Chapter 4977

Why did Madoff lose? He fought the whole financial market alone?

I don't know if it's Madoff's bad luck or if she's too eager for success. He created this "Ponzi scheme" and cheated everyone into it. He promised not less than 10% of the profits every year. As the chairman of NASDAQ, he naturally knows that the Ponzi scheme will be revealed one day.

Even if you keep tearing down the east wall to make up the west wall, you can't tear it down all the time. Especially, the more you borrow, the more interest you pay each month. Therefore, Madoff can only invest, and he can't invest safely, such as Warren Buffett's, Warren Buffett's investment, he can't do it. Because the interest he pays is much higher than the income. Therefore, he can only use Soros's risky speculation.

In Madoff's opinion, his former chairman of NASDAQ knows enough rich and famous people, so he should be able to make money easily. But the problem is that although he has many advantages, he can't make money. Not only did not make money, but also lost, and lost.

According to Abby Cohen and Soros' joint assessment, Madoff has swept more than $1.5 trillion, but now he has less than $300 billion left! The rest went to the bottom. Into the financial market.

As for why he lost so much? Soros and Abby Cohen each gave an answer. Soros's answer is that Madoff believes too much in market news. Although he knows a lot of people and can get a lot of information, the financial market is ever-changing. Maybe the information you got before is still true, but the next second, maybe the news will become a poison pill. Too much faith in news will only lead to failure.

Abby Cohen's answer is that Madoff has never carried such a huge amount of debt to make financial investment. He was afraid of his hands and feet, and he looked around, which made him lose money. Because he is afraid of losing, and in the financial market, if you don't figure out how to meet the loss, then you will only lose! You must be ready to lose money first!

But Madoff can't lose! If he loses, his game won't work. The more you can't lose, the more you lose!

Of course, in the whole financial market, Madoff can't lose alone. But once his side is cleared, it will form a domino effect and affect the whole financial market. Then the game will collapse. After all, in the U.S. market today, many, many Americans put their money into the financial market. Once Madoff is cleared and the stock market falls sharply, many people can't recover their costs and can't repay their housing loans. As a result, they are forced to recover their real estate.

It doesn't matter if only a few properties are recovered. Everyone can afford it. But if a large-scale default occurs, it is something that no one can afford. Once a large area of default occurs, it will bring financial crisis. In addition, many debtors do not have the ability to repay. In this case, they will be forced to repay their debts. This will naturally increase the default rate. Therefore, the subprime crisis is inevitable.

How to ensure Lin Feng's income is to short the U.S. stock market, in addition to leaving some of the bonds that contribute to the fire as soon as possible and replacing them with real gold and silver, rather than replacing them with more contracts and bonds like those of credit companies or venture capital banks. And short the stock market, Soros has begun to layout.

"Boss, at present, we have bought 20000 hands of half year index and 30000 hands of one year index!" Soros reported.

Half a year or one year is the delivery period. The index point of the stock you buy now, compared with the index point in half a year or a year, if you sell short, you will fall, and you will make money.

As for the 20000 and 30000 stocks, if Lin Feng bought the S & P 500 index of the United States and the index is at 1410, then each stock is $705000. Every drop will bring in $500, and every rise will bring in $500. Lin Feng bought 50000 hands in total, and every time he dropped a little, he made 25 million dollars!

According to Soros's prediction, this time, I'm afraid there will be a direct loss of 1, that is to say, a drop of 1000 points, because the basket created by Madoff this time is too big, which will have a great impact on the US economy. Coupled with the financial problems in the US, the loss of 1 in front of us can't be more normal. That's 25 billion dollars!

50000 hands, Lin Feng can make 25 billion dollars! Now it's just October. During this period of time, Soros will continue to slowly add long-term stock index. All the $500 billion he controls will be turned into futures. Half of them will turn into long-term indexes, and the other half will buy short-term indexes before a big fall.

As for why we should buy more than half of the funds into the long-term futures index, it is because Soros reckons that if the subprime mortgage crisis breaks out, the US government will surely rescue the market. If not, the US finance will be over. Even if the United States does not save the market, those big families will also save the market. To save the market, short selling will be stopped first. So, in the future, the short-term futures index can't buy any more. So it is very necessary to buy short futures index in advance.

And $500 billion, according to the leverage ratio that Soros got, 1:100, that's $50 trillion of leverage. This is enough to give it a heavy blow at once. As for the consequences of a financial collapse in the United States, this is not what Soros needs to worry about. All he cares about is the pleasure of manipulating world finance. As for the aftermath, that's what Lin Feng has to consider. He only cares about how to help Lin Feng make money. The rest is not what he is good at. Naturally, it has nothing to do with him. Naturally, there are professionals to deal with it.

As for how much profit is shared this time, Lin Feng gives 20%! However, for Soros, there are not many changes in his life. His life will not be different because of the two. It's just this time, maybe Soros's last shot. After dominating the financial crisis, he believes that for a long time in the future, there will not be such a grand game worthy of his hand. He can really retire!

"Soros, everything goes according to plan. But try to be hidden. I don't want to detonate ahead of time. " Lin Feng exhorted.

"Don't worry, boss. At present, we are losing tens of billions of dollars! " Soros laughed and said, "before Madoff is revealed, we may lose $200-230 billion!"

Lin Feng pursed his mouth. I'm afraid it's too much for ordinary people. This financial market is really a big risk and a big profit!

"Boss, in fact, if it wasn't for Madoff's presence and information about the US subprime mortgage market, I would have run away. It's scary. " Soros is very interested.

Unlike the Chinese stock market, the bull market and bear market of the US stock market are wave after wave. The bull market of the US stock market will last for more than ten years. Without these hands and feet, Soros would not dare to sell short the futures index so much.

"Well, I'll leave it to you. I will not interfere, the funds are here, how to operate, you see it! You are fully responsible for yourself! " Lin Feng said.

"Well, I see. But I'm afraid it will make a lot of trouble. As for the aftermath, boss, I just want to damage it! " Soros said helplessly.

Lin Feng smiles.

"Don't worry, I said, you just operate, and I'll take charge of the following things!" Lin Feng chuckled, "you don't have to take care of the rest. Naturally, someone will deal with it. You just do your job! In addition, the 30000 brokers on Wall Street will also be given to you. "

Soros's eyes brightened. When Wall Street attacked Lin Feng's "second world" stock price last year, Lin Feng took the opportunity to win over 30000 Wall Street brokers. Although compared with the stockbrokers on Wall Street, this person is nothing. But the power is enormous. Soros once wanted control of these people, but Lin Feng didn't say, and he didn't ask much. Now Lin Feng is willing to give this power to him, which is too terrible. Every stockbroker, at least, can control about US $1 million of capital, 30000, that is US $30 billion. With leverage, although compared with Lin Feng's capital, it is a drop in the bucket, but at the critical moment, 30000 people's selling is enough to make the U.S. financial market doomed.

Lin Feng hangs up and calls Abby Cohen after thinking about it.

"Abby, what's going on in America now?" Lin Feng asked.

Soros is the leader of the financial sniper plan, and has the full power to plan a response. Abby Cohen, on the other hand, is in charge of the overall situation and always gives Lin Feng advice.

"Boss, these VC companies are crazy. They are totally crazy." Abby Cohen sighed, "they are crazy to pursue profits and ignore risks."

"Is there any result for the world financial order after the financial crisis?" Asked Lin Feng.

"This time, the US government is bound to rescue the market. But the US government is also rescuing those large enterprises. As for the ordinary people, it is not in their consideration. In the end, many people may lose their real estate, but the United States is rich and the people may lose their real estate. But after the subprime mortgage crisis, real estate prices will plummet. Although the people have lost their real estate, they can buy it back or rent it at a much lower price than before! Generally speaking, the impact on the American people is not too great. But this financial crisis will have a great impact on the global economy! The financial rules of the United States are robber logic. Will use the money of other countries in the world to subsidize the U.S. government. So the real crisis is global. I think Europe will be in trouble this time! " Abby Cohen said, "the breakout point is in the United States, but it's Europe that will suffer in the end!"

(end of two today! Continue tomorrow! Thank you for your support!)