Originally, given the economic strength of the island country, it was not easy for Soros to succeed. It is a pity that in this financial crisis in Southeast Asia, no matter which country is unlucky, the island countries will have to bear part of the losses.
The banking industry of island countries is highly developed and there is excess currency, so they go to Southeast Asia and other countries to invest. The development of these Southeast Asian countries with finance and real estate as their pillar industries is actually facilitated by the island countries.
Isn't this model the same model that once led to the rise of island countries
Back then, the island nation was cheated by the United States, and as a result, its economy regressed for ten years. Later, they thought about investing abroad. Once the domestic economy encounters problems, they will cheat other countries. This is what they learned from the United States, and they can continue to consolidate their island nation's position as the economic leader in Asia.
But they didn't expect that the economies of those countries would collapse before they even started!
Those countries have many island banks, and the banks of the island countries have also invested a lot of money in those countries and repaid a lot of loans.
This was originally a good investment. The economies of those countries were growing at a rapid pace, and their investments could also make money. So they continued to invest more every year, and the amount of investment became larger and larger.
As a result, Feng Yu and Soros joined forces last year to sweep across many countries in Southeast Asia, causing a sharp decline in the financial industries of those countries and a massive devaluation of their currencies.
It is certain that those countries have suffered a lot, but every country's misfortune has also affected the island countries.
Starting from the second half of last year, banks and securities companies in island countries began to go bankrupt. In the past few months of this year, more and more banks and securities companies have gone bankrupt, because companies in those countries continue to go bankrupt.
If the loan and investment cannot be recovered, can we still go bankrupt
Banks and securities companies in island countries have gone bankrupt and shrunk their business. This has further exacerbated the financial crisis in Southeast Asia, and can even be said to have spread to all of Asia.
At this time, the Japanese yen was also affected and began to slowly fall, but the decline was not large. It stabilized at the beginning of this year. The exchange rate against the U.S. dollar was 120:1, which was slightly lower than last year's 115:1, but Still acceptable.
But today, the yen suddenly fell to 124:1. This is the largest single-day drop in this period!
The island nation is alert. Someone must be attacking the Japanese yen, and the most likely person is Soros!
As they expected, Soros and his people began to slowly attack the Japanese yen. In fact, even if they don't attack, the decline of the yen is inevitable. Many of their foreign debts will not be recovered, and the economy will suffer a serious setback.
What's more, Soros is attacking the yen again. Although the effect is not as good as attacking the Indonesian rupiah, the decline of the yen has become a trend.
The fall of the yen has aroused the alarm of those who invest in island countries. They did not expect that the financial crisis in Southeast Asia would affect the island countries.
Coupled with Soros's campaign, he constantly released news in various media, saying that the island country's economy was going to collapse again, and it was better to persuade investors to sell the Japanese yen quickly and exchange it for a stronger U.S. dollar.
Soros's name is still very loud, and some people have responded. Coupled with Soros's operations, it is normal for the yen to fall.
After Feng Yu got the news from He Zhaoji, he immediately stared at the yen curve and then looked at the stock index curve of the island country. He was sure that Soros must have done it!
"Lao He, according to our plan, we will short-sell the Japanese yen. Remember, we must do adequate hedging. This investment must be stable." Feng Yu warned.
The previous profits had been so high. He was afraid that He Zhaoji was too greedy. If he did not hedge and short-sold the Japanese yen on a large scale, he might lose a lot of money due to violent fluctuations.
Making money in futures is quick, but losing money is just as quick.
"Don't worry, boss, we will be careful."
After hanging up the phone on He Zhaoji, Fu Rongqi called. He discussed with Feng Yu the strategy of investing in Japanese yen.
The two had the same opinion, using low leverage to short-sell the yen and at the same time do reverse hedging to prevent the yen from suddenly rising and causing them to liquidate their positions.
They made a lot last time and were a lot more conservative. It really goes with the old saying: The older you are in the world, the less courage you have!
…
"President Dahe, our stocks have fallen again today."
"I know, you don't have to remind me all the time!" Ohga Norio said angrily.
This damn financial crisis has caused the economies of many countries in Southeast Asia to collapse. Their investments in Southeast Asia, especially factories and branches, have been severely affected.
Output has been reduced, products are unsaleable, and some OEM companies have even gone bankrupt! Do those companies still owe them the material fees they paid in advance
Norio Ohga was almost scratching his head over this, and their company's stocks listed in Tokyo also began to fall.
Of course, it's not just them, the stocks of many companies in the island country are falling, and even the entire market is falling.
Originally, they all thought they could resist it. The island country's economy has recovered fairly well and should be able to withstand this risk.
But with the bankruptcy of banks and securities companies in island countries, the credit crisis in countries such as Thailand has become more serious, and the economic collapse has been exacerbated again.
This formed a vicious cycle and inevitably affected the island economy.
Although many large financial groups joined forces to stabilize the stock market and the Japanese yen exchange rate, they also failed.
They dare not invest too much. If they cannot bear it and all the cash is invested, the impact on the company will be greater.
Those consortiums that own bank shares suffered the most serious losses. Bank stocks plummeted and their assets shrank a lot. More than 35% of the loans have been determined to be unrecoverable. Many of them have to be deferred, and not many can repay the loans normally.
And those debts denominated in foreign currencies also caused them heavy losses. How did they know that the currencies of those countries would collapse so quickly.
Especially this month, the real estate bubbles in those countries have also collapsed. Whether it is Thailand or Nanyang, those countries with serious financial crises have seen real estate prices plunge. Their real estate prices that have been stable for nearly a year can no longer be stabilized.
Real estate also collapsed, causing their economic collapse to become even more severe, and the island nations suffered even greater losses as a result.
They originally wanted to stimulate the economic growth of island countries through the economic growth of these countries. It can even withdraw investment one day and cause the economy of a certain country to collapse.
But unexpectedly, before they could take action, Soros struck first, and they were implicated and suffered great losses!
…
"Feng, you said that once the yen falls unstoppably, Soros and others will target Hong Kong or Russia. Does that mean we should start preparing?" Kirilenko asked.
"No, we have to wait. If the stock market rises abnormally and the currency appreciates abnormally, it means Soros and the others will take action. At that time, if we fight back, we can inflict the greatest damage to them!"
(End of chapter)