Hollywood New Century

Chapter 130: Crisis emerges

Simon Pike hugs Amanda Seyfried and kisses in a suite at the Beverly Hills Hilton.

From the moment they entered the door, the two held each other together and never separated. Their youthful faces were matched with beautiful ketone bodies, and it was an unforgettable night.

At night, when the clouds and rain rested, Simon Pike lay on the bed with his arms around Amanda Seyfried's delicate body, and said, "What do you think of the movie "Mamma Mia"?"

"The filming process?" Amanda Seyfried responded, leaning in Simon's arms, rolling her big eyes,

"I think it's very good, Ms. Streep and Mr. Brosnan are very professional, the musical itself is very popular, and the film adaptation will definitely be successful!"

Simon smiled, and Amanda Seyfried added, "The box office will be good too!"

Knowing that Simon cares about the box office of the movie, nothing else matters.

"Haha!" Simon happily rubbed the girl's smooth skin, then scraped the strawberry on the girl's chest, then looked up at the ceiling and said:

"Your role in the movie is also very important. I believe that after the release next year, the name Amanda Seyfried will be known by many people."

"Ok!"

The great success of "Spartan 300 Warriors" not only proved once again the ability of Simon Pike's Xinghai Film, but also attracted the collective attention of several major Hollywood studios.

Signing a distribution contract, buying shares, acquiring and other forms, Xinghai Entertainment's response was a vague refusal.

As independent filmmaker Harvey Weinstein said, Simon Pike will set up his own distribution network to compete with the current six major distributors.

After a few days of hanging out with Amanda Seyfried, a recluse in Los Angeles, Simon Pike went to San Francisco.

In the center of the San Francisco Bay Area, the second largest metropolitan area in California, and the largest city in Northern California, Simon still attaches great importance to it.

In the executive suite of the Four Seasons Hotel in San Francisco, Soma, Simon is sitting at a table reading a message.

On June 14, Bear Stearns, one of the five largest investment banks on Wall Street, released its quarterly report, saying that the company's quarterly profit fell 10% from a year earlier due to the weakening mortgage market.

On August 1, Bear Stearns announced that its two funds that invested in subprime mortgage securitization products had collapsed, and investors lost $1.5 billion.

"Today, one of Bear Stearns' co-CEOs, Warren Spector, announced his resignation," Nancy Davis said, looking at her watch, which was 8.5 today.

"Oh, it's August, and the signs are finally burning. How are our earnings?" Simon doesn't care about the consequences of subprime mortgage bonds, but only pays attention to his own earnings. After all, CDS has now become a favorite among real estate credit investors.

Nancy Davis looked happy and quickly responded: "At present, we have a total loan of about 300 million US dollars, but the current profit is definitely more than 300%."

"That's good. The value of CDS is only so great. Before the end of the month, we will sell all of them, add our own principal, and make up enough $1 billion to use leverage to short the housing loan companies headed by Limae and Freddie Mac." Simon never thought of making money from pure credit insurance, mostly the US stock market.

“Sell now? If we were waiting, our CDS holdings could be worth more!” cautions Nancy Davis.

Simon shook his head and said with a smile: "Now that these investment banks still have funds, and they hold too many subordinate securities, they need risk hedging. Our CDS is a good time to sell, and the value is so much. , no matter how much it goes up, there won't be much more!" Simon is worried that these investment institutions will withdraw because of investors' distrust and their cash flow will be cut off.

"$1 billion, it should be about the same! But use leverage to short two houses?" Nancy Davis was really worried,

"The two houses are guaranteed by the government, and their credit rating has always been the highest. Will they have problems?"

"Why not? You have also seen that more and more houses are being auctioned by banks, and house prices are falling more and more," Simon said, looking out the window, and said with a smile:

"It's just the beginning, the credit defaults of millions of people are about to appear."

"The two houses hold the most subprime mortgages, how can the US government guarantee it? If the house price falls, its stock will fall along with it!"

Nancy Davis has been studying for several months, and now the situation is indeed developing towards the worst case. In the end, if there is a million homeowner defaults, it will be more than Freddie Mac and Fannie Mae. Real estate loan company stocks If it falls sharply, all commercial stocks related to real estate will definitely fall.

"Nancy, 10 times leverage, our principal is too small, and we have not vigorously absorbed external investment. This 1 billion US dollars is all our capital. We have to play big!" Simon said decisively.

"10x leverage?" Nancy Davis discouraged: "The 1 billion is now in your pocket. You don't need to play this high-risk bet?"

"10 times, 10 billion chips, 10% margin, I don't think Liangfang's stock will rise more than 10%," Simon laughed.

"However, the fall is too small, and the money we make is not enough to pay the commission and interest!"

After hearing this, Simon turned around and stared at Nancy Davis, and said, "Go get ready. At the end of this month, I will be shorting two rooms with all my strength!"

"You decided?" Nancy Davis could not object,

"Or, that's what you really think about!"

Simon nodded and acquiesced. After all, his Nine-headed Bird Fund was just a private investment fund that had just been established. It was not like a private equity fund like the Paulson Fund, which had a huge investment group and enough bullets.

"Well, by the way, the Facebook you put me in touch with, they rejected our investment, and Microsoft is now valuing them at $15 billion now, and they're talking about investment share," Nancy Davis said. , After all, when I came to the Bay Area this time, I came into contact with Facebook.

"Rejected, didn't you?" Simon smiled helplessly. Indeed, the current Nine-headed Bird Fund does not have much influence, and he is just a Hollywood film company owner. Perhaps in their eyes, the performance of investing in Youtu may have been Brighter.

"Last year, Yahoo invested 1 billion to acquire Facebook, but it was rejected. Now Microsoft is valued at $15 billion, alas!" Nancy Davis did not expect that the valuation of technology companies would rise so fast .

"It doesn't matter, the investment also depends on the brand and effect. It is normal for us to be rejected. After all, this is Facebook's C round of financing!"