1928: The rise of giant merchants

Realizing that even if the financial giants were killed, and the White House and many banks were behind the scenes, retail investors and free overseas capital were quickly fleeing abroad, President Hoover finally couldn't sit still.

After several years of ups and downs and high momentum, the U.S. stock market already feels like the building is about to collapse. This has made the upper class, especially the White House cabinet, feel particularly uneasy.

At the beginning of this year, Hoover took office, and he vowed to make the U.S. stock market prosperous for another four years. Now, half a year has passed, and the stock market is likely to collapse, so he should not continue to sit in the position under his butt.

The news of the stock market's decline alarmed Hoover, and the secret cabinet meeting a few days ago did not have a very good effect. He could even predict the scenario where the Federal Reserve and Congress would come to hold him accountable.

Can't wait any longer.

In the early morning of September 25, Hoover quickly sent commissioners to various top news companies in the United States and delivered a speech to the entire press: "The business foundation of the United States is good, production and distribution have not lost their previous balance, and the people do not need to worry about the stock market. .”

Relevant Ministry of Finance officials also came forward to support the stock market, and even invited Citibank and others to join forces to inject capital to rescue the market.

A bunch of economists and financial giants who had been crazily advocating for US stocks before came out to express their support, and for a while there was no second voice.

Yello held the second formal meeting about short selling at the Franklin family villa.

At this time, even Little John, who did not know much about the stock market, realized that the biggest storm was coming.

Everyone's faces were red, and everyone was excited. They wanted to rush to the New York Stock Exchange immediately to operate and spit out all the gloomy atmosphere before.

Even the most experienced legendary trader Livermore was a little unable to hold back.

But Ye Luo was still very calm at this time.

"Now is not the best time, everyone." Ye Luo looked at Franklin, the future president and a big figure who could influence the situation of World War II. He was sitting in a wheelchair at the moment, his expression was relatively calm, and he seemed to understand what he was going to say.

"Isn't it the best time? The funds in our hands have almost exceeded 140 million. Ten times the leverage is 1.4 billion. If you are brave enough and fully leverage, it is 2.8 billion!" Ma Murui said in a low voice, " 2.8 billion short, as long as no mistakes are made, the profit will be in hundreds of millions."

"It's really not the best moment." Livermore was doused with a basin of cold water by Ye Luo, and he suddenly sobered up a lot.

"Why." Mamuri asked doubtfully.

Old Joseph, who was always silent, looked at Ye Luo thoughtfully.

Everyone was waiting for his answer.

"This is the time when everyone in the White House is most anxious. Today, there are countless people who have gone crazy. They are all on the opposite camp to us. If we go against them at this time, can there be any good results?"

Ye Luo said calmly,

"Short-selling is an enemy of the market and most speculators. If you want to rob the dollars in their pockets, no one will watch you do it. Especially at this sensitive moment, if you end suddenly, there is no guarantee that you will not become the target of public criticism and be criticized. Treat it like a living target.”

What he meant was simple.

The end now will undoubtedly help Hoover attract firepower, giving him the opportunity to burn the flames of war on their group of short sellers.

The closer a collapse is, the more cautious short sellers should be.

This is the time when the risk is greatest. If you are not careful, you will lose everything.

This reason was very sufficient and extremely persuasive. Mamuri suddenly stopped and felt frightened.

Money and interests are really bone-eroding poison.

"A few days ago, Hartree Company was delisted. We relied on this wave of short selling and have already earned 15 million U.S. dollars. Now we have a total of 138 million U.S. dollars. At the last moment, if we can raise the funds to 150 million U.S. dollars, , the operating space will be larger, and this is what we should do now.”

Ye Luo added another sentence and immediately looked at them,

"Everyone, the stock market will still have room to rise for a few days. This is the final recovery, and we should seize the opportunity."

Livermore raised his eyebrows, gaining a new and profound understanding of Ye Luo's judgment and execution.

This young Chinese is so scary.

In the face of tons of interests, he still remained unmoved and carried out trading activities in an orderly manner.

This simple meeting ended. In addition to stabilizing the morale of the army, Ye Luo also meant to establish dignity.

The more final the moment, the more there can only be one voice.

In the small group, because of his Chinese identity, several other people did not trust him, but now they have to believe him.

If someone takes the initiative to go short at this moment, it will cause misfortune to everyone.

Ye Luo didn't know how Livermore operated in the original history. Those books and materials were too highly edited and of little reference value.

But since I am sitting here now, it is most appropriate for me to take the lead.

That afternoon, Ye Luo came to the New York Stock Exchange alone for the first time.

Ever since he and Roger Babson badmouthed the U.S. stock market, he had gone from being the new darling of the stock market to being a street rat that everyone yelled at. But now he reappeared, and people who recognized him on the trading floor looked at him differently. Gotta be a little weird.

On the big blackboard, the Dow Jones Index finally stopped its downward trend and was swinging around 320 points.

Various stocks, some rise and some fall, seem very normal, but compared with the prosperity of the past, they seem a bit lonely.

"Don't worry, this is most likely a technical adjustment."

Similar classic remarks can be heard on the trading floor, just like those early this morning when Hoover gave the press a shot in the arm.

But it is often at this moment that something really bad happens, and panic spreads further.

Karl Popper believed that the principle of successful prediction is to make the prediction very vague so that it cannot be refuted.

Unfortunately, the public has extremely high demands on economists and always requires them to make accurate predictions—even subconsciously, they are more inclined to listen to the predictions that the situation is good.

And when your predictions are not so good, they will become very panicked and uneasy.

So why do economists dare not continue to brainlessly preach that the situation is great?

That's because the situation is really getting worse!

When he came to the VIP room at the back, the person who received him this time was still the female trader Kardashian, but there was no sign of Benjamin.

"Where is Minister Benjamin?" Ye Luo asked in a low voice.

Kardashian had thick dark circles under her eyes and looked lonely: "After the minister was taken away by the FBI, he never came back."

"Hope he's OK."

Ye Luo sighed.

"Mr. Ye, in a few days, a new trader will be in charge of your business. I will complete the handover with her as soon as possible," Kardashian said weakly.

Her relationship with Benjamin was known to all New York Stock Exchange employees. Her lover was in jail. Of course, she could no longer stay here to serve VIP customers so easily.

Fortunately, Huixin got a lot of commission from her short sale, so she didn't have to worry about financial problems for the time being——

She was timid and had low desires. Fortunately, she did not follow Benjamin in investing in stocks, so she suffered no losses.

"Sorry to hear that and good luck to you, Ms. Kardashian."

Ye Luo couldn't do anything about it.

Soon, after completing this vote, after October, he will leave the United States and return to the Republic of China, and the company here will also be in ruins.

People like the Kardashians and Benjamins will be spread all over the United States in the future. They are relatively good. They have neither bankrupted their money nor accumulated high debts. More people may choose to jump off the rooftop.

"Let's talk about my transaction first." Ye Luo took out the prepared information. (End of chapter)