It would be cool and cool to talk to your own people. "After the two houses were taken over, among the four remaining investment banks on Wall Street, Merrill Lynch and Lehman, who are slightly inferior in strength, will bear great pressure,"

Teacher Zhou immediately asked, "Do you think they can withstand such pressure?"

"It's hard," said Feng Yiping. "Maybe, finding a bank acquisition is their best ending,"

After all, the reason why these guys on Wall Street are so embarrassed is that they have developed so many derivatives that they can't figure out in the end. The most fatal thing is still high leverage.

Like Lehman, because of various write-offs, they have already used $10 billion in net assets to support $690 billion in assets.

By analogy, it can be seen as a person with only 1 million yuan, who set up a factory, and then took a big order of 69 million yuan very wildly.

Because he carefully calculated that he could borrow one from the bank with his own 1 million yuan - a high-skilled person. If he played the repeated mortgage several times, he could borrow a few.

Secondly, you can borrow it from friends.

Finally, we will negotiate a longer period of accounting with each supplier, such as a month.

Stimulated by his 69 million orders, many suppliers will finally agree to his request - this is equivalent to all suppliers providing him with a free fund for months.

Finally, he concluded that the funds were sufficient. While allowing the factory to run smoothly, he could also buy himself a luxury car that made people look awe-inspiring at first glance - just like those private jets of Lehman Brothers.

Yes, Lehman Brothers has more than one private jet. They have a total of 6 aircraft including a Boeing 767 large passenger plane, plus a helicopter for short-distance travel, which can be regarded as a fleet.

This kind of calculation is very good. If it goes well, it is feasible. It can completely complete the 69 million order.

However, such a tight capital chain cannot tolerate any fluctuations. If an investor withdraws the investment in the middle, for example, even if it only has a very inconspicuous 500,000, it may endanger the operation of the factory.

Of course, he could still imagine a way to deal with the luxury car with 500,000 - this is the element that sells assets and reduces the leverage ratio to reduce leverage.

Then, a supplier had problems with its own business and the capital chain was broken. Don’t panic, you can also think of a way to transfer some of the benefits you will get in the end, that is, sell part of the factory shares and recruit people to cooperate - this is to sell equity financing and increase the denominator of the leverage ratio to reduce leverage.

But he was too lucky. When he encountered a financial crisis, all suppliers had to collect funds to save themselves. Now, even if he sold himself, he could not complete the big order.

But he still has the opportunity, for example, to find a company with stronger strength, you are not short of money, we have a well-run factory, a big order with very good expected returns - this is the final method, to accompany the big money and seek acquisition.

For Lehman and Merrill Lynch now, the first two methods are useless. Assets, cuts, who wants those toxic assets?

As for equity financing, there is a precedent for Bear Stearns and two-bedroom houses. Who dares to buy your equity?

Therefore, they only have the last path left, and they can go to the acquisition.

"Being acquired," Teacher Zhou thought for a moment, "will it go smoothly?"

“If the U.S. government can guarantee their mortgage assets like Bear Stearns, it is possible to make a suitable deal,” he said.

"But now I think the first one that could not stand will be used by the US government to sacrifice flags,"

Teacher Zhou said, "Then, it's Lehman,"

Lehman is well-known for his problems than Merrill Lynch. Just last year, like Blackstone, they spent a total of tens of billions of dollars to acquire a large amount of commercial real estate, including the second largest high-end apartment developer in the United States, which was acquired for $100 million.

How much leverage is as high as? They only paid $500 million.

Including Axton and other real estate projects, they also
Chapter completed!