New York 2006

Chapter 216 Becoming a Target
The "Wall Street Bailout Act" was proposed by U.S. Treasury Secretary Henry Paulson. Its official name is the Emergency Economic Stabilization Act of 2008. The "Wall Street Bailout Act" is the nickname of this bill in the popular media.

The core of the bill is to use the government's $7000 billion bailout to purchase the non-performing assets of major banks related to subprime loans.

In this way, these non-performing assets related to subprime mortgages will be covered by the government, and the source of the financial crisis panic will be completely solved.

However, this bill requires approval by both houses of Congress to be implemented.

There is great political pressure to use taxpayers' money to save those Wall Street tycoons. People are now very vocal in their opposition to this bill, and there are protests all over the United States.

Because of this bill, the rich in the United States are directly opposed to the people, and the division between the two classes is becoming more and more serious.It's really hard to predict where things will go.

"All of us must use our respective resources to influence the legislators around us and get them to support this bill..."

In the hotel room, Microsoft CEO Steve Ballmer said to everyone.

Undoubtedly, those who have been most affected by the financial crisis are these wealthy people. Their assets in the financial market have shrunk the most, so they are also the most active in passing this bill.

Luo Ji actually didn't care that much about whether the bill would pass, because he had a hedging investment strategy.

His recent Internet investments have shrunk, but he made money by betting against the banking industry.

Luo Ji basically fished the whole time, listening to the speeches of these big guys on the stage.From time to time, he chatted quietly with Zuckerberg sitting next to him.

Although Zuckerberg's Facebook is not listed, his corporate valuation has also been affected by the financial crisis.

Last year, the valuation was 150 billion US dollars. This year, the number of users doubled. However, now the valuation in the capital market has not increased but dropped, only 120 billion US dollars.

"What are your plans after the meeting?" Luo Ji asked in a low voice.

"Back to the company, how about you?"

"There will be an entertainment industry party later, hosted by Quincy Jones. His home is nearby. Are you interested in attending?"

"Who is there?"

"I'm not sure, it should be some people in the entertainment industry."

Zuckerberg is only 24 years old now. With such achievements, he should be very high-spirited. However, Luo Ji felt that he spoke like a robot and lacked the vitality of young people.

Zuckerberg winked at him and motioned for him to look at the rest of the room.

Only then did Luo Ji react and found that everyone was looking at him, and some were still snickering.

Luo Ji felt like he was caught by the teacher whispering to his classmates in class. The situation was very embarrassing.But he is no longer the same as before.

Luo Ji said nonchalantly: "I didn't hear clearly what you were talking about just now. Can you repeat it?"

Microsoft CEO Steve Ballmer was not angry. He smiled and said, "Logic, this time the Internet Association supports the Emergency Economic Stabilization Act. Can you speak to the media on behalf of the Association?"

It turns out that this is what they are looking for!

Luo Ji's mind raced and he quickly found the formula: "I am a humble person, but I should give such an important task to a big shot like you."

"You are a star. Only if you speak out will the media report it on a large scale and the public will be interested. Who wants to see an old man's speech?"

Precisely because he is a star, he does not want to agree.

Luo Ji curled his lips and said, "I am a star, how many people can I influence? No one cares what a star says on this topic, everyone just treats it as a matter of fun."

Ballmer said seriously: "Logic, you are a genius investor. Especially during the current financial crisis, the news that you are shorting the banking industry has been exposed. Your reputation as a genius investor has become even greater. Everyone is still convinced by your words. This can also send a positive signal to the market.”

I admire him so much.

The two exchanged words back and forth for a long time. This place was full of wealthy people. Luo Ji didn't want to continue arguing with him, so he said directly: "I'll think about it."

"Okay, but I hope you can answer me as soon as possible." Steve Ballmer said seriously.

After the meeting, Luo Ji came to the party and depressedly took a long sip from a glass of wine.This is a high-end party with a high level of confidentiality and no reporters will take photos.

At this time, Jerry Yang came over with his mobile phone: "Take a look at this news."

Luo Ji took a look and saw that it was news from "Market Rhythm" that Logic Investment Company was shorting the U.S. banking industry!
Luo Ji curled his lips and said, "What's this? Goldman Sachs, JPMorgan Chase, Bank of America, and John Paulson are the capital giants who are short-selling. There are also news about their short-selling in the second-rate newspapers on the market. Compared with these people, These institutions. I'm just a nobody."

"Logic, you can't think like that."

Yang Zhiyuan said seriously: "There is indeed no shortage of news about short sellers in the market, but you should know better than me that the general public's focus is on you. What everyone wants to see is the 18-year-old genius investment star, and no one wants to see the well-known News about how college graduates with Ph.D.s can make money.”

"Even so, so what?"

Luo Ji waved his hand and said nonchalantly: "Market Rhythm is just a second-rate newspaper, and not many people subscribe to it. Nowadays, there are very few short-selling voices in the mainstream media. Everyone is working hard to solve the financial crisis."

"Is it really?"

Yang Zhiyuan picked up his mobile phone and continued to search. After a while, he continued: "Then take a look at these reports. They are reports from some second-rate financial newspapers and television stations."

Loigc, the big short seller during the financial crisis, opposed the "Wall Street Act" and Logic Investment Company's short-selling strategy. The three major rating agencies have downgraded some AAA-rated mortgage securities. It is impossible for the "Wall Street Act" to be passed. The expansion effect of the financial crisis, People are fleeing the stock market and gold prices are soaring.

Luo Ji held on and said, "What's this? Isn't it just bad news mixed with some of my short selling news?"

Jerry Yang said with a serious face: "That's why your news is so eye-catching. You have become the most discordant and most influential person in the country's efforts to solve the financial crisis."

A cold sweat appeared on Luo Ji's brow: "But I have already explained to the media that I don't pay attention to the company's affairs. Let them ask Dr. Xu if they have questions."

"But the media reports are not like this. The news is mixed with words such as Logic short selling, Logic Investment Company short selling, etc. Public opinion points to you."

Abnormal, very abnormal. Luo Ji never admitted his short selling in the media, and Xu Youyu also kept silent and tried to keep a low profile.

The media's sources of information were inaccurate. Some media reported it briefly and then passed it by. Public opinion began to return to how to solve the financial crisis.

From a media perspective, the heat on this matter has actually passed.Reporting on short selling is also not in line with the policy guidance of the US government.

Why didn't he pay attention in the past two days? There was so much news about his short selling.

Luo Ji became serious: "What's going on?"

"Have you not paid attention to the stock market these past two days? The stock market has been sideways for almost three days."

Luo Ji's mind instantly realized that with the joint efforts of the Democratic Party and the Republican Party in the United States, the Wall Street Journal and the New York Times, as the mouthpieces of both parties, reported that the general discussion was on how to solve the financial crisis.

Mainstream newspapers and television stations in the United States also report following government decisions in this way.

The current mainstream public opinion is that there is nothing wrong with solving the financial crisis.

But short-sellers on Wall Street don't care about this kind of problem. Their goal is to make money and don't care about the consequences of problems in the global economy. They obviously don't want to see the government easily solve the financial crisis in this way.

Goldman Sachs, John Paulson, Citibank, and JPMorgan Chase probably influenced these second-rate newspapers.

Obviously, these second-rate media reports on Luo Ji's short selling may not only be because of his relatively high personal reputation, which can boost newspaper sales, but may also be the result of the push behind the scenes by these short sellers.

Jerry Yang patted him on the shoulder: "It's time for you to make a decision, Logic. Short sellers are not lovable in the first place. You might as well show your attitude by supporting the "Wall Street Rescue Act" in the media." "Let me think about it." Luo Ji said casually.

Jerry Yang continued: "The stock market is now going sideways, and the long and short parties are beginning to compete fiercely. Short selling may not be your original intention, but now you have become the leader and shield launched by the short sellers, and you have become the most eye-catching one. You know the United States The government’s attitude towards the financial crisis, be careful of them causing trouble for you.”

"You go ahead and let me think about it alone."

Looking at Yang Zhiyuan's leaving figure, Luo Ji couldn't help but fall into deep thought.

In the face of such a major event that affects the world, Luo Ji knows how much he weighs. He doesn't have that much influence at all.

The reason why Yang Zhiyuan made the matter so serious and scared himself may be more out of self-interest considerations.

However, what he said did make sense.

Without being reported by the mainstream media, Luo Ji was indeed the best candidate promoted by the short sellers.His fame, age, and reputation as a genius investor, from his involvement in the subprime mortgage crisis last year to his involvement in the financial crisis this year, can indeed attract people's attention.

Luo Ji's pressure suddenly increased. Short sellers were so hated, especially now that the assets of the richest people in the United States were shrinking.

These short sellers didn't even ask him if he wanted to, and just pushed him out.

It is impossible to make money in a low-key manner. Now, he is being exploited by short sellers and has become a target.

Being too famous is sometimes not a good thing.If he were a simple Wall Street person, he would never have done this, and he would still be a star.

"M-Fxxk, these short sellers know how to hide behind the scenes to make money, and now they are putting all the pressure on me."

Luo Ji took a sip of wine and complained. After finishing the drink, he looked around and found Microsoft's Steve Ballmer standing not far away, chatting with Facebook's Zuckerberg.

Microsoft and Facebook are considered a cooperative relationship. Facebook's valuation of US$150 billion last year was invested by Microsoft. The relationship between the two seems to be very good.

Luo Ji walked over, and Zuckerberg nodded and left, leaving room for the two of them to discuss privately.Luo Ji looked at the old white man in front of him and said.

"I can speak on behalf of the Internet Society, but I need your help."

Steve Ballmer actually asked: "What help?"

Luo Ji loosened his tie and continued: "I need your media channels to influence mainstream public opinion. I am a value investor and I don't want to be a Wall Street wolf like John Paulson or Carl Icahn. The reputation is not good at all.”

"Okay, this will be beneficial to us. Are there any other conditions?"

Luo Ji said seriously: "I hope that my company will be taken care of by the Internet Society in the future."

"no problem."

"It's a pleasure to cooperate." Luo Ji smiled and extended his hand to shake.

"It's been a pleasure working together," Steve Ballmer responded, extending his hand.

…………

In the afternoon, Quincy Jones's home in the upscale residential area of ​​Bel Air.

Luo Ji sat on the sofa in the living room and watched TV. A group of men and women were walking around him. Quincy Jones and her daughter Rashida Jones sat beside him to accompany him.

Quincy Jones put on a dark face, smiled and said: "Logic, thank you for giving Rashida this opportunity to participate in the filming of "Twilight Saga 2"."

"It's not a big deal," Luo Ji said casually.

Rashida Jones plays a small role as a vampire villain in the second film.

This is considered an exchange of interests. Quincy Jones will use his Grammy influence to support Lady Gaga of Luo Ji Records to get some nominations for dance music and New Humanity.

Paris Hilton came over with a smile and a glass of wine: "Logic, why are you staying here watching TV?"

"Waiting to see my news, it should be here soon."

Everyone's attention turned to the TV, which was CNBC's financial news station. As soon as a news ended, a host appeared on the screen.

The host said: "Today, Logic spoke on behalf of the Internet Association of the United States, saying that if the government does not find a way to solve the financial crisis, it may stage the Great Depression of the last century."

The screen switched and Luo Ji appeared, standing on a makeshift podium.

"I am here today to speak on behalf of the Internet Association of America. We support the economic stabilization bill proposed by the Secretary of the Treasury. This is beneficial to the U.S. economy and the global economy."

"Why do you say that? Because the disaster caused by Wall Street is now not just a disaster on Wall Street, it has become a global crisis. People are now fleeing the market in panic. If the government does not control it, it may happen in the last century. of the Great Depression.”

A reporter below asked: "Logic, I heard that you are shorting the U.S. banking industry. Why do you still support this bill?"

Luo Ji looked at the camera and waved his index finger back and forth: "Short selling? This may have no factual basis. I have always been a value investor. I practice Buffett's investment philosophy."

"So what do you think the market will do next?"

"Then it depends on the government's actions."

The news on TV continued, with Luo Ji basically explaining some economic theory.

He tried his best to explain the "Wall Street Rescue Act" in terms that the public can understand, so that people with low literacy levels can understand the necessity of passing the bill.

The mainstream media should pick up the news and quell his unfavorable comments about short selling during the financial crisis.This can be regarded as minimizing the impact of this public relations crisis.

The news ended soon, and Luo Ji breathed a sigh of relief.

It's really not that simple to make money, it involves business competition, pressure from public opinion, government policies, and personnel struggles.

As his wealth grows, he has to face various problems, and depending on the situation, he has to choose the lesser of two evils.

The reputation of Wall Street wolves is obviously more disgusting than supporting the Wall Street Act.

Luo Ji smiled and asked the people around him: "How is my media performance?"

Rashida next to her gave a thumbs up and smiled, showing her white and shiny teeth: "Nice job."

"Hahaha."

Rashida continued: "Logic, the news is over, let's go dance."

"Ok."

Just as Luo Ji stood up, he saw Musk and his girlfriend Talulah Riley walking in from the door.He couldn't help but be a little confused and looked at Rashida next to him.

"Why is Musk here?"

Rashida said casually: "He lives nearby."

Luo Ji narrowed his eyes and stared at her: "So, this is the purpose of inviting me here today?"

(End of this chapter)