Rebirth 76: Industrial Internet Empire

"Mr. Yang, why doesn't Zhiyuan International put its headquarters in New York? Wall Street is the first choice for international venture capital companies?" Qian Ning asked in confusion.

"I don't understand why you are asked to locate the company's headquarters in the San Francisco Bay Area?" Yang Mo asked.

"Because of Silicon Valley?" Qian Ning asked thoughtfully.

Yang Mo nodded and said: "Silicon Valley is of course the main reason. There are many high-tech start-up companies here. You must try your best to build a complete integrated circuit industry chain around Xima Semiconductor Company..."

"Are there other reasons?" Qian Ning asked puzzledly.

"Do you know Stanford Technology Park?" Yang Mo asked.

"Of course I know! 35 years ago, Stanford University Provost Frederick Terman created the world's first university science and technology park. The Stanford Science and Technology Park attracted companies such as General Electric and Lockheed to settle in. Isn't this the predecessor of Silicon Valley? ..." Qian Ning replied.

“The successful rise of Silicon Valley is due to the core subjects of scientific and technological innovation personnel and start-up enterprises from first-class universities. With the integration of capital, an ecosystem of industry, academia and research has been built with the cultural concepts of freedom and openness, encouraging innovation and tolerance of failure. ..." Yang Mo explained patiently.

Qian Ning's heart moved and he blurted out: "Can Zhiyuan also encircle a piece of land and establish our own technology incubation center?"

Yang Mo nodded and said: "This is a good idea. In the future, Zhiyuan International can set up an entrepreneurial North American technology incubation center here to create our own ecological chain integrating industry, academia and research!"

……………………………………………………………

The headquarters of Merlo Bank is located in Austin, the capital of Texas.

Since the 60s, Austin's integrated circuit and computer industries have developed rapidly. The cost of living is far lower than that of Silicon Valley. It has attracted top semiconductor companies such as Freescale and Texas Instruments to settle there. Austin is also known as "Silicon Mountain".

After Yang Mo and his party arrived at the headquarters of Mello Bank in Austin, they were surprised to find that Mello Bank was already in the vortex of a run...

"Mr. Yang, a rumor we just mentioned can be so powerful? Can it really destroy a commercial bank?" Qian Ning asked dumbfounded.

"At dawn, roosters will crow. Over time, some roosters will think that it is because of their own crowing that they are bright..." Yang Mo joked with a smile.

"Isn't it because of rumors that there was a run? Is there something wrong with Merlo Bank's own operations?" Qian Ning asked in surprise.

"Texas is an energy state. Due to OPEC's acquiescence to the price war between oil-producing countries, and the end of the Iran-Iraq war, oil prices quickly fell to 10 US dollars per barrel. Texas's economy collapsed, and the housing price bubble burst, causing Texas to A large number of local commercial banks and local savings and loan associations are facing bankruptcy..." Yang Mo explained patiently.

"Isn't it backed by the Federal Savings and Loan Insurance Company? How could the Savings and Loan Association go bankrupt?" Christian asked in confusion.

Yang Mo chuckled and said: "The Federal Savings and Loan Insurance Company cannot protect itself. It is actually insolvent and should enter bankruptcy proceedings. The regulatory agencies are worried that the Texas banking crisis will spread to the whole country, so they deliberately turn a blind eye!"

"This is impossible! The United States has always been very strict in controlling financial systemic risks. How could it deliberately turn a blind eye? Isn't this a trap for unsuspecting depositors?" Christian, a devout believer in the lighthouse country, retorted with disbelief.

"Qian Ning, tell him why he turned a blind eye on purpose. This kid is quite stubborn!" Yang Mo turned to Qian Ning and said in Chinese.

"Christian, Zhiyuan International is a consulting company. We have our own database and sources: In 1984, the Federal Savings and Loan Insurance Corporation spent a total of US$8.9 million to clean up bankrupt savings and loan associations, which surged to US$1985 billion in 74. Last year it reached US$91 billion, and the net worth at the end of the year was -US$63 billion. Financially speaking, it was bankrupt..." Every set of data from Chan Ning destroyed Christian's faith in this country.

"Melo Capital's short-selling choice is actually not wrong. What's wrong is that he is in New York, but he doesn't understand American-style elections, let alone the politicians in the lighthouse countries who do whatever it takes to achieve their goals..." Yang Mo sighed leisurely. .

"Elections? Politicians? What does it have to do with the failure of Melo Capital? Wasn't it defeated by us?" Christian spread his hands in confusion.

"With the general election coming soon, will the ruling party let the stock market continue to plummet? They would rather drink poison to quench their thirst than cut interest rates to save the market. They are not afraid of trade deficits. They just turn on the money printing press. If the stock market falls, they will lose the votes of investors. This is the first priority. Just focus on the immediate situation. How can you care about the huge floods in the future?" Yang Mo said disdainfully.

Christian was silent. Even though he didn't want to admit it, what Yang Mo said was indeed the truth.

Office of the President of Bank Merlo.

David Silva was extremely busy and made calls for help for a long time, but with little success.

The parent company, Merlo Capital, suffered a heavy setback on the ZD8710 contract and is still unable to protect itself. The Texas Savings and Loan Association has been unable to pay out a penny. The Federal Savings and Loan Insurance Company is also in debt to maintain operations and is on the verge of bankruptcy waiting for the government. Rescue……

The official channel for help was blocked, and David Silva could only seek help from other commercial banks through his personal relationships...

But how could a bank that always gives out umbrellas on sunny days and closes them on rainy days provide help to Melo Bank, which is on the verge of collapse?

Assistant Vanessa hurriedly walked in and reported: "Your Excellency, the New York branch and the Chicago branch have been calling for emergency help. They have cash in stock and can last for about three hours at most. If the headquarters cannot provide support, they will face crisis in the afternoon." Desperate situation with no money..."

"The headquarters itself is in trouble, how can there be money to support them! Let them slow down the pace of withdrawals and stick to today. You go! Don't bother me again if you have nothing to do..." David Silva said lightly.

David Silva sighed, unplugged the phone cord, and slumped in his chair.

He knew in his heart that Merlo Bank was in doom and no one would lend a helping hand to him. The bursting of the real estate bubble in the Texas area had forced Merlo Bank to repair the hole. The disastrous failure in futures made Merlo Bank even worse and became the straw that broke the camel's back...

Just when David Silva was thinking wildly, his assistant Vanessa came back again and opened the door to the president's office.

"What's the matter again? Didn't I tell you not to bother me again when you have nothing to do?" David Silva asked with a frown.

"Your Excellency, President, there are guests asking to see you. They say there is a way to solve the run crisis on Merlo Bank..." Vanessa said with a look of joy on her face.