Chapter 464 Let's Die Together

Looking at the former director of a trust company, Mike suddenly stood up and said with spit flying, "It turns out that you have already joined our enemies. You are the culprit of all this. You will go to hell."

"For the sake of our former colleague, please calm down now." Blair took out his handkerchief calmly. He was mentally prepared for everything that might happen, so he was not panicked when facing Mike's rage. He endured Mike's accusations with an expressionless face. In the deserted office, only the pieces of paper scattered on the ground witnessed everything.

Blair waited until Mike calmed down completely before explaining, "After I left the trust company, it was the boss of United Company who came to me. You, President Barney, and several major shareholders like Morse all underestimated my current boss. Even if all the mines of United Mining were sold to you at your price, you still couldn't afford it. This was the first time I met the boss, and he told me in person that your speculative behavior had been seen through."

"Mike, you just said that the trust company was attacked by the bankers. My boss couldn't do this with the financial power in his hands through public opinion and the clearing center. Boss William just watched all this happen. If there is any fault, it can only be said that the fault is that he didn't remind you. But then again, why should he remind you? Adults should be responsible for their own choices. When I was still in the company, I reminded you that this speculation was very risky. Did anyone listen to me?"

As time goes by, when the speculation on copper prices was mentioned again, Blair no longer had any extra arguments and seemed very calm. The result of who was right and who was wrong in the argument that day is now obvious. The Knickerbocker Trust and Investment Company has gone bankrupt and become history.

Mike, the former executive director of Knickerbocker Trust and Investment Company, closed his eyes in pain and collapsed in his chair. Although Blair did not mean to blame him, it was a cruel thing for him to see a trust company with 60 million in cash being destroyed in just a few days. Even the related investment banks controlled by Heinze and Morse were affected and bank runs occurred. A major force on Wall Street just disappeared like that.

From a multi-millionaire to bankruptcy liquidation, along with more than a dozen banks and shadow banks around New York, all were uprooted, and all this took only a few days. It was a nightmare that could not be recalled.

"Tell me your purpose? Blair, your boss must have something to tell you and asked you to come here." Mike lay weakly on the table. He even lost the strength to support himself.

"I want to meet with Mr. Barney, the president of the trust company, as well as Mr. Heinze and Mr. Morse. We have important matters to discuss." Blair stated his purpose. "Although I don't know how many forces are targeting the Knickerbocker Trust Investment Company, my boss and others have different goals. If communication goes smoothly, you may not lose too badly."

Things have turned out like this and Mike has no choice. Even if he knows that the other party is taking advantage of the situation, what can he do? He can only nod and agree, and take Blair to find a few people who are also in trouble.

The situation in Chicago was different. The Chicago Clearing House responded quickly and lent a helping hand to the trust companies that were hit by the run. It also mobilized the reserve funds of member banks to rescue the troubled banks and trust institutions. At the same time, it issued clearing house loan certificates to ease the tight money supply and took measures such as suspension of business to protect those banks that were unable to cope with the run of depositors.

This was the answer that the Chicago Clearing House came up with after Edith Rockefeller opposed the Chicago Clearing House. If things ended here, the Chicago Clearing House's actions would have worked, provided that the run would not spread from New York to the whole country. How could this be possible? The slave owners strongly opposed this.

Blair has seen several financial giants who have been defeated. Just a few days ago, they were all powerful financial giants, but now their assets are waiting to be liquidated, and their stocks are waiting to be automatically delisted. At that time, they will become ordinary people again. Although they will not be penniless, if they cannot withstand the blow, it is not uncommon for people to commit suicide because they cannot accept the gap in life.

Barney, the president of Knickerbocker Trust and Investment Company, and Heinze and Morse, who controlled many banks, were like defeated roosters at this time. They no longer had their previous arrogance, and even their willpower had collapsed.

Before this conversation, stock prices were falling like mercury, and the stock market plummeted to new lows. The stock market crash showed one thing, that the current economy is not only bad, but also has a very serious liquidity crisis. The liquidity crisis simply means that everyone has no money on the books. Maybe a rich man has a hundred houses, but only a thousand yuan in cash on hand. As the thousand yuan is spent, the billions of wealth claimed by the rich man are just numbers and cannot be converted into his actual value.

Then as his expenses increase, he has to sell his houses to maintain the cash flow, but when he sells his houses, no one else can sell theirs, so his houses have to be sold at a discount, then his wealth will likely drop from an estimated billions to hundreds of millions or even tens of millions.

The plunge caused huge losses to all financial industries such as banks, funds, trust companies, futures companies, etc., and these losses were transmitted to banks and the public in the form of leverage. Therefore, in order to ensure that these financial companies do not collapse completely under the huge losses, all large companies must sell off all their gold, silver and other futures that they had invested in for value preservation in the past, in order to maintain the leverage losses on hand and prevent a collapse so that they can remain strong.

This is the fundamental reason why safe-haven currencies fell instead of rising when a global crisis broke out. It's not that the crisis is not big enough, but that it is so big that no one has money to invest in gold. Everyone has to sell gold to maintain their cash flow to survive the crisis. It's a bit like when a real famine and war occur, the landlord's land and gold are not as good as a bun in the hands of a farmer. Before the crops on the land grow, the landlord may starve to death.

But this does not include slave owners. Since the bubble was at its biggest, Sheffield has been constantly cashing out and intercepting gold and silver from the minerals in his hands. Although Sheffield never believed that silver was valuable, it is very valuable at special times. At the end of the First World War, the belligerents had exhausted their gold reserves, and later they had to make do with silver. But he must wait for a major economic crisis to come. If it is not big enough, silver will have no value.

"The collapse of Knickerbocker Trust and Investment Company will send a signal to the public that some local crises are threatening the entire financial system. This is my boss's judgment." Blair nodded to these former...financial giants, then changed the subject and said, "Now? Dear Mr. Barney, Mr. Morse, Mr. Heinze, you have two choices now. The first is to consider the overall situation, admit defeat, leave the casino in a cool manner, and become an ordinary citizen from now on, forget all the past glory, and just treat it as a dream."

“Forget the mansion, the fine wine, the big villa, the admiration and respect you received in the past. Use the few assets you have to buy a piece of land and live the rest of your life in peace.”

"As for the other option?" Seeing that everyone was looking at him intently, Blair didn't keep them in suspense and spoke directly, "Instead of being cleared out by those bankers, it's better to make a big deal out of it, to make it big so that all citizens know that the current banks and stock markets are indeed high-risk and in a very unhealthy range. Every bank has a lot of junk debt, so let this run spread across the country, let the winners know that they didn't win, and let everyone go bankrupt together and return to the same starting line."

One choice is to be great enough to die by yourself, and the other choice is to die together. In fact, with the current situation where several people are actually bankrupt, it is not easy to speak. Whether it is Heinze or Morse, the volume of their voices is definitely not as loud as before. This is because the Knickerbocker Trust Investment Company has just gone bankrupt. If the New York Consultation Center completes the bank liquidation in a few days and the stocks in their hands fall to the point of delisting, they will no longer be qualified to speak.

Given the current situation of Heinze and the others, it was not necessary to think about what choice to make. Moreover, a man received an order from the slave owner and came up to persuade them, "My boss is willing to take over your stocks at one-tenth of the previous price. The United Copper Mine, which was 60 yuan, has now fallen to 8 yuan. At the current price, you will not lose money."

It was not a loss at all. When the Knickerbocker Trust and Investment Company bought the copper mine from Sheffield, the United Copper Mine was already worth thirty dollars. At the height of the bubble, the stock of the United Copper Mine had reached sixty dollars. And it also included all the banking institutions under the Knickerbocker Trust and Investment Company.

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"Gentlemen, don't think you've lost out. The most lacking thing in the country right now is cash. Maybe in half a month, the cash you get from selling stocks can be used to make more mergers and acquisitions when other banks go bankrupt and stocks plummet." Blair said, "Besides, my boss is a kind person. He only wants a relative controlling stake and has not kicked you out. The joint company holds 51% of the shares, and you can divide the rest. Isn't it great for everyone to make money together?"

At this time, Blair demonstrated his excellent professional ability and put himself in other people's shoes to help them analyze the pros and cons.

"Okay, then we all die together!" Heinze, who had used up his last bullet, looked up and made his own choice.

(End of this chapter)