Throughout August, the world's financial markets were in turmoil.

Since the outbreak of the subprime mortgage crisis in July and August 2007, it has had a tremendous impact on and damaged the international financial order, caused a strong credit crunch effect in the financial market, and exposed the systemic financial risks accumulated in the international financial system for a long time.

A combination of factors such as excessive innovation in financial instruments, distorted interests of credit rating agencies, and deregulation of monetary policy led to the rapid development of the subprime mortgage crisis in the United States.

Many institutions have begun to worry about whether the financial crisis triggered by the subprime mortgage crisis will become the worst financial crisis in the United States since the "Great Depression" in the 30s of the 20th century.

In fact, in the past 30 years, there has been a very strange phenomenon in American society, on the one hand, the American people have advanced consumption, and on the other hand, the income of the people has been declining.

According to statistics, after adjusting for inflation, the average hourly wage in the United States is only the same as it was 35 years ago, and a man in his 30s earns 12% less than someone of the same age 30 years ago.

So where does the money go?

Quite simply, in a capitalist society, capital is king, and the fruits of economic development flow more into the pockets of the rich, so the income gap between the rich and the poor in the United States has been widening in recent decades.

Coupled with the profound impact of the neoliberal policies since the Reagan administration in the early 80s, the US financial industry is seriously under-regulated, luring ordinary people to borrow ahead of time to consume and speculate in the market.

In this way, when the crisis comes, the ability of ordinary people to bear risks is greatly reduced, and the crisis rapidly expands and becomes stronger, and then more ordinary people and institutions are affected, and it snowballs bigger and bigger.

Nowhere is this crisis more evident than in the stock market.

Led by the U.S. stock market, global stock markets tumbled throughout August.

On August 11, 2007, central banks around the world injected more than US$326.2 billion into the bailout within 48 hours

The Federal Reserve injected $38 billion into banks three times a day to stabilize the stock market.

On August 14, 2007, dozens of companies, including Wal-Mart and Home Depot, announced that they had suffered huge losses due to the subprime debt crisis, and the U.S. stock market quickly fell to a multi-month low.

On the same day, the three major central banks of the United States, Europe and island countries injected more than $72 billion to rescue the market.

On August 16, 2007, the stock price of the largest commercial mortgage company in the United States plummeted and faced bankruptcy, the U.S. subprime debt crisis worsened, and the Asia-Pacific stock market suffered its worst decline since 911.

……

All kinds of capital injections and interest rate cuts have not stopped the falling stock market, and in this case, IPOs have also been affected.

Needless to say, valuations are declining, and even the IPO plan is welcome.

Facebook just hit the muzzle.

"Zach, Charlie from Citibank has just contacted me and he suggested that we postpone our IPO plans," Linda, an assistant, came to Zach's office to report on the IPO.

Since its inception in 2004, Facebook has grown for more than three years to become the largest SNS site in North America and Europe.

Basically, Facebook and intranet share 80% of the world's SNS sites.

After several rounds of financing, Korn Ferry Group now indirectly holds 40% of Facebook's shares and remains the largest shareholder.

However, in terms of voting rights, there is no way to compare with Zacker.

Basically, Facebook's several rounds of funding, the voting rights of the diluted part of the stake were transferred to Zach.

Zack himself is also a relatively strong person, who was cornered by the Radiant Glory Group, so he had to pinch his nose and accept the alliance under the city.

Although he did not lose control of Facebook, Zach has always been reluctant to make Korn Ferry the largest shareholder of his company, that is, to make the parent company of Facebook's biggest rival, Intranet, his majority shareholder.

Therefore, in several financings, Zach used the advantage of his voting rights to exclude the Korn Ferry Group from the financing object, which was diluting the equity of the Korn Ferry Group in disguise.

Jiang Hui actually knows this.

However, Jiang Hui did not stand up to interfere with the financing led by Zach, mainly because Facebook has more than 70 million users in the United States, is a dark horse in the American Internet industry, and has entered the eyes of the US government.

The Yankees would not have watched such a company, which has mastered the personal information of a large number of American netizens, a company controlled by the Celestial Empire.

If Korn Ferry continues to maintain its position as the largest shareholder, it will certainly be interfered with by the US government.

Although the Korn Ferry Group indirectly controls these shares through several offshore companies, in front of the U.S. government, any offshore company is actually transparent, and people want to check you, so don't want to hide anything.

This is also an important reason why Potato accepted Google's funding in the first place, and Twitter also brought in Wall Street funds when raising funds.

In the case that the Celestial Empire is not strong enough, and you go to the territory of the American imperialism to eat alone, then you really don't know how to write the dead word.

At the beginning, when Jiang Hui was preparing for the launch of the school intranet and Meituan online, he operated the company's domestic and foreign business as an independent company, which also took into account the impact of this aspect.

"Did Charlie say why? Why didn't he dare tell me directly?", Zach said a little upset after hearing Linda's report.

"Citibank's recent performance in the stock market has been a mess, their stock has fallen from $25 to nearly $10, and now Citi simply doesn't have the energy to help us run the IPO business.

When Charlie persuaded you to let Facebook go public, he said a bunch of benefits and made a lot of promises, but now he can't fulfill them, I guess he doesn't have the face to see you." Linda thought for a moment and spoke her mind.

"He is the one who said that now is a good time to go public, and he is the one who said that the listing will be postponed, and he is his family when Facebook is his family."

Zach will agree to let Citi become the undertaker of Facebook's listing, in addition to knowing Charlie, the investment manager of Citibank, more because of Citibank's huge influence on Wall Street in the United States.

Citi has a variety of tools to help Facebook quickly log on to the NASDAQ and assist Zach in completing the company's holdings.

Together, they even planned how to kick the Korn Ferry Group out of Facebook's board of directors.

However, people are not as good as heaven.

Zach had just decided to launch Facebook's IPO three months earlier, and not long after, the subprime mortgage crisis erupted.

Based on the performance of the Nasdaq this month, if Facebook continues to insist on going public, it may not be broken.

That's a big face.

The loss of face is secondary, and the most important thing is that the market value will definitely not meet expectations.

As the largest Facebook in Europe and the United States and the second largest in the world, Wall Street gives a valuation that is not lower than that of the intranet.

If there is no subprime mortgage crisis, it is very possible for Facebook to go public within this year, and its market value will exceed $15 billion, or even hit $20 billion.

Now.

I can only "hehe"!

(End of chapter)