Chapter 1798: Chapter 1798, free, was the most expensive

Gu Nianzhi really wanted to see what the venue looked like, but Lu Jin and Huo Shaoheng’s images hadn’t been sent back yet, so they could only continue watching the demonstrations outside.

Gu Nianzhi asked lu yuan worriedly, “Director Lu, do these people know that there will be a meeting here today?”

“They’ve already closed the road ahead of time, and didn’t specifically block the news. Someone must have known.”Lu Yuan sat comfortably on the sofa, sipping a cup of tea. He blew on the hot air and smiled at Gu Nianzhi, “… Worried?”

“Looks like the parade isn’t small.”Gu Nianzhi couldn’t tell how she was feeling.

As a young person with a strong sense of justice, she could understand the young people who were demonstrating.

The term “Capitalist”was not a good word in history or reality.

It was not meant to defame the capitalists, but it was true that the capitalists had done nothing good.

Their pursuit of profits determined their weakness, and it could be considered a congenital defect.

However, the world was in their hands. A few countries had once escaped the control of the capitalists, but they were now being blackmailed by the capitalists who held global financial power.

Now, Gu Nianzhi had just learned that her father was actually a man at the top of the capitalist food chain. He was truly at the top of the pyramid.

“… President Lu, my dad… where did he get so much money?”Gu Nianzhi asked worriedly. She was very worried that Lu Jin’s money was not from the right source.

Lu Yuan could hear her concern and smiled to comfort her. “Your dad is so smart. If he wants to make money, it’s very easy.”

“I’d love to hear the details.”Gu Nianzhi immediately sat up straight and pricked up her ears to listen to Lu Yuan talk about the “History of the rise and fall of von Rolstead,”or the first bucket of gold.

“More than ten years ago, there was a global financial crisis in this world.”

“That financial crisis started from the subprime crisis in the United States.”

Gu Nianzhi listened attentively and quickly said, “We also had a financial crisis like this over there.”

She had read about it in a book.

/Please keep reading on NovelFull(dot)C0M.

Lu Yuan nodded. “It seems that everything has happened, but I think the reasons for it must be different.”

Gu Nianzhi:”…”

Lu Yuan took out his phone and searched for news about the financial crisis that year. He showed it to Gu Nianzhi. “Look, you know Lehman Brothers, the largest investment bank that collapsed, right?”

Gu Nianzhi glanced at it and said, “Yes, because the United States government refused to rescue Lehman Brothers, this investment bank eventually collapsed.”

Lu Yuan sighed. “At the beginning of that year, someone suddenly warned the financial market about the severity of the subprime crisis. It quickly caused panic in the market, which led to a full-scale default in the financial derivatives and bond markets.”

“To put it simply, it was like a bank being squeezed out of debt. The debt that had been issued had yet to be recovered, but all the depositors suddenly rushed over to withdraw their money. The banks definitely didn’t have that much cash to take out. This was a default, and the banks were going bankrupt.”

“At that time, many large, medium, and small banks and investment banks in the United States were on the verge of bankruptcy overnight. The stock market was filled with short sellers, and all of them were short. “Your father only used 10,000 US dollars as capital. Through continuous short selling and short cashing, he almost emptied out Lehman Brothers’market value.”

Gu Nianzhi listened without blinking.

The financial crisis had happened before she was 12 years old. She did not remember anything about it.

All she remembered was the financial crisis in the other world, which she had read about in books and the media.

“After the collapse of Lehman Brothers, your father entered the highly leveraged derivatives market.”

“That was the era of the financial bear market. It was an era of starvation and cowardice.”

“Your father used his genius-like mind to obtain a sky-high fortune from the stock market in a short period of time.”

Gu Nianzhi rolled her eyes and couldn’t help asking, “Does the person who suddenly jumped out to warn about the subprime mortgage crisis have anything to do with my father?”

Lu yuan smiled meaningfully, “What do you think?”

“… but how did my father know that the subprime mortgage crisis would break out? He’s not a professional in finance either?”Gu Nianzhi asked doubtfully.

“Your father is not a professional in finance, but he’s a big shot in physics. It’s no longer news that Wall Street is willing to hire physics majors to build financial models for them.”

“Of course, Wall Street can’t afford to hire your father, but your father once helped people build a credit analysis model out of friendship. Later, this model was used by the three major credit rating agencies in the United States to predict the default rate of the financial market in the future.”

Gu Nianzhi:”…”

Lu Yuan talked about what had happened in the past and was full of admiration for Lu Jin’s ability.

“… later, when the subprime mortgage crisis broke out, I knew it had something to do with Lu Jin’s warning, so I asked him what was going on.”

“Your father said that the credit rating model had a logical flaw. When he was helping others build the model, the other party did not say that it would be used to build a credit rating system, and he did not expect it to be fully adopted by the three major credit rating agencies.”

Gu Nianzhi immediately understood and said in surprise,”… so my father already knew that the credit rating system of the American credit market was based on a wrong prediction!”

“Yes, since the credit rating of the entire financial market has a fundamental flaw, then the credit ratings of the various bonds, financial derivatives, and stocks that are evaluated using this system have a flaw. This flaw determines that the entire credit rating and the financial market will collapse within a certain period of time.”

“Your father calculated the time when the entire market would collapse. After he was fully shorted, he issued an early warning.”

Gu Nianzhi thought back to how her father had stayed indoors all those years ago, scheming in front of a computer and relying entirely on his knowledge of mathematics and physics to earn huge profits. She was truly intoxicated.

With such a heaven-defying father, it was no wonder that Huo Shao’s sense of danger had increased..

Gu Nianzhi secretly grimaced in her heart, and a wisp of a mischievous smile appeared on her lips.

Lu Yuan continued,”… the entire western financial credit system could be said to have been destroyed by him alone.”

Gu Nianzhi:”…”

She coughed lightly, indicating that she would not take the blame for this.”… CEO Lu, what you said doesn’t make sense.”

“First of all, my father has no intention of destroying the western financial system. You just said that he made a credit rating model for people out of friendship, so that means it’s completely free.”

Lu Yuan smiled and nodded. “Yes, this is a lesson. Free things are the most expensive.”

Gu Nianzhi smiled. “Yes, so the other party actually took advantage of my father.”

“Secondly, after he was infringed on, he still let bygones be bygones and gave an early warning at the right time. This was equivalent to saving the western financial system from a devastating blow. Wasn’t this enough? — this is already considered great!”

Gu Nianzhi tapped her fingers on the coffee table in front of her, “My father has already done his best. As for the small fortune he made later, that was just to receive the reward he deserved. Don’t you have to pay for using his credit model?”

“This is probably the biggest loss caused by piracy in history…”

Lu Yuan was amused by Gu Nianzhi’s quibbling and laughed out loud. He pointed at her and said, “Your mouth is so eloquent! It’s really comparable to the great lawyer Qin Suwen of the past!”

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This was the second update of the day: chapter 1798, “Free is the most expensive.”.

Remind everyone of the monthly ticket and recommendation ticket!

Mwah, big and Little Angels ~ ~

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