The Millennium Semiconductor Survival Guide.

Chapter 339
As Amerikan's enclave in East Asia, Korea's economy is deeply controlled by Amerikan.

In the early days, everyone was very poor. Where did Korea get the money to complete the early stages of industrialization?China relied on a dual structure of urban and rural areas and internally exploited peasant groups to achieve primitive accumulation through industrialization.

Korea can only rely on Amerikan capital, and Amerikan deeply controls this country from the economy to the military.

Korea's financial companies didn't care at all what they did with the money they sent to Americen's fund company, so much so that they still waited for Field Sentry Hedge Fund to take the initiative to expose the news about Madoff's thunder. After telling the financial institutions in Korea, they learned that the so-called hedge funds they purchased actually had hedge funds as the underlying assets.

Hedge funds and risk aversion are completely different things.

Korea Life Insurance faced heavy losses. During the interview, Smecta kept apologizing, but this did not help them recover the losses.

The financial institutions in Korea know that there is a high probability that they will not get back any of their money.

Because the remaining principal of Madoff’s Ponzi scheme must be repaid first to Amerikan’s domestic financial institutions, then to Amerikan’s domestic investors, and finally to these overseas investment institutions, Korea’s financial institutions have priority. The level is still behind the neon.

It would be strange if we could get our principal back.

Of course, Madoff also attacked a large number of Amerikan's local charitable foundations, especially those managed by Jews.

The Boston-based Robert Lapin Charitable Foundation provides funding for young Jewish people to travel to Israel.

All of the charity's operating funds are invested in Madoff's funds.

"The funds needed for the Lapping Foundation's charitable projects have evaporated," so much so that the foundation directly announced on its official website that "the foundation staff have been laid off today."

At the same time, some charitable foundations including some of the Amerikan family also suffered huge losses.

To put it simply, it was precisely because Madoff’s trap was too big and affected the interests of too many people that he had to be severely punished. If the trap he created was not too big, he would have been able to get out by paying the fine in his capacity.

"Who is worse off than me? I doubled the leverage of Madoff's investment, and tomorrow the bank will come to seize my house.

The redemption button on Baidu is still gray. "

"It's really ridiculous. The thing I regret most in my life is joining the so-called rich circle.

I previously attended the Oak Ridge Club, and when a group of wealthy people played golf here, everyone regarded Madoff as a legend, saying that if he was a liar, he could swindle half of the people in the world.

As a result, the joke came true, and it was even more exaggerated. He dragged people around the world into the water.

If I hadn't gone to the Oak Ridge Club, I wouldn't have spent my cash on a damn hedge fund. "

Whether it is the media or individuals, in order to achieve their own goals, they always like to tell you some specious opinions. They may sound reasonable, but in fact they are completely wrong.

Real estate agents will try their best to tell you that you should buy a house, interpreting any disturbance in the market as housing prices going up. Even if everyone knows that the real estate bubble cannot be maintained, they will also create new concepts to brainwash you, such as structured market conditions. , what core assets in first- and second-tier cities will rise?

Then use the pitiful transaction volume of luxury homes in first- and second-tier cities as an example, and say that the rich have no better understanding than you?

The problem is that if the cognition of the rich is really strong, there will be no trust explosions and many investment bosses will be trapped by the rich.In China's rapid growth environment over the past 30 years, most of the rich's money does not come from higher cognition, but from stepping on the trend of the times.

Not to mention the expert media in the stock market. If the index falls by 1%, the bottom line is that it was 20 points 20 years ago and will still be [-] points [-] years later.

实际上大A压根没有底可言，20年前的三千点和现在的三千点压根不是一回事，华国证券市场的总市值都翻了多少倍？总市值从2003年的4万亿到2023年已经高达75万亿。

Madoff made this summer extremely cold, and countless middle-class people lost hope.

There are also many wealthy people who have suffered huge losses.

"It's hard for us to believe this fact. I myself also suffered huge losses in this disaster." Meyer said on Weibo.

If he doesn't speak out, he will be hunted down by his clients. He was previously the CEO of a financial institution affiliated with General Motors, and later joined Ascot Securities as a partner. This company used all its assets to cooperate with Madoff.

This puts all of its customers at risk of losing their investment, so one customer issued a fatwa, claiming to kill him.

Merkin had no choice but to publicize his losses in an attempt to gain sympathy from his customers.

For a time, the whole world was more or less in the same situation. No matter you were middle class or rich, everyone fell into this pit.

"Junior brother, our Lao Li needs your help now. The federal government took him away last week. The lawyer went to see him twice, and the replies he gave us were very pessimistic."

Robin's wife also knew Zhou Xin, and after Robin was arrested, she came to Zhou Xin for help.

Because when the lawyer took her to see Robin, Robin asked her to find Zhou Xin.

Robin is also an upstart in Silicon Valley. He has been in charge of Baidu for many years and has some understanding of the political situation in America. In addition, he controls a large amount of Internet traffic and has some experience in dealing with Washington.

Robin believes that Zhou Xin has a huge network of connections in Washington and is the only person who has the ability and willingness to save him.

Another very important point is character. Zhou Xin has been a major shareholder of Baidu for many years and has never cheated him. He has always been his supporter on the board of directors, or at least abstained from voting.

Zhou Xin was a little surprised when he received the call: "What's going on? I didn't see the news about Robin being arrested?"

To be honest, this is unreasonable. Baidu is nothing more than providing a purchasing channel.From a rational point of view, Baidu Pay has greatly expanded Madoff's scope of influence and is obviously guilty.

But from a legal perspective, this is a matter at the company management level. If everyone has to be caught, then do all the CEOs of other electronic payment software have to get involved?
Robin's wife was very calm on the other end of the phone and told Zhou Xin the whole story.

Jorge Reyes has pleaded guilty, admitting that he accepted huge bribes from Madoff and that he deliberately relaxed or even unregulated the risk control of Madoff's hedge funds.

The federal government believes that Robin was also involved in this matter and was suspected of deliberate connivance.

The California District Court has been controlling Robin. Some people even suggested that Robin would be imprisoned for up to two years if he pleaded guilty. If he did not plead guilty, there was no guarantee what would happen.

Robin wanted to use his wife's name to get Zhou Xin's opinion.After hearing this, Zhou Xin said: "Sister-in-law, don't worry, I'll find someone to ask about the specific situation first.

I don’t think you can plead guilty. Wouldn’t it make you more passive if you plead guilty and be imprisoned for two years?
Robin is also a well-known figure in Amerikan. Didn't Robin join the Committee of [-] before?Ask them to see if there is anything they can do.

Then my suggestion is to find the best lawyer to litigate the case, and be prepared to pay a huge bail. Pleading guilty is definitely the next best thing. "

From Zhou Xin's perspective, Robin and his wife are extremely controlling, and their management skills are not very good. Baidu's development in their hands is far inferior to that of the original Google.

Larry Page and Sergey Brin are still working at the newly merged Baidu, but Baidu has still become a company that only knows how to pursue profits. It has extremely good financial reports and rapid growth, but it has made no progress in the mobile Internet era.

Not to mention that Android has been acquired by Xinxin, Baidu has no idea of ​​​​developing a mobile operating system.

Zhou Xin only gave some light suggestions, and he wouldn't put much effort into fishing the person out. He had an ambiguous attitude as to whether Robin needed to go in and stay for a while.

After making the phone call, Zhou Xin had some idea of ​​what Amerikan wanted to do. To put it bluntly, this matter was too big. Madoff's sacrifice was not enough, and another big shot had to come out.

A Silicon Valley upstart like Robin, who is Chinese and has no background, is deeply involved in this matter, so he is the best candidate to take the blame.

"Robin was arrested and prosecutors allege that Robin caused huge losses by manipulating Internet traffic to an unusual number of clients of Madoff's hedge fund."

Not long after, when the American middle class launched the Occupy Wall Street movement, news of Robin's arrest was announced.

"Baidu is the worst. No matter what finance-related content I search for, it will always pop up ads for Madoff Financial Management Fund!"

"If I hadn't seen the ads on Baidu search engine, I wouldn't have bought Madoff's financial products, and I wouldn't have been on the verge of bankruptcy!"

"Good job. Compared with NewPay, Baidu not only has no morals but also no bottom line."

"Baidu is the biggest culprit that caused this disaster to increase from a magnitude 7 earthquake to a magnitude 9 earthquake!"

There was a lot of excitement on the major social media, and no one cared that the earliest electronic payment software to sell Madoff's financial products was X.com.

With Madoff's thunder, almost all electronic payment software instantly entered a state of winter.

Take Baidu Pay as an example. Their user activity dropped from tens of millions to hundreds of thousands within a week.

Not to mention other electronic payment software, NewPay is reoccupying the entire market at an unimaginable speed.

"Yes, our persistence is correct. In the past five years, we have insisted not to cooperate with Madoff. From the perspective of the past, it has seriously affected the interests of investors. In fact, it is difficult to persist." Peter Thiel said in an interview with Time Magazine.

This month's Time magazine features Madoff on the cover, and there is also a column in which Peter Thiel is interviewed.

"Yes, you are right. Madoff's fraud has swept the world. England, France, Switzerland, Spain, Neon, Korea, etc., a large number of financial institutions hold Madoff's financial products.

According to our information, more than 90.00% of the companies in Geneva have investments in the Madoff hedge fund.

We don’t have one because we are a channel, not a financial institution. We do not help customers manage their wealth. We are just a bridge between customers and financial institutions.

In order to be responsible for the trust of our customers, we have implemented strict risk control on the product side. "

The sharp contrast between NewPay and other electronic payments simply boosts the popularity.

By late August, one month after the Madoff fraud case was made public, NewPay had monopolized the entire electronic payment market. NewPay’s market share was as high as 80%, WeChat Pay accounted for 15%, and the rest combined There are 5%.

As a result, eBay and Amazon have announced that they will disband their electronic payment departments and withdraw from this field.

The electronic payment departments of Citigroup and Wells Fargo are also on the fast track to dissolution.

Zhou Xin's electronic payment software dominates the entire market.

“Why was NewPay able to escape the Madoff trap?”

This question quickly went viral after being asked on Quora, becoming the most popular question of the day.

“In my opinion, the most important thing is positioning. Newman’s positioning of NewPay is accurate. This is the most critical factor that allows NewPay to resist the temptation.

First of all, if NewPay had not resisted the temptation and cooperated with Madoff, I think the current loss would have at least doubled.

From an investor's perspective.Among them, institutional investors account for the majority of the investment, including some well-known financial institutions and famous Wall Street investors.The middle class only has enough investors, but it doesn’t mean anything in terms of the amount of investment.

People were shocked by the losses of a large number of financial institutions familiar with investing, and they did not take serious precautions against the risks of this investment.Everyone is not paying attention to its risks!
Because the institution trusted Madoff, absolute trust.We can have absolute trust in financial products, but there is one condition, and that is that it must have sufficient transparency.

But Madoff would kick out the hecklers.According to my inside information, neither Baidu nor X.com had any desire to understand Madoff’s underlying products during their cooperation with Madoff.

Maybe they ignored it, or maybe they deliberately hid this. Judging from the prosecutor's prosecution of Baidu, it is the latter.

As an electronic payment institution and an Internet financial channel, Newman positions NewPay as a channel, and it is the largest channel. It is a channel for the majority of customers who do not understand investment.

So they have adopted extremely strict measures on the risk side. I have friends who work for NewPay. They have always wanted to cooperate with Madoff, but NewPay must require Madoff to give a detailed investment list and require system connection. Understand the underlying operating model of Madoff's financial products in real time.

During NewPay's internal board meeting, Newman would only ask the director representatives who could convince Madoff to accept this condition. If so, NewPay could reduce the commission.

As a result, Madoff, who was running a Ponzi scheme, could not accept NewPay's conditions and instead chose to cooperate with Baidu. "

　No one wants to complain about Big A anymore. All kinds of magical operations make it obvious that he wants to cut leeks without hiding it.

　　
　
(End of this chapter)