Chapter 820: 1929: The Great Collapse (Part I)

Someone has been scapegoated, someone has died for it, but that doesn't mean it's over.

Syngman Rhee, who launched the "821 Coup" and ousted Li Kun and Li Kun, immediately announced the establishment of the "Gao Bāng Provisional Political Fǔ", and he still served as the interim president.

And he also knows very well that the Chinese want much more than that.

The resignation of the Gao Bāng brothers Li Kun and Li Kun, and the overthrow of the "Gao Bāng Kingdom" once again, did not show any excess, and in their opinion, such a "kingdom" should have fallen.

Subsequently, the statement that had appeared countless times before the appearance of Gao Bāng:

"Let the Chinese govern the country!"

This saying is spreading more and more in Gao Bāng, and it is spreading more and more. And Syngman Rhee also knows very well who is behind this.

There is only one choice for yourself:

Help the Chinese complete this grand project

The merger of Gao Bāng is quietly underway

On August 2, 1927, President Coolidge announced that he would not run for re-election. Many politicians wanted Hoover as a presidential candidate.

In February 1928, at the Republican National Convention in Kansas City, Missouri, the Hoover Book was nominated for the presidency by a landslide in the first round of voting.

In the 1928 election, Hoover gave only seven speeches, advocating individualism and equal opportunity, and making it his goal the "American system" in which all strata of society voluntarily cooperated. In terms of specific policy measures, he emphasized special prosperity. For a period of time after the First World War, capitalism was in a period of "relative stability", and the United States developed rapidly by virtue of the windfall profits made from the war. This is the Republican Party again, and it is easy to associate this period of "prosperity" with the Republican Party. Therefore, Hoover, as the Republican candidate, did not have much effort in the race, defeating the Democratic candidate Smith by a large margin. Hoover was elected by 444 votes to 87 electoral votes.

Hoover became the first president born in the western Mississippi region. Hoover was elected as a representative of industrial efficiency, and he believed that he had what it took to lead the country to exceptional prosperity. The Wall Street Journal, celebrating Hoover's inauguration, said, "Politics has never been so much associated with business as it is today." There is no doubt that Hoover was a very dynamic business president, and he would be the first business president in the United States. With the United States in the midst of an unprecedented "Coolidge boom" and Republicans holding a majority in Congress, Hoover entered the White House in a singing and dancing environment.

In the early days of his administration, Hoover got carried away talking about how America's economic system was "flawless," boasting that "America is closer to the final victory over poverty than any other country in history." ”

In fact, the U.S. economy is already in crisis and on the verge of catastrophe

Wall Street, United States of America.

Wall Street is a small street no more than 500 meters long, with the East River in New York on its easternmost side, the Trinity Church and a cemetery on its westernmost side, where Hamilton, the first U.S. Secretary of the Treasury and the man who nurtured Wall Street's growth, is buried.

Wallstreet, the English name of Wall Street, comes from a wooden fence built by Dutch immigrants who settled in New York in their early years to fight against the British invasion.

Wall Street originated in 1653, when New York was still a Dutch colony called New Amsterdam. In the 17th century, the Netherlands had developed a very complete financial system, including banks, stocks, credit, insurance, limited liability companies, etc. When the Dutch immigrated to New Amsterdam, they brought with them the commercial jīng god of capitalism. …,

Later, the British captured New Amsterdam and renamed it New Yorkshire to the Duke of York, the younger brother of King Charles II.

In 1776, the United States was officially founded, in order to rebuild the homeland on the ruins of the war and develop the economy, Hamilton issued a large number of new Treasury bonds, and suddenly added a lot of varieties that can be changed in the New York market, and the market expanded rapidly, and soon appeared the predecessor of the current New York stock exchange - the New York Stock Exchange - the New York Stock Committee!

Due to the increase in the amount of jiāo, people not only perform jiāo yi within jiāoyi, but also on the roadside outside jiāoyi, which is called off-site jiāoyi. Off-market Jiāo Easy Brokers can stand at the Mén Exit of Jiāo Easy Office and listen to the quotes in the market to get the most up-to-date information without having to pay a membership fee. In order to prevent this from happening, and to prevent brokers from competing with each other on jiāo easy commissions, in 1792, brokers got together and agreed with each other to guarantee that they would receive no less than 025% commission when providing securities jiāo easy services to their clients.

This is the Sycamore Tree Agreement.

This agreement is entirely an act of industry self-regulation, essentially a price alliance for brokers. It does not have the force of law, but it is strictly adhered to as soon as it is signed.

It is because everyone abides by the rules of the game that the game can be played.

The signing of the Sycamore Tree Agreement marked the official start of Wall Street

In the late 19th century and early 20th century, the rapid rise of heavy industry in the United States, which exceeded the total steel production of European countries in just a few decades, was inseparable from Wall Street, and Wall Street also rapidly expanded its scale and influence in the process of financing heavy industrialization in the United States.

A popular Wall Street joke at the time illustrated the importance of Wall Street bankers in the process of heavy industrialization in the United States: When a teacher asks a student who created the world, one student replies, "God created the world in 4004 B.C." In 1901, the world was reorganized by Mr. Morgan. ”

This refers to JP Morgan's restructuring of the U.S. Steel Company in 19011, with a total restructuring of $1.4 billion, equivalent to 7% of the U.S. GDP at the time, which was an astronomical figure at the time.

Another major impact on Wall Street during this period was the outbreak of World War I in 1914. The United States is undoubtedly the biggest beneficiary of this war on the other side of the ocean, and both its real economy and virtual economy have developed rapidly.

The post-war U.S. stock market entered a frenzied bull market, and in the 20s of the 20th century, the Dow Jones index rose for 8 consecutive years, with a cumulative increase of 50%

Dow Jones refers to its full name as the Dow Jones Price Average, Dow Jones is two people, one named Charles Henry Dow, the other named Edward Davis Jones, they formed the company in November 1882, and there was a collaborator named Charles Milford Bergsrisser, they didn't want the company name to be too long, so Bergstrieser lost the opportunity to go down in history. On July 3, 1884, they launched an index of eleven stocks to track the market. Because it can fully and objectively reflect the dynamics of the entire stock market, it is often used as a barometer to observe changes in the world market. It is also a testament to the centuries-old history of the American economy, and despite the important changes that are underway, it is still seen as a symbol of the traditional American economy.

In 1929, a year of disaster for the United States and Europe, arrived

Prior to this, the President of the Republic of China, Wang Hengyue, ordered the staff in the United States to withdraw a large amount of money from the stock market and all levels of the market, and no one knew why, at least, the American stock market was in a kind of crazy bull market at that time

Wang Hengyue knows very well that the terrible stock market crash is about to come to the United States...,

In 1929, when the Federal Reserve was newly established, it lacked the ability to judge and contain stock market bubbles, so it did not take measures such as adjusting interest rates to curb excessive speculation.

Another factor that adds to the problem is the 10% margin system, which means that you can buy $100 of shares for only $10. In a soaring bull market, this is a very yò institutional arrangement, thus further stabbing the speculation of the stock market.

The Fed lends to Fed member banks at 5 percent, banks lend to those brokers at 12 percent, and brokers lend to speculators at 20 percent, while investors expect a return of well over 20 percent from the stock market. Such a step-by-step amplification of the capital chain is pregnant with huge risks.

In this way, 1929 quietly came, and Wall Street was full of prosperity and optimism.

Thursday, October 24th, 1929!

Chase's chief broker, George, drove to Wall Street ten minutes early as usual, and the entrance to the street was as usual filled with tourists from all over the world, who looked at every broker who entered Wall Street with almost adoring eyes and responded with warm applause.

George sat down in his office, and his assistant made him a cup of fragrant and strong coffee, and joked, "Mr. George, Melly, who drove the elevator in the morning, told me that the stock price of General Motors still has room to rise." ”

"You should advise her to buy a steel company," George said with the same ease: "I just hold a lot and also guide customers to buy"

"More than $260 per share, which is a bit expensive for her."

"The bigger the base, the more money you make, I am optimistic that it will rise to $350, the era of the big bull market has just begun, even Fisher said so."

Irving Fisher, a professor at Yale University and one of the most innovative economists of his time, famously delivered a speech on October 15, 1929, in which he noted: "The stock market has risen to a fairly stable state, and I expect that within a few months the stock market will reach new highs, and that the volume will be better than it is now." ”

His reputation was wiped clean by a single sentence.

This day will be a day that Americans and Europeans will never forget!

! @#