Mediterranean hegemon

By the beginning of November, the power of the stock market crash had finally been released, because the market had fully changed hands. In other words, even without Hoover's five prohibitions, the market would have found its balance at a lower position. point, but because the stock market stopped falling sharply after the 5th ban - a small decline was still unavoidable, the market suddenly had a certain degree of confidence in the government's actions, but Hoover, who carefully examined the market situation, felt a little panic .

Economists told him that from 1923 to the autumn of 1929, the United States had an annual productivity growth rate of 4%. Among the major powers, apart from Italy, the United States ranked second. But this year's decline is likely to cause the entire social production to drop by more than 20%. In other words, all the achievements of Coolidge's second term will be wiped out. And after falling by 20% this year, it is still unknown whether it will fall next year. However, economists generally maintain an optimistic attitude towards 1931: in history, there are only crises that span a new year, and we have never seen a crisis that spans two years. Crisis, so based on experience, they believe that one year is enough, and they will be able to make a comeback in 1931. The current situation is to stabilize 1930 as much as possible-that's it for 1929, basically no need to save!

However, Hoover looked at the data more keenly. He knew that agriculture had been in a long-term slump and rural purchasing power was insufficient. This problem was not solved even during the Coolidge boom. In 1919, farmers' income accounted for 16% of the total national income. , which accounted for only 8.8% of the total national income in 1929, and the per capita income of farmers was only about 1/3 of the national average income. After the stock shock this year, the sale of food and agricultural products may become a huge problem.

Secondly, although industrial growth is rapid, the development is uneven. The growth is mainly concentrated in some emerging industrial sectors. Old industrial sectors such as mining and shipbuilding are under-operated. There is also a production reduction crisis in textile, leather and other industries. As a result, a large number of workers have lost their jobs. unemployment. After the crisis, textile, leather and other lifestyle industries will be even more severely traumatized. Small and medium-sized enterprises are the second round of bankruptcy after the bankruptcy of small and medium-sized banks. In the past two days, newspapers have been full of bankruptcy and liquidation announcements, and Wall Street's largest 1 The Lu family's chaebol controls 53% of the country's gross national product, which is quite dangerous. Without a wide range of small and medium-sized enterprises, how can it absorb so many labor forces and create jobs?

Mellon objected to this point, and even gave a counterexample: If the United Group does not also occupy a larger proportion and a more important position in Italy, how can they?

When saying this, he intentionally or unintentionally overlooked one point: Although the United Group is large, it has mostly entered the incremental field. Contini can't even look at the existing areas where Italy has a comparative advantage. Too lazy to look, and when he entered the incremental field, he didn’t just grab his eyebrows and beard. He only set up the most important heavy-duty enterprises that ordinary enterprises could not handle, and even kept the entire machine running at the expense of his own blood loss (loss). What Wall Street tycoon Are you willing to do this? Aren’t they going wherever they see profits?

The last and most important point is the problem of income inequality: 1/3 of the national income in the United States is occupied by the richest 5% of the population, and about 60% of American families still struggle to live on US$2,000 per year, which is only enough for food and clothing. Level up and down. What's even more serious is that 21% of families have an annual income of less than US$1,000. Originally, whether it was $1,000 or $2,000, it existed objectively. The distribution in European countries was not necessarily more balanced than in the United States. But the bad thing is that the United States needs to get rid of the propaganda of the "American Dream" and believes that as long as you work hard, you can achieve personal satisfaction. , now I am fine, I have worked hard but am facing unemployment, what can I say?

Hoover thought about it and decided to talk to Contini about the 4.4 billion order. If this order can be won, then 1930, although it will be a bit more difficult, can be passed. Since a contract is required, Then he had to show sincerity, and he decided to go to the United Bank to find Contini in person - the ostensible excuse was for my condolences, but actually he wanted to talk about the matter shamelessly to see if there was any improvement.

On the day Hoover arrived, Contini had just issued new instructions for Livermore to gradually reduce his positions in accordance with the exchange's regulations and complete them within a month - Livermore's personal positions could maintain this pace.

This is acquiesced by the exchange. As long as Livermore can reduce its short positions, they will not bother to worry about where to cut the short positions. Some people even think that Livermore has a rat position - deliberately reducing the customer's positions to keep its own. This made Livermore feel a lot of pressure, but Contini laughed: "It's okay, I agree, just follow the routine and ignore these rumors..."

Within a week of the ban on short selling, United Trust reduced its positions by 1.6 billion. In addition to transferring 400 million to Italy and returning 300 million in loans to the financial system in advance, all the money was transferred out through various methods, from the United Kingdom, France, Switzerland and other places returned to Italy, but the money cannot be fully used. Contini is still facing this battle in crude oil and needs to leave enough bullets.

By the day Hoover arrived at Union Bank, Contini had reduced his exposure to less than $800 million, and there was little anyone could say, even if Union Bank had been strong and performing well up to that point, and the funds that had been transferred away , other funds that were unexpectedly measured, and part of the funds after bankruptcy and liquidation have all been returned, and now deposits are actually starting to line up... Everyone firmly believes that the president will not fall, and that United Bank is trustworthy. Many people are speculating on how much money the CEO made from stock speculation. After all, the CEO had categorically said that it would fall, and now it has actually fallen so much. And Professor Fisher, who initially said that it would continue to rise, is now in big trouble. , not to mention the loss of more than 10 million US dollars in property, even the house was confiscated by the bank, and he was almost homeless. Finally, Yale University still had humane feelings and imitated the way Contini dealt with the Union Bank employees. Bought it for him to live in.

Because of Fisher's reputation and his adulation of the stock market, he became a symbol. No one's failure was more shocking than his. In the past, when the stock market rose every day, everyone thought Fisher was so great, but after the crash, everything was reversed. , believed that Fisher was just a name, and some even asked him to take responsibility for misleading the public. Every day, people came to besiege the poor economist. Fortunately, the extremists jumped from buildings and blew themselves up, so Fisher only suffered a few wounds. The pain was so great that there was no threat of death, so in the end I had no choice but to endure it.

Contini sympathized with his plight and invited him to come to the Union Bank for refuge. Fisher did come once, but was discovered by a sharp-eyed reporter. The reception made him almost ashamed, and finally fled the Union Bank. When Contini When Tiny told Hoover about this, the latter also smiled bitterly - the collapse changed everything.

"Calais, I heard that many of your people are buying cars in New York, and they are buying old cars. Why not buy new ones? You have made so much money, you should share some with your people... Look at how hard they work. "

In fact, the bonuses have been distributed a long time ago: each of the guards from Italy received a reward, the lowest level received 5,000 US dollars, and those who performed "special missions" like Enzo and Ji'an received millions of dollars, but Kong Tiny told them to keep a low profile and not show off their wealth, because the United States is still not safe, and everyone understands this.

"No, it's good to buy a used car. It's affordable, cheap, and it can help other people. I told everyone about it, and they all said it's good..."

It turns out that after the stock market plummeted, those decent middle class people were destitute overnight and had no choice but to sell off the last things they had. A Mercedes-Benz or General Motors sedan that was worth more than $1,400 when it was brand new and had only been driven for a year now only costs $1,000. It was sold for more than 100 US dollars - no one took over the sale because there were too many people selling it and there were only a few sellers, so Enzo took his team members to hunt for bargains - the president's instructions must be obeyed, the president said for a few months Let's lead everyone to make a fortune. Everyone firmly believes that buying a second-hand car doesn't matter. No one's money comes from a big phoenix. Seeing how miserable Americans are now, do you still dare to spend 5,000 US dollars to live and drink? The best thing to do is to take it home quickly. As for the car, there is a boat back to Italy anyway. If you don't buy it, you won't buy it...

"Look, you have solved many people's urgent needs by buying used cars. Can you relieve my urgent needs?" Hoover said sheepishly, "I am here today specifically for..."

Contini smiled: "I understand your intention. In fact, I am already helping you with your urgent needs. Aquinas, please report the acquisition plan we have reached to Mr. President."

The secretary quickly reported a list fluently: Chicago Refinery, Tennessee Tractor Company, four Virginia shipyards, Delaware Electric... a total of 31 companies in total.

"I've never heard of most of these companies..."

"These are all medium-sized companies in your country. They are medium-sized in your country and can be considered large in Europe. They went bankrupt during this economic crisis. United Bank recently acquired a series of bankrupt banks and then acquired these assets. In addition, I also bought some bankruptcy liquidation assets, oh, and also bought 17 15,000-ton cargo ships..." Contini smiled, "Do you know how much these cost me?"

"How much?"

"140 million US dollars!" Contini said proudly, "Although many of the equipment are a bit old, they can still be used after sorting them out. I plan to move them back to Italy to let them take root again. My people have estimated that this batch of equipment If it were brand new, it would be worth at least US$1.2 billion. According to the normal market price, it would be US$700-800 million. But now I only spent 140 million. I can’t afford to suffer a loss or be cheated. Of course I am willing to do so, as well as you, the workers. Don’t worry, there are probably more than 1,400 engineers and technicians employed by the United Group. They will immigrate to Italy to start a new life there and avoid putting new pressure on the US government - at least you can save a lot of people. of relief.”

Hoover frowned tightly and said, "Calais, you are actually very rich. You can definitely buy new ones..."

"New ones are expensive, old ones are cheap... Sir, I am also a capitalist."

Hoover almost fell down after hearing this, and said: "They have agreed to reduce the price. Many entrepreneurs came to me this time and expressed their hope that they can still fulfill the 4.4 billion contract... I can get a 20% discount!"

"But sir, 20% off is not enough now. The market price has fallen to pieces. We have to follow the market, right? The old goods can still work at 10%-20% off. Why should I buy new goods at 20% off?"

Hoover was sweating: "I can lower it a little bit...really!"

"Why are you talking to me about business today?" Contini was surprised. "The old goods are 10%-20% off. How much do you think I should offer for the new goods?"

"70%...70% off!"

"I can only offer 30% off at most, and the deposit I paid at the beginning will be deducted..."

"This is too low. They can't even get back their capital, let alone make money."

"Sir, there is no business that is guaranteed to make money. I am helping them through the difficulties. If they don't want to, I will buy old factories and old equipment, and use them anyway? And these old equipment are also American and American products...Sir, you are the president of all Americans, not the president of some Wall Street consortiums or individual large companies. You can't be too partial!"

Hoover was refuted and the scene fell into silence...