"As of yesterday's close, the Dow Jones index fell 508 points, and the federal stock market suffered an overall loss of US$503 billion."
"Is 1987 equal to 1929?"
"Panic continues to spread, and SEC officials urgently clarify: There are no plans to temporarily close the stock exchange."
"James Baker should resign over his inappropriate comments."
"The CME Group's S&P 500 index futures bulls lost US$3.52 billion, and there was huge pressure on margin calls."
"The Federal Reserve held an emergency meeting and required major banks to provide sufficient credit funds to exchanges to avoid transaction defaults and aggravate the market crisis."
"CME Chairman Leo Melamed made a statement: CME Clearing Bank has received a total of $3.7 billion in margin calls, and the exchange will open normally at 8:30 Central Time."
“…”
“…”
The plunge curve, which is almost exactly the same as that in 1929, has kept countless people awake all night.
The stock market crash of 1929 caused a series of serious chain reactions such as bank closures, factory closures, and farm desertions. At one time, nearly one-third of the entire U.S. population lost any income. At its most severe, food shortages even caused nationwide malnutrition.
From 1929 to 1933, in just four years, the number of deaths in the United States reached 7 million, equivalent to 7% of the total population of 100 million in the United States at that time. The mortality rate far exceeded the average level in normal years.
Now in 1987, the group of people standing at the top of the American pyramid basically still have profound memories of the Great Depression. Therefore, in just one day, the federal government quickly launched a series of rescue plans regardless of the cost.
Early in the morning on October 20, Federal Reserve Chairman Alan Greenspan, who had just taken office for just over a month, decisively opened the floodgates and directly announced that he would lower the federal benchmark interest rate by 0.75 percentage points and provide financial support to major North American banks by purchasing bonds. 12 billion US dollars in cash reserves.
Subsequently, everyone from the White House to local banks in various states in the United States began to take substantive rescue measures.
Affected by this series of good news, the Dow Jones Index began to rebound after the market opened on Tuesday, rising from 1,738 points at yesterday's closing to a high of 2,035 points within half an hour.
However, the stock market bubble that has accumulated for five years will not disappear immediately with one or two shots in the arm.
After a brief rebound, the Dow Jones index took a nosedive again.
On the other hand, the S&P 500 Index, which is closely linked to the Dow Jones Index, has almost the same trend after the opening.
The S&P 500 index closed at 201 points on Monday and opened on Tuesday. It also reached 245 points within half an hour, and then plummeted again.
…
Los Angeles.
In his mansion in Palisades, Simon closed a total of 8,300 short contracts yesterday when the S&P 500 index was at a low of 200 points to 210 points, making a single-day profit of more than 350 million US dollars. At the same time, 3,500 long contracts were established in the Westeros company account between 200 and 210 points.
At the opening of trading on Tuesday, Simon patiently waited for the S&P 500 index to briefly rise, then decisively adjusted the closing range, locked the 220-point index upper limit and began selling, while continuing to buy long contracts in the same range.
In addition, Simon also withdrew US$200 million from yesterday's profits, moved to the New York Stock Exchange, and began to buy various stocks in the plan at the bottom.
…
Chicago.
Time flies to Thursday.
At seven o'clock in the morning Central Time, Noah Scott, who had only had an average of less than five hours of rest in recent days, hurried to the center of Lehman Brothers' Chicago branch with two bloodshot eyes.
As a vice president at Lehman Brothers, Noah Scott oversaw a trading team of six analysts and had his own separate office.
Leaving his briefcase and today's newspaper aside, Noah Scott sat down behind his desk and turned on his computer, but he couldn't help but be a little dazed: How much did that guy earn
After James Robinson made the wait-and-see decision some time ago, Noah Scott secretly borrowed US$1 million from his father and secretly bought 55 S&P 500 short contracts, which was also about 80% of Simon's previous positions. Proportion.
Noah Scott really wanted to bet on whether the man who was attracted by the girl that all his classmates, including himself, pursued to no avail, was really magical.
Then.
On Monday, Noah Scott had a small taste of what it felt like to get rich overnight.
55 contracts were all closed at the bottom of 200 points on the S&P 500 Index. Noah Scott easily earned US$2 million.
However, Noah Scott was not happy at all. His mind kept thinking about the money that Simon withdrew from the Lehman Brothers account, more than 350 million US dollars. If it was still 80% The short position is close to 20,000 short contracts.
With 20,000 contracts, it is obviously impossible to close all the positions at the lowest point of the S&P 500 index, but even at Wednesday's closing price of 259 points, Simon Westero's short position can still generate large profits.
What's more, as long as he is not so greedy, Simon Westeros will definitely be able to close all positions on Monday and Tuesday. Even if he establishes a long position on the backhand, the other party's income will immediately increase.
Noah Scott is a person with very strong self-control. After he closed those 55 contracts on Monday and earned US$2 million, he decisively stopped.
Although the federal government has decisively adopted a series of powerful rescue measures, no one is sure whether the U.S. stock market will continue to plummet like it did in 1929. But at this time, looking back at the S&P 500 index curve from Monday to Wednesday, and then contacting the young man's past operations, Noah Scott was almost 100% sure that the other party would definitely establish a long position decisively and make another profit on the backhand.
It opened lower on Monday, with the S&P 500 closing at 201 points.
After a brief surge on Tuesday, it turned sharply lower, with the S&P 500 still closing at a low of 212 points.
It opened higher on Wednesday, opening at 237 points and closing at 259 points. The market stabilized.
So, if you are that young man, you should probably close out all the short contracts on Monday and Tuesday. If you backhand and establish a long position during the period, you will definitely get a lot of tension again on Wednesday.
Principal amount of US$350 million.
80% of positions.
Now.
Noah Scott wants to know more and more, how much money has Simon Westeros made in recent days
$1 billion
Even if he can't earn that much, including his previous capital, Simon Westeros, who is only 19 years old this year, should be a billionaire now.
wrong.
Perhaps Janet Johnston should also be included.
but.
One billion US dollars!
No matter what, Noah Scott knew that perhaps, he would never be able to match the wealth owned by those two people in his lifetime.
But, how does that guy plan to spend $1 billion
perhaps.
Six months ago, there was news that Simon Westeros and Janet Johnston were about to go to court over the profit distribution issue of "Lola Run". Now, with such a huge benefit, even if the two people were in love before, in the face of such a huge fortune, there might be some disputes next, right
Thinking of this with some expectation, Noah Scott's office door was suddenly pushed open, and one of his analysts hurriedly walked over and said: "Noah, it's bad, now the exchange Is there word everywhere that we’re going to sell thousands of contracts after the market opens?”
Noah Scott was still a little stunned and subconsciously asked: "What?"
The analyst said: "For the Quantum Fund's contracts, someone leaked the news that we would sell off those contracts in advance."
In early October, Soros's Quantum Fund and Simon's Westeros Company began to build large positions at the same time. However, Quantum Fund has continuously bought more than 30,000 long contracts for more than half a month.
After the crash began, some of Quantum Fund's contracts were forcibly liquidated in recent days. After the margin call, some of the positions were liquidated again after the situation stabilized yesterday. But at this time, there are still a total of 9,000 contracts left in Quantum Fund’s account.
Even though the federal government's bailout measures began to bear fruit yesterday, everyone understands that the S&P 500 Index is unlikely to return to a high of 300 points in the short term. Quantum Fund has no other choice but to leave the market. .
Naturally, Lehman Brothers cannot have only Noah Scott’s trading team.
Large clients like Quantum Fund are actually in charge of Noah Scott's immediate boss, a senior vice president of Lehman Brothers.
After hearing his explanation, Noah Scott relaxed and said, "Charlie, this has nothing to do with us, does it? Will messed up, that's his business." With that said, Noah Scott Te glanced at his watch, clapped his hands and said, "Okay, let everyone come in. We're about to start working. Let's have a meeting first."
8:30.
When the Chicago Mercantile Exchange officially opened, Noah Scott discovered how bad the impact of the news that Lehman Brothers was about to sell thousands of contracts was leaked in advance.
Knowing in advance that Lehman Brothers was about to sell a large number of contracts, after the market opened, all other brokers in the CME Group began to wait and see and did not accept the sell orders from Lehman Brothers at all. As a result, as market selling pressure accumulated, the S&P 500 index plummeted again. In just over ten minutes, it plummeted from 256 points at yesterday's closing to 197 points.
Los Angeles.
It was still early morning in the Palisade mansion, and Janet, who was already a little numb, did not get up early today.
On Monday and Tuesday, Westeros Company far exceeded Noah Scott's imagination of 26,700 short contracts, and today there are only less than 5,000 short contracts left. At the same time, Simon once again established a total of 7,000 long positions in the range of 200 points to 220 points on Monday and Tuesday, and completed the closing of 2,000 long contracts at the high of 250 points on Wednesday.
After hearing the expected news on the phone that the S&P 500 index had plummeted again, Simon decisively issued an order to clear short positions.
If his memory is correct, Simon had less than three hours left. In the afternoon Central Time, after the morning's selling pressure has been absorbed, the S&P 500 Index will rise again.
After a few days, traders from Goldman Sachs and other companies have become familiar with Simon's operating intentions, so naturally there is no need to waste words.
Simon then turned his attention to New York.
In the previous two days, Simon had withdrawn a total of US$400 million in funds, all of which were invested in the New York stock market. His buying strategy is also very concise and clear, technology stocks.
Before the last layout, Simon had already compiled a list of technology stocks that he planned to buy, including Apple, Microsoft, Intel, Oracle, SUN and other companies. Naturally, Simon did not forget to add some sand into it. '.
In my memory, after a short period of decline, the North American stock market basically showed a steady upward trend until 2000. Therefore, the big crash at the end of October 1987 can be said to be Simon's last chance to bargain.
Due to very detailed planning in advance, all the US$400 million invested by Simon was turned into stocks in two days. After yesterday's close, Simon again withdrew $200 million from his futures account for today's buying operation. Simon will then continue to invest funds to continue buying. Even if they are not held for more than ten years, after this big crash, the North American stock market will rebound rapidly, and these stocks will still generate very considerable profits in the next few months.
The shocking day ended quickly.
The next day was October 23, Friday, the day "Death Comes" was released.
The S&P 500 index closed at 237 points on Thursday. After the opening on Friday, there was no more bad news from the market, and the S&P 500 index rose back to above 250 points. The short position liquidation was completed on Thursday, and Simon also liquidated all the long contracts that he had hastily bought in the previous few days on this day.
then.
Finally it’s time to tally up the final harvest.
A chilling moment.
In the five days from October 19th to October 23rd, Westeros Company sold a total of 26,700 short contracts established at a high of 290 points between 200 points and 220 points, making a cumulative profit of US$1.068 billion.
At the same time, during the same three-day trough, Simon established a total of 8,000 long contracts between 200 and 220 points, all of which were closed above 250, making another profit of US$165 million.
Counting the original US$387 million in principal in the Westeros company's account and the five-month stock index futures operation, Simon's initial US$75 million had soared to more than US$1.62 billion at this time.
After calculating the final financial data in detail, both Simon and Janet were stunned for several minutes.
In Simon's memory, there is indeed a rumor that someone speculated 7 million into 20 billion in the futures market. But at this time, Simon still felt a little incredible when he saw that the funds in his hands suddenly increased more than 20 times in just 5 months.
Janet's reaction was more direct. After being in a daze for a long time, the woman came over, touched and pinched Simon curiously, and then said: "You little bastard, I regret it."