Chapter 452: The Economic Situation Is Good
When the whole country is on the brink of a cliff, someone needs to bravely step on the accelerator! This is what Morgan wanted to say to his heir. Morgan Jr. hesitated and asked, "So the financial market needs to be regulated now, and the federal government is the most suitable? Otherwise, the domestic economy is likely to have problems next."
"Kid, you misunderstood me. None of our colleagues want the state to regulate them." Morgan shrugged. "We can't investigate everything, right? What if we find out something? If someone succeeds in doing something, he's a hero. If he fails, he must have tried his best. If he doesn't come back, no one will miss him. Everyone thinks this way, so why should we take the initiative to speak up?"
"If there is really a problem, it is that cash is king!" Little Morgan nodded and finally said something truthful.
"Oh, kid, you finally got the point. In times of crisis, whoever has more cash will be the king. Also, whoever has a stable industry will survive. Among these domestic companies, there are currently two companies that are both large-scale and extensive, Standard Oil and United Oil, and the smaller DuPont Consortium. In fact, the DuPont family's industry is the most stable, and they have never been interested in the financial industry." Morgan agreed with the heir's statement and said, "Now no one needs us to calm them down, and they can't calm down. But when that day comes, they will kneel in front of us, wearing expensive dresses but without even a penny in their pockets."
In the Rockefeller Manor, after listening to his son's idea, Rockefeller rejected it very straightforwardly, "I don't agree to enter a particularly hot field. Although I have no friendship with Morgan, I know a basic logic. The banker who always takes advantage of the economic crisis to buy at the bottom has not moved, which means that this kind of heat is abnormal."
"But now is the time when we can make money by reselling it!" Rockefeller Jr. said with a bit of regret, obviously he had not given up yet.
"Don't be fooled by short-term figures. Business is nothing more than buying and selling. The sudden enthusiasm is abnormal. And I can predict now that this enthusiasm for quick sale will continue for a while, and eventually no one will be able to take over." Rockefeller said indifferently, "No one is willing to take over. It can only mean one thing: the citizens have run out of money. In this case, don't think that the powerful top business leaders are fine. Once they are blinded by greed, the foundation will collapse, and the magnificent high-rise will collapse with it. It will only take a moment for a powerful company to fall."
Old Rockefeller put a stop to his heir's thoughts. It's okay to make money, but never in this way. This method is only suitable for people who have nothing to lose. A businessman can be incredibly bold when he starts out, but once he has a huge business, it's absolutely not okay to do this.
"I understand, father!" Rockefeller Jr. admitted his mistake very sincerely, saying that he was too greedy.
As for the DuPont consortium, the current popularity has not caused any discussion at all. If the mineral prices rise, then just increase the mining efforts and sell them. As for taking out money to join in speculation, this is absolutely impossible.
The DuPont family is worthy of being the most hated company in Sheffield's heart. It is just like the Qing Dynasty before the European Industrial Revolution. It seems to be nothing, but it is really hard to deal with.
"People usually have three choices when facing a disaster: becoming a loser or a lucky person, or the middle choice of pretending it didn't happen and not getting involved. But in fact, when faced with such an opportunity, once citizens feel it is an opportunity, the option of not getting involved is completely unacceptable. Losers and lucky people actually bring the same result to most of the participants, that is, becoming a member of the huge army of losers. So it seems there are three choices, but in fact there are only two." Sheffield sighed to his wife while taking a walk, "The company I hate the most is DuPont. I really can't do anything about them, at least normal means are useless. I can only let the Democrats come to power and then find an opportunity to deal with them."
"Grandma has always wanted to avenge her husband, and there's nothing wrong with that." Anne showed great appreciation and said, "This is not a reasonable thing to do."
Everything in New Mexico increased in price rapidly in the capital frenzy. It was not just the Sheffield minerals, but almost all domestic minerals, whether they made money or not, whether they were rich or poor. Even if your mine was right in the middle of an uninhabited area, except for the gray wolves and the growing weeds along the way, there was no possibility of seeing any other creatures along the way.
There will always be buyers for minerals that have no chance of making a profit, and there will be people willing to buy them at a high price, because the person who buys them believes that there will be a bigger fool who will buy it at a higher price.
Once speculation attracts the attention of the entire citizen class, the power it brings is unparalleled. This reminds the slave owners of the tulip bubble, which originated from a historical event in the Netherlands. It is known as the earliest recorded speculative activity in human history. Dutch tulips once caused an extraordinary frenzy in the flower market. Tulip bulbs were in short supply and prices soared. The Dutch tulip market had become a disorderly gambling pool for speculators to stretch their hands.
Judging current speculative behavior from the tulip bubble is definitely not a correct conclusion. Sheffield remembered that the tulip bubble lasted for more than three years in the Netherlands before the game of passing the parcel suddenly collapsed.
The United States has nothing in common with the Netherlands in terms of population and area, nor in the development of other industries, so there is no comparison.
But there is a solution. Although Sheffield does not have particularly outstanding financial talents, it can still complete the basic work, which is to observe the flow of funds in the stock market. Once the flow of funds shows signs of stagnation, it means that the early symptoms of a money shortage have appeared.
One hundred years later, if there is a money shortage, the Federal Reserve will open the floodgates to release money as a routine operation, but there is no Federal Reserve in the United States at present, so opening the floodgates to release money is not possible. Therefore, the outbreak of this financial crisis will definitely spread very quickly from the financial industry to any other industry, and opening the floodgates to release money is not a chicken blood.
In fact, even the directors of the Knickerbocker Trust Investment Company, which caused the trend, knew that this trend would not last, but they felt that with the strength of their company, it would not be a problem to reap a profit and get out of it. In fact, it was blind self-confidence that led to one of the three major illusions in life: I can do it! I am not an ordinary person.
When you were 18, you thought that by the time you were 30, you would be a very powerful person, either very talented, or a successful entrepreneur, or a big shot in a certain field, or at least a glamorous executive. You would achieve financial freedom early, travel around the world, buy a house and a car, have a happy family, and have two sons and two daughters.
But the reality is that when you are thirty years old, you are doing a job that is neither interesting nor worth giving up. You dare not talk about love and cannot afford to buy a house. The director of the Knickerbocker Trust and Investment Company is just trapped in a high-level version of "I can do it".
Even the Knickerbocker Trust and Investment Company and the financial institutions that entered the market one after another think so. Then the insider information and so-called connections that ordinary citizens pin their hopes on are actually just ordinary employees of these financial institutions, or senior employees at best. These so-called senior employees, the "Wolves of Wall Street" in the eyes of citizens, are just ordinary people in major financial institutions. They can only receive information from higher-level directors and are just ordinary people in the eyes of financial tycoons.
Moreover, once they reach a position that is out of the citizen class but still unable to access the upper class, the hearts of senior employees at this level are no longer with the citizen class. Sheffield once said that the most important quality of every employee who is trained as a key employee in the company is to climb up by stepping on competitors. These people will only be loyal to their boss and will not even look at people at a lower level.
Led by the illusion that many financial institutions can do what they want, the blind citizenry handed their money to speculators.
There are also many good news from the outside. The reconstruction of San Francisco is in full swing. Outside, the Great White Fleet is circling Latin America. The strong naval strength has played a good role in promoting national prestige. After several months of sailing, it has brought great prestige to the United States. The media also highly praised the navy's navigation.
This was reflected in the stock market, with shipbuilding and derived steel and other metal stocks rising. When the Great White Fleet arrived in San Francisco, San Francisco had already recovered from the earthquake and was beginning to show a prosperous appearance.
At this time, a major news came from the New York Stock Exchange that the United Copper Company was officially listed. This enterprise, established by the Knickerbocker Trust Investment Company and operated according to the template of Morgan's establishment of the United States Steel Company, became a star in the stock market on the first day of its listing and attracted the pursuit of many capitals.
Sheffield arrived in Los Angeles humming a little tune. He came to see Alice Roosevelt off on board, which caused the latter's dissatisfaction, "Do you seem particularly happy?"
"Of course I'm happy about the economic prosperity. Who would complain about a good life?" The slave owner fully demonstrated that the situation was not just good but great. He thought he should celebrate before Alice Roosevelt left. He whispered, "Baby, I missed you so much during this period."
"You bad guy, you're taking advantage of me again." Although Alice Roosevelt said this, when she thought about the several months of sailing at sea, she really needed some nourishment, so it might as well go crazy before leaving.
(End of this chapter)
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