Rebirth 79: I opened a bank in the United States

Chapter 962 Countermeasures
"Ding Ding Ding!!!"

At four o'clock in the afternoon, the closing bell rang
People finally ended this ups and downs of a day, and then prepare for the next ups and downs of the night
This may be the first time since the New York Stock Exchange began to use computer-aided trading, no, it should be said that since the establishment of the New York Stock Exchange, the closing bell rang, but the closing price was not displayed!
The computer couldn't handle the huge transaction request until four o'clock.
It's over, and it's not quite over!

Many of them did not choose to leave after they calmed down, but stayed near the New York Stock Exchange, waiting for the results to be released.The media's long gun sprint has already been set up
"Mr. Luther, after the statistical results come out, bring them to me first, and don't announce them for the time being! Also, George, please ask where James is? Has he boarded the plane? And Mr. Greenspan."

Feeling a little tired, he took off his reading glasses, Brother Genzi obviously couldn't hold on anymore.
While still dealing with the follow-up of the Iran-Contra political scandal, this incident happened again.The leak in the house happens to rain all night, so there is no way to leak it? !

Reagan, who felt somewhat late, finally turned his gaze to Carter:
"Carter, I'm afraid I have to work hard on you tonight. Stay here?"

"I'm fine, Mr. President!"

Even for first-hand news, Carter had to stay.
After a simple working meal, I waited for about an hour until about six o'clock in the afternoon.David Luther came rushing in with a report
The Dow Jones Industrial Average, down 508 points, or 22.6 percent; the NYSE Composite, down 19.2 percent; the Amex Composite, down 12.7 percent; the Nasdaq Composite, down 11.35 percent
This was the first information Carter saw after getting the report.

second look
more red-eyed
Of the more than 1600 stocks on the New York Stock Exchange, only 50 are not booming.If we use the data of the New York Stock Exchange as a sample and calculate it in the same proportion, it means that more than 97.7% of the listed companies in the entire US stock market have experienced serious stock price drops today.
It can be predicted that not only is Washington DC lively tonight, but I can't stop my phone calls.
Carter sighed.
"Sorry, sorry, I'm late! Everyone!"

"Don't talk so much now, Mr. Greenspan, this is the latest closing statistics, and it hasn't been released yet. We have to discuss a countermeasure quickly. Oh, and, that Carter, Carter Black, I Let me introduce you."

That is, after Greenspan arrived, James Baker also arrived soon.

Except for Greenspan who needed to be introduced, everyone else was considered acquaintances, and the words became crisp.
"Let's prepare the speech first. If this kind of problem occurs, even with Carter's funds, compare this. I roughly estimated that based on this drop, we have evaporated more than 5000 billion US dollars in face value just this time!"

"Public statement, although most people may not believe it for the time being, it must be issued! Show our attitude, we are actively solving this problem!"

"You don't need to say that, James! George and I have already prepared the manuscript this afternoon, let's discuss the next step!"

"The next step is to ensure liquidity! I have already made preparations for this, and the reserve areas of Atlanta, New York, Cleveland, Minneapolis, and Memphis have clearly expressed their support for our actions!"

Greenspan kept up with the topic, he knew it was time for him to play a role!
"We are also prepared for the reduction of interest rates. According to my speculation, tomorrow, major commercial banks should stop providing credit guarantees to securities brokers. This is what will inevitably happen after the stock market disaster! At that time, how many securities firms will go bankrupt!"

"According to 29 years of experience, the first thing we need to ensure is the survival of these securities firms. Only if they survive and have enough margin to support trading activities. The market will not really die! Southwest, we have already cooperated with Bank of America The agreement has been negotiated; the Northeast region has also decided to cooperate with Chase, and the Federal Savings System will inject funds into them to ensure that they can continue to perform their contracts, provide credit guarantees for securities firms, and stock loans!"

"Is there enough money?"

The way of thinking is such a way of thinking is correct, but the problem
"After all, there are only five Fed districts supporting this thing, and that's not even half! The goddamn moths."

Don't think about it, such a large number of banks support banks, and then put money to securities firms through banks to maintain their ability to continue trading activities.This amount of money must be at least tens of billions of dollars!

And this is only a guarantee.If something really happens, how much money will be needed in the end is completely unknown!

"This is also the problem I want to say. This matter should not be solved by the Fed alone. I also need the help of the government. The price of Treasury bonds should rise tomorrow. When the stock market and futures market fall, it often means that the bond market rises."

“This is not a good time to issue debt.”

Reagan and Bush frowned when they heard Greenspan's idea of ​​raising national debt again.

When the time came to 1987, they didn't have the burden of not issuing national debt.Anyway, Reagan is lying flat.
When he first came to power, he was full of ambitions to reduce government spending and reduce the scale of debt.Then... Borrowing money is really easy to use!
Whether it is the "Star Wars" plan or the tax reduction policy, looking at Reagan's recent years, all the measures basically cannot escape two directions: increasing investment and reducing taxes
On the one hand, the federal fiscal revenue has decreased, and on the other hand, the scale of investment has expanded.This will raise a question for children: Where did the money come from?Where does the difference in the middle come from? !

The answer is also obvious: national debt!
"Recently, many projects need money. The tanks that the army wants, the ships that the navy wants, gentlemen, we have to guard against the Soviet Union's dog jumping over the wall! Their current environment is worse than ours, and wars have been diverting domestic conflicts from ancient times to the present. best way!"

"We have to be prepared for a possible war. Once the national debt is issued too much, the credit will be greatly reduced. What happened today would have hit our public trust in the United States. If we issue more at this time National debt. I don't think that's a good idea!"

"Since this is the case, then I will think of a way to see if I can convince the other Fed districts. At the beginning, the reserves of the five Fed districts should be supported, and it should be able to last for a while."

As a half-newcomer in the White House, Greenspan wisely did not confront Reagan head-on.

He knew very well that this was just Reagan expressing dissatisfaction.Why should the money borrowed by the federal government be used by the Federal Reserve? !Your Federal Reserve is in charge of the money printing machine. Now we need money, but there are still 7 savings areas, and they don’t listen to you.
Now expect to use the money from the national debt to do your business? !

"Just to be on the safe side, Mr. President, do you think it is possible for you to come forward and lobby those big companies to let them buy back their own stocks? This should not be difficult to do. The stock price has fallen so badly, and this is what they don't want to see! "

(End of this chapter)