Chapter 454

The turmoil in the Austrian financial market is still manageable. Everyone knows that the Russian-Austrian alliance has not broken down, and even if the Russians default on their debts, they will ultimately rely on their allies.

Now the Russian-Austrian talks have reached a deadlock, which is good news to some extent. Something to talk about is always better than nothing to talk about.

Before that, the Russians had communicated with many countries to no avail. Many financial institutions were pitted, and capitalists were forced to choose Jinchan to escape.

Among them, the two financial markets, Paris and London, have the greatest influence. Don't think that if they are enemies, there will be no loans. In the face of interests, capitalists don't care about cooperating with anyone.

The Russians used the proceeds of grain exports as collateral for loans, and no one had any fear in advance that the tsarist government would default. As long as the Russians' grain is sold in, they can receive money.

However, the plan did not change quickly. With the loss of the granary in the Pod Plain and the civil war costing the Moscow region, now the Russians have no grain exports at all.

Land reclamation is physical labor, and the more you work, the more you eat, and the demand for food has also increased.

From the outbreak of the Russian-Prussian War, the Russians stopped exporting agricultural products to Britain and France, and even imported grain from Austria for a while.

The Russians withdrew from the grain export market, and this part of the share was naturally occupied by others. The so-called mortgage of grain export earnings has now become a joke.

It is better to say that the Russians have lost the market and want to return to the market in the future, asking them to help open up sales.

Otherwise, if the grain cannot be sold, what can I use to repay the debt?

According to the current situation, the Russians will not be able to return to the international market within two or three years. Investors can't wait that long, and capitalists naturally play with the Russians.

By directly declaring the company bankrupt, these losses are passed on to ordinary people. When these bonds have fallen to the bottom, they can also control the vests to withdraw them again, waiting to collect debts from the Russians in the future.

Of course, the possibility of debt collection is very small. Compared with the strength of an individual, the gap is still very large, and even a consortium is not willing to compete with a big country like the Russian Empire.

These problems are difficult to solve without government intervention. As long as you think about the bad international relations between the two sides, everyone knows that there is no drama.

Restricting the entry of Russian food, which looks good. However, in the face of interests, capitalists have no integrity.

As long as the Russians are willing to lower the price, the grain capitalists in Britain and France will cooperate to bring in the grain. When it comes to the market, who knows where these grains come from?

If the economic crisis had not just passed, the financial turmoil in Britain and France would be enough to detonate an economic crisis.

The telegraph brought people closer together, and the financial turmoil in London and Paris soon spread to Vienna.

Larger-scale market turmoil occurred, and speculators could no longer do it, preferring to default and pay the Russian debt in advance.

If it weren't for the fact that securities companies have opened the default payment window, and Wells Fargo Securities is buying Russian bonds at a low price, it has appeased the people, and now Austria is also lively.

In Paris, for example, at least 180,000 people took part in demonstrations against the Russians' breach of contract.

Under normal circumstances, there are definitely not as many people buying Russian bonds in Paris, not even with their families.

To Franz's surprise, this scene was also staged on the streets of New York. It seems that the Americans were also tricked by the Russians.

Once again, allies with the Russians are risky. The United States and Russia did not have time to form an alliance, and the Americans were passively recruited.

The worst offenders were not the securities companies, but the banks that undertook loans from the tsarist government. Russian bonds are also the most difficult to sell among national debts, and this sales volume has always been very moving.

Worldwide, one or two hundred million Aegis can be sold, which is the limit. Even if there is a pit, it will not let everyone go anywhere.

Bank loans are different. Although the money lent out belongs to the depositors, it is also the bank's own bad debt.

That's right, the tsarist government did mortgage a mess of taxes, and now the Russians aren't going to cash it.

The tsarist government played a rogue and left the creditors to collect their own taxes. No creditor is so hard-headed that he dares to go to the Russian Empire to collect his own taxes.

Not to mention whether I can receive the tax, even if I do receive the tax, can it be taken away safely?

To test the integrity of the poor and mad tsarist government, no one wants to try this kind of death.

In the face of high interest, banks have not resisted the temptation. Always thinking that the Russians have joined the civilized world and will abide by the rules of the game.

Only ignore that once the tsarist government is poor and crazy, it can do anything, and now they pay a heavy price for it.

Securities companies can get out of their shells, but banks can't follow suit, right? The investment costs of both parties are not of the same order of magnitude, and the social influence they bring is also vastly different.

In this era, there are not many customers of securities companies, and basically all of them started out in the middle class.

Even if it goes bankrupt, it will affect only 1,000 or 800 people. It is a big company that can have tens of thousands of customers.

Not everyone bought the bonds of the Russians, and even if they went bankrupt, it would not pose a big social threat.

Banks are different, and the standards for depositors are not as high. Their customer base is much larger, and once declared bankrupt, it is easy to cause a bad social impact, causing the government

intervention.

Moreover, although the loss this time is not small, it has not reached the point of killing everyone. It's easy to start a bank, but it's not easy to build credit and win over depositors. You can't give up easily.

Now is the last era of the aristocracy. The era of capitalists has not yet come. Except for the two United States, most countries are dominated by the aristocracy.

Including Britain and France is no exception, the aristocracy suppressed the capitalists. It's just that their advantages are not obvious enough. Unlike Austria, Russia, and Prussia, this kind of government is completely dominated by the nobles.

Encountered with a large amount of bad debts, banks inevitably have to shrink their money for a period of time to deal with a possible run on the crisis.

This is undoubtedly worse for securities companies that want to raise funds.

Inside Wells Fargo, Philippe roared: "What? Two percent monthly interest, why don't you go grab it?"

Not all the way, not on a boat. The bank in which Philippot holds shares is also in the midst of a debt crisis with Russia, and now he is too busy protecting himself to be able to save him.

As a last resort, I came to Wells Fargo Bank. For no other reason, the main reason is that Wells Fargo has never undertaken a loan to Russia, and it is also one of the four largest banks in Austria, with strong financial strength.

The account manager Albert said without changing his face: "Sorry, Mr. Philip Potter. This is a high-risk loan, and we must add the risk cost of funds."

A high-risk loan made Philippe wake up from a dream, and hurriedly asked: "Is it still going to be issued at a 10% discount on the loan amount, and the principal and interest are still repaid monthly, and even the first year's principal, interest and interest are deducted. ?"

The account manager Albert smiled and said: "Yes, Mr. Philip Potter. I didn't expect you to know so much about the banking industry. Have you been to other banks before?"

Although Philippe didn't show it on his face, he was already scolded in his heart. After all, he is also a shareholder of a bank, how could he not know this trick?

It's just that when he saw these routines, Philip Potter was very happy. After all, it was used to pit others. Now it's his turn to change his situation.

According to a series of routines, if you can get 60% of the loan, it is God's blessing.

If you are unlucky, you can only get half of the loan with a half-fold discount, which is also a normal situation.

The actual funds in hand are less, but the principal and interest of the debt still have to be repaid in full according to the agreement, and it will not work without a shilling.

Philippe went out the door without looking back. If he borrowed this kind of usury, he would probably work for Wells Fargo in the future.

Instead, he might as well sell his bonds and cash out from Wells Fargo to survive the crisis.

Thinking of this, Philippe was even more depressed. It seems that Wells Fargo Securities is also a subsidiary of Wells Fargo Bank, and there is no way to avoid it.

As for going to other banks, there is no need to dream. Philippe has visited more than a dozen large banks successively, and the conditions given by everyone are similar.

When robbery, banks are all the same. This cannot be entirely blamed on the banks. In the event of a possible run crisis, the risk factor of external loans will increase greatly, and the interest will naturally increase.

As for the so-called interest rate several-point loan, it only exists in theory. In practice, in addition to policy loans, it is difficult for banks to accept such low interest rates.

At this point, naturally, only the meat can be cut. Philippot's funding gap is not too big, as long as he sells the Russian debt in his hand, he can get through the current hurdle.

In this way, although his losses were heavy, the risk was reduced. If he survived the crisis with loans and held a lot of bonds of unknown value, if the Russian-Austrian negotiations fail, he will go bankrupt.

There are still many people who have made the same choice. Basically, they are not financially strong enough, and they have to cut flesh because of the crisis of life and death.

In Schönbrunn Palace, looking at the increasing Russian debt in his hands, the palace minister Mirabellon was in a bad mood.

Yes, this is another trumpet that Franz tossed out. However, the development was somewhat unexpected and became one of the four major banks in Austria.

In the eyes of Mirabellon Palace Prime Minister, this is a high-risk investment, and the current Vienna government has no way to make the Russians fully perform the contract. Now that the acquisition of Russian bonds, the possibility of being able to pay in a short time is almost zero.

If you wait ten or eight years, you will lose money. The time cost of capital also needs to be taken into account.

Franz comforted: "Prince minister, don't worry. These bonds will be paid by the Russians, but not in our hands.

Now you can buy it at a low price, and when it is almost collected, we will sell it back to the Russian Empire. The Russian nobles wouldn't mind making a small fortune.

The big deal is that we sell them at half price, which is also double the profit. Having obtained these bonds, the nobles would not mind taking them to offset their taxes. "

This tactic can only be used once, and once the Russians are prepared to legislate to prohibit the tax deduction of bonds, it will really not sell.

When the tsarist government pays in the future, it will be at least ten years later, and the full payment cannot be guaranteed. For such a long time, Franz didn't know what others thought, he couldn't wait anyway.

After listening to Franz's explanation, the palace minister Mirabellon fell into a sluggishness, which was completely beyond his imagination.

He originally thought that Franz had inside information and could use his personal connections to let the tsarist government pay the debt first.

Unexpectedly, the method is so rude, directly using the greed of the nobles to solve the problem.