Manhattan Reborn 1978

new York.

Manhattan.

Rockefeller Center, Chase Bank.

In the conference room, after David told several short stories one after another, Old David was finally satisfied. .

He smiled and asked Leslie and David to go to the office and wait for a while, turned around and closed the conference room door, and said to everyone attending the training today.

"Everyone, please take 5 minutes to write a brief summary of today's interesting lesson~just a few sentences will do."

"Paul, are you interested in meeting David with me later?"

The white-haired old man whose name was called by Old David stood up with a smile, rubbed his belly with his hands and joked.

"As long as it doesn't take up my lunch time... Of course!"

"Hahaha~"

"No problem! How about we go back to the office first, have a brief chat, and then go have a big meal together?"

"...Okay~ We'll go there later!"

Old David dragged his old friend Paul, who loved joking, out of the conference room.

. . .

the other side.

David put the coat he took off on his left hand, followed Leslie into Old David's office, and began to complain.

"You bastard! Why didn't you tell me earlier?"

"FXXX!"

"I almost couldn't hold it back... peed my pants, you know?!"

"Hahaha~"

Leslie laughed unscrupulously, pulled David to sit down, and said with a happy smile: "You performed great today!"

"I really didn't expect where all these little stories in your head came from?"

David put his coat on the back of the chair, took off his tie and stuffed it into his pocket, rolled up his cuffs, hoping to let the fine sweat on his back due to nervousness fade away as quickly as possible. .

"Ah~huh~"

"What the hell little story?"

"I made those up casually!"

Leslie curled her lips and asked in obvious disbelief: "It's impossible, right? Make one up for me now, and I'll believe you!"

"FXXXYOU!"

"Do I need you to believe me?"

"Hahaha~ Okay, you are awesome!"

The two joked for a while, and after David calmed down for a while, he curiously asked Leslie.

"Just now, the white-haired old man we saw giving a lecture to everyone...who is he?"

Leslie put down his crossed legs, suppressed the joking expression on his face, and introduced seriously.

"His name is Paul Samuelson!"

"The first American to win the Nobel Prize in Economics!"

“He founded MIT’s School of Economics, almost single-handedly.”

"His classic book "Economics" has been translated into the languages ​​​​of more than a dozen countries. It is the best-selling economics book in the world and has influenced entire generations of people in many countries!"

“He also based on Keynesian ideas, integrated neoclassical economics, and founded the neoclassical comprehensive school.”

"He has made very outstanding contributions in almost every field and every branch of the economics community. He is recognized as an all-around genius economist."

"Whether it is Adam Smith, Marx, Keynes, Fisher, etc., they all mainly work in a certain field and have made very remarkable and outstanding contributions to the development of economics."

"But none of them are as versatile and versatile as Paul Samuelson in the fields they are involved in!"

"Marx once said: His academic mission and academic philosophy are the most comprehensive~"

"However, Marx's mathematical skills, to be fair, are only at an average level..."

"So, from this perspective, Paul Samuelson is a very unique and outstanding figure in the entire history of economics."

Leslie took a deep breath and continued with sparkling eyes.

"I have been to various European countries and talked with some economists about Paul Samuelson."

"They all believe that Professor Samuelson's greatest contribution in the economics field is his pioneering of mathematical economics!"

"Economics, at least until Professor Samuelson appeared during the Great Depression of the 30s, was generally not a mathematical academic job."

“Economics at that time was basically a prose-style academic discipline~”

"For example, if we read Marshall's Principles of Economics, we will find that there are few mathematical formulas found in the entire book."

"When Professor Marshall was studying at Cambridge University, his math test scores were very good and he got No. 1 in the school..."

"But in his economic works, he rarely uses mathematical knowledge~"

"For another example, if you read Keynes's "The General Theory of Employment, Interest and Money", there are only a few mathematical formulas and some graphical explanations in that book."

"Until the 50s, after Professor Samuelson's "Economics" was published, there were more and more mathematical models and formulas in economics textbooks, papers, books, etc.~"

"More and more economists are beginning to use very complex mathematical tools and models to analyze and interpret our daily economic activities."

Leslie took a slow breath and said in a lower voice: "Actually, I am not qualified at all to make any evaluation of Professor Samuelson's achievements."

"I can only say...he changed everything he touched!"

"Paul Samuelson can definitely be called one of the giants in the world of economics!"

After listening to Leslie's profile, which was like the official host's commentary at an awards ceremony, David opened and closed his mouth a few times and nodded silently.

He remembered the name.

Some time ago, he went to the Flint Library of Princeton University to read and borrow books. Professor Martin, a good friend of Professor John Nash, mentioned Paul Samuelson to David when he was sending him home.

(This plot appears in Chapter 156 of the book The Golden House.)

Emm. .

Professor Martin!

David suddenly remembered a joke between himself and Professor Martin~

He promised Professor Martin that if he really found a big gold mine in the book and got rich, he would give him the latest Cadillac sedan. .

David scratched his chin with his hand, thought about it seriously, and felt that he should be considered now. .Are you getting rich?

Now that I have made a fortune, it is time to fulfill the joke promise I made to Professor Martin!

Thinking of this, David stood up, found paper and pen from the desk in front of him, and wrote a note to Professor Martin, planning to find someone to take care of the matter later~

Leslie glanced at the note written by David and asked with a curious smile: "Professor Martin?"

David folded the note, put it in his pocket, and said with a smile, "I have a promise to fulfill!"

"Promise? Give him a car?"

"Hahaha~ That's right!" David laughed proudly. .

"..."

Leslie scratched her head in confusion~

. . .

At this time, the office door was pushed open, and Old David and Paul Samuelson walked in one after another.

David and Leslie stood up quickly, and waited until David Sr. and Paul sat down before they sat down again.

Old David glanced at the pen on the desk in front of David and asked with a smile: "Have you thought of another good idea? Have you written it down?"

"Um...No~ I just suddenly remembered something. I was afraid of forgetting it again, so I wrote it down first."

"Hmm~"

"This is my old friend, Paul Samuelson, who I just forgot to introduce to you."

David stood up quickly, bowed like a primary school student and smiled at Paul Samuelson: "I'm honored to meet you!"

"I'm so ashamed~ I have only read a little bit of your book "Economics". There are many problems in the book, but no one can explain it to me."

"If...you have time someday, can I make a special trip to your door and ask you for advice?"

Paul Samuelson nodded cheerfully and said with a smile: "It's lunch time now, I'm hungry..."

"If you would treat me to a nice lunch..."

"Of course! No problem! What would you like to eat?"

"Hahaha~"

Old Samuelson turned to old David and raised his eyebrows, with a proud smile on his face and said: "Hey~"

"You free-for-all Grandet!"

"Today, you don't have to pay for a treat!"

Old David pursed his lips, shook his head in confusion and said, "You old guy, have you become free after retirement?~"

"Haha~" Old Samuelson turned to young David and waved his hand, indicating that he should sit down and talk first.

Old David briefly talked to him about David's situation on the way back.

Now, old Samuelson is more interested in the young man in front of him~

Old David smiled and glanced at his watch, stood up and said to the three of them: "Let's go~ You can have a good chat at the dining table~"

"Good~!"

. . .

After half an hour.

In a restaurant on Fourth Avenue.

After David returned the menu in his hand to the waiter, he first nodded to Old David, then turned to look at Paul Samuelson and asked urgently.

"I'm sorry, I know that you and Professor Milton Friedman have had arguments on many points~"

"The theory of free market and free competition that he advocates, in your opinion..."

Old Samuelson smiled gently, with curiosity in his eyes, and asked, "Have you really never gone to college?"

"..No~"

"Hahaha~"

Old Samuelson laughed and shook his head, paused slightly, and said in more straightforward words.

"If I were to give you a detailed answer to your question, it might take me a few days..."

"Abandoning the long explanations of economics from academia, let me start with... Wall Street in New York~"

David's eyes gleamed, and he nodded repeatedly: "Okay~ Wait a moment, I will remember it~"

As he spoke, he took out the small notebook he had brought with him and the pen he had just taken from Old David's office, preparing to take notes seriously.

Old Samuelson couldn't help laughing and said: "Haha~ are you ready?"

"Okay, okay~ Please tell me~"

"..Hmm~"

"In fact, neither a completely unregulated capitalist system nor an over-regulated planned economic system can effectively organize a truly modern society~"

"Only a free mixed modern economic market with rule of law and limited competition is the most ideal economic system."

"The hybrid free market of modern economy mainly involves three aspects: timely and effective adjustment of market mechanisms; full expression of government management functions; and balanced development of economic systems."

"For example, at the beginning of the 20th century, the excessive development of capitalism in many countries caused these countries to abandon the idea of ​​free market economic competition, and the government was given more and more economic management functions."

"According to the degree of freedom and sufficiency of market competition, it can be divided into two categories: one is a completely free competition market, also called a fully free competition market; the other is an incomplete free competition market, which is a monopoly. The most typical market behavior in a category.”

"But even in industries where the government has introduced protective policies, the behavior in the eastern section will not completely eliminate free competition in the market~"

“Economic regulations and antitrust laws are increasingly focused on improving the competitive efficiency of the free market, rather than focusing on the size of enterprises.”

"This can be seen from the fact that after World War II, various countries began to actively encourage the development of small and medium-sized enterprises~"

"So, now from the perspective of free competition in the global market, countries no longer feel so urgent about anti-monopoly."

The smile on Old Samuelson's lips grew wider, he raised his eyebrows at Old David, and continued.

"I pointed out in "Economics" that scarcity and efficiency are the themes of economics!"

“If in an ideal Garden of Eden where scarcity does not exist, everyone can get what they need, then everyone’s desires can be satisfied, and there is no need to worry about uneven income distribution and the widening gap between the rich and the poor.”

"But our real society is a world full of scarcity of economic goods."

"Human desires are endless~ Compared with the infinite needs of human beings, resources always appear scarce and limited~"

“So, from an economics perspective, how to use limited resources to produce as many products as possible to maximize people’s needs, that is, to improve everyone’s income and welfare, has become a unique subject of economics. Where the value lies!”

“What about another topic, efficiency?”

"I just said that the over-regulated planned economic system and the completely unregulated capitalist free market competition system are two extremes."

"The planned economic system of transitional control, in which the government formulates all economic policies and issues economic instructions, is also called a command economy."

"East Germany implemented a typical command economy model."

"West Germany introduced an economic system of free market competition~"

"The free competition and laissez-faire market economic system is a system in which the government rarely participates in any economic decision-making. Individuals and enterprises use a series of mechanisms such as price, market, profit and loss, rewards and punishments to solve the problems of what to produce, how to produce and for whom."

"So, between these two extremes, there are various models of mixed economies~"

"It includes mixed capitalism, managed market economy, socialism, etc.~"

"These models all have half of the characteristics of a mixed economy. While giving full play to the advantages of the free market competition mechanism, the government will also actively participate in the supervision of market order to effectively maintain market efficiency, regulate income distribution among various classes, and improve poverty. improve the welfare level of the class, encourage innovation, and promote the sustainable development of the overall market~"

“In the management of an orderly free market system, the key lies in the embodiment of free competition.”

"Free competition can ensure that everyone has the right and opportunity to choose freely~"

"Through the profit incentive mechanism, the market can maximize the results of everyone's efforts, and allow people to actively seek cooperation from others in competition, promoting economic development and technological change!"

“The free market for labor, capital, products and ideas is the most fertile soil for innovation and technological change.”

Old Samuelson paused for a moment, looked at David with a deep look in his eyes, and continued in a low voice.

"The emergence of futures contracts, this financial product, has enabled the allocation of assets and commodities across time and space~"

"It's a perfect market for speculation!"

“It not only promotes the improvement of prices and allocation forms in terms of time and space, but also helps improve the ability of enterprises to withstand the risk of severe fluctuations in market prices and transfer risks.”

“However, excessive speculation can also create the illusion of a soft market, spawn various bubble economies, and lead to market collapse~”

"For example...the tulip market and price bubble event in Dutch history!"

Old Samuelson, under Old David's surprised gaze and David's mouth wide open in shock, smiled at him.

"I am an economist, not an investment expert or financier on Wall Street~"

"I have written countless academic papers and published many economic books~"

"But I'm not proficient in investment and speculation... It can even be said that I am a complete layman~"

"but!"

"I know that when trading in the financial market, everyone is between rationality and irrationality, looking for ways to maximize their investment benefits based on their own feelings or experiences~"

"For now, let's just use the word method~"

Old Samuelson concluded with a smile when he saw the waiter who had brought them lunch.

"How to find a new way out for a hybrid market economy between the two market economic systems is a difficult problem that economists and governments of various countries have to face~"

"How to take advantage of the information asymmetry that exists between investors, producers and professional managers in the market to obtain greater and more profits is a difficult problem you have to face!"

After the old Samuelson turned around and thanked the waiter, he looked down at the lunch in front of him and said: "Information asymmetry can easily induce the lowest irrational desires in people's hearts~"

"When people speculate in a free competitive market, their irrational and impulsive decisions to pursue profits will not only bear great risks of investment failure, but also cause people's desires to continuously show abnormal self-expansion."

"How to find the balance between rationality and irrationality..."

"Hmm...the fish today is very good~"

"Don't you try it?"

Old David looked at his old friend eating and couldn't help but shook his head slightly and started eating his lunch with a smile.

When he put the dish into his mouth, he glanced at David, who was frowning and lost in thought, chewed slowly a few times, nodded and smiled.

“Today’s fish was really good!”

"Hahaha~"

. . .

David was silent throughout this lunch, finishing like a soulless robot.

what about the taste?

He wasn't paying attention at all. .

My stomach is full, that’s for sure~

Old Samuelson's last words have been echoing in David's mind, and he can't get rid of them for a long time~

Information asymmetry!

What did David rely on?Isn't it just the past life memory in his mind?

Did these memories really induce the irrational desires in David's heart?

. .Yes!

David chose to accept the black money from the female drug lord Griselda Blanco, just to increase more available funds as a bargaining chip to earn more during the oil crisis in the next two years. .More money~

David chose to accept Sam, Yuri and others, scraped together borrowed money, and put it into Panaris's hedge fund, preparing to speculate and make money in the international commodity futures market during the oil crisis. .Make a lot of money~

When David chose to purchase the heating oil futures contract, he proposed to Pine to increase the capital leverage to a higher level, in an attempt to make more money by taking advantage of high risks and high returns. .More money~

Money, money~

David felt that he seemed to be struck by what Samuelson said, which spoke to the problem of constant, constant, and constant expansion of desires that he had been deliberately avoiding in his heart.

Risk is always there~

David himself kept talking about avoiding risks, but in his heart, he did not put it in the most important position. .

Just like a few days ago, Sam and Mu Brandes were both very worried about investing in the heating oil futures market~

But what about David?

He recalled the little calculations he had made in his mind at that time, and couldn't help but smile bitterly to himself. .

It was precisely because of his irrational drive that he wanted to make more money by taking advantage of the market trend of heating oil listings, so he raised the financial leverage to the highest level. .

If it weren't for his good luck, his investment might have been wiped out by the violent fluctuations in market prices. .

Take a chance. .Not advisable!

He, a newcomer in the speculative market, only relies on the favorable conditions of information asymmetry to make money in the free competition of the international financial market. If he is not careful, he will be more cautious, and he will be more cautious. .

Sooner or later, they will be eaten by those giant crocodiles lurking underwater, leaving no bones or residue~

Chinese chives. .

David doesn't want to be a leek. .

He wants to be the one holding the sickle!

. . .

after lunch.

David, who felt that he had benefited a lot, bowed to Samuelson and said, "Thank you for your teaching!"

"With your permission, I would like to visit you often and ask you more questions!"

Old Samuelson smiled and waved his hand: "David, you don't have to be so polite~"

"I like your story about the turkey trying to fly to the top of the big tree to see the scenery~"

"Actually, I have mentioned it to people more than once~"

"It's just luck that I became an economist~"

"But good luck, it seems that since my 60th birthday, it has never visited me again~"

"Shit luck...hahaha~"

"The story you told is not about eating shit...but about gaining your own power through continuous hard work and learning, so that you can fly higher, right?"

"..Yes!"

"it is good!"

"Now, I am a retired economics professor~"

"If you are willing to come and chat with me from time to time, I welcome you!"

"Really? Thank you!"

"Hahaha~ I already told you, stop being so polite!"

"..ok~"

"Then when I come back from London in a few days, I will go to your home..."

Old David and Leslie's grandson sat aside, quietly watching David's happy look, and looking at old Samuelson's smiling and very satisfied look, they couldn't help but look at each other.

Paul Samuelson, as he himself said, wrote countless economic papers before retiring, published many classics, and personally taught dozens of students who have achieved success in various fields.

But after he announced his retirement two years ago, he no longer continued to travel around to attend various meetings, and he no longer immersed himself in piles of books all day long to continuously improve his economic theories. .

Instead, he started to learn to enjoy life as if he were a new person. .

At the end of this summer, after his wife Marion Crawford passed away due to illness, Samuelson Sr. lamented to David Sr. who came to attend his wife's funeral~

"Marion was my classmate when I was a graduate student at Harvard University. She helped me a lot in my early academic research~"

"But before I retired, I couldn't spare much time to spend with her and our six children..."

"This year, my eldest son William also graduated with a PhD in economics from Harvard University and stayed at Boston University to teach."

"So, I plan to stay at home unless necessary in the future, stay with my children and grandchildren, and enjoy the last period of my life, the time I spend with my family for a long time~"

At that time, after listening to his sigh, Old David silently patted his old friend on the shoulder and expressed his support and understanding~

The eldest of the five Rockefeller brothers, John Rockefeller II, also died unexpectedly in a car accident this year.

People often find out what they have missed after losing their loved one. .

Instead of looking for memories in old photos. .

It’s better to spend more time immediately to spend time with your family~