Romanian Eagle

Refreshing and refreshed, Eder returned to Bucharest in early summer.

Eder, who returned to the capital, immediately fell into work, and he did not rush the infrastructure plan he had previously asked the government to do. Moreover, after he returned to the capital, the huge sum of 900 million US dollars from Romania had also been transferred back to the country, and Eder, who was in his pocket, had nothing to worry about.

The days passed so slowly, until one day in September, a guard hurried in when he was busy.

"Your Majesty, this is a telegram from the United States."

As soon as Edel heard it was a telegram from the United States, he immediately took it and read it. The telegram contained nothing but news about the U.S. stock market. With just a few sentences written on it, the New York stock market fell 46 points on September 5, with 13 million shares traded throughout the day.

Don't think this drop is not high, you must know that the Wall Street stock market currently closed at 391 points the day before. That's a drop of nearly 12% in a day and a panic in the market. It happened to be a Thursday, so it was also known as Black Thursday.

"Is this the beginning of the Great Depression?"

Edel couldn't make up her mind.

While Edel pondered, the United States was also shocked by the stock market crash. Among them, the White House made a speech on the decline of the stock market in New York, and the new President Hoover declared that the current US economy is all normal and the economic structure is functioning well.

And as Treasury Secretary Mellon also spoke to the newspaper in a high-profile manner. There is no reason to worry now, and this boom in prosperity will continue.

However, the speeches of senior White House officials did not seem to enhance the confidence of the stock market. The next day, the US stock market continued to fall after the market opened. Although the decline was higher than that of the previous day, its momentum was unstoppable at first sight. On the same day, the Wall Street stock market fell 51 points again, and it has fallen below the 300-point mark. This made the market wailing, and many people added heavy losses to this.

The fall in the stock market on Wall Street has made people lose a lot of money, and at this time they especially hope that a hero will stand up to save the market. The last hero who saved the city, Morgan was so high hopes. The newspapers also hoped that the king of Wall Street financing could rescue the falling stock market. Of course, Morgan, who had high hopes, also hoped to save the stock market, and the people's hope made Morgan unable to refuse.

So in the case of people calling for a thousand times, Wall Street capital represented by Morgan chose to save the market. Because if the financial markets go into a depression, the income of Wall Street's capitalists will also plummet. As for later generations, some people say that this stock market crash has the shadow of Wall Street, which is pure fart. The stock market crash has done more harm than good to Wall Street, and it is not normal to not save it.

However, they also underestimated the power of this stock market decline, and the billions of capital they carried were submerged by the turbulent falling wave without even seeing a wave. So far, the momentum of the stock market crash can no longer be stopped, and no one can say when the decline will end.

The fall in the stock market has compounded many losses, and many people have invested all their wealth in the previously prosperous stock market. This falling wave has left him impoverished, and many people could not bear the huge blow and chose to end their lives. During that time, many pedestrians in New York did not dare to approach buildings such as high-rise hotels. Maybe a figure would fall from the top and end his life with a loud bang. According to statistics, during this period of time, an average of thousands of people in New York took their own lives every month by shooting, jumping off buildings, or jumping into rivers.

The Manhattan and Brooklyn Bridges have become shrines for suicide, with many impoverished in the stock market rout jumping into the sea in modest clothing.

The decline in the stock market also quickly affected the economy, and many companies suffered heavy losses in the decline in the stock market. These are all fascinated by the booming stock market, diverting corporate funds into the stock market in an attempt to make a fortune. But they, like those housewives, suffered heavy losses in the stock market slump, leaving their businesses in trouble. Layoffs and closures have also become the norm for American companies during this period.

A total of $30 billion in wealth has vanished in just two weeks since the rout began on Sept. 5. At this time, the GDP of the United States was only 103.6 billion US dollars. It can be said that the United States lost 30% of its GDP in two weeks. After that, it was not until the outbreak of World War II that the US GDP returned to the level before the Great Depression.

The main reason is the imbalance of the domestic economy and overproduction.

From 1920 to 1929, workers' hourly wages rose by only 2 percent, while worker productivity in factories soared by 55 percent. At the same time, the real income of farmers is also decreasing due to the falling prices of agricultural products and the rising rent and living costs. In 1910, each farm worker earned less than 40 percent of the income of non-farm workers; by 1930, it was less than 30 percent. This poverty in the countryside was a serious problem, since at that time the agricultural population accounted for one-fifth of the total population.

In the 1920s, there were already a number of unfavorable trends in economic development that were ignored or ignored at that time. While agriculture never fully recovered from the post-war depression, farmers remained poor throughout this period. In addition, the so-called higher wages in the industrial sector, many of which are false. During this decade, the introduction of new machines pushed out large numbers of workers.

For example, between 1920 and 1929, the gross industrial output value increased by almost 50%, while the number of industrial workers did not increase, and the number of transportation workers actually decreased. The largest increase in workers has been in the low-wage service sector, which undoubtedly includes many skilled workers who have lost their jobs as a result of technological progress. So the statistics, which indicate a slight increase in wages, do not appear to reflect the true picture. Since the workers and peasants are the basic consumers, the economic difficulties of these two types of people will definitely have an impact on the consumer goods market.

In these cases, the expansion of advertising in the 1920s and the increase in installment credit would have adverse consequences. Credit installment sales are trying to inflate the consumer goods market.

Between 1924 and 1929, installment sales rose from about $2 billion to $3.5 billion, which is an astonishing rate of growth. Undoubtedly, the use of installment payment method of credit sales has increased the sales of durable consumer goods such as cars, radios, furniture, and household electrical appliances.

However, the widespread use of installment sales has also demonstrated the fact that the consumer goods market cannot accommodate the large volumes of products produced by the industrial sector without increased lending. And, from an economic point of view, this method of selling loans is inherently dangerous; as long as consumer credit, or installment credit, is cut, consumers are likely to buy less.

In addition, a large influx of capital into the United States has also caused this situation. In the 1920s, as many countries paid war debts, money continued to flow into the United States; the United States' gold reserves increased from $1.924 billion to $4.499 billion between 1913 and 1924, or half of the world's total gold reserves.

And these influx of money can not find other investment environment, can only be put into the stock market. The acceleration has pushed up the stock market boom, which has piled up U.S. industrial production, but the stock market is booming, no problem.

Of course, the US stock market broke out in advance, and Romania's early withdrawal of capital also had a certain impact. The withdrawal of $900 million in funds will inevitably affect the stock market. But for Edel, he doesn't care about the life and death of the American people. Anyway, it is bound to happen, it is important to save yourself first.