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Getting a Technology System in Modern Day-Novel
Chapter 136 The Crash Pt_02
The stock market crash worsened as time went on, with each passing moment bringing further decline.
After fifteen minutes of continuous descent, there was a brief pause before the market, like a resurrected force, began to rise again.
In a matter of minutes, everything reverted back to its previous state prior to the fall, and astonishingly, the market even surged higher than its pre-crash levels.
.....
George let out a sigh of relief when he noticed his watch displaying that 15 minutes had passed. As the stock market began to stabilize, it became evident that their plan had borne fruit and was now reaching its final steps for a successful conclusion.
With a satisfied smile on his face, Aubrey exclaimed, "It's finally over!'"
"Yes, Father," George said with a sense of satisfaction. "Now all that's left is to calculate the losses we inflicted upon them and the gains we secured." He couldn't help but feel pleased that his meticulously crafted plan, hatched from his black site, had enabled his family to seek revenge against the Rothschilds.
Upon hearing his son's response and realizing that his son understood the importance of waiting for the final results before celebrating, he smiled and said, "Good, that's the right attitude. You must ensure that everything is truly concluded before indulging in celebration." He gently patted his son on the shoulder, acknowledging his maturity.
"The final results should be in our possession by the end of the day. You can go and rest, Father. I will inform you as soon as they arrive," George assured his father.
"I will do just that. Keep up the excellent work," his father replied.
"Yes, father," George acknowledged, as he watched his father stand up from the sofa and exit the room.
Follow on NovᴇlEnglish.nᴇtAs soon as his father was out of sight, George couldn't contain his excitement any longer. He began jumping and celebrating, reveling in the victory they had achieved.
...…
Aron, having observed the unfolding chaos within the universal simulation, began to feel weary as he watched the hundreds of screens that Nova had materialized.
As a result of the time acceleration within the universal simulation, Aron found himself watching the screens for over an hour and fifteen minutes, even though he had little comprehension of the events that were taking place.
When Aron witnessed the charts, which had been depicting a downward trend, suddenly start to rise again, he turned towards Nova, who had remained silent all this time, and inquired, "Is it finally over?"
[Yes, it's finally over, and now it's time to tally the spoils,] Nova said with a smile on her face.
"How much did the market lose during those fifteen minutes?" Aron asked, his curiosity piqued as he sought to understand the extent of damage inflicted upon the global economy in the Morgans' vengeful pursuit.
[During those fifteen minutes, the stock market lost 4 trillion dollars,] Nova explained, responding to Aron's query. [However, shortly after the fall ended, the market regained its lost value. Although the value and money have been recovered, they are now in the hands of the winners.]
Aron, aware that he was among those who had gained the most, allowed a brief smile to grace his face before he regained his composure. He then asked, "Out of the trillions that were lost, how much of it was lost by the Rothschilds?" He wanted to understand the extent of damage inflicted upon the Rothschild family by the Morgans.
Nova, having already utilized her quantum computer to perform the necessary calculations as soon as the fall ended, provided an answer. [During the fall, as it caught them by surprise, the Rothschilds incurred losses of approximately 2 trillion dollars,] she explained.
[However, once they identified the cause, they were able to recover around 700 billion dollars as the market began its recovery. So, in total, their losses amount to roughly 1.3 trillion dollars.]
"Wow, the Morgans managed to strike the Rothschilds from an unexpected angle this time," Aron remarked. "Now, I'm curious, how much did the Morgans gain from this situation?"
[746 billion dollars] Nova answered.
"Wow, that can indeed be seen as a resounding victory for the Morgans," Aron exclaimed. "If we take into account the losses they caused to the Rothschilds, their total gains would amount to almost 2 trillion dollars."
[Although they achieved favorable outcomes, it appears that the Morgans earned less than their initial estimates for gains from this attack,] Nova added, noticing Aron's amazement.
Hearing this Aron gave a knowing smile before he asked "Was it because of us?"
[There are two reasons, and one of them is indeed due to our involvement,] Nova explained.
[The other reason lies in the utilization of humans for planning. While they relied on their supercomputer to estimate the course of the fall, incorporating human input created blind spots due to their limited knowledge of the stock market compared to mine. Our inclusion in the game also caused some of their strategies to go awry. As a result, they earned only half of what they had expected from this attack. We can consider ourselves to have won half of the remaining spoils, while the rest is shared among those who recognized the situation and managed to secure their own gains.]
"That's true," Aron acknowledged, reaching out to pull one of the holographic screens closer to examine its contents.
Nova observed as Aron delved into his examination of the holographic screens. After a brief period, Aron redirected his attention towards Nova and made a request, saying, "Provide me with a comprehensive summary of everything that occurred, starting from the beginning until the end, including our gains from this event. Explain it in simple terms since, despite reading the entire plan, I still have some aspects that I struggle to comprehend."
[Sure] Nova before she started detailing the entire events. [Everything that resulted in the 4 trillion dollar to disappear from the stock market started from here, a financial company called TPG Capital.] Nova said as she materialized a holographic screen with the image of the company showing it to Aron.
[A man working here known as John Harrison, a man who they controlled by threatening him with the lives of his family members, programmed the sale algorithm to sell $10 billion worth of e-mini S&P 500 futures contracts at a specific time.
To simplify, these contracts are tied directly to the overall value of the S&P 500, which is an index representing the performance of the 500 largest stocks in the market.
Normally, a trade of this magnitude would take place gradually over approximately seven hours.
However, under the Morgan's order, Mr. Harrison set it so that the sell algorithm disregarded time and price constraints and to sell the contracts as fast as possible.
Following its instructions, it started selling the contracts as quickly as possible, regardless of the prevailing prices.
Follow on Novᴇl-Onlinᴇ.cᴏmAs you already know, the principles of supply and demand dictate that when a substantial number of contracts are rapidly sold, prices tend to decline.
With that, he had completed what they needed from him, and from there onward the weaknesses in the economic system would be doing the remainder of the work.
The now extremely low-priced futures started being spread to everyplace by other flawed algorithms, particularly those known as high-frequency trading algorithms.
These algorithms are designed to execute numerous trades rapidly. Often, high-frequency traders serve as "market makers," essentially acting as intermediaries who buy an asset when it is being sold, enabling them to sell it to potential buyers at a higher price and profit from the difference.
A significant portion of the $10 billion worth of contracts sold by TCP Capitol were swiftly purchased by high-frequency traders.
However, HFTs have one weakness that the morgans planned to exploit for their plan: high-frequency traders prefer not to hold onto contracts; their modus operandi is to buy and promptly sell them.
Consequently, a multitude of high-frequency traders started offloading the contracts onto other high-frequency traders, who then passed them on to yet more high-frequency traders, creating a never-ending cycle.
This continuous exchange of contracts resembled a hazardous game of passing the grenade that wreaked havoc on the market, driving prices down and causing chaos.
This situation led to another predicament. Many of the algorithms functioning as market makers hit pre-programmed thresholds that compelled them to exit the market due to the rapid decline in prices and increased risk.
As the market makers withdrew, liquidity was drastically reduced, causing the market to plunge even further.
The crash in the futures market spilled over into the stock market due to a group of individuals known as arbitrage traders. When you purchase a future, you are essentially acquiring a stock that will be delivered at a later date.
Arbitrage traders noticed that S&P futures contracts were becoming inexpensive, while the S&P stocks underlying those futures remained expensive.
Seeing the opportunity, they began selling their costly regular stocks to purchase the cheaper future versions of the same stocks.
This rapid selling of stocks essentially transferred the impact of the futures crash to the stock market.
With the impact now transferred the fall continued, seeming as if there is no tomorrow. The fall caused panic and almost everyone with shares that were falling started panic selling their stocks in order to reduce the losses they would be receiving if they continued holding them.
But everything came to a halt when the "Stop Logic Functionality" implemented by the Chicago Mercantile Exchange became active effectively stopping all trades for five seconds.
When trading resumed, fortunately, the panic had subsided, and people realized that stocks had dropped without a valid reason. This realization meant that stocks were now available at a discounted price, prompting a buying spree that pushed the prices back up to their pre-crash levels.