Chapter 109: Black Monday
On June 1, "The Silence of the Lambs" was first released in Europe and the United States, due to the participation of Wang Jie, a super director, and Jodie Foster, a controversial figure, and Wang Jie's plagiarized original book "Red Dragon" itself has many readers in the United States, so the film attracted fans to rush to watch the movie as soon as it was released.
After its release, "The Silence of the Lambs" topped the North American box office for five consecutive weeks, grossing $15 million in its first week alone, and grossing $130,742,922.00 in the United States. This is unimaginable for a thriller movie before, as the producer and distributor of United Pictures has officially re-established the status of the once eight major in Hollywood, the president and producer of "The Silence of the Lambs" Shirley Lansing held a celebration banquet in the second week of the film's release, Wang Jie did not show up, but all the cast and crew of the crew, including Jodie Foster, attended the banquet.
Wang Jie didn't have time to be distracted by the movie, three months before October, Wang Jie summoned the housekeeper Jim, Audrey Hepburn and Yulia Vladimirovna Tymoshenko to communicate behind closed doors, and then the housekeeper Jim was in charge of North America, Yulia Vladimirovna Tymoshenko was in charge of the Far East, Audrey Hepburn was in charge of Europe, and Wang Jie was in New York in charge. This time, Wang Jie hired more than 500 traders around the world to form a super financial team, and Monica Bellucci's law firm also stopped all external business and was fully responsible for providing legal assistance to Wang Jie and others. Wang Jie mobilized a total of 10 billion US dollars this time, and he is ready to fight a war to decide.
The women began to take turns to accompany Wang Jie in turn, which made Wang Jie not feel impetuous, and at the same time, because of the reason for calming down with the women to double cultivate, Wang Jie's cultivation has also improved a lot, of course, her women have also benefited a lot.
It was Monday, October 19, 1987, when the stock market had just opened in the morning, and the New York stock market on Wall Street was experiencing a stock crash and the largest crash in history. The Dow Jones plunged 508.32 points, or 22.6%, in a single day, the highest single-day decline since 1941. In 6.5 hours, the New York stock index lost $500 billion, worth 1/8 of the annual gross domestic product of the United States. The stock market crash shocked the entire financial world and produced a "domino" effect in the world's stock markets, with the stock markets in London, Frankfurt, Tokyo, XN, Hong Kong, Singapore and other places all being strongly impacted, with stocks falling by more than 10%. In the week that followed, the panic intensified. On October 20, stocks on the Tokyo Stock Exchange fell by 14.9%, the highest decline on record for the Tokyo Stock Exchange. On October 26, Hong Kong's Hang Seng Index plunged 1,126 points, or 33.5%, the highest decline in the history of the Hong Kong stock market, engulfing all the gains since November 1986. In line with this, stock markets in Tokyo, XN, Bangkok, Singapore, and Manila also fell. As a result, the news of the collapse of the Asian stock market was transmitted back to Europe and the United States, causing the stock markets in Europe and the United States to fall.
According to statistics, in the eight days from October 19 to 26, the wealth lost due to the sharp fall in the stock market was as high as 2 trillion US dollars, which is 5.92 times the total direct and indirect losses of 338 billion US dollars in World War II. Wachtel, an economist at Merrill Lynch, called the October 19 and 26 stock market crash a "runaway massacre."
The stock market crash in October 1987 affected the rich, just as it did in 1929. Previously, Forbes magazine published on September 15, 38 of the 400 richest people in the United States were named off the list. On October 19, Sam Walton, the world's richest man at the time, lost $2.1 billion and lost his position as the richest man.
What is even more tragic is the ordinary people who put their life savings into the stock market, they originally hoped to take advantage of the bullish spirit of the stock market to earn some pension money, but in a few days, their life savings disappeared in the falling stock price.
The volatility in the stock market has just eased, and socio-economic life has fallen back into panic fluctuations. Banks went bankrupt, factories closed, businesses laid off a lot of workers, and the tragedy of 1929 was repeated. Fortunately for 1929, the U.S. economy was growing at a relatively high rate, and the stock market crash did not lead to an overall economic crisis. But the crash still hit the U.S. economy enormously, and a long period of stagnation ensued.
October 19 was dubbed "Black Monday" by the financial community, and the day after the crisis erupted in The New York Times called it "the worst day in Wall Street history" in an op-ed.
The late 50s and the entire 60s of the 20th century were the "golden age" of economic development in the United States. The economy has continued to grow steadily, and inflation and unemployment have been reduced to very low levels. By the 80s, the U.S. stock market had experienced a 50-year bull market, with the market value of equities rising from $2,472 billion in 1980 to $5,995 billion in 1986. Since 1982, the stock price has continued to rise, and the trading volume has also increased rapidly, reaching 180.6 million shares per day in 1987. The stock market is extraordinarily prosperous, and its development has far outpaced the growth rate of the real economy, and the development of financial transactions has greatly outpaced the development of world trade. Because of the high profitability of the stock market, a large amount of international and private capital flows into the stock market, and these funds engage in speculative transactions on the stock market in pursuit of short-term profits, resulting in a false boom in the stock market.
The root causes of the outbreak of this stock market crash are mainly as follows:
First, there is a huge fiscal deficit and a trade deficit. In 1986, the U.S. fiscal deficit was as high as $221 billion and the trade deficit was as high as $156.2 billion, both of which were the highest deficits on record. It is necessary to absorb foreign funds to make up for the shortage of domestic funds, and in order to attract foreign capital, it is necessary to maintain a high level of interest rates, which has a direct impact on stock market prices.
Second, since the 80s of the 20 th century, the economy of the United States and other Western countries has been in a period of low-speed growth, with insufficient demand for productive investment and a large influx of surplus capital into the securities market, resulting in rampant financial investment and an unprecedented expansion of debt, resulting in a false prosperity that is difficult to last. The stock market crash is a reflection of the "bubble economy".
Third, with the decline of US hegemony, the Western economic system and the entire world economy are in a state of unstability. The international exchange rate is volatile, international trade is seriously unbalanced, and the international debt crisis continues. These factors affect the stability of international capital and stock markets.
The direct triggers for the outbreak of the stock market crash are mainly the following:
First, higher interest rates have led to higher interest rates on Treasury bills and other bonds, and investors have shifted money from the stock market to invest in bonds, causing stock prices to plummet.
Second, the trade deficit is too large and the dollar exchange rate has fallen, which has shaken people's confidence in the dollar and the US stock market.
In order to save the U.S. stock market from fire and water, a large amount of capital outside the system is needed to take over, and the U.S. government has to turn to Jewish capital, which eventually leads to the United States becoming the spokesperson of interest groups.
In this stock market crash, because Wang Jie was well prepared and the time to enter the market was just right, Wang Jie earned more than $20 million in the stock market around the world this time, especially in the Tokyo stock market, due to Wang Jie's turmoil, the loss was almost double that of the same period in the original time and space, which also caused a more difficult situation for the island country in the future.