We will always try to update and open chapters as soon as possible every day. Thank you very much, readers, for always following the website!

Extraordinary Genius

Chapter 993 - Western countries are implicated
  • Background
    Font family
    Font size
    Line hieght
    Full frame
    No line breaks
  • Next Chapter

Chapter 993 – Western countries are implicated

Soros’ four fund managers are standing in a row in front of Soros. All of them are looking down, keeping quiet. Russia’s measures had caused them to suffer massive losses!

Simply put, they had bought long-position contracts on Rubles, and these contracts are all worthless now. Most of their long-position contracts on Russia stock index are also worthless, as Russia’s stock index plunged by more than 30%!

Of course, these drops will not happen suddenly. When Russia announced they would be lowering Ruble’s rates, they had to adjust according to the floating rates, but the Ruble exchange rates plummet suddenly. Soros’ men had no time to react and stop-loss, let alone short the rates.

Russia’s stock market and the bond market crashed. Soros and his men had bought lots of Russian bonds as they are planning to make money from them.

The series of measures implemented by Russia has stunned all the international speculators, but Soros’ losses are the highest!

“How much funds do we have left?” Soros asked.

“We still have around 6 billion USD, and some bonds and shares. If we sell our bonds and shares, we should raise around 10 billion.” Drucken Miller replied.

Follow on NovᴇlEnglish.nᴇt

If the bond and share prices continue to fall, their fund will shrink.

“Boss, what should we do now? Short Rubles? It’s too late. Those brokerage had stop Ruble futures trading.”

The four fund managers had admitted defeat. They do not even have the capital to make a comeback. action

Soros banged the table hard. “Who says we are finished?! We still have almost 10 billion USD! We still have not lost! Ruble’s depreciation will affect the whole European and US stock markets. There will be a chain reaction.”

Drucken Miller and the other three fund managers looked at each other. “Boss, you are saying that we should short the other countries’ financial markets?”

“That’s right. Not only will we short their markets, but we will also use higher leverage too. This way, we will help our clients recover their losses. If not, the Quantum Fund will be finished. All of us will be bankrupted!” Soros replied.

He is Soros! He will not lose! As long he has some money left, he can make a comeback!

Over the years as a fund manager, Soros has a habit of putting some of his money aside for emergencies. Without this emergency fund, he might be bankrupt now!

“Boss, Mr. Malfoy is calling.” Soros’ secretary entered the office.

“I will speak to him.” Soros picks up the phone on the table. “Malfoy, don’t worry. Your investment is safe. Yes… My promise of you getting at least 10% of profits will not change… that’s right. We had suffered some losses now, but we still stand a chance to make profits. Trust me and wait for about two weeks. I will return your money within two weeks. If you force me to return you your money now, you will not get back a single cent!”

After pacifying Malfoy, another call came in.

Soros continued to explain to his clients and wants them to trust him. Of course, his clients have no other choices except to trust him. If not, they can only get back less than half of their investments with Quantum Fund.

After hanging up, Soros ordered Drucken Miller and his men. “Sell away all our bonds and shares tomorrow, and transfer our funds to Germany and Belarus financial market. This is our only chance to recover our losses!”

……

“Brother Feng, Russia’s measures are too extreme.” Fu Guangzheng was stunned. The measures will cause Russia to lose their credit ratings, and lesser people will do business with them.

“Although these measures are extreme, they are very effective. At least, this is the best solution for Russia now.” Feng Yu replied.

Currently, Russia has a bank run, and people are hoarding all sorts of daily necessities. The wealthy people are trying to exchange USD with their Rubles, causing Rubles to plummet further.

Russia’s unemployment rate also increased, and everyone’s income will fall.

Russia’s default on its bonds had a significant impact. Feng Yu is sure that Russia will not repay their sovereign debts even after three months. They need to use their funds to stabilize the country first.

“Since you know about this, why did you ask everyone to short other countries’ market conservatively? If we use high leverages, our returns will be many times more!” Fu Guangzheng asked.

Follow on Novᴇl-Onlinᴇ.cᴏm

Feng Yu looked at Fu Guangzheng and asked. “What if Russia did not adopt this method?”

“Huh? Didn’t you say they will surely use this method? You also mentioned that this is the best solution.” Fu Guangzheng asked weakly.

“I said that if it’s me, I will use this method. But I am not the policymaker for Russia. If they don’t use this tactic, and other countries decided to support Russia by giving them loans and assistance, we will suffer high losses when we short the other countries’ market with high leverages!”

Feng Yu is also not sure whether Russia will implement this extreme policy. After all, Russia is a superpower and not those small country. They will be condemned by the rest of the nations for defaulting their debts!

That’s why Feng Yu notify Professor Liang and Fu Rongqi to ask them to build a small portfolio in other countries’ financial markets and be prepared to increase their investments anytime. But all of them didn’t dare to use high leverages and had hedged against their positions.

This will lower their returns, but it will lower their risks too. Also, their invested amount is high, and they will still get good profits.

“Then why are we not going into Belarus or Ukraine market? Those markets should be greatly affected by Russia’s measures.” Fu Guangzheng asked curiously. Because of Kirilenko, they are not attacking Russia, but those two countries should be fine.

“Brother Ki and I have lots of investments in these two countries, and many of Brother Ki’s partners are from there. More importantly, these two countries are close to Russia, and they might use extreme methods to wipe out our investments.”

Fu Guangzheng thought for a while and nodded. That’s right. These two countries are former Soviet Union allies and are very close to Russia. It is not wise to touch them.

What Russia did had caused a significant impact on those two countries. Their relationship will be soured in the future.

Making profits from these western countries is considered a good deal. Although Feng Yu had also informed Li Zekai about this, the Li family’s investment is much lesser than the Fu family. After this round, Fu Rongqi’s wealth will catch up with Superman Li, and the Fu family’s total wealth will increase further. They will further secure their status as Asia’s wealthiest family!