New York 2006

Chapter 144: Accounting for 2.83 billion U.S. dollars
"Because of my Asian identity, I have been persecuted by the Wall Street Journal and the Republican Party. They are all a bunch of racists, and everything is slanderous against me. Will a white person be investigated like this if he donates to politicians? No. Yes! Not at all! I just did everything white businessmen do, and I was slandered and investigated!"

On TV, Xu Yongqian looked angry. CNN played excerpts of his interview.

Later, a CNN reporter asked: "What's going on with your fugitive status?"

Xu Yongqian's face was full of anger, he waved his hands and stopped talking!
The camera returned to the studio, and the male host of CNN looked at the two guests: "Do you think what Xu Yongqian said is reasonable? This is political persecution from the Republican Party."

"I think……"

Two guests, one positive and one negative, had a heated discussion. CNN is a Democratic Party media. Under the influence of the host, the overall discussion was still biased towards Xu Yongqian's side.

Although Xu Yongqian is full of flaws, his words are reasonable. If he were a white man, no one would check him out.At least he wasn't the first to be hit.

Asians are still too concerned about image and face.It would be better to learn from black people that they are shameless and shameless. As soon as something happens, regardless of the facts, shout out racial discrimination and stand on the moral high ground first!

"This is the best way to deal with it. It can divert some attention!" Jen Psaki said.

William Daly also smiled and said: "Indeed."

William Daly came to New York on business today, so Luo Ji invited him to his home.

Jen Psaki came to New York with him to handle matters. This woman in her 30s has red hair, is very capable, and has an approachable smile.People are also beautiful and make people feel good about them!

"Yeah." Luo Ji said casually.

William Daley then spoke: "Is Xu Yongqian's willpower strong? This time the prosecutor is a Republican. Will he bite back on Democratic politicians in exchange for a reduced sentence?"

"Aren't the lawyers around him from the Democratic Party? You should know better than me. I really don't know him well! We have only met a few times."

Luo Ji scratched his hair irritably: "Brittney and I are also affected this time, okay?"

After the Xu Yongqian incident broke out, Luo Ji and Britney were also affected.Because there are photos of Xu Yongqian, Luo Ji, and Britney on his social media.

Britney was asked by Luo Ji to attend Ms. Clinton's fund-raising banquet in Beverly Hills, so there was a photo of her and Xu Yongqian, which made Luo Ji feel a little guilty.

William Daley said: "What you are doing is not a big deal, it is just a group photo, and at most it will be mentioned by the media! The attention of the Republican Party will not be diverted!"

Luo Ji was indignant: "There are Spielberg and Elton John, too, why no one mentions them! Why don't they think I'm easy to bully!"

"Okay, stop complaining! It's not a big deal!"

William Daly continued: "I happened to be on a business trip in New York this time. What do you want from me? You didn't come here to let me listen to your complaints!"

Luo Ji raised his head and looked at Jane Psaki. She was very sensible. She smiled and said, "I'll go out for a walk."

"Okay!" William Daly didn't stop him!
After she walked away, Luo Ji said: "Xu Yongqian reminded me after her accident that being a financial backer can be quite dangerous sometimes. But in the United States, I have to deal with politicians all the time, so I want to find someone to help me. Design a perfect donation method that doesn’t leak any flaws! I don’t want to be someone’s target one day.”

William Daly was a little confused. There was no need to go to him for this matter. He could just find a lobbying company!
But he still said: "Jen Psaki can handle this. She has worked in a lobbying company before! I will introduce her to you later!"

"Yeah." Luo Ji then said leisurely: "But that's not the most important thing, I have one more thing!"

"what's up?"

Luo Ji leaned forward slightly and whispered in the ear of William Daly, an old white man: "I would like to find out if the government has taken any action regarding the subprime mortgage crisis? If the matter is so big, the government must have taken measures! "

William Daley looked at Luo Ji in surprise and pondered for a moment: "Why don't you go find Ms. Clinton? You donated so much money to her!"

Luo Ji used his best acting skills and said sincerely, "I trust you more!"

This was of course an excuse, and he was politely rejected by Ms. Clinton.After Xu Yongqian's accident, her vigilance was immediately heightened, especially since Luo Ji got to know her through the fundraising dinner hosted by Xu Yongqian.

William Daley looked directly at Luo Ji without saying a word, as if he wanted to see Luo Ji's heart clearly.Luo Ji looked at him calmly, without any panic.

"Let's go out and talk!"

"it is good!"

The two came outside. Not far away, Jen Psaki was walking and chatting with her grandmother Queenie.Luo Ji nodded to them, and then walked to his car with William Daly.

There was a young white man in a suit sitting in the car, and William Daley nodded to him.He immediately took out a scanning device and came to Luo Ji.

Luo Ji was very calm. He understood that politicians were more cautious, so he let him scan them. A minute later, the young white man nodded to William Daley.

"Get out!"

Luo Ji and William Daly were the only two people left in the car. He asked straight to the point, "Why are you asking about this?"

"I have some investments related to subprime mortgages!" Luo Ji then said vaguely, "The subprime mortgage crisis is uncomfortable!"

"Did you lose a lot?"

Luo Ji didn't answer, but just covered his forehead with his hand, his expression falling into sadness.Of course he didn't lose, he just caused William Daly to fall into a misjudgment!

Since S&P downgraded subprime mortgage-related securities on July 7, subprime loan-related indices have been falling, and global bank stocks related to subprime mortgage securities investments have also fallen rapidly.

After late August, the subprime mortgage index ABX began to trade sideways. Luo Ji insisted on holding on, hoping for greater gains because there was too much bad news.

Several rating agencies are still downgrading the ratings of subprime mortgage derivatives, and John Paulson, the big short seller of subprime mortgages, is still badmouthing the subprime mortgage market.

BNP Paribas took the unprecedented step of prohibiting investors from withdrawing money invested in funds with subprime mortgage exposure, claiming that "liquidity has completely evaporated." This caused market panic and investors began to flee loan derivatives. market.

Despite so much bad news, the ABX index has actually begun to rise in recent days, and the magnitude is not small, exceeding 5%.

Xu Youyu had no clue about this, and Luo Ji couldn't judge either.But the data does not lie. The death spiral of the subprime mortgage crisis will further deepen. Luo Ji does not want to see an even greater loss of excess profits in the future.

That's why he wanted to find American politicians to find out whether the government would intervene.Or to what extent it interferes.In order to make judgments for subsequent investment directions!
William Daley was a little surprised. He patted Luo Ji on the shoulder and continued: "The current ruling party is the Republican Party. This matter is very difficult to find out! Moreover, this matter is too sensitive. Everyone is paying attention to this matter." This matter has a very high level of confidentiality!”

Nonsense, all the major Wall Street investment banks have people in the government, and they are fully aware of the government's actions.They will not watch their subprime mortgage investments continue to lose money, and they may be the ones pushing the government to clean up the mess.

How the government will handle this is probably not a secret on Capitol Hill. Based on the influence of the Daley family in the Democratic Party, it will not be difficult for them to find out.The Daley family, the Chicago natives, did not hesitate to sell state-owned assets. How could they be afraid of leaking information about the subprime mortgage crisis?

Luo Ji understood William Daley's subtext: "I heard that your family foundation has recently taken charity action, and I hope to make a contribution to charity."

Veteran politicians like William Daley are very straightforward: "I very much support you in making a contribution to charity. Recently, our charity fund has a gap of 100 million dollars. I wonder if you are interested?"

Luo Ji looked at William Daley in surprise, then made a heartbroken look, and finally gritted his teeth and made up his mind: "I hope to contribute to charity."

William Daley then patted Luo Ji on the shoulder: "There are still a few congressmen who need to take care of themselves a little bit. I need you to support them after that!"

Luo Ji pretended to be distressed and continued to use his acting skills: "I listen to you!"

"Okay, wait for my news!" After William Daley finished speaking, he looked at Luo Ji with a serious expression: "After you receive the news, you cannot reveal it to anyone! Do you understand?"

Luo Ji immediately said, "I can't. We have known each other for a long time. You should understand me!"

One day later, William Daly drove to see Luo Ji himself, and the scene was the same.They were the only two in the car.

William Daly said: "Several Wall Street investment banks have gone to lobby the government, and the government is indeed discussing how to rescue the market!"

Luo Ji asked eagerly: "What measures is the government planning to implement to help?"

"The news coming out of Capitol Hill is that Wall Street hopes that the government will directly inject capital into major investment banks to help them tide over the difficulties! But the government is unwilling to do this, and public opinion will not get through it first! Therefore, the government will not directly rescue Wall Street investors."

Luo Ji nodded: "As expected."

The U.S. government is not a puppet of Wall Street. They have to consider public opinion. The people are definitely not willing to see the government directly bail out these capitalists.Especially next year there will be a general election, and if one is not careful, the Republican Party will be sprayed to death!
This is the underlying logic of American politics. Capitalists use money to influence politicians to serve them, but the people use their votes to restrict politicians. This is a process of mutual gaming.

Luo Ji looked at William Daley: "The government must be taking action!"

"Indeed, Wall Street's lobbying is still effective. The government plans to help some low-income American families in trouble tide over the difficulties. It will raise funds for their houses through the Federal Housing Administration to meet their monthly payment needs, thereby keeping their houses. Provide low-interest loans to the people at the bottom, so that there will be much less resistance from public opinion!”

Luo Ji's eyes suddenly lit up: "Wouldn't this solve the root cause of the problem of bad debts in subprime loans?"

"Yes, the current root cause is the problem of bad debts in subprime loans. Solving the problem of loan repayment for the people at the bottom will solve the subprime mortgage crisis!"

Luo Ji began to think quietly in his mind: "Thank you! I understand!"

William Daley laughed: "What happens next?"

“Have Jen Psaki contact me, she is now my political advisor and she will be responsible for all my future donations!”

William Daly smiled and patted Luo Ji on the shoulder: "You are very smart. We can rest assured about this choice!"

Luo Ji came to the office of the investment company. There were five employees here. All of them were introduced by Xu Youyu. They were all Chinese and had experience working in major investment banks.

Luo Ji looked at everyone and said, "All CDS have been cleared today!"

"OK!"

During this period, the ABX index has risen by an average of 8%, and a lot of profits have been lost. It seems that many Wall Street investment banks who have received the news in advance have taken action.

Although Luo Ji got the news a little late, he was still much luckier than the last group of people who got the news!By the time the media reports it, it will be too late!

For the next few hours, Luo Ji stayed at the company, with two bodyguards standing outside.With hundreds of millions of meters of knife involved, Luo Ji could never be too careful.

"Boss, the last sale has been made!"

Luo Ji came to the computer and looked at it. After deducting commissions and handling fees, the 2.83 million yuan on the computer made him feel dizzy.Finance is really profitable!

Several employees in the company looked at Luo Ji like a god.

Luo Ji had a calm look on his face and patted several people in the company on the shoulders: "Do a good job, and you will definitely get your bonus this month!"

"Yeah, thank you boss!"

Luo Ji touched his chin. Now that the United States is the only superpower in the world, and the government is taking action, the subprime loan market is only a few hundred billion dollars, so it should be easy to solve it.

He ordered to everyone: "Take out 8000 million yuan and start going long in the housing loan securities derivatives market!"

"Boss, there is so much bad news now, is it appropriate?"

I have inside information, can it be the same?

Luo Ji waved his hand casually: "Just do what I ask you to do, why are there so many problems!"

"Okay, what should we do with the remaining [-] million meters?"

"I want to withdraw 5000 million US dollars, and the remaining 5000 million US dollars. Invest [-] million US dollars and continue to buy Apple stock. For the remaining [-] million US dollars, you can research other Internet companies on the market. Click Buy in proportion! Remember to give me a report when the time comes!”

"Okay, boss!"

Back in the office, Luo Ji could no longer control his excitement. He clenched his fists and shouted in a low voice, "Yes, yes! Well done!"

Three days later, President Bush and Treasury Secretary Henry Paulson spoke to the media in the Rose Garden of the White House.

"I will commit to resolving the subprime mortgage crisis as quickly as possible by allowing families to refinance their mortgage payments through FHA guarantees. This means that many struggling families will be able to refinance their monthly mortgage payments and thus Save their house.”

On the same day, Federal Reserve Chairman Ben Bernanke said this at a forum organized by the Federal Reserve Bank of Kansas City in Wyoming.

"The Fed will continue to monitor the situation and take all necessary measures to prevent disruptions in financial markets from adversely affecting the broader economy."

Instantly, the ABX subprime loan index rose ten points, and global stock markets rose!

(End of this chapter)