Chapter 794: The U.S. Stock Market Finishes First?

Stock market crash?

No, this time the United States is ushering in an unprecedented economic crisis!

"We are facing the worst recession since 1929!"

"No! we are now in a recession far beyond 1929!"

"Look behind me, this group of people are all unemployed, they are all looking for work, they have a long line......"

There is a lot of news on TV, most of which is about this matter, yes, this thing is the biggest thing now, can you not talk about it?

"My name is Henry, I am the initiator of the workers' movement, we need bread, we need food! We need shelter, these workers, some of them have not found decent jobs for three years, they need to live, live!"

There's a man on TV, we all know him now, Henry Scott, and I didn't expect this guy to be like this at the time.

"What does the recession have to do with us?"

"Yes, I think those adults are idiots, and if it declines, it will decline. ”

"That's it!"

"Have you played?"

Obviously, John is still young, he still can't understand what the recession will do to him, and his relationship with Katie seems to be one step closer.

But what is playing?

Cellphone!

Wu Xiang used his strong connections to finally get the coarse grain mobile phone to the United States this year, which is definitely a memorable event.

This seems to be too sad, right? People are in an economic crisis. It's in the Great Recession, and as a result, you Wu Xiang brought coarse grains into the United States?

It's cheap. It's just the right time for the economy to make a big difference.

You know, it's not an easy thing to do. Then Wu Xiang must have helped the Republican Party come up with some bad ideas and saved their midterm elections.

Mobile games on mobile phones, with cheap machines, coarse grains are cheap. This changed John's childhood life, you know, mobile phones are not cheap things in the United States, we always hear that the fruit in the United States is cheap, but if you really look at the contract signed with the American mobile company, you will understand, that thing is very cheating, definitely not cheaper than the domestic one!

The cheapest fruit in the world is in Hong Kong, of course, more than 20 years ago. Afterward......

Who still uses fruit?

Today's young people, in 2035, they absolutely can't imagine, how can someone cut off their kidney for a fruit mobile phone?

This year. Fruit phone is too LOW, right?

Why, how simple it is, it's not fun at all. None of them are open source, and there are too few choices. There are so few changes, it's boring. Don't even give it!

We are all familiar with this mobile phone, but why did the United States have an economic crisis at that time? Why did it have a recession?

"Actually, I think we're still making progress now, at least we're better than we were in 1929, because we know we're in a recession right now, and we didn't know what we're going to face until a few years later, when a woman economist wrote an article, and then people knew they were in a recession. And now, we know we're in the midst of a big recession!"

"So, we're going to be thankful?"

"That's right, at least we know our situation, and there's no president like Khufu on the government side. ”

"Oh God, I'm lying in Khufu's house with a Khufu blanket and eating Khufu's breakfast......"

"Hahaha......"

Uncle Yu's talk show is still there, although he looks older, it doesn't matter, he should be old and strong. Well, we can understand that after a child got a mobile phone, he watched it casually, and he saw such a video, but this is not contrary to harmony, although Uncle Yu has always been talking about politics, but his show is also a comedy.

However, this video seen from the phone ...... Well, needless to say, there is definitely the nature of product placement in this, and this guy Wu Xiang is too bad...... But this video focuses on one thing, that is, recession, the big recession!

Why did the United States come to this point?

"Actually, I have always believed that the Fed's policies are problematic now, and these policies have not stimulated the economy at all, in fact, they are procrastinating, dragging on the economic and financial crisis in 2008 until today......"

"So we have a bigger economic crisis, right?"

"Yes!"

Uncle Embarrassing's show sometimes recommends some books, and the one I came here today is to write a book about the current economic recession, the name of this book is "Lying".

Does this recession have anything to do with this book?

There are somewhat, at least there are some problems in this book.

First of all, we now know that the U.S. government at that time falsified some economic figures.

For example, in terms of GDP, they first changed the algorithm, and then calculated the contribution of the DU trafficker and the woman who lost their foot, but despite this, it didn't make their economic numbers look much better, and their fraud was not limited to this.

At the beginning of 2015, the U.S. announced that its unemployment figure was 5. 5%!

That's right, it's pretty much the best number in decades, and last year it was said that the U.S. economy was recovering strongly, and the U.S. dollar was strengthening......

These things were not only speculated by the media in the United States at that time, but also in China, and there were also people who were high and trendy!

A well-known blogger surnamed Niu Mingdao said in his article that the strength of the dollar will make the US economy soar, and China's economy will not be long after it is finished...... This is something that our young people don't know about. But back then, he was a well-known 'Air Force Commander'.

But this qiē. Is it all true?

The number of jobs looks interesting. But what was the labor force in the United States at that time?

In this regard, there are statistics in the United States, that is, how many people participate in social labor in the range of 14 to 64 years old?

62% more!

Is this number jù good or bad?

There are 93 million people in the United States who are not involved in the labor force, or 38 percent of the working-age population, and although this number includes school students and prison criminals, it is also the worst. The worst in the United States since 1977!

It's ridiculous, the unemployment rate is 5.5%, so why are so many people not involved in the workforce?

Obviously, the U.S. number jù has moisture, and it's still very large.

And most importantly, the bull blogger also said that the stock market in the United States is constantly rising.

The U.S. stock market has been doing well, but does the U.S. stock market have anything to do with their economy?

Our story in China always says that it has little to do with our economy, and there seems to be no way to refute it. But what about the story of the United States? Does that have anything to do with their economy?

Why did the U.S. stock market rise?

In an announcement in early 2015, it was shown that U.S. listed companies wanted to buy back their own shares, and this amount was more than $300 billion!

yes, that's it. It's buying back your own shares, and that's the 'core technology' that makes the U.S. stock market rise!

Why do you want to buy back your own shares?

Because you can make money this way.

Can listed companies make money like this?

Will listed companies be able to generate more profits in this way?

No, public companies are not going to be more profitable. There is also no more profit, but the repurchase of shares. Professional managers of listed companies make profits, and directors of listed companies. Also profitable!

Don't understand?

U.S. listed companies are all run by CEOs, they are not the founders of this company, they are foreign, and the foreign ones depend on your KPI assessment, but what do you think?

One of them, that is the price of the stock, if the stock price is high, then the board of directors is happy, right?

However, the global economy is very average now, so how can you keep stock prices high?

It's easiest to buy your own stocks!

If you buy your own stocks, then there will be fewer stocks, fewer stocks, and things will be scarce and expensive, so the price will naturally go up, and other shareholders will look at it, Huo, it's gone up over there, buy it!

So, the executives are happy, the board of directors is happy, and the people who can buy such stocks are happy, how nice.

But where does the money come from?

Why do so many people scold the money printed in the United States for giving it to Wall Street?

It's right here, right? Besides, you can borrow, take out a loan!

Loans are cheap, and foreign countries are so low, so is it not even lower in the United States?

There is one number that many people don't know, that is, how much money has American companies spent on buying back their own shares since 2008.

$2 trillion!

This is still the number before 2015, you can take a look at what the market value of the stock market in the United States was at that time, what is the concept of 2 trillion, so why is the US stock market so hot, the answer is about to come out.

So, why the U.S. economy will recession at the end of 2018, and the root cause, I believe many people can already figure it out, and this reason is particularly simple.

That is, the financial crisis of 2008, this crisis has never passed, and the United States used a method to make this crisis temporarily not appear, temporarily hide this crisis, and this method is to print money!

That's right, printing money!

However, Europe told us that printing money could not increase capital at all, could not increase commodities at all, and could not make substantial changes in the economy.

Originally, the Fed's idea was to have a spillover effect, which was to give blood transfusions to large companies and give money to Wall Street, and then Wall Street had more money, so they would naturally invest in industry.

This industry no longer refers to industry alone, but as long as it is a little more practical, it is to invest in things like the Internet that were not considered industrial before, but this purpose cannot be achieved!

Yes, the money has gone to the financial industry, and they have all gone to play by themselves, making money with themselves, trying to turn over the money, and then increase the capital, but unfortunately, this is completely a matter of seeking fish, so ......

The U.S. economy is collapsing! (To be continued......