Sheikh Mohammed bin Rashid Al Maktoum, Ruler of Dubai, never imagined that his 60-year-old Halloween would be so sad that he would not be able to take his young and beautiful Princess Haya on Halloween 2009 to take a night tour of Dubai Pearl in the desert.
The old chief, Sheikh Mohammed, was energetic and ambitious from an early age. When he was crown prince, he assumed military power in the United Arab Emirates and became the supreme defense minister. Moreover, he also married the beautiful Princess Haya of Jordan. Sheikh Mohammed likes to tell himself with a proverb: "There is no limit to dreaming, only keep moving forward." "Yes, Sheikh Mohammed's dream has no limits, he survived his brother and finally sat on the throne of the chief.
"Gazelles have to run faster than lions or they will be eaten. The lion must also run faster than the gazelle or be starved to death. Whether you are a lion or an antelope, whenever morning comes, you have to run faster than others to succeed. "After Sheikh Mohammed, the lion, took the throne of the sheikh, a series of crazy miracles came true in Dubai. The world's first seven-star hotel, the world's largest man-made island, the world's tallest building... Mad Dubai is known as the "desert myth".
Sheikh Mohammed's vision was to be an Arab leader who would turn the desert port city into one of the world's hottest holiday destinations. He always said to the people around him: "What is not risky is not worth doing, brave people can create miracles." Sheikh Mohammed envisages making Dubai the world's most dazzling desert pearl by borrowing 80 billion ~ 90 billion US dollars. His plans are becoming a reality, with wealthy Europeans, led by football star David Beckham, flocking to Dubai. This is exactly what Sheikh Mohammed wanted.
Imagine how big the desire is, and no matter how big the desire is, it needs money to achieve. For Sheikh Mohammed, who has the supreme power in Dubai, if he wants to achieve one world number one after another and borrow more than $80 billion, it is not enough to rely on the power of a single chief. Money always smells of power accurately, and on Dubai's road to madness, a god of wealth appeared, and that was David Elton, chairman of the board of directors of HSBC. Eldon）。
David Elton has pure Scottish descent and debuted early. As early as the 60s of the 20th century, he joined HSBC in 1968, and later mixed experience in the banking industry in the Middle East, Hong Kong, Malaysia and other places, and returned to HSBC in 1992. He became Chief Executive Officer of HSBC in 1996 and was promoted to Chairman of HSBC and Director of HSBC Holdings in 1999. In 2004, David Elton was awarded the Gold Bauhinia Star by the Hong Kong SAR Government.
Sheikh Mohammed has an important fund operation platform, that is, the Dubai International Financial Centre Authority (DIFC), and David Elton had close contacts with Sheikh Mohammed when he was in the Middle East. When David Elton took the chairmanship of HSBC, financial institutions needed support for Sheikh Mohammed's invitation to become a director of DIFC. Soon, David Elton was completely captured by Sheikh Mohammed and became the chairman of the DIFC.
The addition of David Elton gave angelic wings to Sheikh Mohammed's desires, and HSBC began to bet wildly on the transition to Dubai. How much money HSBC gambled to Dubai has always been a secret. On November 25, 2009, Sheikh Mohammed suddenly felt that the whole of Dubai was hollowed out, house prices fell, Beckham's mansion depreciated wildly, and Dubai could no longer pay its bank debts on time, and had to announce a six-month postponement.
As soon as the news came out, the stock prices of HSBC, Standard Chartered Bank, Citibank, Barclays Bank and other major international banks plunged, and the stock price of Standard Chartered Bank evaporated by HK$16 billion in one day, setting the largest one-day market value depreciation of Hong Kong stocks in 2009. People are still panicking to see flowers, how many claims do European and American banks have in Dubai? While Sheikh Mohammed asked Abu Dhabi, the largest emirate of the UAE, for help, Goldman Sachs struck.
During Halloween, Goldman Sachs issued a risk report.
Goldman's report is simple, simply projecting a potential credit loss of $611 million for HSBC in Dubai and $177 million for Standard Chartered. Subsequently, one risk report after another was issued, Dubai's total debt exceeded US$80 billion, HSBC's claims in Dubai were exposed, and HSBC's risk exposure in Dubai reached US$17.003 billion, ranking first among Dubai's creditors. All of this is thanks to David Elton, the old treasurer of Citi.
Banks also traded heavily in CDS after the Dubai crisis, with HSBC's financial statements showing derivatives amounting to $494.9 billion. As you can imagine, the amount of money other banks have fallen into Dubai must be staggering. Many financial institutions have forced debts from Sheikh Mohammed, the Ruler of Dubai. In Dubai's list of creditors, Goldman Sachs has its name, but Goldman Sachs' claims are not mature, and the amount is very small. Also on Dubai's list of debt maturing in the next five years is Japan's Sumitomo Mitsui Banking Corporation, which has $225 million in claims in Dubai. The majority shareholder of Sumitomo Mitsui Banking Corporation is Goldman Sachs, which holds a 12.5% stake in Sumitomo Mitsui Banking Corporation.
While everyone was running on Dubai, Sumitomo Mitsui Bank jumped out and claimed to agree to defer the debt and grace Dubai to repay it after six months. The anxious Sheikh Muhammad immediately felt grateful to the Japanese, no matter how he looked at it, he felt that the Japanese were great people, what a bodhisattva of great compassion!
In fact, this is just Goldman Sachs' usual trick, which has been used again and again when Goldman Sachs confronts China. But the strange thing is that I don't know if Goldman Sachs is really so smart, or if there are too many fools in the world to make Goldman Sachs repeatedly successful!
A great double reed play can kill people invisibly.
Goldman Sachs' original report was undoubtedly tactfully telling the world that HSBC could not run away this time, and now it is only a direct loss, as long as the Dubai crisis cannot be effectively controlled, HSBC's risk will further expand. The hypocrisy of the Japanese is actually telling everyone that this is the deadline in Dubai. Even such a small creditor as Japan has jumped out and issued an ultimatum, so Dubai's largest creditor, HSBC, and Standard Chartered Bank are not afraid to rush to ask for debts? As a result, it is inevitable that Dubai will fall into a debt spiral.
Poor Sheikh Mohammed, the lion in distress is still kept in the dark, and he is still grateful to those who strangle his neck! Even more unfortunate is HSBC, which is Goldman Sachs' target for many years, how many financial crises have survived, but in Dubai, the land of projectiles!
Wall Street is a place of copper smell and dirty intrigue, and countless sanctimonious guys are rushing to one of the Wall Street offices while cursing. This place has the temptation of money, but also the magic of fame and fortune. As early as 2003, HSBC and Goldman Sachs formed a bond. At that time, HSBC was in high spirits and acquired Household International Inc., a US subprime lender, becoming a European bank that competed with Lehman Brothers in the US subprime mortgage market. HSBC's ambitions to enter the US mortgage market directly threaten Goldman Sachs' leading position on Wall Street. HSBC has ridden Goldman Sachs to pee on his neck, can Goldman Sachs still sit still?
On November 24, 2007, Goldman Sachs' Roy Ramos, a star Wall Street analyst, issued a report downgrading HSBC Asia-listed stocks from "neutral" to "sell". Roy Ramos is truly HSBC's nemesis, a partner at Goldman Sachs, managing director for Asia, and head of financial research in Asia Pacific, who has been engaged in banking research for nearly 20 years, and has been following HSBC, Standard Chartered and other listed banks in Asia excluding Japan for a long time. In 2001, he was also named a Wall Street Star Analyst by Fortune magazine, and he is a leader in the field of financial research. As soon as Roy Ramos spoke, HSBC's stock price suddenly plummeted, suffering a lot, and its vitality was greatly damaged.
This time, spurred on by Goldman Sachs, HSBC's share price plunged sharply again.
Goldman Sachs released a report that is shorting HSBC and further shorting Dubai. One measure of shorting is whether CDS contracts are soaring. In Goldman's short sale of Greece, the CDS related to Greek sovereign debt continued to double. In the aftermath of the Dubai crisis, Goldman Sachs' bearish report gave the market a loss of confidence, clearly revealing an important signal that the energetic, super-aspiring old sheikh Sheikh Mohammed could not pay back. The reality is harsh, the CDS contract price has soared to 1143 basis points and Dubai has been shorted.
What is the purpose of Goldman Sachs in shorting Dubai? The first purpose is the energy layout in the Middle East.
On 11 August 2008, the Dubai Mercantile Exchange issued a statement in which it sold a total of 20% of its equity interests to six investors through the issuance of new shares. The six investors include two U.S. investment banks, three energy trading companies and a company owned by oil giant Shell. The Dubai Mercantile Exchange replied that it did not release specific trading details.
Founded in 2007, the Dubai Mercantile Exchange is now the largest energy exchange in the Middle East. The original shareholders of most commercial transactions in Dubai were the New York Mercantile Exchange, the Emirate of Dubai and the Government of Oman. At the beginning of its establishment, the three original shareholders agreed that each of the three shareholders would hold 25% of the equity of the exchange, and the remaining 25% would be sold to the members of the exchange through the issuance of new shares.
In fact, the U.S. investment banks in the Dubai Mercantile Exchange statement are Goldman Sachs and Morgan Stanley, the world's two largest commodity trading institutions. Goldman Sachs is no less obsessed with oil than it is with CDS, and has even rewritten astonishing history through oil manipulator politics. This is the invisible power of oil market makers, and Goldman Sachs' goal in Dubai Mercantile Exchange is very clear: to stick oil nails directly into the heart of the Middle East.
Goldman Sachs shorted Dubai, let the entire Middle East $1 trillion CDS into madness, although the Middle East princes, crazy chiefs have hundreds of millions of dollars, although they have the world's highest quality oil and gas, although their country is in the quagmire of economic bankruptcy, they can still mine oil to fill the financial deficit, but in the Dubai Mercantile Exchange, Goldman Sachs is not only an athlete, but also a parent, the price of Middle East oil, there is an important vote of Goldman Sachs, with this vote, Middle East oil no longer has commercial secrets.
Energy is only the first step in Goldman Sachs' blood sacrifice knife with the Middle Easterners, and the next step is to take out the Europeans.
On Dubai's list of creditors, there is a long list of European bank names: HSBC, Standard Chartered, Barclays, Deutsche Bank, Royal Bank of Scotland, BNP Paribas, ING, Lloyds Banking Group. These banks are among the largest banks in Europe, and they often act as book-book management banks for bond and loan transactions in Dubai, and they are also often involved in bond transactions.
After Goldman Sachs shorted Dubai, European bankers were terrified. The stock market keeps diving, and if the bank run is on the same wave and the bad debt is increasing, then the bank's capital will be in trouble. Then, troubled banks lose access to capital markets, and European banks fall en masse. Bankruptcy is no joke, and these banks will adopt a common practice of tightening monetary bases, stopping lending, and even stepping up collection of loans.
Beautiful legend
The Greek government is a poor government that has been living by selling its sovereign debt, and if the banks in Europe have problems, selling the Greek government's sovereign debt is inevitable. The Greek government will immediately fall into a payment crisis, and the lies fabricated to join the European Union will be exposed. As a result, the entire eurozone is in a panic.
The poison pill makes Greece difficult to extricate itself, and CDS has become a wonderful tool for Goldman Sachs to short Greece and short Europe. All of this is still just the beginning of Goldman's short game. Goldman Sachs has long played wishful thinking, Greece is a pawn, and their ultimate goal is China.