Liang scratched his head: "Uh, I forgot this is what happened in my hometown. To put it simply, it's..."
After briefly talking about the "Black Thursday" that first broke out on Wall Street in the United States in 1929 and the subsequent stock market crash that he learned in the history class in his previous life, Leon continued: "I don't know the financial market situation in this world. It's just that I
I feel that if we simply consider 'the stock price plummeting', it might develop into this."
"Well, the result sounds similar to what I expected." Wein said, "It seems that it will be a lot easier to learn from the past."
"There has never been a similar, uh, economic crisis in your world?" Leon thought that this world looked like a "semi-capitalist, semi-feudal society", and there should be many problems with it.
"There have been several regional, to use your term, economic crises. But there has never been one that can affect an entire region."
This sounds a bit unbelievable to Leon, but when I think about it, there are all kinds of extraordinary powers in this world. Not to mention the weird ones, alchemy that is closer to reality can create many products that were not available in the previous life. In addition,
The functions and responsibilities of the church are also very different from those of a certain Christian religion in the previous life. Under the influence of various factors, it is not impossible that a major economic crisis did not break out.
"However, if this incident is not properly resolved, it is estimated that the first large-scale economic crisis will occur."
"Is this an exaggeration? In the final analysis, it's actually just one company, Titan Industries, that has a problem..." Leang was reluctant to accept that he was involved in a case that might lead to an economic crisis.
"If everything still maintains the operation strategy of the old emperor's time, then it is indeed not the case. But now..." Wein smiled, "Don't forget, now is a special period."
Liang was ashamed: "Here, what happened after the regent came to power?"
"First point, in order to win the support of the three giant companies, Regent Heller Burrows strongly encouraged the people to buy the stocks of the three giant companies, and called on the people of the Central Region to rely on the Central Region's own companies.
To counter the economic blockade of the Grand Dukes. In line with this policy, various banks have lowered their deposit interest rates, and company stocks have been rising. Many people have withdrawn their savings and purchased stocks of the three giant companies.
"
"Second point, Heller implemented the 'wealth comes first' policy, which lowered the threshold for bank lending and lowered loan interest rates, encouraging more people to borrow money from banks, spend it first and pay it back every month within a certain period.
Partial loan. This allows many people to purchase their favorite products in advance. With this policy, many people choose to buy a house instead of renting, and buy the first house for a family in generations."
Liang twitched the corner of his mouth: "This sounds like a strong sense of déjà vu."
"Finally, let's combine the first and second points: On the one hand, the stock prospects are great, and on the other hand, it is easier to get loans. What do you think will happen?"
Liang was stunned: "There will be people...even many people taking loans to buy stocks!"
Human nature is profit-seeking. When seeing stocks soaring, some people will definitely have the idea of taking a loan to buy stocks and wait for the stock price to increase several times before selling. Wouldn't this be possible with zero principal?
Make a lot of money?
And it turns out that these people often lose all their underwear.
"The crisis is right around the corner." Wein shook his head. "Once the scandal of 'Giant Industries' is exposed, not only will its stock price fall, but it will also bring about a series of chain reactions."
"First of all, people who find that the trend is wrong will quickly sell their stocks in order to stop losses, and this move will further intensify the decline in stock prices. The more people who sell, the faster the decline, and ultimately set off a wave of panic."
"Countless people will find that the stocks they expected to make them rich overnight suddenly turn into worthless waste paper, and they are still burdened with huge debts."
"At the same time, people also discovered a problem - they could not withdraw the money they had deposited in the bank because the bank had no money. It was not only the credit of the user's loan, but the main reason was that many private banks themselves took the money without authorization. I bought the bonds and stocks of the three giant companies in the hope of making a lot of money. After all, it’s not as easy to make money as investing by just eating loan interest.”
Wein coughed: "Then it will be our dear Regent's government's turn to come forward."
Liang nodded: "That's right, the government has to take control at this time."
"Then do you think that for the Regent Heller Burroughs, whose personal trust is at stake and whose personal prestige is currently in jeopardy, it would be better to increase the power of printing banknotes to provide supplies, or to temporarily close banks and stop securities trading?"
Liang blinked: "Huh."
"If His Excellency the Prince Regent feels that it is easier to win the hearts of the people by printing money than shutting down banks and halting transactions in the worrying situation of domestic and foreign troubles, that would be even worse. Because the next step is coming The thing is..."
Leon covered his face: "Currency devaluation..."
He seemed to see a loaf of bread worth five hundred thousand marks waving to him...