the world economy in a few years. I hope everyone will not fall behind, because this is my opportunity and also an opportunity for you to realize your own value!" Andy seized the opportunity to draw a beautiful future for everyone. People are seeking profit. On Wall Street, it is undoubtedly the most appropriate to drive them with interests.

Waiting for everyone who was happy to leave, only Badstone and Alvetre were left in the conference room, as well as Li Xiaoying who was specially called by Andy.

"Ah, when will your think tank expect to fall down the first domino?" Andy turned his signature pen in his hand, and looked at Al more casually and asked.

"The ideal situation is that the three major rating agencies lower the rating of mbs (mortgage securities). Unfortunately, this situation is difficult to happen, level three a!" Al shook his head with a sarcastic smile on his face.

"Does the three major rating agencies really not see the bubble risk of real estate?" Andy frowned slightly. He really couldn't understand that the three major rating agencies that are very famous all over the world and are very awesome will not be clear about market changes. There is a Standard & Poor's company here. Even ordinary people in the Rabbit Country have heard of the name of this professional company.

"In fact, the three major rating agencies were also confused. The ratings they gave were entirely based on the materials traders wanted to give them to see and their own common sense basis." Budstone smiled and explained the confusion to Andy.

"What do you mean?" Andy was a little curious.

"The bond traders at Wall Street Investment Bank are all seven-digit annual incomes. They are more than enough to deceive those guys who earn five-digit annual incomes (employees of rating companies). In fact, the best employees of rating companies have all switched to investment banks to help their new owners deal with their old employers." Seeing that the boss seemed not to believe this reason, Budstone gave the boss a simple example of coaxing.

Simply put, half of the borrowers who can get high scores and the borrowers who have the other half have low scores in a purposeful way. The scores can be as long as they pass the three-a standard line, and the possibility of the borrowers who have the low scores in the half are very, very high.

"The other most important reason is that their biggest basis is that since the Great Depression, the United States has never seen a national decline in housing prices. They feel that borrowers cannot pay off their loans and will be able to collect the houses at that time. For MBs, they will be so confident in giving aaa rating."

Andy's brows stretched, and this reason was very reliable. "Since we can't count on the rating agency, where will we start to fall the first domino?"

"After our think tank has analyzed all the information that can be collected publicly, the second quarter will usher in a peak loan repayment period, and large-scale supply cuts will occur. That is to say, in April, from the bankruptcy of a certain loan company, the domino effect will begin to ignite the real estate bubble in the United States. At that time, our CDS can start to make profits. As for short selling of CDO, it still needs to face the opponent's dying struggle, but it won't take long..."

Alvetle spread his arms out and placed them casually on the conference table, confidently and calmly giving the answers the boss needs. This is also the value of their think tank existence. Otherwise, why should the boss spend money to support them?

Andy smiled with satisfaction, leaning on the boss's chair with a tall and strong body. He couldn't wait for April to arrive.

"By the way, Al, there is another thing you need to split some people to cooperate with Emily. Emily will be responsible for contacting the people of the Graham family and completing the acquisition of Newsweek."

"God! This is simply incredible. Boss, you are going to acquire Newsweek?" Al couldn't help but say in surprise.

Budstone and Li Xiaoying also looked at Andy in surprise. After all, the influence of "Newsweek" is too great, and it is definitely not comparable to that of the previous regional weekly "Observer".

"Yes, it's basically certain that I'll own this weekly magazine, and the acquisition price will be one dollar..."

Andy's face was filled with a smug smile and his steps became light. Thinking of the stunned and stupid look of the three people in the conference room just now, he couldn't help but feel a little relieved. With his faint pretentious expression, the three of them directly accepted it.
Chapter completed!