Rekindle 2003

Chapter 737 Economies of Scale
Under the curious eyes of the three women, after taking a sip of mineral water, Qing Yun continued,

“After the Industrial Revolution, the world’s productivity began to develop rapidly, and the use of machines led to a huge explosion in the production capacity of all industrial countries.

You are also aware of this period of history. Textbooks show that the contradiction between supply and demand, and between emerging powers and traditional powers, was very acute in that era.

In this context, the Morgan family... was actually J.P. Morgan, because their family's voice was not unified at that time, and it was he who convinced the family members.

Represented by him, the entire America set off a very majestic industrial integration.

Morgan has acquired 785 small and medium-sized steel plants in the United States with nothing, and the total assets of its steel sector have reached 15 billion US dollars. "

Looking at the disapproval on Qin Manman's face, Emperor Yun was also drunk.

What the hell...

The daughter of a rich man has no idea about money.

"Manman, don't underestimate this amount. Calculated in terms of purchasing power, this US$15 billion is equivalent to US$900 billion today.

And this is just a small part of his industry. His main business is finance.

Let me just talk about the steel mergers and acquisitions that started in the 19s. "

Qin Manman on the side blinked her eyes with a thoughtful expression. She felt... this story seemed familiar.

But she really couldn't remember when she'd heard it.

Qing Yun glanced at her and knew what was going on, and said jokingly,

"You think what I'm saying is familiar, right? This story is what your father told you when you were a child.

Now he feels that he can't count on you, so he compiled it and sent it to me. "

There was one more thing he didn't say.

The advantageous father-in-law said that he should also add his own insights so that he could tell his grandson in the future.

Obviously, the father-in-law also understood at this moment that the tuba was no longer useful.

Start preparing to directly cultivate the reincarnation number.

But he could only bury such words in his stomach.

He said it in front of Tang Qianying and Chen Yue, just to make himself unhappy.

Emperor Yun's cleansing words on his face made Tang Qianying giggle as she looked at her plastic best friend who looked embarrassed.

She thought it was too funny.

Two people read a book with different feelings.

After hearing this, Chen Yue also had a joking look on her pretty face.

But quietly, she couldn't help but glance at Qin Manman.

It feels like I hate that iron cannot become steel.

Suddenly, I felt like I wanted to swap lives with Qin Manman.

If she grew up in such an environment...

It can only be said that some people are not only born in the city of Rome, but also on the throne of the city of Rome. The starting point of their life is other people's dreams, but she does not cherish it at all.

But Chen Yue also knew very well in his heart that there was nothing he could accuse or despise.

Because Qin Manman was also looking up at the stars.

Her pursuit has actually broken away from the material level.

Therefore, in the eyes of ordinary people, her behavior is no different from "buying a casket for a pearl".

This realization made Chen Yue filled with emotions for a moment.

She was thinking that if she had children in the future, she actually hoped that they would be like Qin Manman.

Live for what you love, this is the meaning of life.

But at this time, Qin Manman's face was burning with fever.

She couldn't care less about her face in front of her sisters, so she pinched a bad guy with one small hand and gave him an angry look.

Well, his dad told her these things as bedtime stories in order to instill business knowledge in her.

And she was indeed listening to it as a little story.

After all, good sleep.

But Brother Stinky is seriously experiencing it as a classic case.

This discovery made Qin Manman feel mixed emotions.

All along, she actually had a lingering knot in her heart.

She believed that she had forced Qing Yun to this path because she had pushed him too hard.

She stubbornly believed that his talent lay in scientific research and academics, and that he was in business just to match her family, and he was not happy.

Because she knew very well that for a long time, he had no goals.

In other words, his goal is to have assets that match her family background and satisfy her desire to marry in a grand manner.

After the acquisition of TOP, she found that it seemed that he had found his life goal.

However, at that time, Qin Manman still believed that Qing Yun was wasting his own talent.

Especially after that old witch Su Caiwei accidentally let slip that this bastard had pointed her in a direction in mathematics, Qin Manman was even more certain that perhaps, compared to the two so-called genius girls she and Su Caiwei, the one in front of her was The goods are the real genius.

People who can give directional guidance to her and Su Caiwei can be regarded as math masters.

However, when she heard Qing Yun telling this story, she had to admit...

Well, my man not only has outstanding talents in business, but he is also very interested in it.

If a person is not interested in a direction, he will not think in that direction at all in such trivial matters.

At this time, Qing Yun ignored Qin Manman who was distracted and continued talking,

“The steel sector controlled by Morgan was the first entity company in the history of world business with assets exceeding US$10 billion.

Moreover, his operation process has since established the overall trend of industrial integration in modern business society. "

After swallowing the preserved fruit that Lord Qianying put into his mouth, Emperor Yun continued to talk about ancient times.
"The general background of the whole thing is that from 1880 to 1920, America's economy entered the ebb after the peak of the first wave. At this time, after a long period of rapid development, there was excess production capacity, so an economy began to experience a period of ebb, then Some industries have entered a period of consolidation in this industry.

What is the so-called integration period?
That is, when social demand has reached a periodic peak, but supply is still high, and you encounter this problem, you find that an industry is filled with companies.

Just like the domestic computer industry we are facing now.

Has the domestic machine industry as a whole reached its peak?
From a development perspective, it is obvious that we are far from it. In the 90s, we were still struggling for food baskets.

The people of our country have just begun to have a better life, and now there is a market of less than 10 million units a year.

However, in the future, it is likely to become tens of millions or even hundreds of millions of units. "

This is not bragging.

Twenty years later, shipments in the domestic market reached a level of nearly 20 million units.

In 2022, Fantasy Group alone will have a total global shipment of 3 million units, including domestic and export sales, reaching a scale of nearly 7000 million units.

Complete computer, made in China.

There is no clearer official data.

It is easy to understand that when two-thirds of the world's tablets, 50% of laptops, and 18% of smartphones are made in Sichuan and Chongqing, it is meaningless to count this data.

According to Intel's own calculations, the global share of complete machines produced in China is conservatively estimated to be more than three-quarters, which means that at least 2.25 million computers are made in China every year.

"But! This market has periodic peaks! That is, we see so many units every year.

But now the domestic computer market is full of manufacturers, vicious competition, and everyone is fighting a price war. "

There is no need for him to say anything else. The price war launched by Fantasy a few days ago left a deep impression on the three women.

The fantasy is to engage in a price war with a price that is almost halved, and the entire market is going crazy.

"At the end of the price war, the situation is 'You can't survive, and I can't survive. Anyway, everyone is grabbing limited customers, and at worst, everyone will die together.' This will lead to chaos in the entire market order, and then the entire industry will suffer losses. .

But there is no way. As long as one company is engaging in a price war, the remaining manufacturers can only follow suit, because if they don't fight, they will die immediately. If they fight, they can still survive. "

Having said this, Qing Yun paused, bit a grape from Qin Manman's hand and chewed it in his mouth, then picked up Chen Yue's little hand and spit the seeds into her palm.

Chen Yue, who was eager to hear the story, snorted softly and threw the grape seeds into the ashtray next to him. He wiped them with a tissue and then peeled the grapes for him obediently. He also broke them open and removed the seeds before putting them in his mouth. .

Lord Qianying and Qin Manman looked at each other with helpless expressions.

The two of them really wanted to tell Chen Yue to stop doing this disgusting thing. The more he gets used to it, the more outrageous it becomes!

But from the look in Chen Yue's eyes that were full of curiosity, they also knew that if he said something, they could only pretend that he didn't say it.

This bastard can always make them roll up passively!
After enjoying the Hunjun experience, Emperor Yun continued to talk,

"Let me interrupt. Yueyue, to understand this story, you must first understand one fact.

When the price war comes to an end, the first thing that jumps out is not the companies, but the financial system.

In fact, we can already see the clues in the price war they are fighting these days? "

Chen Yue frowned and thought for a moment, then asked doubtfully, "Why?"

She understands the correlation between finance and industry, which complement each other.

But what does the price war in the computer industry these days have to do with finance?

“Let’s jump out of the perspective first and zoom in on the pattern.

Banks provide loans to various industries. From its perspective, it knows very well what problems there are in this industry, right?
In other words, it actually knows which companies can continue to lend money and which companies must take back their loans, right?
Whether in newspapers or on TV, you will always see that when a company encounters a cash flow crisis, banks are the first to collect loans.

Especially for small and medium-sized enterprises, how many years have they been complaining that financing is difficult and expensive?

However, you will find that when a company gets bigger and the industry gets bigger, banks are more willing to give them loans and less willing to collect loans.

Is it because the banks dislike the poor and love the rich, and only single out small and medium-sized enterprises?

no.

It doesn't matter if small and medium-sized enterprises fail, but for large enterprises, for example, I say hypothetically, if Hopu fails, it's hard to say for other provinces, but I dare say that the entire Xishu Province will not be able to recover in ten years.

Therefore, if a company like Hopu has a problem, the first one to come to the rescue must be the bank.

If the banks don't do this, the local government dares to let the banks die.

The reason is easy to understand. Your bank has absorbed so many bank deposits in my place. If you don’t save the companies in my place, no book will be sold in the world. "

Chen Yue nodded when she heard this. She understood this.

Too big to fail, too big to fail.

She personally saw her father yelling at a bank branch president in the living room, 'You don't want a loan? I'll kill you! '

That was the first time she saw her dad angry.

Qing Yun continued, "Okay! This is the situation of a single enterprise, let's return to the industry.

But we have to add a qualification, that is, the value of this industry must be large enough.

It is so big that consumers may need half a year or even more than a few years of income to afford it.

For example...in the early 90s, the real estate of Coconut Island. "

After saying this, Chen Yue immediately had a perceptual understanding.

After all, her father was an old city builder. In the past, she had the mentality of pursuing a career path and knew this industry very well.

“What can banks do when all the companies in this industry are making no money at all?
Just like the case of Hopu, it can only continue to lend money with a blank stare.

If you don't lend money, as soon as he stops bleeding, the entire industry with hundreds of billions or trillions of loans will die miserably.

Consumers have a stampede mentality. They will think that it is better to wait until the company is about to go bankrupt to take advantage.

Because when they can no longer survive, companies don't bother to care about costs. They want to collect cash as much as possible to clear out inventory and run away. Therefore, there will definitely be a large number of products on the market that are seriously lower than their own value.

Just like Coconut Island at that time.

House prices have been cut in half from the top of 7500.

But... think about it, as a consumer, will you really take action at this time? "

……

(End of this chapter)