America's Road to Wealth

It’s also January 9th.

The most powerful black man on Wall Street is facing criticism and accountability from the company's board of directors and CEO David Komansky.

Smith Building, in Abel's office on the fourth floor.

Abel was standing in front of the floor-to-ceiling window with his arms folded, staring at the high-rise buildings across Manhattan.

Those buildings that symbolize finance are still standing tall.

Only Abel knew how many people there would be in agony.

Smith Capital, the amount involved in this transaction is too large.

So much so that because he was worried about the counterattack of short sellers, Abel basically spent the past two nights in the company's office.

He enjoys the tranquility here.

But he knew that across the East River in New York, many people were already heartbroken.

He also knew that if he waited a few hours, hundreds of speculators would be desperate again.

Capital will not give losers even the slightest pity and sympathy.

And he is the capital that entered randomly, and the butterfly effect aggravated the bubble.

Parallel space and time.

In January 2001, there was also such a black swan event in the foreign exchange market.

But it wasn't as intense as this time.

He is the Wolf of Wall Street who goes short in the early stage and goes long in the mid-term.

Letting this situation become so intense has caused more people in this time and space to misjudge.

More people went bankrupt or ended their lives.

Just now, there were media reports in New York.

Someone jumped off a building on Wall Street, twice.

Toot~toot~toot

There was a knock on the office door.

"Come in." Abel said, looking at Manhattan opposite.

Across the East River in New York, he seemed to see blood flowing all over the ground on Wall Street.

The door was pushed open.

For a week, I only slept three or four hours a day.

It all depends on drinking coffee, and I even try to use drugs to cheer me up in the middle.

David Mellon, who was stopped by Abel.

The young master of the Mellon family had hair that had not been washed for several days and was a mess all over.

But he walked in with joy on his face.

Abel turned around and looked at David Mellon with a smile.

The latter came directly to him without saying a word.

Very exaggeratedly, he threw himself down, kneeling down, raising his hands high, and shouted heartbreakingly:

"god! god! god! My supremacy god!!!"

It looks like madness.

Abel smiled and shook his head. Abel knew that David was obsessed with the market these days.

And the profits from these two days are so exciting that I almost go crazy.

Abel walked over, slapped David twice on the shoulder, and kicked David's butt several times.

Then he said: "Don't behave like XJ! Let's go out and see how my wolf cubs are doing."

"Hey hey hey~"

David Mellon stood up with a silly smile and followed Abel out.

Chairman and Managing Director of Smith Capital.

Soon we arrived at the trading floor on the third floor.

In the trading floor, we also fought hard for days and nights.

The traders of Smith Capital also slept very little.

After they saw Abel appear, the first few.

I don’t know if David Mellon taught me just now.

It's actually like David Mellon just now.

One or two of them shouted the same words as XJT.

He knelt on the ground and raised his hands toward Abel, looking like he was worshiping crazily.

The actions of the first few guys soon led to the imitation of hundreds of Smith Capital employees behind them.

Ten seconds later, in the spacious trading hall on the third floor.

More than a hundred traders from Smith Capital.

They all raised their hands high, shouted the same content as XJT, and worshiped Abel.

To be honest, Abel didn't like this crazy look.

But he knew why they were like that.

Mainly because of the status of the Smith Building safe house this time.

His investment experience has been too ups and downs.

Initially, Smith Capital chose short selling.

At that time, the overall market trend of USD/JPY was slow bullish.

To be short at that time was to go against the general trend of the market.

This behavior cost Smith Capital a few days.

At its peak, floating losses almost exceeded US$600 million.

Then the little bush took over the white house, and then two days later the Federal Reserve announced an emergency interest rate cut.

These two incidents caused many Wall Street investment banks to make misjudgments.

Coupled with the depreciation of the dollar caused by interest rate cuts.

As a result, the originally good USD/JPY bull market began to turn bearish.

In more than a day, Abel's floating losses turned into floating gains.

According to the normal script.

Abel would wait until he made a certain amount of floating profit, then close his position and leave after a few days.

But he didn't.

Instead, he entered the market in large numbers and wanted to short USD/JPY aggressively.

Played hard and idled a lot.

Smith Capital took advantage of the moment when short sellers entered the market in large numbers.

In a very short period of time, a long position of 500,000 lots was successfully opened.

The subsequent result was that he lost more than 2 billion US dollars in two days.

So much so that the margin on the account is dangerous.

Abel had to sell a lot of stocks in the U.S. stock market to raise funds to increase margins and hedge risks.

The critical moment occurred at 7:30 pm on January 6, Tokyo Asia time.

With the groundbreaking quantitative easing policy introduced by the Neon Central Bank.

And the next day happened to be the weekend, and the futures market was closed.

And within two days of the weekend.

Several world powers have successively announced interest rate cuts in their local currencies to offset US dollar interest rate cuts.

A large number of black swans that are good for the US dollar have appeared, coupled with the super black swan of quantitative easing that is bad for the yen.

In the end, the bullish USD/JPY trend got out of control, leading to today's situation.

The ups and downs here are certainly important.

But the most important thing is actually in this huge gamble between Smith Capital and Wall Street.

Smith Capital achieved a single exaggerated profit that is very rare in the entire history of Wall Street.

The first 500,000 lots were followed by another 110,000 lots of positions being covered. This time, Smith Capital held a total of 610,000 long foreign exchange lots, and the average position was around 105.100.

According to the current market situation, it is 119.650.

Smith Capital's profit is 1455 points.

A profit of ten dollars per point, that is, a standard lot, will have a profit of $14,550.

The total profit is about 610,000 x 145,508,875 million US dollars.

And Smith Capital is included in this investment.

The total investment is in addition to the initial three billion US dollars.

Subsequently, additional funding of approximately US$3 billion was added.

The principal amount is US$6 billion.

So far, it has earned US$8.875 billion.

Six billion US dollars, almost 8.9 billion US dollars earned in less than ten days!

This result naturally put the traders and David Mellon in this situation.

Abel also allowed his subordinates to vent the emotions accumulated during this period.

After they calmed down, he took the microphone handed over by David Mellon.

"Cheer up, my wolves."

When he spoke to himself, he felt a little disgusted with the words of a second grader.

“The hunt isn’t over yet. USD/JPY is much more than this. Watch, we’re going to bleed Wall Street!”

David Mellon raised his hands in cooperation and shouted loudly: "Blood flows like a river, blood flows like a river, blood flows like a river!!"

The employees of Smith Capital below also raised their hands crazily.

For a time, "rivers of blood" filled the entire Smith Building.

People who don't know if they pass by may think that something bad happened inside.

After inspiring the traders.

Another David, David Jones, walked over with Abel's business phone.

"Philip Purcell," David Jones mouthed to remind his boss.

Abel nodded and took the phone handed over by David.

"Hey, Philip, how about lunch." Abel said with a smile across the phone.

Abel could clearly hear Philip Purcell on the opposite side smile bitterly.

"Mr. Smith. You may be nice. But let's be honest, we're not that nice."

"Oh? Why? The weather in New York is nice today. Look, the sun is shining outside!"

"I think this kind of weather is suitable for going outside for a walk, what do you think?"

Abel asked knowingly and said it deliberately.

"Okay." Philip Purcell's voice became calmer:

"Mr. Smith, let me tell you the truth. You won this time, very thoroughly."

"Morgan Stanley admits defeat."

"Morgan Stanley still has about 90,000 short positions left. Mr. Smith, please set a price. We want to close the position."

Already said before.

Whether it is long or short, when the quantity reaches a certain level.

If there is no opposing camp, accept the end of your short position contract.

That is to say, if no one takes over, even if the position is liquidated, losses will continue.

If you don't go bankrupt, this kind of loss and debt must be paid back.

If you don't repay the money, the middleman and guarantor will accompany your opponent to pursue the debt collection.

Those small and medium-sized investment banks and investment companies are relatively easy to talk about.

I really couldn't afford the loss and could not afford to pay, so I went bankrupt.

But giants like Merrill Lynch and Morgan Stanley certainly cannot go bankrupt that easily.

You can’t really default on your debt.

In other words, if you don’t want to continue losing money.

The large number of short orders held by these investment banks must be closed immediately.

But in the market, it is Abel who holds the most long orders now.

These big investment banks have a lot of orders, and the only one who can take a large amount of their short positions is Abel.

That was why Philip Purcell made the call.

On the Smith Building side, Abel walked to the floor-to-ceiling windows on the third floor, holding his cell phone and saying with a smile:

"Are you so pessimistic? Purcell, the market hasn't opened in the afternoon yet. Maybe in the afternoon, USD/JPY will fall again?"

"Perhaps," said Philip Purcell:

"But Morgan Stanley chose not to play. And as far as we know, you are the largest long. Make a price, Mr. Smith."

"Okay. It seems that you are determined. Morgan Stanley is indeed Morgan Stanley. He is decisive."

Abel smiled and said: "Morgan Stanley has 2% of Comcast's shares and 3% of Google's shares. Sell it to me at the current market price."

"No problem," Philip Purcell said immediately.

If these shares can make Abe Smith willing to let Morgan Stanley go.

Not to mention based on their current market price.

Even if it was for free, Philip Purcell would probably be happy.

But Philip Purcell knew that Abel could not be so generous.

A piece of meat the size of Morgan Stanley is next to Abel

It is impossible to put down the half-eaten meat just because of other petty gains.

That's not Wall Street style.

If he did that, Philip Purcell would look down on Abel.

I think Abel's woman was kind.

A woman's kindness will not last long on Wall Street.

Sure enough, Abel's next condition made Philip Purcell relieved.

"Also, I want to get 5% of my Morgan Stanley shares based on the market price. What I want is the original shares with voting rights."

Compared with the previous "little request".

This request made Morgan Stanley feel uncomfortable and embarrassed.

5% of the original shares with voting rights is not a small amount.

As a public company, stocks have always been very diversified.

Those who hold more than 15% of the shares are super large shareholders, and those who hold more than 20% of the shares are relatively controlling shareholders.

5% of voting shares. Among the shareholders of Morgan Stanley, it can even be ranked among the top 10.

These voting shares can already hold more than two board seats on Morgan Stanley's board of directors.

Faced with Abel's request, Philip Purcell gave him a simple and direct reply:

"Give me half an hour, Mr. Smith. In half an hour, I will answer your question directly."

"No problem. I'll wait for you, Philip."

"Goodbye then, and have a nice lunch."

"I also wish you a happy lunch~"

The call was hung up by Philip Purcell there.

Only then did the smile on Abel's face fade.

He held his cell phone and looked across at Manhattan from the third floor.

This time he no longer fantasized about blood flowing on Wall Street.

He was thinking about Morgan Stanley.

Abel believed that Morgan Stanley would most likely accept his request.

There are several reasons.

One is Abel himself, who already holds about 1.6% of Morgan Stanley's shares.

This is part of the shares he acquired in the secondary market, that is, in the stock market.

Although shares purchased on the secondary market do not have voting rights, their value is the same.

Although they have no voting rights and are not original shares.

But he can also be regarded as one of Morgan Stanley's major shareholders.

in this case.

Letting his stake exceed 5% would not be a disgrace to Morgan Stanley.

The second reason is that Abel already had a great reputation on Wall Street.

After this battle.

His reputation on Wall Street is bound to rise to the next level.

His first confrontation with Wall Street has so far been a complete victory.

This means that he is truly successful on Wall Street.

Success in starting your own business! !

Smith Capital + American Pacific Commercial Bank will become one of the new Wall Street giants.

Let a new Wall Street titan become a director of Morgan Stanley.

This can be said to be very normal. It is also very consistent with Morgan Stanley’s corporate culture.

Finally, Morgan Stanley probably made a judgment.

USD/JPY will continue to trend higher.

If there is no way to close the position in time, Morgan Stanley will continue to lose money.

This will cause Morgan Stanley's financial statements to look very ugly this year.

In order to stop losses in time, there is nothing wrong with introducing Abel to Morgan Stanley's board of directors.

Sure enough, it didn't even take half an hour.

Only a few minutes later, Philip Purcell called again.

"The board of directors agrees. Mr. Smith, from now on, you will also be a member of Morgan Stanley's board of directors."

Philip Purcell said quickly.

When the CEO of Morgan Stanley called this time, even his tone changed.

Become more respectful.

Abel couldn't help but laugh at this confrontation with Wall Street.

One of the off-court resources he wanted most was obtained.

"No problem. Now that I have become a member of Morgan Stanley's board of directors, of course I can't sit back and watch Morgan Stanley's serious losses and remain indifferent."

Abel responded with a smile: "Let the people from Morgan Stanley's trading department come over here to connect."

"Thanks for reaching out, Director Smith."

Philip Purcell was also a wonderful man, and he changed his name all of a sudden.

"Haha~ Mr. CEO, I hope we can have a pleasant cooperation in the future."

“A pleasure to work with.”

Abel hung up the phone, but before the smile on his face faded.

This business phone has been hit again.

Abel looked at the contact note and saw Richard Fuld written on it.

His unbridled smile bloomed again, becoming more and more unrestrained.

A call with Richard Fuld of Lehman Brothers.

The content is similar to that of Philip Purcell of Morgan Stanley.

In the bargain.

He obtained 5% of the voting shares of Lehman Brothers and joined the board of directors of Lehman Brothers.

In addition, Lehman Brothers holds 5% of Google shares and 2.5% of News Corporation shares.

It's Murdoch's News Corp.

Lehman Brothers is Murdoch's largest investor on Wall Street.

This is why in a parallel time and space, when Lehman Brothers was on the verge of collapse, the reports of Murdoch's News Corporation were all biased towards the positive side.

Abel had already obtained 3% of News Corporation's shares from the Desert Stock God.

If this 2.5% is added, he will have more than two director seats in News Corporation.

Next, Abel's entire noon.

Almost all the time was spent answering phone calls and haggling.

During this hour, the smile on his face never faded.

afternoon.

The New York Stock Exchange is about to reopen.

The calls slowly became less frequent.

Abel was a little regretful. He didn't expect that Goldman Sachs would not end up this time.

This makes it impossible for him to achieve his achievement of collecting board seats of the four major Hollywood investment banks, no, it should be said that he collects the board seats of the five major investment banks.

Well... there were originally five of the four major investment banks on Wall Street. This is common sense, right?

The fifth one is Bear Stearns, which is common sense.

At present, Abel has gathered board seats at Bear Stearns, Lehman Brothers, Merrill Lynch, and Morgan Stanley.

He only needed one from Goldman Sachs to achieve his achievement.

But because Goldman Sachs was absent in the early stage, they even joined in to do long positions in the middle.

This achievement of his is obviously not possible for the time being.

In the afternoon, within ten minutes of opening.

Short capital tried a desperate struggle.

This caused USD/JPY to fall back to 117.360 in half an hour.

But at this time, how could the bulls let go of the beautiful meat in front of them?

I struggled for about an hour or so.

USD/JPY has returned to the 119 line again.

After mid-afternoon, the line touched 120.

120 seems to be the last warning line for short sellers to struggle.

After breaking 120, there was a rapid decline.

Wait until January 11th.

USD/JPY has reached around 123.650.

within these two days.

More than 100 small and medium-sized investment banks and securities companies on Wall Street declared bankruptcy.

At the same time, many of Wall Street’s giants are doing so. Within these two days, new personnel appointments and dismissals were announced.

For example, Stanley O'Neill, the first vice president of Merrill Lynch, was announced to have been removed from his post and is said to have been investigated.

Bryn Buley, chief financial officer of Lehman Brothers. He was also forced to resign, taking the blame for Wall Street's bulldogs.

Morgan Stanley and Bear Stearns also have similar personnel appointments and dismissals.

Among the giants, only PNC Financial Services Group and Goldman Sachs made no unusual movements.

This is the case on Wall Street.

If you set your sights on the whole world.

The small and medium-sized investment banks that have declared bankruptcy or are on the verge of bankruptcy in the past few days, plus those on Wall Street.

The quantity should be doubled.

A total of more than 200 small and medium-sized investment banks and securities companies have collapsed and gone bankrupt.

More than fifteen senior executives of Wall Street giants have "resigned" and been removed from their positions.

The misfortune of these companies and their executives.

It seems to indicate the rise of a new Wall Street giant.

Smith Capital was founded less than a year ago.

Through this battle with Wall Street, it announced its status and presence.

At the same time, Abel Smith was welcomed to the board of directors of four of the five largest investment banks on Wall Street.

After becoming their director.

The name Abel Smith.

Finally, there is a new nickname on top of the original "Wolf of Wall Street" nickname.

Some people say that Abel's new nickname should be "King of Foreign Exchange".

Because almost most of his money was earned in foreign exchange.

But there are many people who are against it.

A larger number of these people believe that Abel also made terrible gains in stocks, crude oil, and precious metal futures.

I haven’t seen those U.S. stocks invested by Smith Capital.

It's been less than a month.

Their overall increase has exceeded 50%?

This group of people believes that Abel Smith, the new Wall Street giant.

His new nickname should be "The God of Investment."

Even if you can't use such an exaggerated title as "God".

That should at least be a nickname like "King of Investment" or "King of Finance".

Anyway, in the first month of 2001.

Abel's name is everywhere in financial and financial-related publications and programs throughout Wall Street and even the entire United States.

A large number of finance-related experts, commentators, and analysts.

They all want to know about the foreign exchange black swan event that lasted for about half a month and was called "Smith's Foreign Exchange Month" by the industry.

How much profit did Abel make?

This situation has even affected the global financial publishing industry.

After Storm Smith in October.

Within the global financial and financial media, a new "Smith Storm" has once again arisen.