Once the crisis begins, the word confidence will become an important index. When you lose confidence in the economy, everything, whether good or bad, will become worse and worse. In order to boost people's confidence, in order to save the economy from falling
Stock Market, Thomas W. Lamont, JP Morgan, National City Bank
Chairman Charles E. Mitchell, New York Stock Exchange President Richard Whitney and several other bankers gathered in JP Morgan's office for a meeting and then raised $250 million for a bailout, but
It had no effect. Five days later, $25 billion in assets had disappeared from the stock market.
Finally, the brokers who lured you into the stock market will constantly notify you, asking you to deposit hundreds or thousands of dollars in your account within xx days, otherwise your account will be emptied. At this time, most
Small investors who borrowed money to buy stocks are no longer able to continue investing. They have to watch their houses, cars and savings disappear with the stock market crash, leaving only orphans and widows and people who are extremely worried about the U.S. economy.
of disappointment.
The stock market disaster soon affected the entire United States, including people who had never bought stocks and people who had never made profits from the stock market. They all became victims. This stock market crash destroyed the American people's understanding of the fragile banking system.
No matter whether it is the big banks on Wall Street or the small banks in small towns, they can no longer convince people that it is safe to put their money in the bank. So, the domino effect takes effect, and more and more banks
Started to close down.
At that time, there was no insurance to guarantee these ordinary small depositors. So when the bank made a wrong decision and had to go bankrupt, these depositors were required to pay for their mistakes. Bank failure led to
People distrusted banks even more, so they began to run. Banks that could not survive would collapse faster, which became a vicious cycle. By June 1930, more than 1,500 banks in the United States had declared bankruptcy, and this situation is still going on.
It continues to get worse with no signs of slowing down.
To be precise, it was not the stock market crash of 1929 that triggered the economic crisis, but the series of economic events it caused combined to turn into an economic crisis. Banks provided loans to the stock market and factories, and the stock market and factories used these loans to
develop your own business,
Now that the stock market has collapsed, tens of billions of dollars have disappeared, and people's confidence in the economy has decreased. They would rather hide their money under the mattress at home than deposit it in a bank. As a result, banks have no money.
The money is then lent to the factory, and the factory also loses the funds for development.
As a result, factories and companies also began to lay off employees, reduce production or even stop production. However, the products still could not be sold, because the money in the hands of people with purchasing power was taken away by the stock market, so factories and companies also went to the guillotine one after another. Without factories
Workers and employees of companies and companies lose their jobs and have no wages. How can these people pay rent and buy food?
Faced with the widespread closure of banks, factories, and enterprises across the country and the high unemployment rate, President Hoover firmly opposed state assistance to the unemployed. The homeless in the city used wooden boards, old iron sheets, oilcloths and even kraft paper to build homes.
The villages where these huts gathered were called "Hoovervilles", a reference to President Hoover. In addition, the homeless people
The homeless man's begging bag was called a "Hoover bag." The car that was pulled by animal power because he could not afford to buy fuel was called a "Hoover cart." Even the newspaper covered by a homeless man sleeping on a bench on the street was called a "Hoover bag."
"Buddha Blanket". There is a popular children's song on the streets of New York: "Mellon blew the whistle, Hoover rang the bell. Wall Street sent a signal, and the United States rushed to hell!"
US President Hoover always insisted self-righteously: "The basic enterprises of the United States are based on soundness and prosperity." The crisis is only temporary and "prosperity is just around the corner." He implemented a typical "laissez-faire" policy
, instead of proposing countermeasures to turn the tide, they resolutely prevented the country from providing countermeasures.
Welfare compensation for the crisis. It called on both labor and management to solve economic problems on the basis of "voluntary cooperation." Therefore, when workers in the city were living in famine because they were unable to pay, farmers were struggling because their livestock stalls were full and their grain warehouses were full.
Disappointed. Because they can neither sell them nor continue to raise and preserve them.
Liu Fu doesn't know much about these economic policies. He has only paid a little attention to the economic crisis in the United States. The federal government has taken various preventive measures nearly a year in advance. It is not known whether they will be effective. Liu Fu, an economic layman,
There is no need to give random orders, you can just sit back and watch what happens.
During this period, Liu Fu mostly accompanied David. When the stock market crash broke out, Liu Fu deceived David into moving to Xiangyang City and then placed him under house arrest in the Presidential Palace. For this guy who could only make money but could not
Liu Fu was afraid that he would suddenly lose his mind and jump off the building because he saw the company's assets dwindling day by day.
Over the years, David's business empire has secretly helped Liu Fu and the Nanhai Federation. Especially when the Federation was just founded, many equipment and talents were obtained by the Federation through David's company, and the Federation Research Institute
Many of his scientific and technological achievements also need to be transformed into products and commodities at the fastest speed through his company. Sandro Electric Group is an important fulcrum for the South China Sea Federation to deal with the commercial containment of European and American countries.
Unlike David, Schneider Petroleum was not as hard hit by the economic crisis as David's group. Although petroleum products are also facing problems such as unsalable sales and reduced production, oil production is not the same as a factory. At worst, the oil wells will be destroyed.
One letter, no
No matter where the oil well is, the oil is underground and cannot escape. Whenever the economic environment improves, it will not be too late to start mining. The only loss is some time and profits. So at Schneider, Liu Fu just expressed condolences.
Not too worried.
Different from the calm situation in Asia, Europe is also clouded at this time. The first one to be hit is Germany. Through the German government bonds purchased by the US government and the investment of US capital, the German government has just stood up from the quagmire of defeat.
, just when he was about to stand up straight, the big stick of the economic crisis was struck in the head. The result can be imagined, the weak German economy once again fell into the quagmire.
In order to deal with this economic crisis, the Brüning government has just taken two measures. One is to reduce government spending, and the other is to increase taxes. He raised the insurance tax for employers and workers to 6.5%, and used the collected money to
To relieve the unemployed, but with the recession of the world economy, this method was not enough to offset the consequences of the economic crisis. Six months later, the number of unemployed people in Germany exceeded 4.5 million.
This number is so huge that the national social security system established by Bismarck half a century ago and imitated by many European countries is also unable to meet its requirements. The German government is unable to reverse this situation of economic deterioration and has disappointed the people of the Republic.
At the same time, another voice came out from the wailing, "State intervention has
Economy, maintenance of private ownership, economic and agricultural self-sufficiency, the state determines the amount of currency circulation, expansion of living space, etc." These slogans for economic reforms were shouted from a small and medium-sized political party, and attracted the attention of the German people. This small
The name of the large-scale political party is the National Socialist Workers’ Party, also called the Nazi Party!
The economic crisis that began in 1929 brought disaster to the whole world, but for the Nazi Party led by Mustache, it was a God-given opportunity to grow and develop. Those German workers who lost their jobs were disappointed with the incompetence of the Weimar Republic government
And angry, so he became a Nazi
When they stood up and declared that they would establish a new system to resist and check those damn capitalists, a large number of unemployed and soon-to-be-unemployed working class people, urban industrial and commercial people, handicraftsmen and small owners seemed to see hope and turned around one after another.
Supported the latter and joined the Nazi Party.
By mid-September 1930, the Nazi Party had achieved rapid development, transforming from a small party with only more than 800,000 voters and 10 parliamentary seats to a party with 19% of the vote, 6.4 million votes, and 107 parliamentary seats.
The second largest party in Germany with seats in the parliament, and Mustache has rapidly risen from a fringe politician to a rising political star in Germany. (To be continued...)
