Reborn South Africa as a police officer

Chapter 1723 Black Monday
In the past 1926, the economy was unprecedentedly prosperous, people's lives were prosperous, industrial production reached an unprecedented level, residents' income hit new highs, and cars entered thousands of households and became an indispensable helper in people's lives. Everything was thriving.

After the Dawes Plan was signed, the United States began to make large-scale investments in Germany. From 1920 to 1926, the total annual foreign investment of the United States exceeded 11 billion US dollars.

The application of new technologies has greatly improved production efficiency. In 1926, the efficiency of workers in the factory increased by 1920% compared with 50.00. Most of these industrial products produced were exported. Southern Africa is trying to tap the internal market. At that time, the U.S. economy was already mainly export-oriented.

Compared with industry, American agriculture has also made great progress. With the promotion of mechanization and the popularization of new technologies, the output of American agricultural products has repeatedly hit new highs, but the income of farmers has not increased correspondingly, and has even declined compared to before the outbreak of the World War.

Before the outbreak of the World War, the income of American farmers was equivalent to 40.00% of workers. By 1926, this ratio had dropped to 30.00%. It occupies 1926% of the total population of the country.

In front of the Goldman Sachs Bank, several employees who were working nearby were waiting for the bank to open. Seeing the queue behind them getting longer and longer, Tom from Massachusetts was very worried.

"Don't worry about Tom, Nyasaran is behind Goldman Sachs. Other banks may be unable to pay due to insufficient financial resources. Goldman Sachs will never—" Benson, who works in the same food company as Tom, forced himself to be calm, and just Tom, who just graduated, is different. Benson is 40 years old. According to the rule of economic crisis once every ten years, Benson has experienced two economic crises in his adulthood, which can be called rich experience.

"Benson, you don't know. I lost most of my savings in the stock market yesterday. Now the bank deposit is my last resort. I must get back my money." It was a dark day for everyone, and Tom had never experienced it.

Thanks to the rapid development of the U.S. economy in recent years, Tom’s income has been rising steadily, which also gave Tom an illusion. In Tom’s view, the U.S. economy will continue to prosper like this, just like U.S. Treasury Secretary Andrew Mellon as said.

When Standard Oil took the initiative to cut prices, some fluctuations occurred in the US stock market.

At that time, US Treasury Secretary Andrew Mellon publicly stated in the newspaper: Now, there is no reason to worry, this high tide of prosperity will continue.

As the patriarch of the Mellon family and the Secretary of the Treasury of the United States, many people believe in Andrew Mellon's words.

Speaking of American heroism, it is indeed a trap. I don’t know how many people fell into the pit because of their worship of celebrities.

Like other white-collar workers with a good income, most of the money Tom earns is invested in the stock market. This behavior has a very fashionable term called "financial management".

You don't care about money, money doesn't care about you——

How to say this sentence, part of it is true, it is indeed inappropriate to bury money under the bed, but investment seems to be more dangerous.

Tom is like this. He can't understand the financial statements of the company, he doesn't know the profit model of the company, and he doesn't know the risk of the company. Anyway, just buy it.

If you buy this way, you can indeed make money when you encounter a bull market, but if there is a little fluctuation, you will probably lose all your money.

"That's why I said that stocks are deceptive things. If you want to buy a house, buy a house. Buying a house is the kingly way—" Benson seemed to have suffered a lot. He was once bitten by a snake for ten years and was afraid of well ropes.

"Buying a house is not a kingly way, real estate tax, stamp duty, inheritance tax—in short, the State Administration of Taxation will try its best to take your money out of your pocket, and you can't resist—" a well-dressed middle-aged man next to him interjected ,Middle?There is no such thing as a middle class, it's all a deceiving false concept.

The group of the middle class itself is a false term invented by the bourgeoisie to appease the proletariat. Its function is to set up a separation zone between the two opposing classes and blur the contradictions between the two classes. The middle class is originally a trap. The concept is roughly Just like middle-income countries, many people are complacent because they think their class has improved, which is quite magical.

"Then what should we do?" Tom was in despair, deeply feeling the malice of society.

"Buying works of art that will appreciate in value is the only way to keep money." Middle-aged people also have their own investment channels, but this seems even more unreliable.

Just kidding, the value of a work of art—

It is an amazing reality in European and American countries. Take painters as an example. Most of the painters were impoverished and their paintings were worthless. But when the painter died, the works immediately became masterpieces and the prices were skyrocketed.

This is the same as a piece of white paper sold by a certain painter for 9000 million. Is this still art?

This is money laundering at all.

At this time, a team of security guards from Goldman Sachs rushed over. They were all fully armed, with explosion-proof shields in their hands and pistols on their waists.

These pistols are not for display. If someone dares to storm the bank, the security guard has the right to shoot directly.

At this time, it was nine o'clock in the morning, but the gate of the bank had not yet been opened. The depositors were restless, and Tom suddenly yelled.

"Open the door, we want our money back!"

Immediately there was a commotion, and the depositors expressed their support.

"Hurry up, we want to withdraw money!"

"Don't waste time, time is money!"

"Did you take our money to invest in the stock market?"

There are already hundreds of depositors waiting to withdraw money at the gate of the bank, and some people have already started pushing and shoving the security guards, and conflicts are imminent.

At this time, the bank door slowly opened, and the manager walked out with a loudspeaker: "Calm down, gentlemen, we will open for business soon, everyone can get their own money, please obey the order—"

The anxiety has not been alleviated. Every economic crisis has led to a large number of bank failures. Although Goldman Sachs is behind the Southern African consortium, no one is sure whether Goldman Sachs has the ability to deal with the run.

"Please observe the order, don't be crowded, avoid accidents, and believe that we, Goldman Sachs, have sufficient capabilities—" the bank manager said earnestly.

At this time, several cash transport vehicles slowly drove over. First came down the mercenaries of the Delta Security Company, and then the bank staff carrying the money boxes.

"Did you see, we at Goldman Sachs have enough capabilities, please follow the order—" the manager sputtered.

Seeing the full box of money, people finally calmed down gradually, and as the bank began to operate normally, the anxiety was finally effectively relieved.

Goldman Sachs has this capability, but other banks may not.

When countless people flocked to Goldman Sachs, other banks also began to experience large-scale runs.

Those who have the capital to open a bank have strong economic strength and can survive a day or two. As long as the tellers are slower, they can't actually receive a few customers every day.

But it’s hard to say after a long time. The worries of depositors are not groundless. Depositors deposit their money in the bank. In order to make a profit, the bank will indeed take the depositor’s money and invest it abroad.

Still the same sentence, during the bull market, you can make money by closing your eyes and buying without thinking. Once the stock market crash breaks out, the stocks will be locked up. If there is a run, a wave of bankruptcies will break out in a very short period of time.

In 1927, there were a total of 25568 banks in the United States, and only a few of them had the ability to face a large-scale run. Only God knows whether most banks can survive.

While Tom and Benson were queuing, bad news kept coming.

The stock market opened on the morning of the 363th, and the situation did not change in any way. Under everyone's stunned gaze, the stock index plummeted 40 points from its peak of [-] points in just one morning.

When it fell to 353 points, countless investors poured into the stock exchange, hoping to sell their stocks.

At this time, the stock price fell so fast that even the staff had no time to update it. The savings of thousands of Americans were wiped out in just one morning. The top jumped down.

In just one morning, 13 people committed suicide by jumping off the building.

This is definitely not all. In the next few days, many people will commit suicide by jumping off buildings. The wealth expansion brought about by the rapid economic development in the past few years has all disappeared in this short morning.

A huge gap can easily lead to psychological collapse. The higher you stand, the harder you fall. It is not the worst thing to wipe out half your life savings. The worst thing is those who use leverage to enter the market and stocks. They will never have a chance to turn around.

In addition to Goldman Sachs, other banks broke out in a wave of runs. Two blocks away, a bank announced that it could not pay and closed its doors. Angry depositors rushed into the bank, beat the manager on duty to death, and took away all the money that could be moved. Finally, the bank was set on fire.

In the building opposite the New York Stock Exchange, four people jumped off the building in just half an hour. Their stocks were turned into a pile of waste paper, and one of them was a well-known banker. Put everything into the stock market, and lose all your money in an instant.

When it was Tom's turn, the bank staff behind the counter smiled sweetly.

"Sir, what business do you want to handle?"

Tom didn't answer, just about two meters away behind the counter, several bank employees were loading money into the safe, bunches of green dollars one after another, Tom's eyes were red when he was so excited, he was suddenly impressed by the strength of Goldman Sachs Bank. With a fuller understanding.

"Sir, what business do you want to handle?" The smile of the bank clerk didn't change at all.

"Sorry, I want to withdraw—" Tom handed over his savings slip.

"Do you want to withdraw all of them?" The bank clerk moved swiftly, without any intention of delaying time.

"Yes—no, half." Tom changed his mind suddenly.

(End of this chapter)