Silicon Valley

Because this financial crisis is more severe than previous lives, on August 11, 2007, central banks around the world injected more than 500 billion U.S. dollars to rescue the market within 48 hours, and the Federal Reserve injected 50 billion U.S. dollars to banks three times a day to stabilize the stock market!

However, the subprime mortgage crisis continued.

On August 14, 2007, dozens of companies such as Wal-Mart and Home Depot announced that they had suffered huge losses due to the subprime debt crisis. The company under Henry's name was also affected, but because of early precautions, the losses were minimized. In addition, these losses are nothing compared to the money made by Williams Royal Investment Company.

U.S. stocks quickly plunged to multi-month lows

At this time, the three major central banks of the United States, Europe and Japan once again injected more than 200 billion US dollars to rescue the market.

Central banks in the Asia-Pacific region also injected another $50 billion into the banking system.

However, on August 16, 2007, the stock price of the largest commercial mortgage loan company in the United States plummeted and faced bankruptcy. On August 20, the Bank of Japan injected another 2 trillion yen into the banking system to rescue the market. On August 21, just one day later, the Bank of Japan injected another 1.2 trillion yen into the banking system. The Reserve Bank of Australia also injected A$3.57 billion into the financial system!

On August 22, the Federal Reserve injected another 10 billion US dollars into the financial system, and the European Central Bank added an additional 50 billion euros in refinancing operations.

On August 23, the Bank of England lent 2 billion pounds to commercial banks to deal with the crisis, and the Federal Reserve injected another 15 billion U.S. dollars into the financial system!

Before August 31, the Federal Reserve injected funds ranging from US$10 billion to US$20 billion into the financial system almost every day. The situation in the financial market is extremely severe!

On September 1, US President Bush held a press conference and stated that the government promised to adopt a package plan to save the subprime mortgage crisis.

The international situation is turbulent, the US economy is slowing down, the dollar is depreciating, the European Union has suffered heavy losses, the global stock market has plummeted, and countless companies are on the verge of bankruptcy. China's trade and exports have dropped significantly, and the domestic economic situation is not optimistic. The government has invested 50 billion US dollars to rescue the market.

The least affected part of the world is Africa. The main trading nation of African countries is the Williams Empire, which exports raw materials, and the Williams Empire favors products from them. In addition, Henry has formulated many infrastructure projects to stimulate economic development and increase national income, so that companies can export excess products for domestic sales. In addition, Williams Imperial Bank took out 100 billion US dollars to stabilize the stock market! Since Digo Exchange has been established for a short time and its scale is small, it is relatively easy to rescue the market. Therefore, although the subprime mortgage crisis has swept the world, the people of the Williams empire seem to be staying in a safe haven, and have not felt the cruelty of the subprime mortgage crisis storm at all!

As time passed, the subprime mortgage crisis became more and more serious.

Seeing that many large financial companies are about to go bankrupt, the U.S. Treasury Department helped major financial institutions set up a super fund worth 100 billion US dollars on October 10 to purchase mortgage securities in their hands. The next day, the American Bankruptcy Institute announced that the number of consumers who filed for bankruptcy in September was close to 120,000, a year-on-year increase of more than 45.5%. From February to October 2007, a total of 823,000 people were laid off in the United States.

On October 24, 2007, affected by the subprime mortgage crisis, Merrill Lynch, the world's top brokerage, announced a loss of US$12.5 billion in the third quarter of 2007. The day before, Japan's largest brokerage, Nomura Securities, also announced a quarterly loss of US$1.24 billion. Subsequently, the Swiss bank with the largest assets in Europe announced that it had its first quarterly loss in nearly five years in the third quarter, reaching 82.5 billion Swiss francs due to losses on subprime-related assets.

"My dear, Williams Bank of America is the largest company in the United States. Because it did not invest in subprime mortgage bonds, the loss was very small. President Bush of the United States called and asked us to spend 100 billion US dollars with Citigroup and Morgan Stanley to help the market get out of the market. The subprime mortgage crisis!" Karina hurried to Henry's office and said to him.

Henry smiled and said, "Of course it's no problem, but as much as we pay, Citigroup and Morgan Stanley must pay as much."

Karina couldn't help smiling when she heard this, and instantly understood Henry's meaning.

Williams Bank of America has a good profit and sufficient funds. In contrast, Citigroup and Morgan Stanley, both of which participated in the investment in subprime mortgage bonds, suffered heavy losses. Both depositors and investors have distrusted them. In addition, the United States The financial market is getting worse and worse, and Citigroup and Morgan Stanley will never have a good time! As the saying goes, if you hurt the enemy one thousand, you will hurt yourself eight hundred. But for Williams Bank of America, this little loss is completely bearable. However, for Citigroup and Morgan Stanley, it will undoubtedly exacerbate the situation, leading to the bankruptcy of these two banks! Finally, Henry can buy them! ! !

"Okay!" Carina replied with a smile.

Naturally, Citibank and Morgan Stanley cannot sit back and watch the US subprime mortgage crisis continue, otherwise, they will suffer huge losses! So, he quickly agreed to Henry's request. Obviously, none of them expected how serious the financial crisis would be this time and how long it would last!

In December, the five major central banks of the United States, Canada, Europe, the United Kingdom and Switzerland announced a joint rescue, including short-term auctions and foreign exchange swaps.

The Federal Reserve submitted a package of reform measures against the subprime mortgage crisis, and the European Central Bank announced an additional two-week loan of about 700 billion U.S. dollars to the euro zone banking system!

The smoke of this war without fire seems to be getting more and more severe.

Both the state and the banks, wanting to win the battle, invested in subprime securities.

However, the effect is not great.

In March 2008, the pustules of subprime mortgages finally burst.

From March 3 to March 10, the share price of Bear Stearns fell from $77.32 to $59.30 per share. Bear Stearns' liquidity has dried up, to the point where it is at the end of its rope. Although Bear Stearns is the smallest of the five major investment banks on Wall Street, as one of the symbols of Wall Street giants, its collapse will undoubtedly have a serious impact, and the already poor situation of institutions such as Lehman Brothers will also worsen.

To live or die has become an unavoidable question for Wall Street giants.

On March 14, Bear Stearns' share price closed at $30.85, a sharp drop of 45.9% from the previous trading day. The share price hit $28.42 during the session, the lowest point since the Asian financial crisis in 1998. Affected by it, the Dow Jones stock index fell 194 points that day.

In order to avoid the sudden bankruptcy of Bear Stearns and endanger its own interests, European financial institutions require traders to suspend their transactions with Bear Stearns. Under the pressure of overall deterioration in liquidity, Bear Stearns had to apply for emergency loans from the Federal Reserve, Williams Bank of America, and JPMorgan Chase.

After hearing the news, Henry showed a smile and murmured, "The first piece of fat is coming soon!!!"

(to be continued ~^~)