Chapter 239: Deceiving onlookers to enter the venue

Naturally, Smith Capital also knew about Neon Man’s entry soon.

After all, compared to the broader markets such as USD/JPY, USD/GBP, and USD/EUR.

The USD/NOK plate is too small.

It may not be obvious that tens of millions of dollars are invested.

Funds exceeding hundreds of millions.

Once you enter, it is easy to know whether anyone has come in through changes in data.

Let’s use a game or gambling metaphor.

A big market like USD/JPY is a super battle royale with tens of thousands of participants, a big bet.

There are people entering the market every day, and there are people losing money every day and exiting the market with all their pants.

For small markets like USD/NOK, institutions usually play cards one-on-one, or several institutions and companies compete for landlords.

If a large institution fails, sometimes the market will expand in the short term.

The result of the expansion is that the country's sovereign currency exchange rate will be in chaos.

If it is not good, it will even affect the country's domestic economic development situation.

For example, the economic crisis in Southeast Asia a few years ago was caused by the indiscriminate killing of international hot capital and the huge impact. The economic accumulation that had been developed for more than ten years was lost, and then the vitality was severely damaged.

Like the current USD/NOK, except for those long-term holding institutions, before this, only some small retail investors were playing.

The bet between Smith Capital and Neon People caused great fluctuations in the country's exchange rate in a short period of time.

This kind of fluctuation affects retail investors who specialize in foreign exchange, as well as institutions that have thousands of analysts who keep an eye on market changes every day.

You can quickly notice something strange.

Goldman Sachs investment bank.

Analysts from the Market Supervision Department reported this situation immediately after discovering it.

It took a while, but Goldman Sachs' market surveillance department also quickly discovered who were the long and short parties in the betting battle on USD/NOK.

The person in charge of the Supervision Department, upload this matter.

Paulson, the CEO, who was chatting with visiting Wall Street bulldog Richard Fuld, also found out.

"Is there any secret? Let me go first," the CEO of Lehman Brothers said with a smile.

Richard came over and planned to talk to Goldman Sachs about repackaging junk bonds.

In 1998, Lehman Brothers almost collapsed.

Richard Fuld saved Lehman Brothers.

The method used by this Wall Street bulldog at that time was to package financial products such as mortgages into securities for sale.

This method has gained great recognition from the market amid the overall rise in real estate in the United States.

This model, known as subprime lending, saved Lehman Brothers from bankruptcy.

This is also the main profit point of Lehman Brothers Bank in the past two years.

Richard Fuld came to Goldman Sachs this time just to talk to Paulson about this aspect of business.

Paulson thought about it and felt that this was no secret.

The CEO of Goldman Sachs said: "It's not a secret. It's our director, and he appears on the international foreign exchange market again."

Paulson's words "our director" made Richard Fuld stunned.

As one of the five largest investment banks on Wall Street, Goldman Sachs and Lehman Brothers share a lot of directors.

If anyone is careful and investigates carefully, they will find those major Wall Street investment banks.

Many of the shareholders behind them are the same person, the same family, or the same institution.

Of course, it's not all, just part of it.

However, Richard Fuld combined Paulson's attribution of causing trouble in the foreign exchange market.

In addition, the foreign exchange incident that happened not long ago caused Richard Fuld heartache.

Richard Fuld knew who Paulson was talking about.

"Is it starting again?" Richard Fuld asked curiously: "Which plate is it this time?"

Paulson said: "USD/NOK."

“USD/NOK? There isn’t a lot of trading volume in this currency pair, right?” Richard Fuld said:

"The transaction is too difficult and the risk is too high. Is he playing alone?"

"The Neon Man has already met his end. He is betting against the Neon Man," Paulson said.

"Oh, Neon Man." Richard Fuld nodded.

On Wall Street, or in the international financial market.

The "Neon People" everyone calls generally refers to the Neon national team.

Because Neon is local, there are no strong financial oligarchs at all.

Their financial giants can only be active within their own countries.

Like other countries, their financial oligarchs are harvested by European and American capital internationally.

So except for Wall Street and some European capital.

In the international capital and financial markets, we only need to talk about "people from such and such a country".

That generally refers to the country's national team.

For example, if we talk about the Chinese people, then the national team on the Rabbit side will end up.

In the international financial capital market, "neon people" have always been relatively active.

After all, their currency is one of the international currencies, and it once accounted for 20% of the world's foreign exchange reserves.

Although it is not as good as it was back then, it is still close to 12%.

It is currently the second largest currency in circulation in the world.

The third is the euro, currently about 10%.

The fourth is the pound, which is currently about 5.9%.

Of course it goes without saying who is first.

Due to its particularity, "Neon Man" is relatively active in the international foreign exchange market.

But it is generally only active in foreign exchange transactions against the Japanese yen.

This is not to say that there are no such activities in other countries' currencies.

But it's also relatively rare.

Richard Fuld thought for a moment and said:

"Are you interested? Maybe we can take a look. Maybe we can accompany our director to see if we can cut off the Neon Man's flesh."

Paulson glanced at Richard Fuld, who was smiling at him.

The CEO of Goldman Sachs understands that it is true that Wall Street bulldogs want to rip off Neon Man’s flesh.

But I never thought about revenge.

In the previous USD/JPY trade, four of the five major investment banks suffered heavy losses.

Lehman Brothers bore the brunt and suffered the largest losses besides Merrill Lynch.

Later, although Richard Fuld had already admitted defeat to Abel.

But this does not mean that Lehman Brothers or Richard Fuld will admit defeat.

On Wall Street, winning or losing is a common occurrence for financial capitalists.

As long as it doesn't break your muscles and bones, as long as someone can take responsibility.

As long as it is profitable, it is not impossible to end up again.

But Paulson was determined not to participate carelessly.

Paulson's contacts with Texas are getting closer and closer, and this is even what the Goldman Sachs board of directors hopes Paulson can do.

In this case, Paulson will try to avoid conflict with Abel.

Paulson felt that even the Goldman Sachs board of directors would most likely agree after knowing the reasons for what he did.

Thinking of this, Paulson shook his head slightly:

"Goldman Sachs will maintain a relatively conservative investment attitude in the near future. Regarding international foreign exchange and hedging, Goldman Sachs will not enter the market in the near future."

Richard Fuld didn't quite believe his explanation.
To be continued...