In New York, USA, the north wind is howling and heavy snow is falling.
In a villa on the west side of Long Island, there is melodious music and laughter. Christmas is approaching, and Zhang Xi and his wife are hosting a banquet for representatives of several major chaebols.
After Zhang Xi and his wife entered the United States with huge sums of money in early May, it was a period when the stock market, futures and real estate markets were rising continuously. Prices climbed to a new height every day. Speculation was extremely popular. In the news media, the "miracle of getting rich" was overwhelming.
Under the influence, countless middle-class and working-class people have forgotten the wind
Taking risks, investing everything in it, pushing the entire stock market to one climax after another. Economists with ulterior motives use their status and authority to fan the flames, predicting that the U.S. stock market will continue to prosper. All securities institutions are adding fuel to the fire at the same time. Wall Street is
Create new wealth miracles one after another.
As early as two years ago, An Yi established a relationship with the DuPont Group in the United States through Ou Yaoting. The concept of basic chemical "synthetic fibers" proposed by An Yi, especially the prospects of the "nylon" series of products, deeply moved the directors of the DuPont Group.
Steen, he immediately submitted the proposal to the board of directors and received the full support of chairman Pierre and general manager Irene.
Prior to this, it was considered unthinkable for the corporate world to engage in basic scientific research. DuPont Group soon established the Institute of Basic Chemistry at its headquarters in Wilmington, Delaware, and hired Dr. Carothers as the
The person in charge of the organic chemistry department of the organic chemistry department takes the exploration of polymers as the main research direction of the organic chemistry department. He successfully developed polyamide 66 last year, and the research on synthetic fibers has taken a gratifying step.
The reason why An Yi selflessly dedicated this money-making idea is that his knowledge of chemistry is almost completely unknown. He has no way of knowing the production technology and processes of "nylon" and other items, let alone the specific chemical equations. He has no idea.
He has a vague memory of "nylon" products because he worked in the refinishing paint department of DuPont China Group after graduating from a vocational and technical college.
When he applied for the job, he had read the DuPont Group's information in detail, and even went online to check the history of the DuPont Group. He knew that "nylon" stockings were once the flagship product of the DuPont Group. In his memory, during this period, DuPont
The group has already started preparing for the project. Instead of letting DuPont Group figure it out on its own, it is better to point out the direction in advance and form a good relationship with DuPont Group.
An Yi's idea is undoubtedly correct. After Zhang Xi and his wife entered the United States, they quickly took advantage of the DuPont Group's relationship and the good cooperation with foreign business groups in places such as Old Nanchang and Shanghai to cooperate with several other major consortiums such as Rockefeller, Morgan and Mellon.
Wait until the consortium takes the hook.
During a surge in market prices from May to mid-October, Zhang Xi and his wife brought more than 20 million U.S. dollars to the U.S. stock market and took advantage of the prevailing leverage principle in the U.S. stock market. The market value of the stocks in their hands almost doubled. Then, when the stock price peaked,
Sell them all before the 20th.
On Thursday, October 24, 1929, the economic crisis broke out in the United States. The stock price plummeted that morning, but with the support of bankers, the stock price rebounded. On Tuesday, October 29, the stock market finally collapsed in an irreversible trend.
With an average daily rate of 18 points, panic has enveloped Wall Street. By today in December, the prices of some major stocks have shrunk by more than 4/5, and they continue to decline at a crazy speed.
Those present at the banquet today are representatives or heirs of several major chaebols who were reminded by Zhang Xi to avoid suffering huge losses in this stock market crash.
"Zhang, it's really hard to believe. How can you accurately predict that the crisis will break out in late October?" Lawrence Rockefeller has just turned nineteen this year. He has a deep memory of the stock market crash during this period, but he does not
Understand why economic crises occur.
Naturally, Zhang Xi would not say that this was what An Yi had repeatedly explained, but would talk according to his own understanding:
"Actually, I am walking on thin ice when it comes to the stock market, and I am afraid that my predictions will go wrong. All of us here understand that the stock market will fall sooner or later, but we don't know which day it will be. During this period, every time I think of twenty
What happened on the 4th and 29th made me sweat and have lingering fears. After reflection and reviewing a lot of information, I concluded the following points.
First, since 2003, the loan business in the United States has increased by 37%, the issuance of securities has increased by 1.5 times, and stock prices have tripled. However, during this period, industrial production only increased by 18%.
This makes the stock price artificially high, and a collapse is inevitable sooner or later.
Secondly, from 2001 to 2029, productivity increased by 55%, but the real income of workers only increased by 2%. The income of farmers, who account for one-fifth of the total population, is less than 40% of workers' income. The country's approximately
Half of the families are still struggling to make less than 200 US dollars per year, and one-fifth of the families have an annual income of less than 1,000 US dollars. As a result, domestic demand is weak, the products produced cannot be sold, conflicts are piling up, and collapse is inevitable.
Thirdly, after the war, the United States transformed from a debtor country to a creditor country in one fell swoop. The recovery of war debts and a huge trade surplus made the United States’ gold reserves account for half of the world’s total gold reserves. As payments became due, those debtor countries had to
Imports of goods from the United States and large defaults on some countries' payments have severely shaken the U.S. economy and financial sector.
Of course, there are many other reasons, such as poor bank supervision, resulting in a large number of credit loans that cannot be cashed, the government's lack of intervention in the economy, a serious lack of factory operation, resulting in high unemployment, etc., etc., all of which prove to us that high-flying stocks have long since disappeared.
A foundation of support.”
Steen, the director of DuPont Group on the side, clapped his hands and applauded: "Zhang, your understanding is very thorough, and your analysis is better than the professional economists of our group. However, these problems you mentioned are difficult to solve in a short time. Is the economy like this?"
Will it continue to be bad?”
Steen's question attracted the attention of many people. Zhang Xi thought for a while, shrugged and said: "I don't know how to solve it. In my opinion, either the country will come forward to formulate relevant policies to help save it, or it will
Let God sort it out."
Everyone sighed and shook their heads after hearing this, obviously not satisfied with Zhang Xi's answer.
Lawrence Rockefeller lamented: "Despite your reminder, our four banks including Citibank and Manhattan Bank still suffered heavy losses. Many investors failed to provide cash in time to repay their loans. After the stock market crash, they were unable to repay, resulting in dead debts and bad debts. Business operations
It is extremely difficult. The stock market is now in a slump, more and more companies are going bankrupt, industrial and agricultural products are overstocked, and the economy is not improving at all. I really don’t know when these days will come to an end.”