1928: The Rise of Giants

Chapter 435 Rumors? I was the one who let it out!

April 1929, the 10th year of the Republic of China (18).

Rumors began to spread in New York and other places that a huge conspiracy was brewing over the U.S. stock market.

The contents of the rumors are all kinds of strange, and the opinions are different, but the core content is roughly the same——

There is an unknown cabal trying to short the United States, and the leader is the famous legendary trader Jesse Livermore, chairman of the Livermore Group.

I don’t know where these rumors came from, and they spread all over the United States in an instant, causing people to panic.

The New York Stock Exchange opened today, and the Dow Jones index fell to 289.2 points. Many high-priced stocks showed plunges, and mid-priced stocks and low-priced stocks were also very sluggish. It seems that a bear market is inevitable.

Rumors of short selling were constantly mentioned in the trading hall. Sitting on the second floor, Liu Xuenong, who was ashen-faced, stared blankly at the big blackboard, feeling a little at a loss.

This morning, Hongxing United Group received a telegram from the Federal Reserve, saying that Citibank has raised nearly 1 million US dollars to prepare for the rescue of the market, so that major securities investment companies can stabilize their shareholders and avoid large-scale stock selling!

This is the most critical moment for the survival of the U.S. stock market. Now, thanks to the efforts of the White House and many economists, the capital fleeing the market has been temporarily stabilized.

The stock market seems to be falling, but that is a normal bear market situation. As long as this trend is stopped, the stock price will inevitably rise slowly, and even if it cannot reach its former glory, it can continue to operate.

"With that kind of huge driving force, speculators will feel that short selling does not exist, and they will continue to invest money in the stock market following the above steps. Once this matter is over, short selling will no longer enter their sights, and we will Completely safe.”

On the other end of the phone, Ye Luo had long known that Livermore would call, so he kept waiting.

But if this trend cannot be stopped, then the problem will be big!

Therefore, whoever engages in investor mentality and instigates investors to leave the stock market is the sinner of the United States and the biggest enemy of the White House senior officials and Hoover!

Liu Xuenong actually didn't care about this.

It turns out that we have a mole in our midst?

He said nothing, waiting for Ye Luo to explain.

Livermore was stunned.

"There is an old saying in our country that 'things must be reversed when they go to extremes.' The more you say that there is no problem with the stock market at this time, the more speculators will become suspicious. At this time, when you reveal that someone is shorting, they will believe it, and then you can This forces the White House and others to make every effort to help you clear up the rumors."

On the other side, Livermore, who was "sitting at home while the pot came from the sky", was dumbfounded and had no idea why such a meticulous and careful short-selling plan would be discovered!

Seeing the New York Times and other iconic magazines publishing news reports on the matter, his scalp went numb and he didn't have time to eat, so he immediately ran to call Ye Luo.

Is it possible for him to make a comeback?

This is a higher-level game, even related to the future national destiny and development plan of the United States, and it is not something that he, the vice president of a small group company, can participate in.

He only cares about whether those high-priced stocks still have room to rise.

"I spread this rumor."

The total equity invested in the stock market is now close to 4000 million US dollars. If he cannot close the account this month, then he

The panic caused by the short-selling rumors was too great. There were constant speculators on the trading floor who could not bear the pressure and went to the trading window to sell stocks, hoping to leave the stock market as soon as possible.

"The stock market is now on the verge of death. Everyone except short sellers do not want the stock market to really collapse. If there is news that someone is short selling at this time, many people will come out to refute the rumors."

"."

Livermore was not stupid and quickly understood Ye Luo's intentions.

He is adding the last firewood to the fire, and he is taking advantage of the rumors he spreads to avoid the risk of short selling!

He is simply playing with everyone!

The most frightening thing is that as soon as the rumor comes out, the few other speculators who are short-selling will close their positions and withdraw from the stock market to avoid being affected. With fewer shorts, they will be more concealed and more maneuverable.

This is a good strategy that kills two birds with one stone.

The only person who was more embarrassed was Livermore, who was roasted on the fire and became the scapegoat for no reason.

"So what do I do now?" Livermore asked.

Ye Luo replied with a smile: "Of course you have to send a message quickly and hold a press conference to clarify. It doesn't matter whether you are a short seller or not. The key is that you have to cooperate with the people in the White House to break the rumors!"

"Okay! I'll make arrangements right away." Livermore took a deep breath, and his fear of Ye Luo deepened.

Not long after, as Ye Luo expected, major newspapers, economic associations, White House executives, and business tycoons all came out to defend Livermore for free, saying that short selling was a myth and that no one would be bearish at this point. US stocks.

This is an era when authority speaks and people still believe it, and information dissemination is not yet developed enough.

With such a large-scale clarification ceremony coming out, speculators are confused again.

Livermore personally held a press conference and issued a public statement in the New York Times, denying the existence of a short-selling group in the US stock market, and he was even less likely to be the leader.

"I swear on my family that in the past, present and future, I have been trading stocks alone. I have never formed an interest group with anyone, let alone short-selling the United States."

After swearing the oath, Livermore also analyzed the problem that U.S. stocks do have excessive premiums from a valuation perspective, but a bear market does not mean an economic recession, so there is no need to worry so much.

After finally explaining it clearly, those who followed and called him to threaten him finally disappeared, which made Livermore breathe a sigh of relief.

When things got to this point, they also understood that Ye Luo wanted to play a big game.

From an American standpoint, especially Franklin as the governor of New York, I don’t want to accompany him in shorting the United States.

However, now he is really cornered.

Ye Luo had another reason that he didn't tell him about the short-selling rumors this time.

That is to completely tie them to their own ship through this matter!

After all, it is something that is extremely detrimental to the country and the economy. If one of them changes his mind, Ye Luoke cannot afford such a loss.

The best way is to cut off all of their escape routes!

You have already sworn that you are not shorting and there are no interest groups. Now your conscience reveals that you are telling the truth, then you will go to hell with me!

In short, after such a torment, the New York Stock Exchange became more chaotic on the 18th. The Dow Jones Index fell in a landslide, reaching 285.4 points at the close of the market. The prices of high-priced stocks also fell one after another, allowing Ye Luo and others to make a fortune.

However, after vigorously clarifying the rumors, the stock will inevitably rebound slightly. This is what Livermore and others are most worried about.

What should I do if my position is liquidated?

Ye Luo didn't care, and just told them to wait for the show to start.

(End of this chapter)