Life at The Top novel Chapter 1868

The first decision made by the Federal Reserve was to increase interest on savings and then to reduce the proportion of deposit reserves that commercial banks needed to pay to the central bank.

In order to ensure the security of savings, all banks would need to pay an amount the central bank based on the amount of savings they owned. This money was used to ensure that they could at least deal with large-scale withdrawals by customers.

The first of the two methods of the central bank was to reduce the proportion of savings customers withdrew. After all, with the interest rate increasing, holding money in the bank could generate more interest.

The second measure was to relieve the pressure on the bank.

However, at this time, the continued collapse of the subprime market caused the chain problem of overdue personal credit to escalate.

On the one hand, the bank had to face the customers who deposited their savings with them withdrawing money from the bank. On the other hand, all the money lent by the bank could not be recovered after the due date.

Therefore, the United States banking industry was in utter chaos.

Soon, the subprime mortgage crisis finally began to cross the border. It crossed from the financial world to the banking industry.

These two closely related and interdependent industries finally realized just how intimately interdependent they were.

With the large-scale shrinkage of real estate combined with overdue personal credit, the banking industry of the United States ushered in the cold winter.

And the initiator of all this, standing at the command center of Nauritus City at this moment, had already begun the next step of the plan.

“Secretly build positions in high-tech companies United States, such as Apple, Weresoft, Qualcomm, General, Amazon, and Oracle.”

Jasper gave orders to Jake and the team.

They had been in this financial war for so long and the difficulty of the process was beyond words, but now, Jasper had finally reached the harvest time he thought was appropriate.

“Affected by the subprime mortgage crisis, the entire United States stock market has fallen into a downturn, with negative trends over the past 20 consecutive trading days. Most of these companies stocks are now at historically low values. This is the best time for us to enter the market.”

Jasper took a deep breath and said with a serious expression, “The people of the United States had been ahead of us over the past few decades, and even centuries. Now, we finally have an opportunity to devour the accumulation of technology in the United States over the next 20 years. These companies are the real future.”

Jake was excited. As he was about to

speak, the team’s intelligence collector

reported an update.

“The United States Securities Regulatory

Commission announced the extension of a

n index futures settlement cycle. The

futures settlement originally scheduled

for tomorrow will be postponed to the end

of this month.”

Jake was taken aback when he heard the

words. Then, he yelled.

“Do those scoundrels from the United

States not want to keep their last trace of

dignity? Are they really that shameless?

“Back when Soros gathered harbor

stocks, the Harbor City government never

thought about adjusting the stock index

settlement cycle even when they were in

such a difficult period. If those guys from

the United States could defeat them, they

would be allowed to take anything they

wanted, but now these punks from the

United States are doing this?”

The so-called stock index settlement cycle were actually the same concept as futures.

Futures trading was cyclical, and usually

monthly. For example, delivery orders in

July were usually paid in September.

When the time came, either you took the

money or the goods away.

When JW Foundation invested in the

subprime market of the United States for

short trading, what they actually did was

short the index of the subprime market..

Now that the subprime market had

plummeted, Jasper had won.

According to traditional reasoning, he

could now withdraw cash from the

subprime market and take away the

profits according to the amount and

quantity he had shorted in this settlement

cycle.

This was a profit of hundreds of billions of US Dollars. It was also profit that all of Somerland

capital was looking forward to.

Everyone had paid so much effort and

taken such a huge risk, but what were

they after?

Wasn’t it still interests?

However, when the final settlement day

came, the United States government was

acting as if this whole thing had never

happened.

There would be no settlement!

“Why are you in such a hurry?”

Jasper frowned and said to Jake, “It’s just