On September 21, the Federal Reserve approved Morgan Stanley and Goldman Sachs to become holding banks, join the Federal Reserve's sequence and receive large amounts of bailout funds.

This self-rescue measure temporarily stabilized the situation of the two major investment banks, but in vain it fueled market panic.

The market is always extreme. When you are in a greedy mood, any event can be interpreted as good, just like everything is good for Moutai, and vice versa.

When investors see fancy giants like Morgan Stanley and Goldman Sachs starting to struggle frantically to escape, their first reaction is not to stabilize their emotions and believe that the government will save the market, but to "run, brother". If you don't run, you won't be able to catch up with the second bus.

It would be useless to let Paulson yell at fellow investors not to run away. Selling everything to survive became the main theme of the market. At this time, the opportunity for bargain hunting appeared.

After the market opened on Monday, the 22nd, Li Zhiyi successively used the US$11.4 million earned from shorting AIG to leverage his full position to buy CDS contracts with a nominal value (compensation price) of US$127 million.

As long as you wait patiently for the government to introduce the "US$700 billion bailout plan" and the market picks up, you can make a lot of money by selling the CDS contract when the price rises.

At the same time, the situation at Washington Mutual Bank has become increasingly serious. Counting from the Lehman explosion on the 15th, savings funds have dropped by US$17 billion. At this critical moment, another ruthless person has emerged in the U.S. financial system.

But this ruthless man is different from the iron-blooded Paulson. He doesn't have the courage to turn the tide, but he has the ability to pretend to be dead, and it's great!

So on September 25, the U.S. Federal Reserve announced the collapse of Washington Mutual Bank. This behemoth, founded in 1899, collapsed on the 109th anniversary of its founding. It was quite dark humor.

Even players the size of Washington Mutual Bank were leaving. Congressional gentlemen finally couldn't sit still and immediately convened a "700 billion US dollar rescue plan" after the market closed.

However, the meeting did not go well. The fall of the Qing Dynasty was a small matter, but the quarrel between the Congressmen was more important, especially at the time of the general election.

Comrade Ao Guanhai, the candidate for the leadership of the Donkey Party, closed his eyes and pretended to be dead. He opposed the rescue strategy proposed by the target party throughout the entire process and opposed for the sake of opposition; to prevent moral hazard, he could not use taxpayers' money to wipe Wall Street's butt, and other reasons.

.

John McCain, the candidate for the leadership of the Elephant Party, is naturally dissatisfied. Since you are messing with me, I will overturn the table and let no one play with you.

President George W. Bush, who was about to take office, just lied down, hoping that he would leave office completely and not be hanged on the crooked tree behind Capitol Hill.

The meeting became noisy and chaotic. At this time, Treasury Secretary Paulson stood up again. To be precise, he should kneel down.

Paulson, a member of the Elephant Party, knelt down in knighthood to Pelosi, a member of the Donkey Party who was then Speaker of the House of Representatives, and begged her party not to oppose the bailout bill.

This kneeling succeeded, whether it was a political threat or a sincere service to the country, Pelosi said: "What I want to tell you is that it is not me, but the Elephant Party that is preventing the passage of the financial rescue plan."

Paulson was exhausted and said repeatedly: "I know, I know..."

…………

The wheel of history is rolling forward, and the general trend is also moving forward.

Li Zhiyi, an ant living in the times and following the trend, did not care about what the powerful Paulson knew. In addition to buying and selling, there were many things for him to do.

For example, dealing with comforting relatives and friends.

First of all, there is no need to say more about that bastard Henry, and secondly, my beloved economics teacher Joseph Stiglitz, who has frequently sent him emails to communicate market analysis during this period.

Next is Qiao Yang and his parents. Today's financial situation looks more and more severe. The total CDS he holds only has a market value of more than 5 million.

Xiao Qiao was very worried that Li Zhiyi would lose money and become so depressed that he would queue up on the rooftop of the New York Stock Exchange, so he took the initiative to invite his classmate Xiao Li to dinner and used his mind to kill chickens to save all sentient beings.

The halo behind Xiao Qiao Bodhisattva's head is getting brighter and brighter...

The same is true for his parents. They would call Li Zhiyi every day and talk about trivial matters, but in fact they were worried that he would lose his underwear on investments.

"If the business is not good, we should just close down. It just so happens that my mother always wants to go to New Zealand. In a few months, I will pay for a winery in New Zealand, and you two can retire early and enjoy the blessings."

In the apartment rented by Qiao Yang, Li Zhiyi was having dinner with Qiao Yang while talking on the phone with his old father.

In fact, he is also a little worried that his parents are in a bad mood. The family's agency business has been greatly affected, and it is unlikely that he will be able to recover in the next two to three years.

"You don't have to worry about the family, just take care of yourself."

Old Li on the other end of the phone paused and continued: "I don't understand the CDS you made. I heard that the market is not good. Have you sold it?"

"Not yet, I'll buy it when the price rises in a few days." Li Zhiyi said truthfully.

At first, he considered lying and saying that he was clearing the stock so that his parents wouldn't have to worry about it, but once he thought about making money like this in a while, he would still have to find excuses, and it would be too annoying to fool around, so he might as well tell the truth.

Lao Li didn't hesitate even if he didn't get the answer he wanted to hear. He just clicked and said: "That's fine. It's good to be able to think and make decisions independently. Don't worry about whether you lose or make money. You are still a student now, and there will be many opportunities to make money in the future."

Li Zhiyi Xi said hello and then said: "I don't understand the business at home. Anyway, don't be too reluctant. I said I was serious about buying the winery."

"Okay, your mother will be very satisfied with you. You can eat first and talk about it later when you have time."

Lao Li seemed to reply calmly, and then the two ended the call.

After hanging up the phone, Li Zhiyi raised his eyebrows at Qiao Yang: "Did you hear that? I'm in a very stable mood now. I'm eating well and feeling great. Nothing's wrong with me."

"It seems quite normal. He even knows how to comfort his uncle, so he's making progress." Qiao Yang nodded in agreement.

Li Zhiyi replied casually: "You make me sound so ignorant."

Qiao Yang took a sip of the soup and thought for a while before replying: "No, you and your uncle get along like equal friends, and your emotions are relatively reserved. It's quite novel to hear you two talking like this occasionally."

Xiao Qiao and Li Zhiyi's parents have met several times. Li Zhiyi has a very good impression of Qiao Yang. It is said that she has even added her as a Facebook friend and they are very familiar with each other.

Li Zhiyi smiled and said: "Sons and daughters are different. There is no need to say a lot of things between father and son."

"Well, my dad and my brother don't talk much, but they communicate more than you and your uncle."

When Li Zhiyi heard this, his movements of picking up the vegetables paused slightly, pretending that he didn't hear, and continued to eat silently.

The cold communication style between him and Lao Li is not entirely due to the father-son relationship cultivated by traditional Confucian culture, but also partly because he did not grow up beside Lao Li.

He is considered a left-behind child from a well-off family. His parents went abroad to do business in his early years. He lived with his uncle for half a year, with his aunt for half a year, and with his uncle for half a year. He grew up eating like this.

His parents have never lacked anything in terms of material conditions for him, and they can even be said to be doting on him, but they are unable to provide him with psychological support, and they only live together for a few dozen days a year.

He really wants to get close to his parents, but he really doesn't know how to get close to them, so they are a bit unfamiliar with them.
Chapter completed!