Reborn as a police officer in South Africa

In the year 1926 that just passed, the economy was unprecedentedly prosperous, people lived a prosperous life, industrial production reached an unprecedented level, residents' income hit new highs, and automobiles entered thousands of households and became an indispensable helper in people's lives. Everything was prosperous.

After the signing of the "Dawes Plan", the United States began large-scale investment in Germany. From 1920 to 1926, the United States' annual foreign investment totaled more than 1.1 billion US dollars.

The application of new technologies has greatly improved production efficiency. In 1926, the efficiency of workers in the factory increased by 50% compared with 1920. Most of the additional industrial products produced were exported. Southern Africa is working hard to explore

When it comes to the internal market, the U.S. economy has already been export-oriented.

Compared with industry, U.S. agriculture has also made great progress. With the promotion of mechanization and the popularization of new technologies, the output of U.S. agricultural products has hit new highs. However, farmers' income has not increased accordingly, and is even declining compared with before the outbreak of the world war.

Before the outbreak of the World War, the income of American farmers was equivalent to 40% of workers. By 1926, this proportion had dropped to 30%. The bumper harvest of agricultural products caused the prices of agricultural products to continue to fall, while production costs continued to rise.

In 1926, the agricultural population in the United States accounted for 25% of the total population.

In front of Goldman Sachs Bank, several employees working nearby were waiting for the bank to open. Seeing the queue behind him getting longer, Tom from Massachusetts was very worried.

"Don't worry Tom, Goldman Sachs is backed by Nyasaland. Other banks may be unable to pay due to lack of financial resources, but Goldman Sachs will definitely not." Benson, who works in the same food company as Tom, kept calm, and just graduated from the company.

Unlike Tom, Benson is already forty years old. According to the rule of economic crisis once every ten years, Benson has experienced two economic crises in his adult life, which can be said to be rich experience.

"Benson, you don't know, I lost most of my savings in the stock market yesterday. Now my bank deposit is my last resort. I must get my money back." Tom was lost. Yesterday's stock market was a disaster for all investors.

It was a dark day for everyone, and Tom had never experienced anything like this.

Thanks to the rapid development of the U.S. economy in recent years, Tom's income has been rising steadily. This has also given Tom an illusion. In Tom's view, the U.S. economy will continue to prosper like this, just like U.S. Treasury Secretary Andrew Mellon.

As said.

When Standard Oil took the initiative to cut prices, the U.S. stock market experienced some fluctuations.

At that time, U.S. Treasury Secretary Andrew Mellon publicly stated in the newspaper: Now, there is no reason to worry, this climax of prosperity will continue.

As the patriarch of the Mellon family and the Secretary of the Treasury of the United States, many people believe in Andrew Mellon's words.

Speaking of American heroism, it is indeed a trap. I don’t know how many people have fallen into this trap because of their admiration for celebrities.

Like other high-income white-collar workers, most of the money Tom earned was invested in the stock market. This behavior has a very fashionable term called "financial management."

If you don’t manage your finances, your finances will ignore you.

How do I say this? Part of it is true. It is indeed inappropriate to bury money under the bed, but investing seems to be more dangerous.

That's the case with Tom. He can't understand a company's financial statements, doesn't know the company's profit model, and doesn't know how risky the company is. Anyway, he just buys it.

If you buy this way, you can indeed make money in a bull market, but if there is a slight fluctuation, you will probably lose all your money.

"So I say, stocks are all deceptive. If you want to buy, buy a house. Buying a house is the way to go." Benson seemed to have suffered a loss. Once he was bitten by a snake, he was afraid of well ropes for ten years.

"Buying a house is not king. Real estate tax, stamp duty, inheritance tax, in short, the State Administration of Taxation will try its best to take your money away from your pocket. You can't resist." A middle-aged man in decent clothes interjected next to him. Middle class? Basically?

There is no such thing as the middle class, it is all a false concept.

The middle class itself is a false term invented by the bourgeoisie to appease the proletariat. Its function is to set up an isolation zone between two opposing classes and blur the contradiction between the two classes. Originally, the middle class was a trap. The concept is roughly

Just like in middle-income countries, many people are complacent about their class improvement, which is quite magical.

"Then what should we do?" Tom was simply desperate, deeply feeling the malice of society.

"Buying art that will appreciate in value is the only way to keep money." Middle-aged people also have their own investment channels, but this one seems even less reliable.

Tell a joke, the value of art

A very magical reality in European and American countries. Take painters for example. Most painters were poor during their lifetimes and their paintings were worthless. However, as soon as the painter died, their works immediately became masterpieces and their prices skyrocketed.

This is just like a certain painter selling a piece of blank paper for 90 million. Is this still art?

This is simply money laundering.

At this time, a team of Goldman Sachs bank security guards hurried over. They were all fully armed, holding anti-riot shields in their hands and wearing pistols on their waists.

These pistols are not for display. If someone dares to attack the bank, the security guards have the right to shoot directly.

It was already nine o'clock in the morning, but the bank door had not yet opened. The depositors were restless, and Tom suddenly shouted.

"Open the door, we want our money back!"

Suddenly there was a commotion, and depositors expressed their support.

"Hurry up, we need to withdraw money!"

"Don't delay, time is money!"

"Did you use our money to invest in the stock market?"

There were already hundreds of depositors waiting at the bank entrance to withdraw their money. Some people had already begun to push the security guards, and conflicts were about to break out.

At this time, the bank door slowly opened, and the manager walked out of the door with a loudspeaker: "Calm down, gentlemen, we will open for business soon, everyone can get their money, please obey the order."

The anxiety has not been alleviated. Every economic crisis has resulted in the bankruptcy of a large number of banks. Although Goldman Sachs is backed by a Southern African consortium, no one is sure whether Goldman Sachs has the ability to cope with a run.

"Please obey the order, don't be crowded, avoid accidents, and believe that we at Goldman Sachs have enough capabilities," the bank manager said earnestly.

At this time, several cash transport trucks slowly drove over. First came the mercenaries from the Delta Security Company, and then the bank clerks carrying the money boxes.

"See, we at Goldman Sachs have enough capabilities, please obey the order," the manager said, foaming at the mouth.

After seeing the whole box of money, people finally calmed down. As the bank began to operate normally, their anxiety was finally effectively relieved.

Goldman Sachs has this ability, but other banks may not.

When countless people flocked to Goldman Sachs, other banks also began to experience large-scale runs.

Those who have the capital to open a bank have strong financial strength and can survive a day or two. As long as the tellers are slower, they will not be able to receive a few customers every day.

But it’s hard to tell over time. The worries of depositors are not groundless. Depositors deposit their money in banks, and banks will indeed use depositors’ money to invest externally in order to make profits.

As the saying goes, during the bull market, you can make money by buying with your eyes closed. Once a stock market crash breaks out, the stocks will be locked up. At this time, even if you want to sell them off, you will not be able to find an acceptable buyer. If the bank is hit by a large-scale attack at this time,

If there is a run, a wave of bankruptcies will break out in a very short period of time.

In 1927, there were a total of 25,568 banks in the United States. Only a few of them had the ability to face a large-scale run. Only God knows whether most banks could survive.

While Tom and Benson were waiting in line, bad news kept coming.

When the stock market opened on the morning of the 7th, the situation did not change in any way. Under everyone's stunned gaze, in just one morning, the stock index plummeted by 40 points from the highest point of 363 points.

When it fell to 353 points, countless investors poured into the stock exchange, hoping to sell their stocks.

At this time, the stock prices fell so fast that even the staff had no time to update them. The savings of thousands of Americans were wiped out in just one morning. Some people were dumbfounded, some cried bitterly, and some even climbed to the floor of the New York Stock Exchange.

The top jumped down.

In just one morning, 13 people committed suicide by jumping off the building.

This is certainly not all. In the next few days, many people will jump off buildings and commit suicide. The wealth expansion brought about by the rapid economic development in the past few years has all disappeared in this short morning.

A huge gap can easily lead to psychological collapse. The higher you stand, the harder you fall. Wiping away half your life savings is not the worst thing. The worst thing is those who use leverage to enter the market and speculate in stocks. They will never have a chance to turn around.

In addition to Goldman Sachs, other banks have experienced bank runs. A bank two blocks away has announced that it cannot pay and closed down. Angry depositors rushed into the bank, beat the manager on duty to death, and took away all the money that could be moved.

Something that finally set the bank on fire.

In the building opposite the New York Stock Exchange, four people jumped off the building in just half an hour. No one took over their stocks, which turned into a pile of waste paper. One of them was a well-known banker who took away the depositors' money.

Invest everything in the stock market and lose everything in an instant.

When it was Tom's turn, the bank clerk behind the counter smiled sweetly.

"Sir, what business do you want to handle?"

Tom didn't answer. About two meters away behind the counter, several bank employees were loading money into the safe. Bundles of green dollars made Tom's eyes red from irritation. He suddenly became convinced of the strength of Goldman Sachs.

Have a fuller understanding.

"Sir, what business do you want to handle?" The bank clerk's smile did not change at all.

"Sorry, I want to withdraw money." Tom handed over his savings slip.

"Do you want to withdraw all the money?" The bank clerk acted quickly and had no intention of delaying the money.

"Yes, no, take half." Tom suddenly changed his mind.