Goldman Sachs, as one of the first American-funded companies to enter the financial market of island countries, has its own building in Tokyo's Chuo Ward, which is also rare in Tokyo, where every inch of land is at a premium.

"Mr. Jiang, this is Pilsen, President of Goldman Sachs Island Country Company, President Pilsen, and this is Jiang Hui, General Manager of Korn Ferry Group. ”

Although Jiang Hui and his entourage arrived at Goldman Sachs earlier than planned, they obviously did not close the door because of the advance. Under Kimura's contact, Goldman Sachs personnel quickly went downstairs and led Jiang Hui and his entourage to an exclusive conference room, and the president of Goldman Sachs' island country branch also came over to participate in the reception more than ten minutes later.

"From the school's intranet to Meituan, every Goldman Sachs employee I have contacted is an elite, and I can always learn new knowledge by communicating with them. ”

Jiang Hui took the initiative to reach out and shake Pilsen's hand, and threw out a sugar-coated bomb.

"Jiang, you are one of the most talented unicorns I know, and I have studied the situation of the companies under the Korn Ferry Group, especially overseas. Not only in the Celestial Empire, but also the market share of Korn Ferry Group's intranet, Meituan, NICO, POTATO and Twitter in developed countries in Europe and the United States is also very astonishing. ”

The sedan chair was carried by everyone, and Pilson was obviously also a master of this way, and after receiving Jiang Hui's sugar-coated cannonball, he immediately threw it back.

However, although Jiang Hui knew that this was a sugar-coated cannonball, it at least proved that the business development of Guanghui Group overseas was indeed very good.

In the field of the Internet, the most popular websites should be Google, Twitter, Yahoo and the like, of which the second is Twitter, a subsidiary of the Korn Ferry Group, which is also unique in the Celestial Empire.

Not to mention the present, even the BAT of later generations will have a very limited impact on the world market.

For example, Du Niang, except for the mainland, which is basically rarely used, Google occupies an absolute monopoly position; and Alibaba can't do Amazon outside the Celestial Empire, and is not a heavyweight opponent; even the relatively international penguin company, its influence in the global market is very limited.

Where is the Korn Ferry Group, international enterprises one after another, the most important thing is that people can not only take the successful internationalization route, but also lead the trend of the times.

"Just last night, the IMF announced that the global subprime mortgage crisis is expected to lose $1 trillion, in fact, I would like to say that the IMF is naïve, in this crisis that is worse than 1929, a trillion dollars is nothing, and throwing it into it will set off a wave. ”

After Jiang Hui and Pilson exchanged pleasantries for a while, the topic began to move on the right path.

"Jiang, although I also think that the impact of this subprime mortgage crisis will be very far-reaching, I don't think it can be more serious than the crisis of 1929. ”

Pilson's point of view, from his standpoint, his vision, cannot be said to be wrong, this is basically the view of the vast majority of investors on Wall Street now.

Compared to the crisis that began in 1929, everyone felt that this time was just a small storm.

In 1929, the U.S. economy was booming. The index of industrial production in the United States averaged only 67 in 1921 (100 from 1923 to 1925), but by July 1928 it had risen to 110 and by June 1929 it had risen to 126. Even more impressive is the situation in the US stock market.

Businessmen, pedantic economists and government leaders all express confidence in the future. Treasury Secretary Andrew Mellon also assured the public in September 1929 that "there is no reason to worry now, and this upsurge of prosperity will continue." ”

On October 29, 1929, a crowd gathered on Wall Street in New York, and the stock market plummeted that day. The Great Depression in the United States depleted the capital that the United States would have available for investment in Europe.

In the autumn of 1929, the stock market prices fell to their lowest point, and a worldwide depression ensued, and the intensity and duration of the depression were unprecedented. One reason for this unexpected outcome appears to be the severe international economic imbalances that developed when the United States became a creditor on a large scale after the First World War.

Britain was a creditor country before the war, but it used the income from overseas investment and loans to pay for the long term. The United States, on the other hand, typically runs a trade surplus, which has been increased by keeping tariffs high for domestic political reasons. In addition, in the twenties of the twentieth century, money flowed into the United States as many countries paid war debts, and the gold reserves of the United States increased from $1.924 billion to $4.499 billion between 1913 and 1924, or half of the world's total gold reserves.

For several years this imbalance was offset by massive U.S. lending and investment abroad, which averaged $1.1 billion a year between 1925 and 1928. Of course, this situation ultimately reinforces the imbalance and cannot continue indefinitely. As payments became due, debtor countries had to reduce their imports from the United States, and certain sectors of the United States economy, particularly agriculture, were harmed. In addition, some felt the need to default on their arrears, which destabilized certain financial companies in the United States.

The weakness of the U.S. banking sector was the last factor that contributed to the stock market crash of 1929. At that time, there were many independent banks in operation, and some banks lacked sufficient financial resources to weather the financial turmoil. So when one bank fails, panic spreads and depositors rush to other banks to withdraw their deposits, triggering a chain reaction that destroys the entire financial fabric.

Then the American people ushered in "Black Thursday", and the stock market crashed!

The stock market crash led to a four-year Great Depression that soon spread from the United States to other industrial countries. For millions of people, life has become a struggle to eat, clothe and shelter. In order to safeguard their own interests, various countries have strengthened measures and means of trade protection, which has further aggravated and deteriorated the world economic situation, which is an important root cause of the outbreak of World War II.

It can be said that the crisis that began in 1929 changed the economic and world patterns for decades to come, and had a major impact on the global political and economic environment throughout the 20th century.

In April 2008, no one would have believed that the subprime mortgage crisis would have had the same impact as the Great Depression.

From the perspective of future generations, we will find that 2008 was actually an important turning point in the global political and economic environment, after which the global situation has become significantly more volatile, and the economic situation of various countries has also ushered in a new situation.

This new situation, some very good, some very bad!

(End of chapter)