Chapter 456 Greedy Speculators

In the final analysis, the stock index is confidence. When confidence plummets, the stock index plummets, and when confidence surges, the stock index surges. Therefore, the bleak stock market can only indicate that confidence in the country has plummeted. From the insights gained from Blair, Sheffield can easily see that some big guys have been drawn into the vortex.

Whether they are in the vortex or outside the vortex, both types of financial institutions are saying that the situation is not just good but very good. They are either looking for ways to escape or helping to cover up to prevent themselves from being affected. It would be even better if they could trick some "leeks" into coming in to take over.

In the early 20th century, citizens lacked access to information, so news spread slowly. This also had its advantages, which was that the abnormal information of the stock market was delayed. If a slow decline of 8% was seen a hundred years later, it would be discovered almost immediately, but today's stockholders have not yet noticed anything unusual.

In other words, the stock market has actually entered a downward track, and it just lacks an explosive piece of news to turn the slow decline into a stock market crash. Before the iceberg was loaded, Sheffield finally realized the danger in the unclear context.

"Boss, we'd better not get involved." Blair was still giving advice to new employees during their probation period.

"Of course!" Sheffield agreed loudly, using this affirmation to express his attitude. For the companies and financial institutions that are about to be swept up in the vortex, the slave owners' attitude is that we will give them all the support except help.

There are always financial institutions that don't believe in evil. Only by staying away can you see the overall situation clearly. At this time, any history and experience are useless and will hinder decision-making. Just like the Soviet Union under Gorbachev's leadership will collapse, even if there is a decline, the United States is facing a formidable enemy. It is impossible to have such a stupid enemy. This is not the country that almost strangled me in the 1970s. It must be brewing a shocking conspiracy.

The Soviet Union collapsed, and the United States realized that some people were really so stupid that they looked at the Republic with expectations based on the Soviet Union's experience.

Many financial institutions in New York today have the illusion that they can do it. They overestimate their own strength and believe that they will definitely find citizens to take over. This idea is no different from taking a gamble. The stock market itself is gambling. These financial institutions consider themselves to be the dealers, but even in gambling, the dealers cannot win 100%.

The British ban, the loss of gold, the slow decline of the stock market, and the impending issuance of new debt due in New York Treasury bonds - if these conditions occurred at the same time in the same year, it would not be incomprehensible that problems would arise.

Sheffield made an important decision in front of Blair, "I am now really ready to have a good talk with your old friend Mike with sincerity."

"Why?" Blair was stunned, but immediately realized that he could not believe anything unless it was officially denied. This was the unspoken rule for people working in the financial industry.

But at this time, Sheffield had a serious talk with Mike? This purpose must be not simple. He did not believe that Sheffield would save Knickerbocker Trust and Investment Company. While he was still thinking, Sheffield had already left with a sentence, "United Bank is the healthiest bank in the country, because it can do almost nothing except depositing and withdrawing money. But it should become different in the future. Blair, don't you want to return to Knickerbocker Trust and Investment Company? For example, become the head of the new trust company at that time?"

"That way, you can truly prove yourself right in front of Mike in a gentlemanly yet strong manner." When the last sentence reached his ears, the slave owner had already walked a long way away.

Blair stood there in a daze, lost in deep thought, and finally smiled and shook his head, "Yes, boss."

"What do your employees want to see you about?" Edith Rockefeller seemed to be looking forward to it. It was hard to imagine that this wealthy woman with strange behavior in history would become gentle now.

"In short, the situation is very good." Sheffield thinks that this is related to the fact that Edith Rockefeller has never done anything personally. Historically, Edith Rockefeller wanted to preserve her surname and wanted to share the dominance of the company with her husband. But in fact, she did not get the dominance of the company and was in a state of being a strong talker.

The slave owner met Edith Rockefeller, who fully supported her business. Thinking is one thing, doing is another. Being busy every day, Edith Rockefeller did not pursue independence so much. Just like a bird in a golden cage, enjoying a fixed meal, and wanting to regain freedom, but finally regaining freedom, she found that it was not so easy to endure the wind and rain.

Whether it is really about to hit an iceberg, or whether some financial institutions can successfully cover up and successfully deceive the leeks into entering the market to take over and cash out, it will determine whether New York can successfully issue public bonds. If it is subscribed in an instant, it means it is a false alarm. But if the purpose of public bond fundraising cannot be achieved, it means that the situation is very serious and there is little money left in the market.

The question was whether there were other forces behind the Knickerbocker Trust and Investment Company. The slave owner began to investigate the circle of New York bankers and actually found some people. The Knickerbocker Trust and Investment Company included speculators Heinze and Morse. At the same time, many small banks, foundations and other trust companies in the New York metropolitan area also had shares of the two. These banks, foundations and trust companies, hiding behind the Knickerbocker Trust and Investment Company, formed a powerful financing network.

The one charging in the front was Mike from the Knickerbocker Trust and Investment Company, and the two of them were supporting and shorting United Copper Mine from the back. After figuring out the relationship between them, Sheffield finally understood why the Knickerbocker Trust and Investment Company relied on its strong financial resources to deal with him.

The cash flow of 60 million is just a deposit on the books, and how much of this cash flow is left now? Is it all stuck in the stock market? The slave owner thinks it is very likely. The copper price is not as profitable as expected, and the other party is ready to give it a try, push up the stock price and let people take over, cash out and leave.

What kind of business is the most attractive? Of course, monopoly. This can be seen from the Standard Oil Company. The Rockefeller family claimed that 90% was not enough and they wanted to achieve 100%. What is their status in the United States now?

If they could form a copper mine monopoly, they would not have to worry about attracting private capital to take over. In this way, the Knickerbocker Trust and Investment Company and the speculators behind it would be considered successful. However, the copper mines currently controlled by the Knickerbocker Trust and Investment Company were not a monopoly at all. In terms of share, they were only about the same as United Mining.

If Sheffield were in the other party's shoes, he would think the risk was already very high. This kind of guess is an underestimation, because a speculator generally does not only carry out one project, and the bigger the speculator, the less likely he is to do so. People who like to focus on a stock project are generally called leeks.

If there are other projects that have trapped the funds of these speculators, if there is any disturbance, it will be a complete collapse. Once a stock market crash occurs, the more projects you invest in, the greater the loss.

After careful consideration, Sheffield took the initiative to express his desire to talk to the Cobber Trust Investment Company. This time, Sheffield acted as if he was ready to sell at a good price, saying that minerals, especially copper mines, were not indispensable to the United Company, and that they could be sold at a satisfactory price.

McAnn suppressed his excitement. It was so easy for a boss who ran a business without technical content to be deceived. But he thought for a while and said, "I will send someone to inspect the copper mines in Arizona and make an assessment."

Simply put, it is about following procedures, but this is exactly what the slave owners want. Following procedures is good, and insisting on procedural justice ultimately leads to an unjust result. Isn't this very consistent with the national conditions?

Sheffield showed a fleeting reluctance, then nodded and agreed without changing his expression, "Okay, it's better to be cautious."

The latest novel is published first on Liu9shuba!

Sheffield turned around and gave Jimmy, the head of United Mines, an order to delay the process and go through all the necessary procedures. Although he didn't know much about financial knowledge, he knew a basic truth as a slave owner: no matter what the matter is, procrastination is not good. If a minor illness is delayed until it becomes a major one, it will be too late.

But in the United States, where the more money you spend, the more honest you are, and the more you procrastinate, the more efficient you are, this is very normal. When Sheffield, Mike, and the speculators behind him decided on the acquisition, the news spread, giving the stock market, which was falling a little bit every day, a boost and aroused great expectations. Many stockholders fantasized that the scene of the listing of the US Steel Company would reappear and make them a fortune.

Almost at the same time, New York announced the issuance of new bonds with a total amount of 29 million US dollars. The subscription period was within one month. The key event mentioned by Blair had arrived, and Sheffield paid close attention to the subscription of the bonds.

If the target of subscribing to US$29 million of government bonds fails within a month, there is no doubt that a financial crisis will inevitably come.

In Arlington, sufficient funds have been prepared, and once the financial crisis breaks out, it will be time to reap the rewards.

In the desolate Gobi Desert of Arizona, people from United Mining brought a trust company that came to inspect to evaluate the selling price of the copper mine. In the stock market, the rising stock price due to this good news made United Copper Mine a star in the stock market.

If the Nickbok Trust and Investment Company had chosen to stop at this time, it could have saved itself, but no one in the Nickbok Trust and Investment Company chose to do so. The idea of ​​rushing to the top and making a fortune occupied everyone's mind.

"It's a technical adjustment, it will definitely go back up!" Seeing the stock price of United Copper Mine rising, but no large amount of cash was taken out, Sheffield knew that the shareholders of Knickerbocker Trust and Investment Company could no longer restrain their greed. How could I do that? What a greedy speculator.

Before this financial crisis in history, New York did fail in issuing public bonds.

(End of this chapter)