Chapter 448: The Mathematical Genius of Mr. Lafayette
"The manager of United Mining is Jimmy. Tell him not to stop us. We may work for the same company in the future. Don't ruin our current relationship." Sheffield's smile was as bright as a summer flower. He shook his head as he walked and said, "Check if Knickerbocker Trust and Investment Company has made any moves recently, especially personnel changes in the past three months. If there are any, tell me immediately."
The current financial industry in the United States is a big bubble, no less severe than the subprime mortgage crisis. Moreover, there is no Federal Reserve to step in to rescue the market, and there is no regulatory agency. This is better. It is a free market and also a free battlefield.
Moreover, the current United States stock market does not have any circuit breaker mechanism. If panic occurs, a large company with a market value of over 100 million yuan can disappear in an hour without having to wait until the next day.
The role of Knickerbocker Trust Investment Company, like Lehman Brothers in the subprime mortgage crisis, became the first domino to fall. After the collapse of Knickerbocker, banks had a strong distrust of the trust industry and demanded that trust companies repay their loans immediately. Trust companies, which were being asked to pay back their loans from both sides, had no choice but to borrow money from the stock market, with the interest rate rising to a sky-high 15%. At the same time, panic caused banks to be reluctant to lend, and liquidity in the US market stagnated.
In just ten days, the cash shortage spread across the country, filtering out all banks like a big filter.
"The stock of the New York Knickerbocker Trust Investment Company is fifty-two dollars a share. Look, we have a very powerful opponent." Sheffield quickly found out the strength of his opponent and winked at Evelyn. He had already estimated the price he could take over. If the price was two dollars and sixty dollars a share, he would be willing to become the new boss of the company if the trust company agreed. "If they pay now, I can even consider selling them a few mines. Don't you like to use physical companies as carriers?"
"William, you mean there will be an economic depression!" Even if Evelyn didn't know all about Sheffield's preparations, she knew that the United Company had been tightening its cash flow since last year, crouching in the grass like a wolf.
Obviously, this company that took the initiative to come to her door had attracted the attention of her man, and this attention was definitely not well-intentioned. Evelyn couldn't help but worry about this confrontation, and the reason was naturally what the slave owner said, the giant in the United States Trust Company.
"Don't worry. Once an economic depression occurs, there are two things that are most useful: cash and a basic factory. My company covers such a wide range of industries that I can absolutely reduce the cost of each link to the lowest level so that we can seize the market and survive. Besides, I personally don't care about profits. Even if there is only one company left in the country, I believe it is mine. This is the binding of the conglomerate model. My company will only be defeated as a whole and will not be defeated because of one link." Sheffield also reassured Evelyn and explained the key.
In fact, it is similar to the prime minister's iron chain boats in the Romance of the Three Kingdoms. Either the whole army is wiped out, or nothing happens at all.
"I want to withdraw the funds from the foundation! What if it's difficult to fight back? The more preparations the better." Evelyn was still frightened by the appearance of the Nick Burke Trust and Investment Company and wanted to help her man.
"No, our family's most valuable asset is not in my hands at the moment." Sheffield shook his head. "You should keep the foundation's money. It's useless. When the day comes when I jump off the building, maybe the foundation's money will make me give up the idea of ​​committing suicide."
"Don't talk like that. In fact, you can do nothing and buy at the bottom afterwards. Just don't be greedy." Evelyn got anxious when she heard Sheffield joke about jumping off a building.
"It's not that I'm greedy, it's those people in the financial industry who are too greedy." Sheffield corrected, "If they weren't greedy, this economic depression wouldn't have come. By then, they would have discovered that bonds and stocks are just pieces of waste paper."
The money in Evelyn Charity Foundation cannot be touched. This money is not a big sum in the days ahead. Also, what Sheffield said is true. The most valuable part of the Sheffield family is no longer in his hands. Instead, it is in the hands of the old Buddha. For the upcoming confrontation, he must find an opportunity to communicate with the old Buddha. As long as the communication is smooth, it is halfway to success.
Sheffield was in a good mood after discovering the key to the economic depression, the Knickerbocker Trust Investment Company. He only needed to focus on the source of the economic crisis. Even the upcoming midterm elections were not important in the eyes of the slave owners. The midterm elections were held every two years, and if they lost this time, they would win back next time.
It is just to serve as a reference for the real national election, to use the next two years to discover problems and to prepare for the real decision of who has the final say in the country in the next four years.
"Evelyn, take Alice around California. I have to go back to Arlington now." Sheffield pinched Evelyn's chin and said, "Don't worry, I'll be back soon."
"You're going too far!" Evelyn went straight into the slave owner's arms and complained, "You're just a bad guy."
"The United States is a land of freedom. We certainly welcome any business to develop here. The more capital flows in, the better it will be for our industry."
Jimmy, the manager of United Mining, who had received his boss' instructions, expressed his friendship to the manager of United Copper Mine Company, but immediately changed the subject and said, "We have a harmonious relationship with the local Indians. If there is any instruction, it is that if you see an Indian wearing this armband, don't be violent!"
Then Jimmy took out a piece of clothing with the Black Gold company logo and explained, "These are our Indian employees. If there is a conflict, even though we are all white, we must give an explanation to our employees. Please remember this, and there will be nothing else."
The person who came over on behalf of the United Copper Mine Company took a look at the armband and said in a gloomy tone, "Dear Mr. Jimmy, I must say that this armband is very ugly."
"Maybe!" Jimmy looked at the other person meaningfully and said, "I just hope that we can live in peace."
"I just hope that everyone can live in peace!" At the headquarters of the Nick Burke Trust and Investment Company, Mike described the attitude of United Mining to the directors present in a vivid and strange way, causing laughter.
"Like I said, gentlemen!" After he finished mocking his opponents, Mike stopped smiling and continued, "For speculators, the New Mexico region is a virgin land waiting to be developed. Inspired by the dream of getting rich overnight, no force can stop them from exploring. In my opinion, the attitude of United Mining is nothing more than a weak clamor. Even a company like United Company cannot go against the wishes of speculators across the United States."
"Good, good!" The praise from other directors made Mike feel the feeling of a hundred responses. He did not interrupt directly, hoping that the praise would last longer.
"The market is so hot that we don't have to worry about sales. As long as we work, we can make money. What a high-quality asset. Just like the steel industry." Mike said with temptation in his voice, "This is a very, very good opportunity. What are we waiting for? Let's get started right away and acquire small companies other than United Mining first."
Sheffield did not pursue absolute monopoly in any industry. Even in the automobile industry, he supported several car companies to pretend to compete with him. In fact, he also held a lot of shares in some copper mines in New Mexico, but they were not owned by the United Company. This environment of pretending to compete obviously gave the United Copper Company an opportunity.
Sheffield, who hadn't even had a chance to catch his breath when he arrived at Arlington, received news that the United Copper Company had acquired the mine. He sighed and said, "How can this be so embarrassing? I've made a fortune before I even started. It's really embarrassing."
Of course, the slave owners must have a share of the acquired mining shares. Seeing that the malicious Nick Burke Trust Investment Company was self-confident and powerful, it gave them a share at the beginning. This kind of operation can't help but make people respect it. If you don't accept it, what if the news spreads that people think you look down on them? So, you must accept it.
Sheffield returned to Arlington Manor and naturally went to talk to Mr. Lafayette. Annabelle watched the heir's performance quietly and asked slowly, "Are you 50% sure? If so, just do it."
Sheffield, who was about to talk endlessly, was speechless for a moment and smiled bitterly, "Grandma, aren't you worried?"
"What are you worried about? If you are 50% sure, plus my 50%, isn't that 100% sure?" Annabelle said with a strange look on her face. "Didn't you come back to ask if there would be any problems at home if you took out the money to fight? Come with me to the bedroom left by your grandfather."
"Oh!" Sheffield had a feeling of awe. Looking at the old man's mathematical ability, what he said made so much sense that it was simply irrefutable. However, he did not dare to say much. He followed Annabelle to his grandfather's bedroom, which he had visited only once when he got married.
After locking the door, Annabell took out a bunch of keys from her waist and asked Sheffield to move the bed. A locked secret door appeared in front of the two of them. When the slave owner saw this scene, he suddenly felt that this was an extraordinary day.
(End of this chapter)
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