1855 United States Tycoon
Chapter 598, Crash (1)
After several consecutive days of turbulence, basically those smart people and those who had the opportunity to learn more about the inside story have completed their retreat. At this time, the market still chasing high is basically retail investors. So the time for the crash finally arrived.
In the rise of the stock market, those big capitals can get very big benefits. Similarly, in the fall, they can also get a lot of benefits. This benefit lies in short selling. When they predict that the stock price will fall sharply, they can first borrow some stocks from the market and then sell these stocks. After the stock price drops, they can buy the same number of stocks with much less money and pay back. In this process, they can also get a lot of benefits.
It was a Tuesday morning, and as usual, the New York stock exchange market was busy. The market continued its turbulent trend yesterday, but everyone seems to have become accustomed or even numb to this situation. In the morning, when there was still half an hour before the end, the stock price generally fell again, but everyone didn't care much anymore, because according to the habit, the stock price would be pulled up again at about 2:30 in the afternoon. It's been like this for several days. What's so scary? Some newcomers even regard this change as a rule of the stock market.
The stock market does have rules, but there is no such simple and easy-to-understand rule. On the contrary, there is one thing that is actually not a rule, and that is, if the so-called easy-to-understand rule appears continuously in the stock market, then there is probably something wrong.
It is a very dangerous thing to get the law wrong, and it is even more extremely dangerous if you use this law that is not actually a law to guide your life. This is like a chicken. After a long period of observation, there is a rule that has never been exceptional: every morning there will be a peasant woman, and then there will be millet falling from the sky. It feels that this is a rule, a rule that allows it to eat without any effort every day. So one morning, the peasant woman appeared again, and then, there was chicken soup in the lunch of the peasant woman's family. Today, the peasant woman did not follow the rules to bring the grain, and she brought a knife.
It was the same in the stock market on this day, and the time soon reached 2:30. The new investor Kaul confidently said to their friend Morse: "Don't worry, don't worry. You see, it will be half past two, and the stock price will go up once to half past two. We have just been at one o'clock. When I bought a lot, the price at this point in time is generally the lowest price of the whole day according to the law. When it’s half past two, you can guarantee that the stock price will rise steadily."
Under the anticipation of countless people, half past two finally arrived. However, the stock price did not seem to rise at all.
"Don't panic, don't panic, it will rise soon!" Karl's voice was still very steady, "It's just a little bit late."
In the big room on the other side, a large number of traders have already received instructions to quickly sell their stocks.
The clock pointed to two thirty-five, and the market, which had not made any major moves, suddenly plummeted. The prices of various stocks fell so fast that even the price quoters that had already used electric quotations could not be turned over.
"This... this..." Morse was speechless with a faceless expression, but his horrified eyes widened, and beads of sweat rolled from his forehead like rain.
"Don't be afraid, it's a technological adjustment, don't be afraid!" Kaul opened his eyes wide and stretched out his hand to grab Morse's wrist, squeezing him in pain. He shouted loudly: "Don't be afraid, it is a technological adjustment, and it will rise, don't be afraid!"
Kaul is right. In the long run, any crash can be regarded as an adjustment in nature, and the stock price will indeed rise. Even if you are really sad to be full of oil in the warehouse, there will always be a day of rise. It's just that when that day comes, it's not easy to say whether it is necessary to "family sacrifice without forgetting to tell Naiweng".
By the end of the day, the stock price as a whole had fallen by 12%. But this is not the most tragic. The most tragic is when those stockholders who have been slaughtered severely come out of the exchange in frustration, ready to be overwhelmed or ready to use alcohol to pour their sorrows to the small hotel on the street , Ready to go home crying and went home, ready to go to the New York Tower or the beach. Of course, there are more people who have hopes. They always hope that this is really just a technological adjustment. Maybe tomorrow, There will be a big increase. They entered their dreams with beautiful dreams, but when they got up early the next morning, they saw a group of newsboys running and selling: "Extra! Extra! Watching the Frankfurt stock market crash, it fell by nearly 20% in one morning! "
This news fell on the heads of these retail investors like a thunderstorm. Even the inexperienced people know that in this era, the economic ties between countries are close. The situation of country A catching a cold and sneezing in country E has become a well-known law. It is precisely because of this close connection that some people have come to the extremely optimistic conclusion that "a large-scale war is impossible, because such a war is simply suicide under the conditions of such close economic ties." Of course, it won't take long for a big slap to slap these optimists.
If it was only a temporary fluctuation in United States, then the possibility of major problems would be smaller, but if a series of declines between countries are formed, it will become extremely difficult to prevent it. It's like dominoes, one connected to one another, one influencing the other... and eventually forming an irreversible trend.
So when today's stock market opened, everyone was praying to God: The United States stock market must hold on, and cannot continue the trend of yesterday. However, almost all people also added this sentence in their own prayer: If it must collapse, it must also let me throw out my hands first.
Although in theory, if everyone does not litter, the stock price will not fluctuate too much. At least there won't be a cliff-like crash. But in many cases, the best choice for the whole is not the best choice for every individual. Because it is impossible to be sure that everyone will be pressed and not thrown, so in such a situation, for an individual individual, throwing off the stock as soon as possible is the best choice. Because if you hesitate and don't sell in time, and other people sell it, the stock price will naturally continue to fall, and then you will suffer even greater losses. But once everyone takes the approach that best suits their own interests, there will inevitably be a situation where everyone sells their stocks crazily, and then the stock market crash will inevitably end. This ending is the most unfavorable for most people.
However, even the most advantageous approach may bring the most terrible results, which will ultimately lead to extremely disadvantageous to oneself. But most people will make the best choice for own. Therefore, after the market opened, although most people were praying for United States to withstand it, the market quickly collapsed when most people were quickly throwing out their stocks at the same time. In just one day, the Dow Jones Index fell by 20%, and this day is also called Black Wednesday by the media. And this is just the beginning.
On Thursday, Standard Oil announced a substantial reduction in the prices of crude oil and petroleum products. Two days later, McDonald Steel announced that they would reduce production because of insufficient demand. Immediately afterwards, Vale Iron Ore also said that due to the reduction in orders, they will also close some of its iron ore mines in order to reduce production. At the same time, his iron ore mine is also preparing to lay off about 15% of its employees... These bad news has further severely hit the capital market, not only the United States market, but also Frankfurt in Germany and London in the United Kingdom. panic. A large number of companies subsequently declared bankruptcy....
"Dana, are you really planning to leave Germany?" Lee Poker Neesi asked helplessly, while shook his head slightly. He also knew that Dena was not an impulsive person, but because of this, once she made a decision, it must have been deliberate and hard to change.
"Yes." Dena replied simply.
"But... But Russia's revolutionary conditions are not as good as Germany's. Dena, you know, this depression will definitely make the workers' lives more difficult, and the time for the revolution may soon be ripe." Li Poker Nessi knew that it was not easy to impress Dena, but he decided to do his best.
"You are right, but in addition to these external conditions that the revolution was wrong, there is another equally important condition, that is, the leader of the revolution, the vanguard of the proletariat. In Germany, the situation of this team is very It's not optimistic." Dena, as before, always speaks directly and sharply.
"We do have differences, but in any case, everyone is working for the interests of the working class. Over the years, through various efforts, including legal efforts, we have also guaranteed the rights of workers to a certain extent, haven't they? Since our goals are the same, we can unite together."
"The German Social Democrats were bought by the achievements of the so-called legal efforts." Dena Coldly said, "They actually thought they could solve the contradiction between the proletariat and the bourgeoisie by means of class reconciliation. Look at them. How to explain the economic crisis, they actually claimed that the emergence of the economic crisis is completely in accordance with the law, inevitable, just like nature, there are summers, there are winters. Put aside reliable mathematical tools, relying on such floating words and fictitious comparisons To deceive and fool the workers, they have fallen into the same depravity as those unionists, and they have also played with nationalist scams. They actually claim that the German working class and the German capitalists are a community of interests. Believe it or not, it won’t take long for them. They will go one step further and sit down on the side of the capitalists and deceive the workers saying that they are in a difficult situation because foreigners have robbed them of their jobs, so they should hate foreigners the most, not'also struggling in the economic crisis. German capitalists', and then they will praise the war of aggression against other countries, deceiving the proletariat, saying that if their own capitalists eat meat, their own proletarians can also drink soup, so that they are willing to be cannon fodder for the capitalists. Germany's proletariat The class party has fallen into the real gangsters, and the left wing is still unwilling to draw a line with them. Therefore, I don’t think there will be a revolution in Germany. Germany will only wage war. In contrast, the Bolsheviks in Russia are much more sober. No, it’s more resolute. Carl, I have a feeling that the greatest revolution in human history will begin in Russia, not in Germany. And I must join this greatest revolution."
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