1928: The rise of giant merchants

September 4, the 18th year of the Republic of China (1929).

The New York Stock Exchange announced the total value of all stocks and bonds, which rose from $27 billion at the end of 1924 to $89 billion at the beginning of September 1929.

But New York banks made very few loans to brokers during this period, suggesting that the flow of credit for stock speculation came from non-bank systems.

There's plenty of evidence that money is flowing in from around the world, providing continued fuel for Wall Street's lending boom.

In particular, the two expansions of British capital, with nearly $40 million of equity capital invading U.S. stocks, made senior White House officials also begin to worry.

To this end, the Federal Reserve raised interest rates one after another in July and August.

In July 1929, the Federal Reserve had already tried to interrupt the stock market's rise by raising interest rates, but this behavior also affected economic development.

Because raising interest rates achieves their impact by reducing economic activity, threatening corporate earnings growth, and destroying the fundamental value of stocks.

Still, in an environment where high capital gains are expected, interest rates rise too little to deter more borrowing and speculation.

The frenzy was ignited again in early September.

Before the market opened on the morning of September 4, many securities investment companies in New York jointly held a grand financial press conference. The purpose was self-evident -

Help Wall Street's financial giants continue to attract free capital into U.S. stocks.

They claimed that "yesterday was another new high in a series of consecutive new high records created by the stock market." If you don't get on the bus quickly, it will be too late!

The simplest and crudest method is often the most effective way to deceive people. Even when the market opened today and the Dow Jones index was going down, there were still countless new investors waving US dollars in their hands and running to various securities investment companies desperately. .

At ten o'clock in the morning, the trading floor of the New York Stock Exchange was crowded with speculators. Every seat was occupied. All eyes were fixed on the big blackboard, on which endless letters and numbers were written - all of them. New York Stock Exchange sales records and quotes for various stocks.

The ticker could barely keep up with today's trading because of the volume, though it was nothing in 1929: a day's total might have been as high as 4.5 million shares.

About half the people on the trading floor buy stocks on margin, and across the United States, countless people speculate with borrowed money, while millions more watch the daily price fluctuations hopefully.

U.S. Steel, which was shorted by Huixin not long ago and made a profit of US$7.4 million in one breath, started today with its stock price approaching US$100.

Anaconda Copper is $130.85, American Telephone Company is $302, General Motors is $395, General Electric is $71, American Radio (the parent company has recently split its stock into four), The quoted price in the new base is $99 (if in the old base it is $495).

Liu Xuenong, who came to the New York Stock Exchange early, stared at these data.

Sister Huixin went to Ye Luo again last night to have a romantic relationship with her, and she is probably still under his influence Cheng Huan.

He came here alone to observe the dynamics of US stocks.

"The gun in the hand of a man who has fallen into tenderness will no longer be as fast and accurate as before."

Liu Xuenong didn't know which cheesy Western movie he heard this line from.

But he agrees with this.

The second young master's gun no longer works.

The desire in his eyes was no different from that of the speculators downstairs.

Every time he thought of Sister Huixin's young woman-like body, he felt like his mouth was dry.

When Mingming first met her, she was just a pregnant widow with a big wave, and there was nothing that attracted him at all.

Why is it now like a dollar bill, making myself think about it day and night and unforgettable?

Liu Xuenong couldn't understand.

But he knew that just like these outrageous stock prices at this time, they were obviously ridiculously high, but no one questioned them.

"Maybe everyone is crazy, but so what? Yesterday, I made 500,000 U.S. dollars! My dad shined shoes in Chinatown. He could never make 50,000 U.S. dollars in a hundred years!" Liu Xuenong said today A lot of money was invested in these stocks at the opening.

At the same time, through his identity as the vice president of Hongxing United Group, he successfully bypassed Sister Huixin and contacted rich second-generation people such as Edward Sassoon.

They have money, power, connections, and resources, and are the best partners.

I heard that even Kong Xiangxi, the Minister of Industry and Commerce of the Republic of China, came to speculate in stocks.

What else is there to doubt?

Liu Xuenong persuaded a large number of Republican shareholders to buy the stocks of Hartree Company, which had just been sold in large quantities on the market, and vowed to become the company's largest shareholder in New York.

It's strange to say.

At this time, someone actually started shorting high-priced stocks.

Because of yesterday's big surge, Liu Xuenong was once worried that he would not be able to buy high-priced stocks like General Electric. After all, high-priced stocks have become hot commodities now. In this era of inefficiency, if you can't go to the VIP room to let the staff of the New York Stock Exchange trading department We directly help you operate and only rely on phone calls or on-site windows to buy and sell. If the speed is too slow, you may not be able to grab too many stocks.

But since yesterday, someone has been selling high-priced stocks, allowing him to buy a lot easily.

What a blessing from heaven.

Unknowingly, I spent a whole morning at the New York Stock Exchange.

Liu Xuenong, who was staring at the big blackboard, felt his eyes were very tired.

Speaking of which, I was still affected this morning.

"From the opening to now, the Dow Jones Index has fallen back to 375 points. The high-priced stocks I bought are all falling. Although it is only a few dollars, but"

Liu Xuenong sighed.

It's a pity that he made the wrong bet.

Many people believe that the 390 points before the market closed yesterday was not the highest value of the US stock market, and that it should still rise.

Therefore, there should be a lot of people entering the market yesterday, and it stands to reason that the stock price will continue to rise.

But the fact is that starting today, both the market and individual stocks are going down.

It shows that 390 points is indeed the limit of US stocks.

But it didn't matter. Such fluctuations were normal market conditions, and Liu Xuenong didn't notice the rise or fall of a few dollars.

Let's wait and see again in the afternoon.

Feeling a little hungry, he left the New York Stock Exchange, found a nearby high-end Western restaurant, and walked in with a smile.

Six months ago, he might not have dared to think of a restaurant like this with a per capita price of over US$100.

But now, Liu Xuenong feels that the price is a little low when eating in this kind of restaurant.

It would be nice to have access to the most exclusive social opportunities like Ye Luo.

He thought so and just sat down, he heard the exclamations of the ghost guys. Looking back, he found a blond ghost guy with a slicked back hair walking in in high spirits.

Roger Babson!

Wall Street’s new favorite half a year ago.

He is famous throughout the United States for his terrifying investment abilities.

Many people followed him to buy stocks and became rich, so Roger Babson was very popular.

"Why did he come today?" Liu Xuenong wondered curiously.

Soon, he got the answer.

Roger Babson was followed by a man he had not seen for a long time, Ye Luo. (End of chapter)