novelones Chapter 417: Deadlock, work harder to print money
Chapter 417: Deadlock, work harder to print money
The Financial Secretary is a little impatient. He simply cannot imagine the consequences of the collapse of Universal Real Estate.
It will directly cause an earthquake in the real estate industry. The five major investment banks are likely to collapse as a result. Non-performing subprime loans will trigger a financial tsunami. Not only will the beautiful country be unable to recover, but the entire world economy will be greatly affected.
This is a situation that Birkeland doesn't want to see. The assets of the masters behind him are almost tied to the beautiful country.
If America's economy declines, his master's money will also depreciate.
The most important thing is that his masters recently bought a huge stake in World Real Estate. The one who least wants to see World Real Estate fall is him, the boss of the Federal Reserve.
Everyone looked towards Birkland.
The only one who can save Universal Real Estate now is the Federal Reserve.
"Okay, I will issue a large loan to major banks, about 3000 billion U.S. dollars. This money must be used to rescue Huanyu Real Estate!"
One of the Federal Reserve's missions is to rescue commercial banks that have been run.
Birkeland feels that the current situation of major banks is very consistent with being run on.
He is famous for extending loans to major banks.
What he didn't know was that the bankers at major banks had twinkling eyes and had hidden agendas.
How much money will actually fall into the hands of Huanyu Real Estate is completely unknown.
After the meeting, Birkeland bumped heads with the Financial Secretary.
"Director, we cannot continue like this. Our banks, investment banks, and real estate are all in crisis. This is something that has never happened before. No matter which party falls, it will cause the other two parties to collapse. If we want to save them all, we We must print money at full capacity..."
The Federal Reserve has the power to apply to print money, but whether it can print money requires permission from the fiscal department. On the one hand, it must provide something as a guarantee. On the other hand, what it needs to use as a guarantee is decided by the fiscal department.
The Financial Secretary strongly agreed and proposed:
"I found that some people are emboldened and are counting on us to print money to tide over the crisis. It would be okay for the government to bail out a few big banks or investment banks.
Wouldn't it be a good thing if everyone took this as a routine? "
"If everyone adopts the idea of being too big to fail, and if they do something wrong in the future, we will all have to pay for it??"
Birkland immediately understood what the director meant. He wanted to kill the chicken and let some people know who their real master was.
Why do new officials burn three fires when they take office? It's not just to establish their authority.
This was very consistent with Birkeland's new situation at this time. He nodded and said:
"Director, if you have any suggestions, just tell me."
"We will pick out a few institutions that are in very bad condition."
He made a gesture of wiping his neck.
Birkeland couldn't help but smile knowingly and nodded.
Fuld of Lehman Brothers, who had always been dissatisfied with management, naturally appeared on the list.
But neither of them realized the consequences of doing so, and the subsequent development of things was also out of their control under the arrangements of some people.
The first one to encounter problems was Huanyu Real Estate.
The Federal Reserve announced that it would release $3000 billion to major banks to deal with the short-selling crisis.
After receiving the instructions, the CEO of Huanyu began to travel around to raise funds to resolve some of the overseas debts.
But what makes him very speechless is that only 3000 billion US dollars of the 300 billion aid funds are left in his hands.
300 billion U.S. dollars are trying to leverage 3 trillion U.S. dollars of debt. He is God and can’t save it.
As a result, Worldwide Real Estate began a large-scale shutdown in the United States.
The workers began to miss the days when Wang Group was still a controlling shareholder. At least their salaries would be paid normally, and they would receive additional overtime subsidies every month.
Workers, who had been owed wages for several months, began to protest on the streets, led by their unions.
When things got to this point, the fact that Huanyu Real Estate owed huge debts and was unable to repay them was completely exposed by some self-media.
The media controlled by the short sellers began to exert force.
$3 trillion in debt made headlines in the Wall Street Journal.
The share price of Huanyu Real Estate fell by 95% overnight, and its market value dropped to only tens of billions of dollars.
The president of Huanyu, who had just raised tens of billions of funds again, was on the verge of tears. You must know that the fixed assets of Huanyu Real Estate are worth more than tens of billions.
It seems that at this moment Huanyu Real Estate has been sentenced to death, and people all over the world are waiting for Huanyu to fall.
People on the Internet are talking sarcastically, gloating about the end of the world.
Investors who bought pre-sale houses and Huanyu Real Estate stopped doing so.
They also started making noise on the streets holding signs.
But at this time, the top management of Huanyu Real Estate really couldn't stand it anymore. Originally, they were counting on Huanyu Real Estate to issue new shares to raise a wave of money in the stock market.
But under the current situation, it is impossible to pass the issuance of new shares.
The exposed Huanyu has become a hot potato. Shareholders feel that it is hopeless and it is better to stop losses in time.
Even the most powerful shareholders have blocked them.
The Financial Secretary and the Federal Reserve also ignored them and regarded them as a drag.
They feel that they have become outcasts.
They can feel that the public does not have any expectations for Universal Real Estate.
Under various pressures, Huanyu Real Estate filed for bankruptcy protection in October 2007!