On the eve of the Civil War, the Yankey region of the United States carried out the largest infrastructure activity in the world at the time, the construction of railroads.

In less than two decades, the United States built more than 9,000 miles of railroad, making it the country with the longest railroad in the world.

The question is, where did the United States have such a strong national strength to build railroads?

Loans, mainly from Great Britain, i.e. the United Kingdom.

As the most powerful empire at that time, Britain also had a prosperous domestic financial industry.

Britain saw a large number of railroad builders in the United States, and Britain issued bonds in the country to raise funds to lend loans to these builders.

The builders of the United States used these loans to purchase large quantities of materials needed for the railroad and pay the wages of the workers, and completed the initial construction.

At the beginning of the period, after the construction of a small number of American railroads, these railroad companies quickly made a large amount of dollars by relying on the abundant materials of the United States and the fact that there was no good transportation industry in the vast land of the United States.

Relying on these profits, the Yankees have been repaying Great Britain's loans on time

After the repayment of high-interest bonds on schedule, British investors were given greater confidence, and more and more loan sharks entered the pockets of American railroad builders, and the United States ushered in the first wave of infrastructure boom.

The problem is that after the full construction of the railway, it is necessary to give the British a high interest rate on loans every year, which the Yankees do not want to give.

So what to do?

The Yankees falsified the accounts of all the railroad companies and declared bankruptcy on a large scale.

After the bankruptcy, the assets were auctioned publicly, and the Yankee turned his left hand into his right hand, and it became a "loan-free" railway in his own hands.

As for the British? What's the matter with me Americans?

The bonds that Britain put out back then all became waste paper.

Before the Civil War, the United States had millions of workers, an annual output value of more than $1.5 billion, and a complete industrial chain in terms of arms, so it could only suffer dumb losses.

This is also the first time in human history that a country has defaulted on a large-scale loan to another country's infrastructure company.

This is an example of the Yankees fooling the British, and there are examples of the Yankees fooling the government to pay.

In the sixties and seventies of the twentieth century, there was a powerful railroad company in the United States.

This powerful railroad company wanted to monopolize the railroads in the United States, so it began to raise a lot of money and expand its industry

But the step is bigger, and the egg is pulled

The chain of funds began to break.

The problem was that all the big consortia in the United States had financed the railroad at the time, and they didn't want it to be a money-losing business.

At the same time, the massive financing allowed the American consortium to become shareholders in the railroad, and together they controlled almost all of the company's shares

The pie was so big that the major consortia participated, and finally, these consortia banded together to lobby the Federal Reserve and get a large amount of loans on the grounds that the US economy might collapse as a result.

These loans were not given directly to the railway companies, but to the banks, which were thus given large quantities of low-interest loans.

The bank lends to the railway company again, this time at a high interest rate!

The bank of the consortium establishes the largest creditor to hold the loan.

When the loan was received, it was directly distributed to all shareholders, and you heard it right, the loan was directly distributed to the shareholders in the form of dividends.

Isn't the largest shareholder a consortium?

After receiving dividends, these consortia quickly sold off their shares.

Not one consortium, but all consortiums

At the same time, all the banks refused to continue financing the railway company

All consortia define the bonds and shares of this company as garbage within garbage.

As expected by the consortium, the capital chain was broken, and the stock prices of the railway companies without financing channels plummeted, and all the bonds depreciated.

The consortium's commotion is not over yet

The consortium bought back the bonds and equity when the prices were at their lowest

Because the consortium is not afraid, the consortium feels that the government will definitely take over, and its previous loans can still be recovered at that time.

Even if the railroad company goes bankrupt, after bankruptcy, the consortium is the largest creditor of the railroad company, has the first to recover the creditor's rights, and uses several years of time and high litigation costs to obtain the assets of the railroad company, even if the railroad tracks of the largest railroad company in the United States are pulled down and sold, it will not be compensated

Ordinary people can't afford to wait, these bonds and stocks were sold high and bought low by these big conglomerates, completing a wave of leek-cutting.

In the end, because the company's railroad network was so large that the American government could not have paralyzed it.

The U.S. government had no choice but to urgently introduce a bill to use government funds to keep the nation's largest railroad company running

The consortia made a lot of money, and all the investors went bankrupt, but what about the common people?

Don't forget, where does the government get the money?

In the awesome capitalists, they can't make a single screw themselves