Chapter 1005： Cut the meat

Although the means of stimulating the economy by policies are somewhat crude, they are simple and effective. The Vienna government just announced the "Circle Railway" plan, and the market responded.

On April 26, 1894, when the Vienna stock market opened, the infrastructure sector led the market by opening 7 points higher, breaking through 20 points in the middle, and finally closing with a gain of 11.6%.

Steel, cement, construction machinery and equipment, banks and other sectors related to railway construction have also rebounded upward.

Affected by this, the Vienna stock market rebounded 3.62%, setting the biggest rebound since the stock market crash.

Then there is no more. Since the outbreak of the stock market crash, the Vienna stock market has fallen all the way down. At its worst, the overall decline was as high as 74.3% compared with the peak period. Even if there was a rebound, the market index was only 30% of the peak period.

It is conceivable that the market has fallen so miserably, how far the confidence of the market has collapsed. There is no way, the freely developed stock market is so capricious.

Relatively speaking, the infrastructure steel sector is fairly good. As a mature industry, the ceiling of the market is in front of everyone, and its own valuation is not high, and it is supported by large-scale reconstruction projects after the war.

After this wave of rebound, it has basically recovered to three-quarters of its peak market value, which is barely out of the crisis.

The hardest hit area of ​​the stock market crash is actually still a new technology industry, which has no performance to support it. Only a "good story" supports the market value. Once the bubble is burst, it will fall so that you don't even recognize it.

Fortunately, putting on the vest, otherwise Franz would not dare to go out to see people now. Technological progress also has a price, and it is too small to rely solely on personal strength.

In order to speed up the technological development of the empire, Franz unhesitatingly chose to list the company for financing. Scientific research requires luck, so there are often multiple research groups for a project.

Catch a sheep wool, the light efficiency is too low, obviously can not meet the demand. But this is not troublesome for Franz, anyway, there is no Internet these years, and it doesn't matter if you tell a story several times.

From Vienna to London, in Europe's larger financial markets, technology companies from the Royal Consortium are listed. If it were not for the immature overseas market, it is estimated that the five continents are all pastures.

Although the wool is a bit strong, Franz is definitely a conscientious entrepreneur compared to his peers.

Different from the high-tech winner-take-all of later generations, it has only just started. Anyone who clears customs on a track can become a "great company."

The only regret is that the success rate is so low. In the past 30 years, the royal consortium has invested in no fewer than 2,000 technology companies listed on the stock market. One-quarter of them have gone bankrupt and 70% are struggling hard. In the end, only less than 5% of the companies live well.

Just look at the data to know how bad these high-tech projects are. No way, who made Franz a scumbag in his previous life?

In many cases, when projects are launched, the emperor's brain has an idea. There is definitely no specific technology, most of the time there is no idea, and some are just functional requirements.

For example: a food refrigerator that can be refrigerated, an air conditioner that can cool and heat, a TV that can play video, and a computer that can't understand it...

For a series of "high-tech" projects, no matter how many years ahead, Franz just put forward the needs, and then the scientists will evaluate them. If you can't find a clue, don't know where to start, then pack it up and go public for financing.

Anyway, the story is a good story. Every family needs a machine for refrigerating food, and a machine that can adjust the indoor temperature also has huge market potential.

As for whether it can be done, when can it be done?

Sorry, this is sacred scientific research. As long as it can be realized in theory and the story told can convince investors, that is enough.

The final result is very obvious, the more advanced the project, the worse the death. Only a few lucky ones can stand out. Moreover, a large part of these companies have gone wrong, and they have undoubtedly achieved profits by producing by-products.

For example: the refrigerator was not built, but the ice storage technology breakthrough; the TV was not built, and the movie projector came out first; the shadow of the air conditioner was not seen, but the fan technology was improved...

Fortunately, there are always a minority. Most companies have not made breakthroughs in technology in their main business, nor have their side businesses started. They can only rely on continuous financing to survive.

Fortunately before the stock market crash, successful examples have stimulated that investors are relatively tolerant of high-tech companies. Including many capital consortia, they all flickered into the pit.

After all, the high-tech companies established by the royal consortium are indeed engaged in scientific research. The financial accounts are also neat and clear, except for not making money, it is a proper conscience enterprise.

After the stock market crash broke out, it was immediately revealed. Suddenly everyone discovered what the company they invested in was.

A huge amount of money has been invested in it, and it has not been profitable for several years or even decades, or it is a company that only maintains a meager profit. What is it that is not garbage?

If that's all there is to it, after all, there are still a series of special train technologies, which may be used someday. But the valuations of these companies are still high, with a price-earnings ratio of hundreds of times, except for bubbles or bubbles.

In fact, this non-loss is the result of deliberate manipulation by the royal consortium. Use other vests to allow these companies to earn some income from sideline businesses.

It is because the hole is too big, there is no way to settle the accounts, or the R&D team is really capable, and it will be given up and allowed to go bankrupt.

One patent this month, another technological breakthrough a few months later. Good news emerges endlessly, continuously stimulating market confidence. Companies are financing more and more, and the market value is constantly expanding.

If it were not for the stock market crash, this game of catching up and spreading flowers could continue. Until one day there is a technological breakthrough, and then another story.

It's a pity that there is no such thing as reality. Now that the bubble has burst, this kind of enterprise without performance support has naturally fallen into a mess.

"Cut in the middle" and then "Cut in the middle", that is only the treatment that belongs to the five percent of successful people. The overall decline in the technology sector is up to 80%, and some stocks have fallen as much as 99.9%.

If calculated by market value, after the stock market crash broke out, Franz's paper wealth has evaporated at least 8 billion Aegis, which is more than the combined fiscal income of all countries in the world in one year.

The bubble that I blow out naturally has to swallow the bitter fruit myself. Of course, this is only on the surface. If you study in depth, you will find that since the outbreak of the European War, the major shareholders of these companies began to reduce their holdings.

The major shareholder is still a major shareholder, and only a small part of the shares are reduced. However, with this small part, the entire company can now be bought.

Franz, who is profitable, is not happy now. In the past, I was collecting wool and doing scientific research with other people's money. Naturally, it doesn't hurt to burn.

The situation is different now. There is no financing in the market. These arrogant high-tech companies are on the verge of bankruptcy, and they are about to fall into their own hands.

There are only two ways before Franz: Either he saves these companies himself; or the strong man breaks his wrist and gets rid of these gold swallowing beasts.

There is no doubt that neither path is a good choice. "Funding" is simple to say, but it is definitely tears when done.

You have to know that this is not just one family or two, but thousands of companies are asking for money. It is because Franz has a thick net worth and cannot withstand such a prodigal.

The "Broken Arms of the Strong" did not lose much in the short term, but the previous efforts were completely abandoned. And, with this lesson, it will not be so easy to make up stories in the future.

There is no way, the stock market crash comes too fast, and as a major shareholder simply cannot escape. What is even more tragic is that in this stock market crash, Franz missed his own property when he was shorting because of his conscience.

A momentary misstep created an eternal hatred. Franz, who missed a lot of billions, suddenly realized that he was a poor ghost.

After hesitating again and again, Franz reluctantly said: "The palace minister, find someone to screen carefully, and bankrupt and reorganize all companies that have suffered serious losses and have not produced results.

The remaining enterprises should also reduce expenditures, cut research funding, and develop profitable side businesses as much as possible.

The royal consortium secretly gave these companies some help if it could. In principle, we will give priority to helping our domestic enterprises, and overseas enterprises should give up.

In addition, people are sent from the secondary market to successively purchase stocks of domestic high-quality companies. It's not far from the bottom of the valley, and it's time to rebound afterwards. "

The stock market that has squeezed out the bubble is just like a feather. Compared with the valuations of dozens of times and hundreds of times before the stock market crash, the current valuations of several times seem to be much more pleasing to the eye.

The strong man broke his wrist and cut off some of the companies with serious deficits. Franz's heart is bleeding, and he urgently needs to buy some high-quality assets to supplement.

Palace Minister Mirabellon persuaded: "Your Majesty, now that the economic crisis has come to an end, we will suffer a lot of large-scale bankruptcy and liquidation.

It is better to transform these companies. When necessary, the consortium can help them create performance and increase their share prices, and find opportunities to lose them to the successors. "

In fact, this is why the consortium likes to play finance. Not to mention the slowness of self-investment in the industry, the key is to suffer heavy losses in an economic crisis.

In contrast, playing finance is much easier. "Economic crisis" has not only "danger", but also "opportunity."

It is a catastrophic crisis for ordinary people and enterprises, but it is a big opportunity for financial consortia.

When a crisis breaks out, you can play short-selling; after the crisis breaks out, you can buy bottoms; after the crisis is over, you can turn around and sell the bottom-buying companies and wait for the next round of crisis to continue playing.

In the capitalist world, an economic crisis every ten years or so is not only the self-regulation of the market, but also these guys behind the scenes who have seen the fruits are ripe and want to harvest.

Otherwise, if the signs of an economic crisis are so obvious before it breaks out, how could it be possible that everyone hasn't noticed it?

Franz shook his head: "I think you got it wrong. This economic crisis is not so easy to end. Although it is about to reach the bottom, the end is still far away.

The most optimistic estimate is that the Empire will not be able to escape the Great Depression until next year. As for other countries, it depends on their respective circumstances. According to preliminary estimates, it will take at least two years to completely get rid of the crisis.

It will take longer for the market to restore confidence and find a new taker. If we don't close these companies with serious losses, our losses will be even greater if we keep going. "

Unlike the past, this time the economic crisis was artificially postponed. According to the normal economic development context of the capitalist world, the signs of an economic crisis appeared as early as three years ago, but the original location was in France.

If it were not for the outbreak of the European War, the French would be the first to explode. Perhaps because of the seriousness of the crisis, French talents would choose to start a war before the bubble burst.

While the war shifted the crisis, it also created a new crisis. If the European War has just ended and the crisis is allowed to erupt, then a year and a half may pass.

Regrettably, for their respective interests, the British and Austrian governments have taken actions to delay the outbreak of the crisis. The bull market has been artificially extended for more than a year, the market has doubled again, and the bubble has been blown to an unparalleled level.

The bigger the bubble bursts, the greater the damage it will bring. The Vienna stock market has evaporated by three-quarters, and other financial markets are much the same. The damage it brings is far from the previous economic crises.

Upon hearing this bad news, Mirabellon's face changed drastically. The Great Depression, which lasted more than two years, was almost as destructive as the Great Revolution of 1848.

If the Holy Roman Empire cannot take the lead and promote the recovery of the world economy, perhaps the European continent will have to reproduce the 1848 revolution.

In a sense, the European world now has more foundation for revolution than it was in 1848.

The wave of unemployment, deteriorating economic situation, complex international contradictions, and hatred among European countries are all hotbeds of revolutionary ideas.

The French who were not reconciled to defeat, Spain, which was in the quagmire of the Philippine war, Portugal, where the monarchists and republics were about to get out of their heads, and the Italian states where the independence situation had not yet stabilized, all have the basis for revolution.

As the new boss of the Holy Roman Empire, seemingly majestic, in fact, it has reached a crossroads. Once a wave of revolution broke out on the European continent, the Vienna government's troubles would have gone away.

In particular, there is also a British government that is watching secretly and wanting to do things; and a czarist government that seems to have reduced its edge but is ambitious.

In this context, if the royal consortium does not hurry up and reluctantly cut the meat, it may not even have the opportunity to cut the meat.

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