Germany's industrial production capacity has been restored, so why is life still difficult? Pen % fun % Pavilion www.biquge.info

Because the money in their economy is entered through loans, the borrowed money has to be repaid, and the profits have to be paid constantly, and the most important thing is that they still have to subdue huge indemnities, if they only borrow money to develop the economy, it is understandable, but it is just to share a part of the profits with the banks, but the huge indemnities, plus the interest on the debt, basically squeeze out the industrial profits of Germany, where does their accumulation come from?

Without accumulation, the industry will once again fall into the situation of outdated equipment and backward technology.

The German approach now is to keep borrowing, borrowing more money to pay off old debts and payments, and at the same time to update equipment.

But if you can't borrow money, it is equivalent to a direct capital chain break, you can't pay back the compensation, you can't pay off the debt, you can't update the equipment, and the economy will collapse directly.

But the Germans, who had suffered for a long time after the war, had very low psychological expectations, were very easy to satisfy, were not afraid of no savings, and finally had a stable job and could live a good life, and they were satisfied.

However, Americans are not so easily satisfied, they have enjoyed wealth for too long, and even from the beginning of their founding, it has become a dream land for Western countries, a place to create miracles.

The people of this rich country, their psychological expectations are very high, if you want to come up with a bottom line, that is, everyone has a car at home, and there is a chicken in the pot, they can be satisfied.

Driven by this good wish, Americans are frantically looking for opportunities to make a fortune, capitalists are desperately setting up factories, bankers are crazy about issuing loans, ordinary people do not have so many opportunities, and honest work cannot satisfy their thirst for wealth, and some people begin to venture into the stock market to speculate, wanting to make more money.

Although there were not dispassionate critics in the newspapers, and many economists warned people that investment was risky, their words were not only ignored, but also provoked a sneer.

Many criticize these sober economists by saying that everyone has the right to get rich, and the poor have the right to wealth.

Some of them are out of a simple sense of morality, they think that the poor should get rich, and some are stock dealers, and they want the aunts in the vegetable market to become their customers, and they really realize this wish, the aunts really put the money left in the stock market, and then look at the soaring stock price, while happily calculating how much money they make.

This is a general optimistic attitude, which has caused a trend of stock speculation among the whole people, "whoever does not enter the stock market is a fool and is destined to not make a fortune for the rest of his life".

Even Jewish investment banking giants like Goldman Sachs couldn't resist rushing into the market in August.

Goldman Sachs 29 years ago was a fairly conservative Jewish investment bank, and unlike many Jewish family banks that were keen on speculation, Goldman Sachs generally only invested in less risky industries, and had a strong label as an industrial investment bank.

However, with the soaring stock price and even the banking industry beginning to have a saying "never be bearish on the U.S. stock market", Goldman Sachs still couldn't hold back and plunged headlong into the troubled waters of Wall Street.

Under the impetus of the company's leader, Vidio Czcze, Goldman Sachs introduced the equity business and established the Goldman Sachs Stock Exchange, which was driven by his fanaticism, Goldman Sachs entered and rapidly expanded a business similar to today's mutual funds at the speed of establishing a trust and investment company every day, and the stock issuance swelled by $100 million in a short period of time. At one point, the company's stock swelled rapidly from a few dollars per share to more than $100, and then to more than $200.

Even a professional investment bank like Goldman Sachs is not exempt from vulgarity, how can you let the people who are eager to get rich be tied, so everyone wants to enter the stock market with red eyes, press all their property, pensions, and even mortgage houses and loans, in short, they feel that they have suffered a great loss when they are one step late.

It is easy for non-professionals to have a strange feeling about the unpredictable financial market, in fact, putting aside all illusions, this is not just an industry, and the steel industry, real estate industry, is no different in nature.

Americans are now frantically investing money in this financial industry, which is no different from investing a lot of money in the steel industry, real estate, and the Internet, and the only effect is to make this industry give birth to a huge bubble.

This is the case in the United States, 28 years later, a large number of investors entered the industry, including giants like Goldman Sachs and Lehman, and the bubble appeared irrepressibly, and at the same time, although other fields are also expanding, they are far less than the financial industry is expanding so much, everyone is thinking about making money, and no one is interested in investing in industry.

The banking system fueled and amplified the stock market boom, and like their descendants, they were adept at making all sorts of financial derivatives, such as paying $1 as collateral to buy $10 in stocks, and the other $9 apparently borrowed from banks by stockbrokers.

The evil result is that not only is no one willing to invest in industry, but the funds in the industry are more willing to invest in the stock market, because under the margin system, investors no longer think less about borrowing interest, only consider whether they can borrow money, how much money they can borrow, stimulated by the high interest rate of 20% stock credit loans, Rockefeller's oil companies are also more keen to invest huge profits in the stock market, rather than thinking about improving refining technology. Bethlehem Steel has put hundreds of millions of dollars into the stock market, and even Chrysler Motor Company has invested $60 million.

In the crazy stock market, the daily trading volume reaches 5 million shares, which is more than the rest of the world combined. The booming stock market has even attracted an influx of money from all over the world, including the dilapidated countryside of the United States.

It is ironic that while the United States was in the midst of a great post-war boom, their agriculture was experiencing a long depression.

During the European War, American agriculture was greatly expanded, but after the end of the war, Europe closed the door to their markets, French and German soldiers returned to the countryside and resumed their own agriculture, even the British reduced their imports of American grain, first, their agriculture is recovering, and second, Canada's agriculture has also developed like the United States. At the same time, the newly established countries in Central and Eastern Europe also began to compete for the European market of the United States, so that American agriculture has been suffering from depression in the midst of the great prosperity, and most of the small farms are operating in debt.

The giants of Wall Street have no intention of caring about the development of agriculture at all, and in their view, agriculture is already a sunset industry in the United States, and they are more willing to invest their funds in fast-growing industrial fields such as steel and automobiles. The vast rural areas of the United States are only supported by loans from the rural banks in some small towns, and they are almost in a different time and space from the cities of the United States.

Tom is one such small farmer, his small farm is in debt, the price of agricultural products has fallen again and again, and he has three children to support, and after much thought, he finally made up his mind, mortgaged the farm to the bank, and then went into the city to look for opportunities.

He came to New York, and he found that it was really much easier to make a living, you don't need any special skills, you could easily get a job, Tom got a job as a messenger for a good man with money, and he was paid $5 a day, of which $1 was used to pay rent, $1 was used to buy food, and there was still $3 left a day.

But Tom didn't want to live like that, he also wanted to have a car of his own, Tom could drive, he drove a tractor in the country, and cars in this era were not much different from tractors.

His boss, a wealthy American middle-class, came up with a good idea for him to buy stocks.

His boss is really a good man, Tom invested all the money he saved in the stock market, and in just one year, his stock doubled, and he actually had $1,000 in assets, considering that his 100-acre small farm was only mortgaged for $300.

Tom, who felt that he had money, did not cash out the shares casually, but continued to hold them, and he planned to sell some of the stocks at Christmas, and then buy a car for himself, and buy a beautiful dress for his wife, and the gifts for the children could not be less, which required a lot of money, but the clever bankers in New York helped Tom solve this trouble, because he could only pay a small down payment, he could get these beautiful goods first, and then slowly pay off those debts, Tom was very confident in his ability to repay, Because the soaring stock market will continue to bring him wealth.

Probably there are too many people who think this way of Tom, so Montgomery Ward's business has been greatly affected during this time, and it has been declining since April, but the company managers are not very anxious, because the market is still very optimistic about them, and the stock price of Ward has risen to $200, you must know that more than a year ago, their stock price was only $120.

The department store is sure that when Christmas comes, the misers will frantically flood the department store and sweep away their goods, just like they did last Christmas. So not only did they not worry about not being able to sell the goods, but they also hoarded a large number of goods, intending to make a lot of money.

People in the boom are waiting for Christmas.

However, they don't know that the inflated stock price is only because a large amount of capital enters the stock market and pushes it up, and it does not reflect the actual value of the company. But there will always be a limit to the amount of money that continues to pour into the stock market, and when this capital chain is broken, it is when everything is broken.

No one knew, and Tom didn't know, that he had finally waited until Christmas, but Tom was still not willing to sell his stock for cash, because he couldn't bear the wealth that was growing wildly, and he finally decided to mortgage some of his shares and borrow $100 from the bank, which was obviously not enough for him to buy a car, but enough money to buy a beautiful dress for his wife, a beautiful pen for his eldest son who was in middle school, a bicycle for his second son, and a teddy bear for his youngest daughter.

Tom arrived at the department store early in the morning, because he was worried that there would be too many shoppers, but he didn't expect that he was lucky, business here is still light today, and the people who came to go on a shopping spree did not appear, and even the customers who came to shop, most of them cut back on their purchase plans like Tom.

It was nothing for Tom, and he even felt lucky that he quickly got what he wanted.

But this is not a good thing for the department store, which not only did not reach the sales of last Christmas, but even suppressed more than half of the goods. The bank, which has a keen sense of smell, immediately sniffed out that there was something wrong with the department store, so it quickly came to the door to collect the debt.

At the same time, the stock market received the news, and everyone began to sell the goods of the department store, and Ward fell below $180 on Christmas Day, which is really a black Christmas for them.

But Americans didn't know that this was not only a black Christmas for department stores, but also for them, and they soon discovered that the decline in stock prices was endless.

The Great Crisis has erupted! (To be continued.) )