Mediterranean hegemon

After 7 years of back and forth, Contini tried his best to use various means to take advantage of the time travellers. He made a comprehensive layout in the stock market, oil, medicine and other fields, and used the wealth developed by borrowing large sums of money from the United States. In fact, the only ones that really make money are the conglomerates involved in the entire industrial chain of heavy industry, except for most basic mining industries (except for oil, Italy has no other resources). At present, most of the debts owed by the United States have been paid off, leaving behind Italy’s domestic debt and the overall debt. The ratio is 25%. From a proportional perspective, the risk is relatively low and controllable, but the overall size is not small. United Group’s total assets are as high as US$3.9 billion!

But even for such a large-scale group, except for a few industries that make money, the whole group still loses money. Also because everyone knows that United Group's overall profit situation is not optimistic, so no one is jealous of Contini's move to expand into many industries in Italy for comprehensive reinforcements. If the president likes to do money-losing things, let him do it.

So it’s unbelievable that some people can quietly make 5 billion US dollars with just a pair of stockings. If you really want to make money like this, other consortiums have already come to grab it. Among the many products of the United Group, the one closest to this effect is Bailangduo. However, even for such a product that is in short supply and has a profit margin of over 400%, the total annual profit is just over 10 million US dollars. Without others, the market size and output are just here. Even so, there are many companies gearing up to crack down on counterfeiting. Everyone knows that the remaining patent period of the United Group is only 5 years. In the 5 years, each company successfully develops and imitates, produces another batch, and waits for the 5 years to be listed and dumped. This is the wishful thinking of many companies.

The possible losses of the United Group alone have attracted huge expenses, not to mention that Contini frequently sponsors army tanks and aircraft, sponsors naval battleships, cruisers, and builds his own aircraft carriers. The money is spent like water, so he must Only by making a large amount of money can we maintain the situation, and then fill in the big holes in the future, and truly achieve the goal of rebuilding the Italian industrial system in 10 years. After a big crisis, there are not many such good money-making opportunities. So even though there are certain risks in short selling, Contini still decided to face the difficulties and make another amount of money through reverse short selling. There is no such thing in this village. shop.

Going long is different from going short. To go long, you only need to buy it in advance and then hold on to it, and then slowly reduce your holdings at the right time by taking advantage of the fanatical atmosphere. This is how Contini’s stocks have risen dozens or even hundreds of times. Yes, he used a total of 2914 stock accounts to slowly withdraw this huge amount of stocks, totaling up to 3 billion US dollars, thanks to a group of professional managers and Francisco who connected many stocks from Europe to the When the United States reduces its holdings, it does not care about the few cents of time difference in the reduction, in order to conceal the signs and make people feel that it is indeed held by European institutions or individuals. If all these 3 billion are concentrated in the name of United Group or Contini It seems too strange. Fortunately, the trading volume of the stock market during this period was as high as 7-9 million shares, making such a large-scale reduction transaction very smooth.

But short selling is different. The entry threshold and trading channel requirements for short selling are higher than those for long selling. There are also limits on target objects. Not every stock can be lent. Different lending stock interest rates and margins are different, and precise calculations are required. This None of this can be achieved through remote operation. More importantly, the stocks that Contini wants to short are not millions or tens of millions. Instead, he needs to use hundreds of millions or even billions of dollars to sell them intensively. If he does it well, he will certainly make a lot of money, but if he doesn't do it well, he will make a lot of money. It fell into his own hands, so he had to ask professionals to take action, and Livermore was exactly a figure proven by history. During the great crisis of 1929, he made 100 million US dollars through short selling, and finally forced the US government to give him an order not to allow it. Don't give up until you go short.

The $10 million that Contini asked Livermore to pay for his operation was for this method. As for the pressure that may be exerted by the Federal Reserve, the US government and even other US consortiums, he will help Livermore bear it. Before taking it up, you should first build momentum.

From mid-May to early June, Contini instructed his subordinates to continue to reduce their stock holdings while expressing opinions to the outside world. Of course, his remarks could not be very radical, but his attitude was obviously a little different. The most typical example is what he said in an interview at a symposium of business people in the Midwest on June 9:

"The stock market is a reflection of economic fundamentals. The U.S. stock market started from less than 100 points to today's Dow Jones word count exceeding 360 points, which fully reflects the prosperity of the U.S. industry and economy in the past eight years. If the U.S. stock market continues to rise, then these economies The prosperity and industrial growth must continue. Please note that the prosperity of the stock market does not bring about economic prosperity, but the prosperity of the economy is reflected in the prosperity of the stock market. However, the current market interest rate environment has caused the real economy, especially the asset-heavy real economy, to encounter many difficulties. The symposium just now Many people have pointed out that they have orders and profits, but if you subtract the frighteningly high interest rates, they basically have nothing left. I think this is a dangerous signal, reminding us that we must pay attention to protecting the real economy... …

Only industrialists and businessmen can truly create wealth for this country. Stock market investors and even speculators do not create wealth. They only use part of their financial advantages to achieve sharing and win-win on the basis of industrial development and realize the redistribution of wealth. . The real strength and wealth of the United States is not the rising index in the stock market or those illusory numbers that can be printed as much as you want. The real wealth is the milk and bread that the American people enjoy every day, the cars and subways that they take every day, and the real wealth. Tons of steel converted into parts, tall buildings rising from the ground, without these tangible things, there is illusion behind the index and green notes...

…The real economy is the foundation for the prosperity and strength of the United States. I have noticed that President Hoover repeatedly emphasized the need to create a more prosperous four years. I believe he will not turn a blind eye to these issues. In the three months since he took office as president, he has focused on the past four years. The reasonable management system and relevant policies have been adjusted. We call for adjustments to credit and interest rate policies as soon as possible before causing damage to economic prosperity and stock market prosperity! Otherwise, immeasurable mistakes may occur. "

The New York Times seized on this content and reported it as "This is a danger signal", which aroused widespread resonance in the business community and believed that it touched their hearts. However, for ordinary investors, they would not see this kind of thing. Economic strategies and long speeches, they only focus on the president’s judgment of whether the stock market will rise or not, so everyone interprets Contini’s words according to their own needs. Most people judge that the president believes that the stock market can still rise, provided that the Fed stops doing so. Stupid thing.

Livermore, who carefully studied the report, read a new meaning. The president's current stance has changed from being extremely bullish to being cautiously bullish, to being unable to do it all at once. That is too scary and will make the president twist his waist. Livermore knows it well. Now, he must seize the opportunity to sell his stocks and eliminate customers one by one. Now he must concentrate on serving the big customer, United Group, and no longer has the energy to take care of small and medium-sized customers with assets of tens or hundreds of thousands of dollars.

From May to June, the U.S. stock market continued to be dominated by shocks, with the index circling repeatedly, neither rising nor falling. This was a deadlock acceptable to everyone. Contini's words were quickly drowned in other chaotic voices, without causing greater influence or impact. Only people in the US State Department were wondering why the president was still in the United States. Didn't he come to participate in the celebration in the first place? ? But even if you think so, you won't be able to drive people away. President Hoover valued the president very much and held many talks, discussing everything from politics, economics, and diplomacy. Contini always stood up for him and agreed with "more prosperity" He expressed his appreciation for the propositions of "four years" and "developing the economy".

Of course, Contini also had reasons to stay. He should have left in mid-April. The reason why he did not leave in April was due to emergencies, the need to smooth out stock market fluctuations, and the five major banks to join forces to support the market;

The reason for not leaving in May was to complete the stay in April and inspect the US equipment industry and western development plan;

The reason for not leaving in June was to add a new itinerary, to inspect the American education system and scientific research system, and to sign the "Italian Study Abroad Act" and the "US-Italy Academic Exchange Friendship Fund Agreement" with Secretary of State Stimson. This was what Contini had originally agreed to give Cappe. Since Capello actively expressed his intention to move closer to the president, he had to give Luo a gift as Minister of Education, so he had to give him a little sweetener. The benefits must at least be visible in terms of political achievements.

According to the bill, starting in September 1929, Italy selected 1,000 science and engineering students to study in the United States for public study every year for 2 years, forming a unique 2+2 structure, which lasted for an overall period of 4 years, that is, until President Hoover’s first term. At the end, the tuition and living expenses of this group of students will be sponsored by the United Group. If President Hoover is successfully re-elected, it will continue for another four years. If he is not re-elected, negotiations will be held to see the specific situation.

Hoover was very happy about this and thought it was Contini's vote of confidence in him. You see, I don't need to talk about my re-election. If I can't be re-elected as president, I have to think about it again. What is this if I'm not an iron man?

The academic exchange fund is invested by United Group with US$10 million to invite professors from American colleges and universities to give lectures and serve as visiting professors in Italy. During their stay in Italy, their salaries and expenses will be paid by United Group at twice the rate of the professor in the United States. It plans to invite 300 experts every year, and will also send Italian scholars to the United States for study and exchange, and the expenses will also be borne by the fund.

In fact, these contracts are not a matter between the Italian government and the U.S. government, but between the United Group and the U.S. higher education system. However, due to their large scale, wide coverage, and personnel movements, the government has to be involved. Just a testimony.