Chapter 370 The biggest profit

Fatty white man's proposal made Chen Mingluo very moved.

Especially when he proposed a solution, Chen Mingluo had the idea of ​​getting a piece of the pie in the Thai market.

The reason why Chen Mingluo did not take action against the Thai baht was not that he could not grasp the trend of the Thai baht and the operation methods of Soros and others, but because the flow of funds was somewhat inconvenient, but now the fat man said that he could solve these problems, so this matter would be much easier.

Currently, Chen Mingluo has some valuable industries in his hands, including part of the shares of the Mingyang section expressway, the shares of the Yuanming Powder Factory, the taxi meter production factory, the real estate projects in Yangshuo, and projects that cooperate with Letong Company, etc.

These projects combined together are indeed a force that cannot be ignored.

Fatty white man said that if these industries are mortgaged, they can collect 500 million or 600 million US dollars, they are not just talking nonsense.

Therefore, Chen Mingluo feels that the fat white man has a deep understanding of himself. Since that is the case, Chen Mingluo also has the intention to take a try and make some pocket money from this Southeast Asian financial crisis.

Chen Mingluo was clear about the operation methods of Soros and others, just like the operation methods of the Rothschild family. After obtaining war information, the Roh family first sold bonds and caused a sharp decline in the market, and then took them back, thus gaining huge benefits.

With the precedence, the Roh family's throwing and returning are in the lead compared to other opponents in the market. Even if the opponent understands their strategies and responds quickly based on their behavior, it will definitely cost a greater price.

Soros's operation method is also relatively clear. The influx of hot money is naturally bearish on the Thai baht, so the strategy of hot money is relatively clear. If the operation is not properly done, it may end up in the situation of making wedding clothes for others. Therefore, Soros must set off smoke bombs, that is, do the opposite.

It is obvious that it wants to buy assets but it releases negative information, greatly suppressing asset prices, and after reaching the bottom, it stimulates market confidence through a series of positive news and thus ships.

In actual operation, it is naturally not so simple. It must be accompanied by countless highs and lows, ups and downs, real and false operations, making the market and the general public dizzy, thus achieving their own goals.

It is precisely because of the huge scale of hot money that it dominates the market and can create certain market phenomena for a period of time. Moreover, a group of people represented by Soros have a huge influence in the political and economic circles, and have mastered a series of initiatives such as policy release and information release. Simply put, the rules can be revised to a certain extent, and the advantages are not bad.

But hot money is not without its shortcomings. First of all, such a large scale of hot money is quite difficult to operate. You must make a profit under certain clear expectations. There will be turmoil that is truly uncontrollable, and the risks are unbearable for hot money.

In any case, hot money always has a clear expectation, and its expectations can be found through clues of the operation of huge funds. The ultimate goal of hot money is to make profits in its expectations. As long as its ultimate goal is found, the interference of its numerous smoke bombs can be ignored.

Secondly, hot money cannot bear too much time cost. This batch of hot money is huge. The longer the time, the higher the cost, the limit will always reach its limit. Moreover, the longer the time, the greater the possibility of changes in the economic situation. For hot money, the greater the risk, which is also unbearable. Therefore, hot money must complete the operation in the shortest time, which determines that the room for operation is not too large.

Soros's operation method is nothing more than a large amount of news and a small amount of funds take the lead in triggering the herd effect of the market. Through huge fluctuations, the market loses its judgment, and even causes the Thai government to make wrong judgments and use wrong means to interfere in the market. Hot money then gains huge benefits through reverse operations.

If you want to make money in this financial crisis, you must naturally understand Soros’s ideas, analyze rationally, firmly believe, and not be confused by various market illusions in order to avoid losing everything in the storm.

Fatty White's method is sharp. After Chen Mingluo owed some documents, he used his assets as collateral and obtained a short-term loan of 600 million US dollars, and then handed it to Fat White's financial experts to start operating on the Thai baht.

Chen Mingluo is only responsible for issuing orders and does not care about specific operations.

Soros adopts a three-dimensional speculative strategy, not just foreign exchange operations.

The so-called three-dimensional speculation is financial speculation that uses the correlation between three or more financial instruments.

In the first half of this year, some large funds represented by quantum funds used "leverage" on a large scale to continuously squeeze the Thai financial market, triggering the Thai financial crisis. In the subsequent evolution of the Southeast Asian financial crisis, these funds used "leverage" on a large scale to aggravate the extent of the crisis.

How did they do it? As Soros himself described, "We use our own money to buy stocks, pay 5% of the cash, and borrow 95% of the funds. If we use bonds as collateral, we can borrow more money. We can use a thousand dollars to buy at least $50,000 worth of long-term bonds."

These people used their own capital as collateral, bought securities from banks, and then continued to borrow with securities, rapidly expanding the debt ratio. Not only that, they also widely speculated on various derivative instruments with the characteristics of "high leverage", thereby further increasing the leverage ratio.

In fact, Quantum Fund bought a large number of put options as early as March this year, borrowing a large amount of Thai baht by swaps, selling Thai baht futures and forwards. It is expected that the counterparty would sell Thai baht spot to preserve the value of derivative contracts, and it is easy to use the hands of others to create pressure on the depreciation of Thai baht.

It is worth mentioning that their later practices in Hong Kong are a classic example of three-dimensional speculation.

Generally speaking, due to the absence of arbitrage equilibrium relationship between financial markets, with the birth and development of various financial derivative instruments and their markets, the foreign exchange spot market, forward market, money market, capital market, and derivative market are linked together and locked down step by step, and the whole body is affected by one move.

A typical example is that in the second half of this year, and when international speculators impacted the Hong Kong financial market several times, international speculators first borrowed a large amount of Hong Kong dollars in the currency market and sold Hong Kong dollars, forcing the Hong Kong government to sharply raise the interbank interest rate in the currency market. The sharp rise in interbank interest rate in the currency market caused the stock market to fall, and at the same time caused the Hang Seng Stock Index Futures to fall sharply in the derivative market. The sharp decline in Hang Seng futures accelerated the decline of the stock market. The decline in stocks further reduced foreign investors' confidence in the Hong Kong economy and the Hong Kong dollar, and they sold Hong Kong stocks to exchange for the US dollar, causing the Hong Kong dollar to face a new round of depreciation pressure.

The chain reactions of various markets ultimately expanded the fruits of speculators' victory.

Chen Mingluo had a lot of things in his head, so he knew very well how Soros made arbitrage. He now completely imitated the other party's operation method, fully utilized the 600 million US dollars of his own funds in his hand, and continuously expanded his controllable funds through borrowing.

After a while, six hundred million US dollars can be used as one hundred and twenty billion US dollars, which is quite scary.

Although Chen Mingluo's investment is a bit large, international investors are currently staring at the Thai baht, so no major problems are revealed for a while, especially Chen Mingluo's movements are fast enough that before he can react, he has already started to disrupt the situation.

The contest between Soros and others with the Thai government at this time has reached the most critical moment, and if you are not careful, the entire army will be wiped out.

However, the ability of the Thai government is really unsatisfactory. Their economic policies have led to great loopholes in the financial system. Although they yearn for a free economic system that they hope for, they have done a lot of work, but the risks of this system are very high. Once these international financial giants pressed all the chips in their hands, the Thai baht could no longer withstand it.

As for the various real estate projects in Thailand, they have been played with by Soros and others for countless times. Now they have suddenly sold out, and the situation has taken a sharp turn.

Next, the Thai baht continued to decline. At the end of July, the Thai baht fell to 32.5:1 against the US dollar, setting a new historical low. The slaughtered by Soros really made the world miserable. The Thais were even more frightened, beating their chests and stamping their feet, and questioning the sky.

However, after defeating the Thai Baht city, Soros was not satisfied with this. He concluded that the Thai Baht would be depreciated and other currencies would collapse. Therefore, he ordered the continued expansion of the results of the war, and the entire army swept across Southeast Asia.

Soros was determined to plunder all the wealth accumulation of Southeast Asian countries and destroy the dreams of these ungrateful people trying to take over the West and replace them.

Hearing that Soros' army was stirring up the wind and waves, the clouds and mist came, other Southeast Asian countries tried their best to resist desperately.

The Philippines sold $2.5 billion and Malaysia sold $1 billion to stabilize its own currency, but it was difficult to stop the depreciation of the peso and ringgit in the face of Soros' powerful offensive.

At the same time, the Indonesian rupiah and the Singapore dollar also fluctuated violently. For a time, the Southeast Asian currency market was rumbling and the grass and trees were all invincible.

Is this the precursor to a financial crisis or the end of the financial crisis? No one dared to draw a conclusion for a while. Perhaps only two people knew the secret, one was Soros, and the other was the far-sighted Chen Mingluo.

Chen Mingluo's profits in the Thai baht exceeded one billion US dollars, which made him feel satisfied, but at the same time, he also felt that such an opportunity was once a lifetime. With Soros in front and he followed him and made a lot of money, where can I find such a comfortable thing in the world?
Chapter completed!