1928: The rise of giant merchants

September 21, the 18th year of the Republic of China (1929).

Even if the president personally goes out to refute the rumors and stabilize the morale of the military, many chaebols, economists, and investors will take action and purchase large amounts of stocks to prove that the bankruptcy of Hartree Company is just a minor incident.

The New York Stock Exchange opened today with the lowest index in recent times.

Nearly all stocks are falling.

For the first time, the capital giants discovered that when the market overall went down and retail investors evacuated one after another, no matter how hard they tried, they still could not reverse the decline.

After September 3, 1929, the stock market took a sharp turn, then rose sharply, and then fell again, and so on, like a beautiful little girl seducing and teasing you, wearing down your patience.

Even so, it didn't cause much uneasiness at first.

During the bull market of the previous two years, there were sharp declines again and again, lasting for just a few days. Thousands of unlucky eggs who lacked judgment were dumped, but the stock price soon recovered and climbed again. new highs.

So what's there to worry about in this turmoil?

Maybe there's something to be done with the depressed stock price at this time.

That's what those margin traders (both large and small retail investors) who had sold stocks at huge profits thought so. They bet on their previous profits in the hope that U.S. Steel stock would climb again, back from 230 to 260, or GE stock from 370 back to 395, or even higher.

As a result, by that afternoon, the total volume of NYSE broker loans rose to a new and final high: more than $9 billion.

With nearly half of the employees in the trading department being taken away by the FBI, the total financing of the New York Stock Exchange today exceeded US$10 billion!

Liu Xuenong woke up from the hospital, took off his oxygen mask, and dragged his weak body here.

Witnessed the horrific event of a huge loss of US$19.19 million due to the bankruptcy and delisting of Hartree's company.

We also witnessed the miracle of total financing exceeding US$10 billion!

In such an environment, everyone, like him, did not give up!

"There is still a chance, there is still a chance." Liu Xuenong borrowed the phone and called his female secretary and his secret team at Hongxing United Group to tell them the fact.

The traders who had chosen to follow him because of the huge profits were immediately frightened.

They thought they were just following Liu Xuenong and secretly misappropriating a little bit of public funds. As long as the stock market was good, the money was nothing.

Unexpectedly, this little bit is 19.19 million US dollars!

The total financing from the Republic of China was only US$26 million.

After Ye Luo withdrew, the trading power was in his hands, and it was Liu Xuenong who came to contact those customers.

Huixin rarely appeared in public and did not manage the company very much, citing physical illness as an excuse.

Liu Xuenong knew that she was with Ye Luoni all day long.

That's why he acted so boldly.

"Boss, how can we repay this money? How about a showdown with Mrs. Dewitbucket?" Some people started to back off.

"What's the showdown?! The showdown says that we lost 19.19 million US dollars of our company's customers? Do you want to go to a US prison and go to jail? Or do you want to play with those Ni brothers?" Liu Xuenong said in a hoarse voice, trying his best to lower his voice.

Everyone was silent.

"Don't forget, everyone has a share. No one can get on this boat," Liu Xuenong added.

His eyes were red and his sanity was gone.

If Ye Luo were here at this time, he would definitely not approve of his behavior of adding insult to injury to his own people and forcibly controlling them in times of crisis.

Because too many tycoons are betrayed by their own people at this moment, and they will never recover.

It's a pity that Liu Xuenong is still too young.

"We are usually in contact with those customers, and we are originally responsible for allocating the funds. Even if Mrs. Huidi Witbucket knew about it, she could use it as a pretext for the transaction. As long as we don't check the accounts, it won't be a big problem."

Liu Xuenong must fight to the death. Only by turning losses into profits can he have a chance to fight back.

"Anyway, let's contact the customers separately now. Remember, we must keep it a secret. We can survive this wave."

Everyone nodded slightly in silence, then separated and quickly contacted Edward, Song Ziwen and other collaborators.

Meanwhile, financial prognosticators are louder than ever in their assurances that everything is fine, that nothing is wrong and that stock prices are experiencing a temporary pullback.

The Republic of China, Jinling, Song Mansion.

Song Ziwen cannot leave the Republic of China for the United States in the near future, so he can only ask the Kong family to go there and take a look.

As October approaches, the conflict between the principal and Yan Laoxi becomes more intense, and the Central Plains War is imminent. As the purse strings of the Jinling National Government, he is so busy every day that he has no time to manage the U.S. stock market.

This afternoon, I just came home from the city hall and my buttocks were still hot from sitting, when the principal’s wife hurriedly came to my door.

She learned about the bankruptcy of Hartree's company from overseas and was worried that it would affect the development of the stock market.

Since Ye Luo spoke through Red Star United Group that day, hoping that they would temporarily withdraw from the U.S. stock market, these persistent investors gradually cut off contact with Ye Luo and focused on communicating with Red Star.

Huixin has given birth and has been recuperating. The person they could contact was Liu Xuenong, the current vice president of Hongxing, a Chinese in the United States.

Liu Xuenong was young, high-spirited, had the same views as them, and had some means, so he naturally became their spokesperson.

The cooperation at the beginning was also quite good.

"You are just too impatient and can't sit still." Song Ziwen was not satisfied with his sister's fickle personality. "We will know when the dividends arrive at the end of September, right? Our family is not playing in the U.S. stock market. If there is a problem with the U.S. stock market, Before you could come over, I would have gotten the news."

"What's wrong with being anxious? Otherwise, like the eldest sister, who lives in seclusion and grows flowers and birds every day? Or is it like the second sister, who now goes to Germany and doesn't feel like a family?" retorted the principal's wife, a little unconvinced.

She is only 31 years old this year. She is a young woman in her prime. She also likes to be in the public eye. She considers herself the first lady and is extremely dependent on her husband's power. Therefore, her relationship with Song Ziwen is not very harmonious.

Especially since the two of them still have no heirs, Song Ziwen is even more dissatisfied with the principal's messy private life.

He felt that his sister was too keen on power and could even accept her husband's bad habits.

"If you are really worried, why don't you go to the United States and ask your godbrother?" Song Ziwen said angrily.

A few days ago, the principal's wife got close to Ye Luo. When everyone met, she said that Ye Luo was her son who was left behind in Shanghai, and called Ye Luo after her godbrother.

Ye Luo is twenty-three years old this year, the same age as the youngest Song Zian in their family. As a younger brother, Song Zian is very favored by his sisters. But now he went to Harvard to study, which made them worried. Ye Luo became Song Zian. Zian No. 2.

Song Ziwen had always disliked these brothers in his family, so he teased his sister about this.

The principal's wife suddenly became angry: "Song Ziwen, what do you mean? Listen, are you speaking human language?"

"What do you mean? You know it in your heart. I've made it clear. Everyone's faces look bad." Song Ziwen originally said it unintentionally, but when she started to make trouble unreasonably, he simply dropped the issue and the two started to fight.

There is a lot of trouble here, and people in the United States are also panicking.

Even though many people came out to support the US stock market, the market was still falling.

Foreign capital fled the market, partly as a result of the collapse of the Hartley \u0026 Co. speculative bubble, and partly because speculation in New York seemed like a dangerous business from the start to European investors, many of whom now They all had doubts and took advantage of this opportunity to run away.

Some U.S. investors also cautiously pulled out when they noticed a slight decline in industrial production.

When stock prices fell, those who had unsafely traded on margin began to be forced to sell their stocks to avoid greater losses.

This is the herd effect.

Once out of control. (End of chapter)