Chapter 653 Stock Market Crash (Monthly Ticket Request!)

As time entered the end of June 1926, stocks had become a hot topic throughout the United States.

From capitalists and dignitaries to vendors and workers, and even homeless people everywhere on the streets, many were talking about the soaring stock prices.

As long as you invest $100, you can earn more than $10 a day. What an exaggerated net profit!

Moreover, the value of stocks has always been compounded. When the value of the stocks held reaches an exaggerated number, the income brought by the rise in stocks will become an unimaginable number.

In fact, the stocks at this time have shown an obvious problem. Since everyone is making money, who is losing money?

Even stocks have to pay attention to a balance. All those who enter the market are making money, so where does the money come from?

But it is obvious that except for some capitalists with backgrounds and strength, others are blinded by such income and cannot think about whether there is a problem behind it.

Because everyone is afraid of falling behind. What they are afraid of is that if they give up this part of the income, others will take away their opportunities and their opportunities to become rich.

Since the end of June, stocks in various industries have been rising continuously, not just in real estate.

Stocks in almost all industries are rising, and anyone who enters the stock market can make a lot of money, and there is no news of stock losses.

In such an environment, all companies are constantly reporting news of profits, adding a boost to the rise of their stocks.

On the rooftop of the New York Mobile Building, two middle-aged men each held a glass of red wine, clinked their glasses gently and took a sip. One of the men smiled and said, "What a good plan, Mark. The US stock market is completely messed up now, and the collapse of the New York stock market should not be far away."

"It's just to complete the above task." The man named Mark took a sip of red wine and said calmly.

"It's really crazy. There are millions of participants in the New York stock market every day. If the New York stock market collapses, I'm afraid these millions of people will jump off the building immediately!" The person next to Mark looked at the people coming and going in the stock market under the building and said with a chuckle.

"It's time to prepare to evacuate, Thomas. The New York stock market can't hold out for long. Such madness is destined to be just the self-entertainment of the common people, and it can't hide from the smart people for too long." Not caring about Thomas's exclamation beside him, Mark finished the red wine in the glass, put the glass on the table beside him, left a command, and walked away.

"Hey, what a mysterious and scary guy." Thomas shook his head and smiled gently, turned around and followed Mark's steps.

Starting in July 1926, several companies with hot market capitalizations quietly evacuated from New York. Because the entire stock market was very hot, the news that the controllers behind these companies left did not become a news.

But this could not hide some of the big capitalists in the United States. Not long after, other big American financial groups also began to evacuate the New York stock market, but the capitalists were very tacit and did not alarm the crazy people. This also led to the withdrawal of capitalists without causing too much impact on the stock market, and the rise of the stock market could still be stabilized for the time being.

It is precisely because the stock market has been stabilized that the withdrawal of some capital has become easier.

The New York stock market is one of the largest stock markets in the world, gathering most of the American companies and factories, and is known as the world's financial capital.

Under the deliberate control of the United Kingdom, the rise of the London stock market is no longer so crazy. This also allowed the New York stock market to surpass the London stock market in a short period of time, and with the crazy May, it became a holy place in the hearts of stock speculators around the world.

In fact, the people were not without panic about the madness of the stock market, but Andrew Mellon, then Secretary of the Treasury, boldly assured the public after the end of the crazy May that there was no reason to worry about the New York stock market, and all the climaxes of prosperity would continue, and any situation could be controlled by the US government.

It was precisely because of the government's statement that the American people chose to believe that the current rise in the stock market was normal.

But is the guarantee of the US government really effective? I'm afraid not.

On July 14, 1926, after the 13th, which Westerners are more taboo, American stockholders thought they would have a bumper day.

But unexpectedly, the New York stock market fell 3% as soon as it opened, and plummeted 11% in one day, reducing the property income of stockholders by more than 10%.

What investors could not have imagined was that this day was just the beginning, the beginning of a complete stock market crash.

Because this day was Thursday, American investors called it Black Thursday, and it was also the best example for stock traders to avoid talking about and admonishing stock traders.

If the news before July 14 was all about the surge in stock markets around the world, then the news after July 14 was all about the plunge in the New York stock market.

Starting from July 14, for three consecutive days, the trading index of the US stock market fell by 37%, and the stock trading volume reached 69 million.

During these three days, the funds flowing into the stock market were less than 22 million US dollars, while the funds flowing out of the stock market were as high as 103 million US dollars, which has proved that those retail investors have begun to panic and are ready to abandon their stocks and exit.

But the question is, is it so easy to exit the stock market now?

Everyone knows that the stock market decline will not end in a short time, so it is impossible to be the sucker and take over other people's stocks.

Take the famous Scott Real Estate Company in the New York Stock Market as an example.

At its peak, the price of more than 200,000 stocks issued by Scott Real Estate exceeded US$77 per share, which means that the market value of Scott Real Estate was as high as US$15.4 million.

But as of July 17, the stock value of Scott Real Estate had plummeted to below US$40, and the actual selling price was less than US$30.

This means that the company with a market value of up to US$15 million has shrunk by more than half in three days, and its current market value is less than US$8 million.

Such a crazy decline in the stock market naturally attracted the attention of the US government. Regardless of the actual reason for the crazy decline in the stock market, stabilizing the current New York stock market is the most important thing.

For this reason, US President Coolidge quickly stood up and publicly stated that the US economy was very good, calling on the public not to worry about stock fluctuations, and that no situation could destroy the US economy and stock market.

But President Coolidge obviously forgot that he had lost the trust of the people, and his speech did not achieve a good effect. Instead, the people's actions to sell stocks became more and more intense.

On the fourth day after Black Thursday, that is, July 18, 1926, the New York stock market experienced another round of plunges. The Wall Street stock market trading index fell by 50 points, breaking the 300-point mark, and was madly rushing towards 200 points.

The continuous plunge in the stock market made many stockholders wail constantly. Their property losses were the greatest, and they almost did not withdraw from the stock market.

The few stockholders who were lucky enough to withdraw from the stock market, the funds they obtained were not even as good as the original investment.

Because of the wave of stock prosperity at the time, a considerable number of people in New York and even the United States invested all their wealth in the prosperous stock market.

Although this brought them unexpected huge income in the early stage, it quickly took away all their wealth when the stock market crashed.

Although their remaining stocks also have a certain value, as long as they cannot be sold, those stocks are like waste paper.

Many American stockholders who could not bear the blow chose to end their lives in various ways, and many criminal incidents were born, making New York chaotic.

Especially in some high-rise buildings, stockholders who lost their fighting spirit would jump down from time to time, and sometimes they would be lucky enough to exchange one for another and take away pedestrians who passed by.

This also caused the New York Police Department to temporarily issue a notice prohibiting any pedestrians from walking under high-rise buildings, and blocked a considerable number of rooftops of high-rise buildings to prevent people from jumping off buildings at will.

Although the blocking of rooftops effectively prevented some stockholders from jumping off buildings, the United States is a country that does not ban guns after all, and it is still easy for people to commit suicide or do something.

The famous Manhattan Bridge and Brooklyn Bridge in New York have become suicide sanctuaries. Every day, hundreds of stockholders who have experienced ups and downs in the stock market jump down here and end their short lives.

There are also more people who choose to give up on themselves, burn, kill, rob and commit all kinds of evil, and set off a new round of zero-dollar purchases in New York and even other cities in the United States.

It is worth mentioning that white people are relatively wealthy in the United States, and most stockholders are also white people.

But white people burn, kill and loot without distinction of race after they give up on themselves, and these white people who have lost their minds hate black people even more.

Black people with empty magazines can be seen everywhere on the streets, which also caused the public security order in New York to plummet in a short period of time. The New York Police Department became busy, but it still could not change the poor situation in New York.

After the crazy May, July, when the stock market crashed, was also called chaotic July by many American media.

Europeans did not gloat for long, and the influence of the New York stock market crash soon expanded to Europe.

Starting from July 20, the stock markets in London, Paris, Vienna, Rome, Berlin and other cities also plummeted, but the decline was not as large as that of the New York stock market.

Europeans who were still eating melons in the last second soon experienced the pain of Americans. Many stockholders watched their property continue to flow away without any way, and Europe was also in chaos.

Watching the news of the constant fluctuations in the European and American stock markets, Arthur understood that one of the most significant events of the 20th century, the Great Depression, had begun.

The impact of the Great Depression was no less than that of World War I or World War II, and the impact on the world economy was immeasurable.

Even if Arthur had made a lot of preparations before this, he could not guarantee that Australasia would be able to survive this crisis safely.

The best way is to always pay attention to the stock market and the situation of the people in Australasia, save the companies on the verge of bankruptcy, and comfort and provide relief to the unemployed people.

In order to ensure the stability of Australasia, Arthur issued a notice in the name of the king, stating that the economy of Australasia was very stable, and because it was far away from Europe and the United States, it would not be affected too much, and asked the people of Australasia to live a stable life.

In stark contrast to President Coolidge's prestige in the United States, Arthur's prestige in Australasia was beyond doubt.

Arthur's announcement and statement were published in all newspapers across the country, and quickly stabilized some anxious Australasia people.

On July 21, 1926, the Australasian stock market remained relatively stable, with an overall decline of less than 0.1%, which is a relatively reasonable number.

On the second day of the fermentation of public opinion, the Australasian stock market rose by 0.3%, which is enough to show that the people have stabilized under Arthur's comfort. At least the Australasians absolutely believe in the government and Arthur.

In this round of stock market crash, it is not only the ordinary stockholders who suffered heavy losses, but also the small and medium-sized enterprises and factories that did not have time to delist.

In the past, some small companies misappropriated the company's funds to the stock market in order to make more profits, and the money was basically not recovered.

Others did not make much money in the stock market, but the market value of their own companies continued to decline after the stock market crash.

The company's market value has decreased, and the public's trust in the company has naturally decreased. After all, there is still a gap between a company with a market value of tens of millions and a company with a market value of millions, even if the two companies are one.

When a company faces a crisis, the most common practice is naturally layoffs and forced bankruptcy. No one will think of actively closing their own company unless it is really necessary.

This also led to a large number of companies affected by the economic crisis, including those in the United States and many European countries, choosing to lay off employees, causing hundreds of thousands or even millions of unemployed people in Europe and the United States overnight.

The worst hit was of course the United States. From July 14 to July 24, the U.S. stock market fell by more than 67.1% in total, and more than $24 billion in wealth evaporated, reaching 23% of the U.S. GDP last year.

The U.S. government had no time to delve into the reasons, because thousands of small and medium-sized enterprises had gone bankrupt in the past ten days, and the remaining companies also announced layoffs.

According to the government's rough estimate, at least 500,000 unemployed people were born in ten days, and the number of unemployed people is still increasing.

Although it seems that the number of unemployed people is only 500,000, can the wages of the remaining people who have not been laid off be guaranteed?

Moreover, the current layoffs are only the first wave, and the companies have laid off employees in a hurry. There will be a second and third wave next.

In order to save their own companies, capitalists will definitely give up the interests of the people and employees decisively.

The third update of 4,000 words, asking for monthly tickets and support!

Today's daily update was successfully completed, 10000/10000 has been updated. Please give me your monthly votes and support!