Chapter 328: Opportunity for Disaster

In just one week, the people of the United States suddenly found that the sky seemed to have changed. Pen × fun × Pavilion www. biquge。 info

First of all, there is no doubt that this is a stock market crash, and as various financial media and authoritative institutions continue to release data, more and more people are becoming more and more aware of what has happened to the global stock market in the past few days.

Monday, October 19, 1987, is a day worthy of permanent remembrance by the people of the whole country. The New York stock market on Wall Street slammed into what was arguably the largest crash in history, with the Dow Jones falling 508 points, or 22.6 percent, in a single day, the highest single-day decline since 1941. In 6.5 hours, the New York stock index lost $500 billion, which is worth one-eighth of the country's annual GDP, and is directly equivalent to the whole of France!

The most direct result of this is that countless middle-class families suddenly lose huge amounts of property, countless mortgages, car loans and various loans cannot be returned in time, a large number of enterprises will lay off employees, and a large number of residents will lose their jobs overnight!

Of course, not all families will struggle to make ends meet, as not everyone will be saddled with huge debts, and not all businesses will lay off all employees. Of course, many small and medium-sized enterprises did immediately fall into business difficulties, many newly recruited employees and ordinary small white-collar workers received a resignation letter, such as the express logistics industry and the chain fast food restaurant and supermarket industry, and even laid off a large number of employees in this week. At all times, it is always the vulnerable who suffer the most.

But at the same time, the media all over the world are moving, and they can be said to be the most fearless industry in the world that is not afraid of economic crises, because the more this time, the more countless news that needs to be reported in all corners of the world. No matter how a person is affected by the economic crisis, he will certainly not lack a newspaper change, and secondly, he needs to know the current news more than anyone else, so this gives many media a chance to fully express themselves.

How many years, since the Great Depression of the late twenties, have the media not been invariably black-and-white?

Fifty years.

Just a week is not enough time for most people to come back to their senses. Although they understand the meaning of the stock market crash, and some people were pessimistically afraid of the arrival of the stock market crash on the 16th of last Friday, but when this scene really happens, it is still not easy for many people to accept.

Because, it really hasn't happened in the United States for 50 years.

The late fifties and the sixties of the twentieth century can be described as the "golden age" of economic development in the United States. The country's economy has continued to grow steadily, and inflation and unemployment have been reduced to very low levels. By the 80s, the stock market had gone through a bull market for 50 years, and the market value of the stock market had soared 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. The finance department of the business school has produced a large number of talents, Wall Street is crowded day and night, many research institutions are proudly and excitedly studying every stock in the US stock market, and many financial media magazines led by the Wall Street Journal are imperceptibly reducing their coverage of the outside stock market. Because for the American people, their own stocks are enough to attract their full energy.

Who knows, but such an incident suddenly happened.

Of course, since Tuesday, various measures have been in place, and even as early as the close of trading on Monday, the government and related agencies, which will not stop for a moment, have been saving the stock market all the time.

The Hong Kong stock market announced a four-day suspension on Tuesday, and that was the Hong Kong stock market. West Germany announced a reduction in its securities repurchase rate, and the G7 began to discuss how to provide liquidity to the financial system. The international sector is important, but for ordinary Americans who suddenly become impoverished overnight, they are of course most concerned about the measures of their own authorities.

On the very day of the crash, there was already an extremely strong reaction from all walks of life in the United States, with a large number of reports and comments on radio, television, and newspapers. And the largest part of it is the original words of the statement issued by the White House after the closing. The gist of this is that the country's economy is functioning well, employment is at its highest level, production is increasing, and the trade balance is improving. The Federal Reserve recently spoke that there is no indication that inflation will occur further.

But is it true?

What countless members of the public have learned is that researchers from the New York Stock Exchange have spoken, saying that they hope this situation will not continue, and other relevant officials have also made speeches to stabilize market sentiment.

Only a very small number of people know that on the evening of October 19, President Reagan immediately recalled Treasury Secretary Beck, who was visiting West Germany, and discussed countermeasures with the Federal Reserve's Alan Greenspan, who was in the field, and closely followed the development of the situation.

Then, on Tuesday morning, the first day after the nightmare began, banks stopped extending credit to professional brokers and traders because they feared that they would go bankrupt and not be able to recover their loans, and that professional brokers no longer had enough cash to pay margin to the exchanges to keep the trading flow, because on Monday they had bought too much of the stock to stop the stock from falling.

Therefore, these professional brokers will not be able to participate in the second day of stock trading, which will undoubtedly contribute to the continued decline and long-term downturn of the stock market. At this critical juncture, the Federal Reserve Board made a historic speech in support of banks continuing to lend to stock traders and immediately injecting money into the banking system.

So immediately after that, the two major commercial banks announced a reduction in the prime interest rate. Chemical Bank has rapidly increased its securities loans by $400 million, and Bankers Trust has also said that it will guarantee the financial needs of customers in any case. The re-listed companies have regained some confidence, and President Reagan and Treasury Secretary Baker have spoken separately, reassuring citizens again and again.

As a result of these measures, the stock market did rise 100 points on Tuesday and nearly 200 points on Wednesday compared to Tuesday. Unfortunately, when Thursday arrived, the stock price had unfortunately fallen by a full seventy points. So, when Thursday's evening news aired on N, President Reagan made his third televised speech, trying to get the whole people to cooperate and prepare for a marathon battle against the stock market crash.

Then, at the end of the week, when Friday's market break came again, it was time for the major media to get busy and repeatedly evaluate the gains and losses of the week.

Then, just as it was summarizing, a very interesting situation was first discovered by the century-old East Coast print media such as the Wall Street Journal and the New York Herald.

In fact, this is an ongoing report, but in this whole process, few people have the energy to pay attention.

A large retail investor is "bailing out the market".

No one cares how many times Alice-Wong has been to the stock market before, and what is clear to everyone is that she has not been idle this week.

The first is Coca-Cola, which fell 36.5% on the first day, and not long after the market opened on Tuesday, the girl invested 50 million dollars in a big stake. Then, as the overall market gradually improved, this very smart investment from an afterward perspective immediately brought me millions of dollars in net profits.

The problem is that when the market opened on Thursday, which fell again, Alice Wang took advantage of Coca-Cola's fall early and took a short position, without the slightest loss. And on Thursday, when it began to slowly recover, she re-injected the 50 million yuan of principal into the stock, and then made another profit as the market made money.

A similar situation has appeared in several stocks, and has attracted the attention of many financial people, because her investment is so large and the operation is very frequent. When she bought 50 million shares of Coca-Cola on Tuesday, she bought all the shares of a small television network for $3 million and did not sell them again until the weekend.

JPMorgan Chase people immediately made a detailed investigation of the deal, and the scale of the Engelaire television network is not large, ranking in the middle of countless TV networks of different sizes in the country, and of course, it is completely impossible to compare with the "Big Five" such as ABC and N. As a "pink stock" on the NASDAQ exchange, its market value is not high, and it is not surprising that it was bought for a mere $3 million after the stock market crash.

There was someone who investigated the acquisition.

But it's just routine.

There are so many things worth investigating, even if Alice Wang's other large contributions are enough to attract the attention of many people.

In hindsight, the people on the NASDAQ found out that Alice had sold a large number of Microsoft shares as early as October 1. Of course, as the second largest shareholder of this company, when the market value of the entire enterprise has evaporated by more than three billion yuan, she will not be spared. But when that historic Monday came, her sell-off still avoided at least $207 million in losses for herself.

"Two hundred and seven million?"

In Manhattan, New York, in the Time-Life building, at the headquarters of Fortune magazine, a gray-haired lady read a research report and whispered, "Is this girl already so rich?" Just because of the loss avoided by selling the stock, there is a whole value before? ”

Muttering, she looked directly at the bookcase behind her, in the upper left corner of the only mahogany bookcase in this private office, where a magazine was placed, and on the cover was a smiling photo of Alice Wang. (To be continued.) )