Chapter 1005

Although the means of policies to stimulate the economy are somewhat crude, they are simple and effective. The markets reacted just after the Vienna government announced plans for a "Circle Railway".

On April 26, 1894, when the Vienna stock market opened, the infrastructure sector led the market by opening 7 points higher, breaking through 20 points in the middle, and finally closing with an 11.6% increase in the sector.

Steel, cement, construction machinery and equipment, banks and other sectors related to railway construction have also rebounded upwards.

Affected by this, the Vienna stock market rebounded 3.62%, the largest rebound since the outbreak of the stock market crash.

Then there is no more. Since the stock market crash broke out, the Vienna stock market has been falling all the way. At the worst time, the overall decline was as high as 74.3% compared with the peak period. Even if there was a rebound, the market index was only 30% of the peak period.

With the market falling so badly, it is conceivable how far the market's confidence has collapsed. There is no way, the free development of the stock market is so capricious.

Relatively speaking, the infrastructure steel sector is not bad. As a mature industry, the ceiling of the market is in front of everyone's eyes. The valuation itself is not high, and it is supported by large post-war reconstruction projects. Naturally, it will not fall much.

After this wave of rebound, it has basically recovered to three-quarters of the market value at its peak, barely out of the crisis.

The hardest-hit area of ​​the stock market crash is actually the emerging technology industry, without the support of performance, just a "good story" to support the market value, once the bubble is punctured, it will fall so that even the mother does not know it.

Fortunately, he put on his vest, otherwise Franz would not dare to go out to meet people now. Technological progress also needs to pay a price, and it is too small to rely solely on the strength of individuals.

In order to speed up the technological development of the empire, Franz chose to let the company go public for financing without hesitation. Scientific research inherently requires luck, so often a project will have multiple research groups.

Catching a sheep to pluck the wool, the light efficiency is too low, which obviously cannot meet the demand. But this is not a problem for Franz. Anyway, there is no Internet these days, so it doesn’t matter if you tell a story several times.

From Vienna to London, technology companies from royal consortiums are listed in all the larger financial markets in Europe. If it weren't for the immature overseas markets, it is estimated that all five continents are pastures.

Although the wool is a bit strong, compared with his peers, Franz is definitely a conscientious entrepreneur.

Different from the high-tech winner-take-all of the later generations, it is just starting now, and you can become a "great company" if you pass the customs on any track.

The only regret is that the success rate is so low. In the past 30 years, the royal consortium has invested and listed no less than 2,000 technology companies, a quarter of which have gone bankrupt, and 70% of the companies are struggling , Only less than 5% of the companies in the end are living a good life.

Just looking at the data, you can see how pitted these high-tech projects are. No way, who made Franz a scumbag in his previous life?

In many cases, when a project is launched, it is an idea in the emperor's head. There is definitely no specific technology, and most of the time there is no concept, and some are only functional requirements.

For example: a food refrigerator that can be refrigerated, an air conditioner that can cool and heat, a TV that can play videos, and a computer that can't understand...

For a series of "high-tech" projects, no matter how many years ahead, Franz just puts forward the requirements, and then the scientists evaluate them. If you can't find a clue and don't know where to start, then package it up and go public for financing.

Anyway, the stories are good stories. Every family needs a machine for refrigerating food, and a machine that can adjust the indoor temperature also has a huge market potential.

As for whether it can be done, when can it be done?

Sorry, but this is sacred scientific research. As long as it can be realized in theory and the story told can convince investors, that is enough.

The final result is very obvious, the more advanced the project is, the worse it will die. Only a very lucky few can stand out. Moreover, a large part of these enterprises have gone astray, and have realized profits by relying on by-products produced undoubtedly.

For example: the refrigerator did not come out, but ice storage technology made a breakthrough; the TV set did not come out, but the movie projector came out first; the shadow of the air conditioner was not seen, but the fan technology was improved...

The lucky ones are always a minority. The vast majority of enterprises have not made breakthroughs in the main business technology, and have not started side business, so they can only rely on continuous financing to survive.

Fortunately, before the stock market crash broke out, there were successful examples, and investors were relatively tolerant of high-tech companies. Including many capital consortiums, they all flicked into the pit.

After all, the high-tech enterprises created by the royal consortium are indeed engaged in scientific research. The financial accounts are also clear and clear. Apart from not making money, it is a proper and conscientious enterprise.

After the stock market crash broke out, it was immediately revealed. Suddenly, everyone discovered what the company they invested in was.

A huge amount of money has been invested in it, and it has not been profitable for several years or even decades, or it is a company that only maintains a small profit. What is it if it is not rubbish?

If it's just like this, that's all. After all, there are still a series of special train technologies, which may be used someday. However, the valuations of these companies are still extremely high, with a price-earnings ratio of hundreds of times, apart from bubbles, they are still bubbles.

In fact, this loss is the result of deliberate manipulation by the royal consortium. Use other vests to allow these companies to earn income from sideline businesses.

If the hole is too big, there is no way to balance the account, or the R&D team is really capable, it will be abandoned and let it go bankrupt.

One patent this month, another technological breakthrough in a few months. Good news emerges one after another, constantly stimulating market confidence. The financing of enterprises is increasing, and the market value is also constantly expanding.

If it weren't for the outbreak of the stock market crash, this game of passing the drum can continue forever. Until one day the technology breaks through, and then it's another story.

It's a pity that there is no if in reality. Now that the bubble has burst, this kind of enterprise without performance support will naturally fall into a mess.

"Cut in half" and then "cut in half", that is only the treatment for the 5% of successful people. The overall decline in the technology sector was more than 80%, and some individual stocks even fell as high as 99.9%.

If the net worth is calculated by market value, after the stock market crash broke out, Franz's paper wealth evaporated at least 8 billion Aegis, which is more than the combined annual fiscal revenue of all countries in the world.

The bubbles that I blow out naturally have to swallow the bitter fruit. Of course, this is only on the surface. If you do in-depth research, you will find that since the outbreak of the European war, the major shareholders of these companies have begun to reduce their holdings.

The major shareholder is still a major shareholder, and only a small part of the shares are reduced. However, it is this small part that can now buy the entire company.

Franz, who has made a lot of money, is not happy now. In the past, I was collecting wool and using other people's money for scientific research, so I don't feel bad when I burn it.

The situation is different now. There is no financing in the market, and these awesome high-tech companies are on the verge of bankruptcy, and they are about to fall into their own hands.

There are only two ways in front of Franz: either to save these enterprises with his own funds;

There is no doubt that neither path is a good choice. "Investment" is easy to say, but it is definitely tears when it is done.

You must know that this is not one or two companies, but thousands of companies want money, and Franz's wealth is so rich that he can't afford such a prodigal.

"The strong man broke his wrist" did not have any losses in the short term, but all previous efforts were in vain. Moreover, with this lesson learned, it will not be so easy to make up stories in the future.

There is no way, the stock market crash came too fast, and as a major shareholder, he couldn't escape at all. What is even more tragic is that during this stock market crash, Franz missed his own property when he was shorting because of his conscience.

A momentary mistake created eternal hatred. Franz, who had missed hundreds of millions, suddenly found himself a poor man.

After hesitating again and again, Franz said helplessly: "Prince Palace, find someone to carefully screen and reorganize all enterprises that have suffered serious losses and failed to produce results.

The remaining enterprises should also reduce expenses, reduce research funding, and develop profitable sidelines as much as possible.

The royal consortium secretly gave these companies some help within its capacity. In principle, we give priority to helping our domestic companies, and overseas companies should abandon them as soon as they need to.

In addition, they sent people to buy the stocks of high-quality domestic companies from the secondary market one after another. It is not far from the bottom of the valley, and it is time to rebound later. "

The stock market that has squeezed out the bubble is just a chicken feather. Compared with the valuations of tens of times and hundreds of times before the stock market crash, the valuations of several times now seem much more pleasing to the eye.

The strong man broke his wrist and cut off some companies with serious deficits. Franz's heart is bleeding, and he urgently needs to buy some high-quality assets to replenish.

Palace Minister Mira Bellon persuaded: "Your Majesty, we have now reached the end of the economic crisis, and we will suffer huge losses due to large-scale bankruptcy and liquidation.

It's better to let these companies transform. When necessary, the consortium can help them create performance and increase the stock price, and find opportunities to throw it to the successor behind. "

In fact, this is why the consortium likes to play with finance. Not to mention the slowness of doing business by yourself, the key is to suffer heavy losses in the event of an economic crisis.

In contrast, playing finance is much easier. "Economic crisis" not only has "danger", but also "opportunity".

It is a catastrophic crisis for ordinary people and enterprises, but it is a great opportunity for financial consortiums.

When a crisis breaks out, you can go short; after the crisis breaks out, you can buy the bottom;

In the capitalist world, an economic crisis every ten years or so is not only the self-regulation of the market, but also the guys behind the scenes who see the fruit is ripe and want to harvest it.

Otherwise, how could everyone not be aware of such a major economic crisis with such obvious signs before the outbreak?

Franz shook his head: "I think you misunderstood, this economic crisis is not so easy to end. Although the bottom is approaching now, the end is still far away.

According to the most optimistic estimate, the empire will not be able to get out of the Great Depression until next year. As for other countries, it depends on their own circumstances. According to preliminary estimates, it will take at least two years to completely get rid of the crisis.

It will take longer for the market to restore confidence and find a new successor. If we don't shut down these loss-making enterprises, our losses will be even greater if we persist. "

Unlike in the past, this time the economic crisis has been artificially delayed. According to the normal economic development of the capitalist world, there were signs of an economic crisis as early as three years ago, but the initial location was in France.

If it wasn't for the outbreak of the European war, the French would be the first to explode. Perhaps aware of the seriousness of the crisis, the French chose to launch a war before the bubble burst.

While the war is diverting the crisis

At the same time, a new crisis was brewing. If the European war had just ended and the crisis was allowed to erupt, then a year and a half might have passed.

Regrettably, for their respective interests, the British and Austrian governments have taken actions to delay the outbreak of the crisis. The bull market has been artificially extended for more than a year, the market has doubled again, and the bubble has been blown to an unparalleled level.

The bigger the bubble, the greater the damage it will bring after it bursts. The Vienna stock market directly evaporated three-quarters, and other financial markets are similar, and the lethality brought by it is far beyond the comparison of the previous economic crises.

Hearing this bad news, Mirabegron's expression changed drastically. The Great Depression, which lasted for more than two years, was as destructive as the Great Revolution of 1848.

If the Holy Roman Empire can't take the lead and promote the recovery of the world economy, maybe the Great Revolution of 1848 will reappear in the European continent.

In a sense, the current European world has a better foundation for revolution than it did in 1848.

The wave of unemployment spreading to all countries, the deteriorating economic situation, complex international conflicts, and hatred among European countries are all hotbeds of revolutionary ideas.

The French, who were unwilling to fail, Spain, which was mired in the war in the Philippines, Portugal, where the monarchists and republicans were about to show their brains, and the Italian states, which had just become independent and were not yet stable, all had the basis for revolution.

As the new boss, the Holy Roman Empire, seemingly majestic, has actually reached a crossroads. Once the wave of revolution breaks out on the European continent, the Vienna government will be in big trouble.

In particular, there is also a Britain that is watching secretly and wants to do things; and the tsarist government that seems to have restrained its edge, but is ambitious.

In this context, if the royal consortium doesn't hurry up and cut the flesh, it may not even have the chance to cut the flesh.

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