America's Road to Wealth

The financial crisis that occurred in 1997 was, to be precise, the Asian financial crisis.

That crisis began in July 1997.

The first country to suffer was the Dai Kingdom, and then it quickly spread to Malaysia, Singapore, Neon, Han Kingdom and other places.

The currencies of Dai, Indonesia, Han and other countries depreciated sharply during this period, which also caused sharp declines in most major stock markets in Asia.

At the same time, this crisis has also impacted foreign trade companies in various Asian countries, causing the collapse of many large-scale companies in Asia, causing workers to lose their jobs and causing social and economic depression.

Reflected on the economic level, it broke the rapid economic development in Asia before this.

Basically, it is actually led by American financial capital and supplemented by European financial capital.

They simultaneously launched an attack and plunder on the economies of emerging countries.

It can be said to be their old profession.

It's just that they replaced the obvious robbery of their ancestors with the financial robbery that now seems more technological and modern.

But essentially they are the same. .

The consequences for Asia are similar to those a hundred years ago.

At most, not so many people would die.

That is to say, starting from this crisis, the economies of some of Asia's major economic countries began to decline, and the political situation of some countries also began to be chaotic.

The forces around Asia and Greater Asia that had originally raised their heads were interrupted.

In that crisis, China was in the best situation. If it weren't for the preservation of Hong Kong Island, it could even be said that there would be no problem at all.

The second is the vv area. Due to the special circumstances at the time, international hot money did not dare to take action, so it was considered a lucky escape.

This is a typical dollar tide led by dollar hegemony.

To put it simply, the so-called dollar tide means that the Federal Reserve reduces the attractiveness of the U.S. market by lowering interest rates, causing a large amount of U.S. dollars to leave the United States and spread around the world.

After these dollars are dispersed, they bring a large amount of investment to the local area and the job opportunities generated after the investment.

It can be of great help to the economies of countries around the world in the short term.

Therefore, whenever the U.S. dollar enters a period of interest rate cuts that last for several years, it is often a time when the economies of emerging regions in the world are developing rapidly.

Once the time is right, or when the domestic economic situation in the United States is sluggish.

When a vampire is hungry and needs blood.

Then the Fed will gradually increase the benchmark interest rate accordingly.

The consequence of this is that the U.S. dollar capital invested in the United States in the past few years will gradually flow back into the United States.

Capital has always pursued stable and high profits. When the Fed's interest rate increases, they will return to the United States to earn interest.

After a large amount of funds were withdrawn and external investment capital was lost.

The situation in emerging economic regions that have developed with external help will soon be in crisis.

In a short period of time, the country's vitality was severely damaged, and the exchange rate fell wildly.

Usually at this time.

International hot money, led by Soros, will act as thugs and begin to harvest emerging countries whose immunity has been broken by the dollar tide.

Wait until these robbers leave with their pockets full.

What is left behind is a surge in unemployment, currency depreciation, economic and GDP declines, and emerging countries that may even be in turmoil.

But don't worry, it will be a while.

The Federal Reserve will lower its benchmark interest rate again.

Dollars will begin to leave the United States again and then re-enter these countries that were "robbed" not long ago.

With the entry of a large amount of foreign investment, the economy began to recover again, and workers began to have jobs to do again.

It is obvious that a new wave has begun.

Since the end of World War II, the US dollar has established global economic hegemony, and the Marshall Plan has successfully revived the European economy and turned it into a puppet.

This dollar tide has been happening for decades.

This is a bit like some kind of magical cultivation in Chinese fantasy novels.

The big devil spread his power and techniques to his disciples, asking them to practice and increase their cultivation.

After they have become masters, the big devil will take action and absorb all the skills of these apprentices before they are even happy for two days.

But he will not kill them, but will give them new skills after a while and let them continue to practice.

The cycle continues like this, and the big devil can get away with the whole world by relying on this method.

At the same time, this method can be used to suppress the second, third, and fourth elders and confirm their own hegemony.

The rise of later generations like China, under this approach, can only protect themselves at most, and may even be affected by it.

The only thing we can do is not be like those younger brothers in emerging regions and the United States, who have no backhand power.

But that's just it, because of the hegemony of the dollar tide.

To put it bluntly, it is ultimately based on the unique combat capability of the United States in 2001.

It's like borrowing money to buy a tank.

When you actually buy the tank and the creditor wants to ask you to repay the money, you have to consider whether it can withstand the bombardment of your tank.

In this context, Soros and those international hot money can only be regarded as thugs at best.

Soros himself is the leader of the thugs and is used to provide direction.

At Charlie Brown's Pizza.

After hearing what happened to Alberti in 1997, Soros actually didn't feel humiliated at all.

The financial capitalist lacks this feeling, which is especially his strength.

As long as there is profit, what does humiliation mean?

"From June 1999 to May last year, for a total of 11 months, the Federal Reserve raised interest rates six times in a row, by 1.75%."

Soros talked to Abel: "Don't you think this is the clarion call to charge?"

"So you chose Hong Kong Island?" Abel asked.

Soros nodded, "I have been buying Hong Kong dollars for half a year. You know what I mean."

Abel thought for a while and said softly: "The Federal Reserve has raised interest rates six times, to 1.75%. But don't forget that from last year to now, in response to the Nasdaq crisis and the September 11 crisis, it has cut interest rates twice. times, the current benchmark interest rate is 1%. The dollar resurgence has ended."

"And don't forget. Last time China was able to protect Hong Kong Island, this time they will make the same choice. If we do this, we are not dealing with Hong Kong Island at all, but with the foreign exchange of a big country. confrontation."

"Exactly." Soros said: "That's why I invite you. This time it's not just you and me, this time Bridgewater, Bridgewater, Greenwich, and Renaissance Technologies will all end. Count you. With Smith Capital, we can amass over a trillion dollars in capital!”

Abel knows all the companies Soros mentioned. They are several well-known hedge fund companies in the United States.

Generally speaking, the main component of international hot money is also these hedging companies.

One characteristic of these companies is high leverage. Like Soros, he often dares to leverage 20 times, which is even more exaggerated than Abel's Smith Capital now.

Therefore, the assets under custody of these hedge funds are generally not very exaggerated, ranging from tens to hundreds of billions of dollars at most.

As long as a part of this money is withdrawn, tens of billions of funds can already be operated with exaggerated high leverage.

The risks of this model are high. Each time it takes a large group of people acting together to pull off a horrific financial attack.

The ultra-high leverage ratio brings exaggerated interest rates. When interest rates are high, capital costs are high.

Therefore, the operations of hedging companies are basically short-term transactions, which generally do not exceed two months.

Facing Soros's proposal, Abel groaned and seemed to be thinking about it. This situation lasted for several minutes.

Soros did not disturb him, but quietly looked at this pizza shop, which was said to be Abe Smith's favorite place.

Because Abel liked to bring people here to talk things over, gradually this pizza shop became somewhat famous among New York's upper class society.

Many rich and famous people from New York have come here to eat.

After some people ate it, they praised the food here so much that they started coming back more often.

As for whether the food here is really that delicious, or do these people come here to eat because they want to bump into someone.

That's unknown.

"How about this."

Abel's gentle voice drew Soros's eyes back from the surroundings.

He saw Abel and said: "As long as Warren joins, then I will join. How about it?"

Soros thought to himself, if you want to say no, just say so, Warren Buffett. That guy never does this kind of thing.

Soros opened his mouth, wanting to persuade him again.

But he heard Abel say to him: "George, are you interested in investing in Smith Capital?"

Before the words of persuasion he had just thought of came out, Soros was stunned.

"What do you mean?" Thoros looked at Abel.

"Just like Warren and Michael. Invest in Smith Capital."

Abel made a condition: "Use the shares of Soros Fund Company, plus the shares of American Express. The proportion is the same as theirs, how about 4%?"

"Where's the valuation?" Soros asked almost without hesitation.

If Soros had heard Smith Capital's exaggerated valuation last year, he would have laughed it off and thought it was a joke.

After Buffett became a shareholder, Soros started to take Smith Capital seriously.

Wait until PNC Financial Services Group takes a stake later.

Soros has begun to seriously study Smith Capital.

Later, Bloomberg also became a shareholder.

Soros has approached Bloomberg privately, and the two Oilers have had many conversations.

After that, the Sword of Wall Street actually had some ideas about Smith Capital.

But at that time, Soros still disliked Smith Capital’s valuation as being too high.

Before it went public, it was valued at US$400 billion.

This number is too exaggerated no matter how you look at it.

But then when I was in London. Soros met Abel and witnessed with his own eyes how Abel made money.

Soros began to really move.

At this year-end reception of Smith Capital.

As suspicious as Soros is, he is also completely attracted to Smith Capital.

Now faced with Abel's proposal, he naturally asked it without thinking.

"There is almost a year difference between you and Warren." Abel said with a smile.

Soros immediately said: "Not a year! Only nine months. Buffett only joined your company in February last year."

"Okay. Nine months difference."

Abel looked at Soros with a smile, "I really want to continue using the valuation of US$400 billion. But now this company has more than just me as a shareholder. I have to be responsible for Warren and the others."

"you mean?"

"When you sign the contract, let them be present. Or you go and communicate with them. As long as they agree to $400 billion, then I agree. If they don't agree, then there's nothing I can do."

Abel smiled and said: "But because we have such a good relationship. I guarantee it will not exceed US$500 billion."

Five hundred billion dollars?

Soros couldn't help but frown, the price was too expensive.

For 4% of stocks, it would require US$20 billion.

Compared with Buffett and others, it is directly $4 billion more expensive.

It can be said to be very expensive, because now General Electric's market value is only about 340 billion US dollars.

In other words, at this valuation, Smith Capital is already more expensive than General Electric.

And it’s much more expensive.

Soros didn't agree immediately, but he didn't refuse either.

Because Abel still left a certain amount of leeway, he did some good things for Buffetts, and he didn't have to be the bad guy himself.

Crafty boy.

Soros thought for a while and said: "I will contact them. But on my side, I cannot use all stocks. If I am sure that I want to buy shares. In addition to the stocks of American Express, I will take out 5 billion US dollars in cash, and then Plus some Soros Funds stock."

"This is not possible." Abel shook his head and said: "To tell you the truth, Smith Capital is not short of cash at all! Let me tell you a secret, the cash that Smith Capital can use now has exceeded 100 billion U.S. dollars. Bibo Hill Hathaway wants twice as much. I just want the stock.”

"and."

He waved his hands towards Soros: "Only by holding shares in each other and cross-holding shares can we enhance our trust in each other. Don't you think this is better?"

Soros took a deep breath and said decisively:

"20% of the shares of Soros Fund Company are worth US$3 billion. The rest, I use the shares of other companies, such as American Express."

Soros didn't agree, but after bargaining with Abel like this, he basically confirmed it.

In addition, the capital managed by Soros Fund Company is not very outstanding on Wall Street, only about less than 30 billion US dollars.

Among Buffett, Smith, and Soros, he is obviously the poorest.

Soros is not as rich as outsiders think. He has always been ranked around 30 to 40 on the list of richest people in the United States, with a net worth of US$12 billion.

Most of them are shares of Quantum Fund and Soros Fund Management Company.

4%, worth US$20 billion of Smith Capital stock, Soros alone cannot afford it.

Soros's idea is simple. He can't eat it, but there are people behind him who can.

Like Bloomberg, the actual number of holders of 4% of Smith Capital shares is no less than five.

Bloomberg is merely the nominee and holds the vast majority.

Soros is the same now, and he will eat some of it. But the rest, Soros will distribute to other interested parties within his own interest group.

The stocks equivalent to these 4% are actually held by more than just Soros.

Just like Bloomberg’s 4%.

This is why Soros offered to buy part of it with cash.

Some people who are interested in buying but do not want to reveal their identity are not willing to take stocks and are only willing to cash.

"Can."

Abel stretched out his hand, smiled and said to Soros: "George, happy cooperation."

"Happy cooperation." Soros smiled for the first time and held hands with Abel.

Karcha——

A crisp shutter sound sounded.

Soros turned his head sharply and saw David Jones, who often appeared next to Abel, holding a camera and pointing it at the two of them.

Just now it was the sound of the camera shutter.

"take it easy."

He heard Abel's laughter: "Haha~ take a photo as a souvenir. This way we can take a group photo together in the future."

Soros threw Abel's hand away angrily and said:

"If you do this, won't you worry about being said that we are acting in concert?"

There was no need for Abel to explain. Soros knew why Abel wanted to take this photo.

With this photo, Abel just had to ask his newspaper to send it out.

Then this photo of the two smiling and shaking hands, plus the place and time it was taken.

Immediately, American Express's stock, currently trading at around $43, will plunge wildly.

"What are you afraid of?" Abel said nonchalantly:

"Just let the SEC and FINRA investigate. We are not really acting in concert. It is not me who takes the initiative to stir up our hostile relationship. The board of directors of American Express has put a lot of effort into it."

Soros knows this too.

The laws regarding "persons acting in concert" are very strict and are also prohibited matters.

But this kind of thing also depends on people, who is acquiring and the company being acquired.

As long as it is not identified as a "person acting in concert" acquisition model, it doesn't matter even if it is in fact the case.

Soros took the opportunity to make a request: "The share price of American Express cannot be calculated at US$35."

"Forty dollars, this is my bottom line. And you have to agree to a small request, something that won't be too excessive."

"No problem." Soros agreed directly.

I didn’t ask what Abel’s request was.

It is estimated that Abel's request was too excessive, and his promise would be invalidated.

After a pause, Soros said again: "Are you really not going to participate in the Hong Kong Island matter?"

"Not participating."

"Oh well."

The U.S. stock market will be closed in the afternoon. Tomorrow is Saturday and the stock market will be closed for two days.

American Express's stock stopped at $42.35.

Abel Smith's hostile takeover of American Express Company can be said to have attracted much attention.

Not just because this is the largest hostile takeover since the September 11 crisis.

What's more, from the beginning to the present of this merger and acquisition, the two sides' offense and defense have been staged along the way.

It is almost comparable to the "barbarians at the door" known as the most classic corporate merger battle in history.

Whether it is stock buyback or a white knight raid strategy, we can see it in Abel's offense and defense in acquiring American Express.

However, after several previous attacks and defenses, Yuntong and Abel had contacts with each other.

But it seems that the situation has not really changed.

Abel Smith's sudden cessation and silence made the acquisition situation actually reach a deadlock.

Except for the leeks and investors above, who want Abel to come over and take over.

Anyone with a discerning eye believes that the only way left for both parties is to face off at the American Express shareholders' meeting.

It will be held on November 20, four days later at the American Express shareholders’ meeting.

Abel Smith plans to nominate five more board members.

If the goal is achieved, then Abel Smith can occupy a majority of the nine-seat American Express board of directors.

And then gain the initiative to pass the acquisition.

It is worth noting that the board of directors of American Express issued two consecutive messages before the stock market closed to stabilize the falling share price of American Express.

The first of the two pieces of news is that Jim Walton, one of the top 30 shareholders of American Express, has decided to vote for the director candidates nominated by American Express.

What's more, Jim Walton stated that he requested that the shareholders' meeting originally scheduled for November 20 be postponed for one month due to emotional stress during the war.

The second news is that American Express also announced that the US$3.45 billion of overseas funds it has retained overseas will be returned to the United States through investment channels and used to repurchase American Express shares.

Part of this part of the stock is evenly distributed to shareholders, part of it is rewarded to the top management of the board of directors in the form of dividends, and the remaining part is returned to equity capital.

These two pieces of news caused American Express's share price to stabilize before the market closed.

"This is stalling for time. Some shareholders still think they can raise the price and sell the stocks for more value."

Inside Smith Capital, in the office on the top floor of the Woolworth Building, Abel sneered when he heard the news reported by Alan Baker.

Abel was dismissive of the desperate struggle of American Express's board of directors.

Soros is on his side.

Those so-called white knights will most likely disperse in a hurry after learning this news.

Without this group of troublemakers, American Express's board of directors alone would not be able to compete with itself.

"According to Glenda McNeil, vice president of American Express, who has decided to side with us."

Alan Baker stood in front of his boss and reported softly——

"Many shareholders still insist that the value of American Express's shares is much higher than our quoted price of US$35, and even higher than the current market price. As a result of preliminary shareholder voting, some directors of the original board of directors received more than 50% of the votes from shareholders. support, with some directors having approval ratings of only around 40%.”

In fact, within a certain listed company, there are not independent directors, but executive directors with real power in the company. Once the approval rate among shareholders is lower than 80% to 90%, it means there is a problem.

Only 40% indicates a big problem.

This means that 60% of shareholders do not support it, and it is impossible for such an executive director to reassure the shareholders' meeting.

It's not that American Express's board of directors doesn't know this.

But there is nothing they can do. They can only bite the bullet and hope that the white knight can repel the barbarians.

"It seems like you really haven't given up yet."

Abel thought for a while, took out his mobile phone and found a phone number on it.

"Hey, Jess, how about we have dinner tonight?"

"Haha, okay. You decide the location. I'm in New York now. OK~OK. That's it, see you there or see you."

Abel quickly finished the phone call, raised his head and said to Alan Baker: "Let AMC TV announce the photo David took. At the same time, we also announced to the outside world that we have obtained 6.9 from Soros Fund Company. % of American Express stock.”

Alan Baker knew who the owner of the phone call his boss just made was.

Because of this call, part of it was suggested by the Smith Group to Abel.

"Okay. Then I'll get ready." Alan Baker smiled.

"Go ahead."