1928: The rise of giant merchants

The stock price of Mongo Marie Ward Company continued to fall, and the representative company of the department store industry, once known as the pioneer of the times, became the prelude to financial collapse.

It fell from the opening price of 83 US dollars to a staggering 64 US dollars. Just when Edward was distracted, it fell another 5 US dollars, directly falling below the 60 US dollars mark.

The same situation is playing out at various stock prices.

No one, including high-priced stocks, mid-priced stocks, and low-priced stocks, was spared. This was an indiscriminate massacre of U.S. stocks.

Radio Corporation of America has fallen from the opening price of $142 to the current price of $101.50. The drop has exceeded the sky and heralded the collapse of the radio industry.

This is a great thing for Ye Luo.

Radio was one of the industries he valued most during the Republic of China. Ye's Radio Factory had always been unable to sustain itself due to substandard technology and a small number of workers.

In the industrial development plan formulated by Ye Luo, Ye's Radio Factory will also expand three electrical appliance manufacturing plants, five battery factories and ten battery cell factories, which are still in the initial stage.

Once the U.S. radio industry collapses, it is foreseeable that a large number of radio factories will close down, and equipment, talent, and technology will all appear on the market at cabbage prices.

This is another reason why Ye Luo came to the United States to hunt for gold.

Taking advantage of the economic crisis in the United States, they can harvest their wool, introduce their advanced industries and technologies into the country, and accelerate the development of these important industries.

"General Electric and U.S. Steel are both falling wildly. These blue-chip stocks may have to spit out all the profits they have swallowed in the past few months today."

Ye Luo smiled even more happily.

"What are blue chip stocks?" Lin Ruxian asked curiously.

"Blue chip stocks refer to large, traditional industrial stocks and financial stocks with long-term stable growth. The term blue chip comes from Western casinos. In Western casinos, there are three colors of chips, of which blue chips are the most valuable."

Ye Luo smiled and said,

"I'll take you to Las Vegas next time and you'll know."

"Even stocks like this have begun to fall. Doesn't that mean that the U.S. stock market is collapsing?" Lin Ruxian was keenly aware of this.

Ye Luo nodded heavily: "Yes, and it may be collapsing at a speed and degree that shocks everyone."

When everyone looked at the data reported by Gwen, they could not feel the sense of collapse that Ye Luo mentioned.

Only Xu Wenqiang and Situ Feifei, who had purchased stocks, understood what was going on. Their faces turned pale and they were frightened for a while.

Especially Situ Feifei, who had been holding Xu Wenqiang's hand tightly, and his whole body became tense.

She was almost trapped in the stock market.

With such a drop, within an hour, all the profits she had made before would be lost, and she would not even be able to withdraw her principal.

Just a little bit closer!

"This is the real herd effect of stocks." Ye Luo was in a good mood and taught them these basic knowledge. "When the market opens and shows a plummeting trend, many speculators who are wavering want to escape quickly. Don’t lose money.”

"But in fact, the mentality of gamblers is that they will not give up until the last moment. When they see the sharp drop at the opening of the market, they will expect a rebound next, and they will not wake up until the stock price drops in such a terrifying manner. Unfortunately, it was It’s too late.”

Ye Luo sighed. Sitting in the VIP room, he could hear the wails of countless speculators on the trading floor.

The selling began, and soon it became an incredible torrent.

No one knows exactly how many shares were sold during the sell-off at this time, but it is clear that the total amount was not very large.

Many of these speculators were frightened into selling, feeling that such a sharp drop in stock prices could wipe out years of profits in a matter of hours.

But in the first hour, more of the selling was forced selling.

Many speculators' margins have been exhausted due to the drop in market prices. According to the regulations and minimum guarantee regulations of securities investment companies, when this happens in the market, they will automatically close their positions to reduce customers' losses.

This floor system would be the perfect system to destroy the price structure in the event of an economic collapse.

Thousands of sell orders poured in, and it seemed that no one wanted to buy anymore. As the stock price fell all the way, there was a scuffle on the stock exchange, and brokers scrambled to sell their stocks as soon as possible.

The selling of a large number of stocks triggered more triggers of the bottom-line mechanism, and many positions were forced to be liquidated.

Even those speculators who were still gritting their teeth and insisting on seeing this situation could no longer remain calm and joined the selling army one after another.

From this, the real panic began.

"It's like a stampede when panic breaks out. As long as everyone exits in an orderly manner, no one will be harmed. But when chaos breaks out, there will be countless casualties."

Lin Ruxian recalled the first time Mr. Mei Lanfang came to Shanghai to perform. Countless theatergoers came to watch, and a gunfight suddenly broke out in the crowd, causing great panic.

People scrambling to escape trampled on each other, leading to a great tragedy.

This also indirectly caused Mr. Mei to not come to Shanghai to perform for a long time. Every time he arrived in Shanghai, he would inevitably be moved by the scene, feel sorry for the dead theater fans, and blame himself very much.

"Yes, that's the truth." Ye Luo glanced at her approvingly.

My sister-in-law is indeed a born businesswoman.

The stock price plummeted like water from a bursting dam, and by the time the delayed news reached the White House, it was already noon.

Hoover was greatly shocked. He looked at the information in his hand in disbelief and was speechless for a long time.

"Arrange a car for me immediately. I'm going to New York. Call Franklin and tell him not to eat that damn lunch. Call all the local banks and big entrepreneurs in New York!"

Hoover stumbled out of the office.

He has already realized that this is a major event that will have a terrible impact on his political career!

"Also, let the Ministry of Finance inform Wall Street that those investment banks have made so much money and now they have to find a way to save the market!"

Hoover cursed as he ran.

The secretary followed closely: "What if they don't want to?"

"Unwilling?" Hoover paused and looked at him coldly, "You, me, them, and countless people who support my cabinet are all in the same boat. Are you unwilling? Do you want to wait for death?"

The secretary was stunned and did not dare to continue talking.

Not only the speculators and retail investors were unlucky, but also many securities companies and enterprises, and even many consortiums and overseas capital were trapped.

The collapse of the U.S. stock market was too sudden. Although there were some signs yesterday, they were not obvious enough. Today's opening did not give people any time to react. In an instant, they fell so hard that you wanted to jump off the building.

After the herd effect arises, escaping from the stock market is just a pipe dream.

Traders on the New York Stock Exchange were furious, still unable to process the mountain of orders.

If the technology is relatively perfect in 80 or 90 years, it will still be possible to deal with it as soon as possible, right now.

At noon, Yelo received a call from Franklin.

"We are waiting for you at the city hall. As a representative of Chinese businessmen, you must also attend the rescue meeting convened by the President himself." Franklin's voice sounded very relaxed.

Although the U.S. stock market was in ruins and the country was in trouble, his arch-enemy Hoover was in bad luck.

That means he's going to get lucky.

After spending many years in a wheelchair, he finally reached the moment when he could "stand up."