After the decree was issued, the cabinet shook.

The government immediately set up a "Supreme Countermeasures Group for Financial Crisis Prevention", headed by Prime Minister Tang Chaoyi himself, with the participation of other ministers to collect and summarize data related to the current financial market, and held more than a dozen high-end seminars attended by financial experts to further deduce the current financial situation.

The result of the deduction shocked everyone;

If the current chaos in the financial sector is allowed to continue, stock prices will continue to rise, and housing prices will rise accordingly, and there is a less than 5% chance that it will be delayed until the year after next year, and this financial bubble will inevitably burst.

At that time, a financial catastrophe sweeping the world is inevitable, countless companies and banks will go bankrupt, huge wealth will be wiped out, and the entire economy will be hit hard, which will be an unprecedented economic crisis, or more appropriately called "economic catastrophe".

Every few years, the capitalist market economy suffers from periodic economic crises, especially in Britain, France and the United States, which are completely liberal capitalist economies.

And in the ocean empire

Since the large enterprises dominated by royal capital and state capital occupy the main part of the economy, the degree of economic crisis is much shallower and the impact is much smaller through appropriate policy adjustments, increasing taxes on surplus industries, and encouraging the development of new industries, such as aviation, home appliances and electronics.

And this is one of them

In particular, the government and the royal family have a clear effect on the overall economic regulation, so the Ocean Empire is not completely free capitalism, but a controlled state capitalist economic system.

This kind of state capitalist economic system is significantly stronger than the completely liberal capitalism of the United States and Britain and other countries.

Inside the Sky Pavilion

Li Fushou listened to the nearly two-and-a-half-hour report of Prime Minister Tang Zhaoyi, and basically approved the measures of the cabinet, which are simply three;

The first is to reduce the supply of funds, mainly in the form of the eight major banks of the empire, the eight major consortiums formed by the eight major banks of the empire, in the case of the Federal Reserve Bank adjusting the margin ratio upwards, to carry out a thorough inventory of the securities and real estate funds invested in their respective banking systems.

In addition, the total amount of loans will be reduced month by month, and the scale of loan funds entering the financial securities industry and the real estate industry will be reduced.

and within the one-year post-year period, below the safety limit set by the government.

In the world's largest Red River Valley metropolis, there are 472 banks, insurance companies and large securities brokerage companies on both sides of the main Victory Avenue, as well as the headquarters of 171 Fortune 500 companies, gathering huge wealth.

The second is to increase the supply of securities, which will immediately start the pace of listing of several large enterprises such as aviation manufacturing giants, home appliances, natural rubber, and sugar cane to ease the market demand for stocks, increase supply, and depress and balance the stock index.

According to statistics

This year and next year, it is expected that 237 companies will be listed or enter the countdown to listing, which will greatly divert the continuous influx of social hot money and play a cooling role.

Article 3 is to vigorously increase the supply of construction land by means of auction, and gradually raise the bank interest rate, and adopt a two-pronged approach to curb the hot speculation in the real estate industry.

Li Fushou recognized these highly targeted measures, and the Royal Home Office will sell a large number of shares to recoup cash flow.

Several large investment funds and securities brokerage companies under the Imperial Cabinet hold shares of listed companies worth more than 24 billion gold and are the major shareholders of 376 companies, and their market influence is undoubted.

Its continuous large-scale sales of stocks far above the value level have helped to calm the frenzied investment atmosphere in the market and bring back large sums of money.

When the market crashes at its worst, this is a favorable anchor and will work with the government to rescue the market to minimize the negative impact.

The joint action of the government and the royal family has achieved immediate results in the market, the overheated speculative atmosphere has subsided, the momentum of the real estate industry has been curbed, and newspapers and news agencies have begun to vigorously promote risk awareness and remind citizens to pay attention to investment risks.

From the end of 26 to the end of 28

Under the dual effects of effective financial control policies and gradually improved securities risk management and control policies, the world's largest securities market in the Red River Valley has experienced ups and downs, and the overall market value has risen by 178%, which is still a normal level.

Compare it to

The London stock market rose 443% in two years, which attracted a significant inflow of hot money from the world, including the Ocean Empire, further boosting the market heat.

At that time, a series of sudden riches attracted countless Europeans to put their money into the London stock market like moths to the fire, which was spectacular for a while.

The Times once made a stark report on this;

When the newspaper reporter was shining shoes on Warship Street, the 14-year-old shoe-shine boy enthusiastically recommended rubber plantation stocks to him, and said that as long as he bought popular natural rubber plantation stocks, it was easier than picking up money.

On the bus, on the subway, people talk about stocks everywhere, and those who don't know anything about stocks are ridiculed as antiques of a backward era, bending over to pick up money.

The extreme fanaticism led to huge financial risks, and at the same time that the newspapers of the Ocean Empire were constantly reading and revealing the financial risks, the British capitalists and financiers began a final round of madness.

British scholars, including the famous economist Collins, all rushed into this financial gamble without hesitation, investing their entire net worth of 100,000 pounds to buy popular stocks and waiting for profits.

Many shareholders borrowed funds from securities brokerage companies to buy stocks at a high interest rate of 20%, and pledged all their property for this purpose.

However, the loan interest obtained by securities brokerage companies from banks is only 6%~7%, from which they can obtain a huge interest difference.

This kind of chaos cannot be seen in the Ocean Empire Stock Exchange, and the lowest interest rate given by banks to securities brokerage companies is 8.5%~9%, and the highest is even 10% or 11%.

And according to the regulations

Securities brokerage companies are not allowed to sell securities products on credit to shareholders at a level that exceeds 30% of the bank interest rate.

The excess is considered to be an act of disrupting the financial market, and will be punished under the relevant provisions of usury, and in addition to confiscation of illegal gains, a hefty fine will be imposed.

By the end of 29

This thunderstorm of financial risk exploded in London, and on Black Friday, the London market as a whole continued to plummet, and the famous Royal Navy Shipyard in Portsmouth, England, at its peak was 34 pounds 10 shillings per share, and after just a month, it shrank to 2 pounds 7 shillings, not even a fraction.

A natural rubber plantation stock in Malaysia, the British Straits Settlements, plummeted from a peak of £19 and 6 shillings per share to £11 and 11 shillings, a 94.5 per cent loss in value.

The Red River Valley Stock Exchange, which was affected by London, also fell sharply after the opening of the second day, but the decline was significantly smaller than that of London.

After the overall market value fell by half, government and royal funds began to come to the rescue, which greatly restored investor confidence.

Although the Red Valley Stock Exchange has also fallen endlessly due to the great drag of the London market since then, the overall situation has been much better because of the previous small gains.

Affected by this

The global recession caused by the global financial crisis is inevitable.

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