Chapter 878 - 355: He’s Living It Up in the Capital City

Chapter 878: Chapter 355: He’s Living It Up in the Capital City

It was already nighttime, and neither of them went back home; instead, they stayed in the new house they had before.

This house hadn’t been lived in for a long time. It was just cleaned once a month, so it was relatively neat and tidy.

Li Yang asked someone to deliver dinner, and while eating, Jiang Banxia said, "After divorce, technically, we shouldn’t be sleeping together, but I don’t care."

"Yeah, normally after a divorce, you shouldn’t harass your ex-wife, but I have no morals."

"Alright, alright, alright... Anyways, I’m thinking of getting into Bitcoin."

Li Yang quickly replied, "Anyway, I’m not bringing you food anymore; I’m heading to the Capital City in a few days."

"Got it!"

After dinner, they washed up and went to sleep.

Jiang Banxia talked a lot.

"The global financial system is shaking, coupled with the US Dollar continuously being watered down, there are fewer and fewer asset anchors..."

"Indeed, but be cautious of the Federal Reserve raising interest rates. There’s already widespread flooding; the domestic economic bubble is too big, they will surely raise rates, and it will be a forceful increase."

Actually, the current economic prosperity is not necessarily a good thing for the country.

Many industries have been blinded by the booming foreign trade market; as long as there’s product, it can be sold for money, thus leading to frantic production expansion.

Once the US Dollar raises interest rates, global liquidity will vanish instantly, and all those goods will rot in storage.

The result of blind expansion is digging your own grave.

After the US Dollar’s interest rate hike ends, the global industry will lose at least thirty percent, and then they use their US Dollars to easily acquire those bankrupt enterprises.

This is an entire process they have used for many years.

Domestically, preparations are also made. In a month or two, they’ll find excuses such as insufficient power supply and start imposing power limits, preventing some factories from operating at full capacity.

The domestic industrial system is too strong; operating at full capacity for one day produces billions of products, and ten days can accumulate tens of billions of products.

If they can’t be sold, those products will cause an enormous impact on the domestic market.

Better to have them earn a bit less during this time than destabilize the market.

As long as it stabilizes, the country won’t suffer a loss.

Once the US Dollar initiates its rate hike cycle, those factories will be losing everything.

Jiang Banxia asked, "How strong could it be?"

"The current base rate is at 2.25%, they’d have to double it, otherwise the rate hike doesn’t hold much significance and won’t achieve their intent."

No one dares to imagine the Federal Reserve could raise rates to 5.5%-5.75%, it’s a terrifying figure because the US GDP growth rate is only 2%, to raise it to 5.5% on this base? Does everyone want to be finished?

It will completely dry up market liquidity.

"Is it soon?"

"Huh? Soon!"

"Alright, alright!"

...

The next morning, Li Yang announced the news on his social media platform.

"Though no longer together, we are still family."

This vague statement left many puzzled at first.

Alongside Wanliu Capital publicizing an announcement regarding shareholding changes, everyone immediately caught on.

Li Yang and Jiang Banxia got divorced!

Undoubtedly, in the financial market, it was an earthquake.

The moment Wanliu Capital opened, it was pinned to the limit down board, with less than twenty billion in transactions, and two hundred sixty billion worth of funds wanting out at the limit, but no one dared to take it.

Well, they’re divorced, what’s the point of Wanliu Capital even continuing?

The signaling behavior wasn’t a secret anymore, it’s been trending for days and anyone interested already knows.

Divorce is a form of signal.

Meanwhile, Fang City was also chatting with hundreds of group leaders.

"Is it all over now? Li Yang and Jiang Banxia divorced, does that mean Wanliu Capital is bound to collapse too?"

"Anyway, it’s not a good signal; today the stock market just crashed, and now everyone in the group is starting to redeem their funds from Wanliu Capital’s fund."

"Damn it, how did things get to this point? If I were Li Yang, I’d never get divorced from Jiang Banxia."

"Rumor says Li Yang cheated..."

"Cheating aside, it’s about the mutual interests between them. Whether Jiang Banxia had an affair or Li Yang cheated, for the sake of money, they wouldn’t suddenly get divorced! At worst, just do their own thing, it’s not unheard of."

"Five hundred billion vaporized in a day, it’s painful to watch... How did Li Yang dare to make the announcement?"

"True, even if it’s signaling, there should at least be some reaction time, now there’s not even that..."

"Is it possible there’s more to it this time? Not merely signaling?"

"What do you mean?"

"First, we need to clarify one thing; although Li Yang has some ethics in business, fundamentally, he’s primarily focused on making money. That’s why he previously sold 6% of his stake in Wanliu Capital. He wants cash!

But if he wanted cash, he could have just had Jiang Banxia reduce her holdings, no need to escalate to divorce. If Jiang Banxia simply reduced her holdings by around 10%, the market impact wouldn’t be as severe as now. Even though Li Yang obtained 30% of Wanliu Capital’s shares, there’s a six-month restriction period, and after six months, only a third can be unlocked. Nobody knows what position Wanliu Capital will be in six months from now.

From a financial operation standpoint, this is a very foolish action; Jiang Banxia and Li Yang couldn’t possibly make such a decision."

Soon, someone chimed in, "That’s indeed the case; Li Yang always likes win-win cooperation. In this situation, there’s another explanation... They aren’t just trying to downplay Wanliu Capital; they simply feel the financial market’s prospects aren’t good. I took a look at Wanliu Capital’s holdings, calculated for quite a while, and found that during this period, Wanliu Capital reduced its position significantly. It’s just that their scale is too large and there were also additions in positions, making it tough to calculate."