Although the means of policy to stimulate the economy are somewhat crude, they are better than simple and effective. The market reacted just after the Vienna government announced plans for a "Circle Railway".
On April 26, 1894, when the Vienna stock market opened, the infrastructure sector opened 7 points higher, leading the market to rise.
Steel, cement, construction machinery and equipment, banking and other sectors related to railway construction also rebounded.
Affected by this, the Vienna stock market rebounded 3.62%, the largest rebound since the outbreak of the stock market crash.
Then there is no more. Since the stock market crash, the Vienna stock market has been falling all the way. At the worst time, the overall decline was as high as 74.3% compared with the peak period. Even if there was a rebound, the stock market index was only 30% of the peak period.
The market has fallen so badly, it is conceivable to what extent the market's confidence has collapsed. There is no way, the free development of the stock market is so capricious.
Relatively speaking, the infrastructure steel sector is not bad. As a mature industry, the ceiling of the market is in front of everyone's eyes, its valuation is not high, and it is supported by major reconstruction projects after the war, so naturally it will not fall anywhere.
After this wave of rebound, it has basically recovered to three-quarters of its market value at its peak, barely out of the crisis.
The hardest hit area of the stock market crash is actually the emerging technology industry. There is no performance to support it. Only a "good story" supports the market value.
Fortunately, put on the vest, otherwise Franz would not dare to go out to meet people now. Technological progress also needs to pay a price, and it is too small to rely solely on the strength of individuals.
In order to speed up the technological development of the empire, Franz chose to let the company go public for financing without hesitation. Scientific research inherently requires luck, so often a project will have multiple research groups.
Catching a sheep's wool, the light efficiency is too low, obviously unable to meet the demand. But it's not difficult for Franz. Anyway, there is no Internet these days, so it doesn't matter how many times a story is told.
From Vienna to London, every larger financial market in Europe has technology companies from royal consortiums listed. If it weren't for the immature overseas market, it is estimated that all five continents are pastures.
Although the wool is a bit fierce, Franz is definitely a conscience entrepreneur compared to his peers.
Different from the high-tech winners of later generations, it is just getting started, and you can become a "great company" by passing the customs on any track.
The only regret is that the success rate is so low. In the past three decades, the royal consortium has invested in more than 2,000 listed technology companies, of which a quarter of the companies have gone bankrupt, and 70% of the companies are struggling hard. , only the last less than 5% of the enterprises lived very well.
Looking at the data, you can see how pitted these high-tech projects are. No way, who made Franz a scumbag in his previous life
In many cases, when the project is launched, it is an idea in the emperor's head. There is definitely no specific technology, most of the time there is no concept, and some are just functional requirements.
For example: food refrigerators that can be refrigerated, air conditioners that can cool and heat, TVs that can play videos, and computers that can't understand or understand...
A series of "high-tech" projects, no matter how many years ahead, Franz just put forward requirements and then evaluated by scientists. If you can't find a clue, don't know where to start, then package it up for listing and financing.
Anyway, the stories are good stories. 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, and when will it be done
Sorry, this is sacred scientific research. As long as it is theoretically possible and the story told can convince investors, that is enough.
The end result is very obvious, the more advanced the project, the worse it will die. Only a very lucky few are able to stand out. In addition, a large part of these enterprises have gone astray, and they have achieved profits by undoubtedly producing by-products.
For example, the refrigerator has not been built, but the technology of the freezer has made a breakthrough; the TV set has not been built, and the movie projector has come out first; the shadow of the air conditioner has not been seen, but the fan technology has been improved...
The lucky ones are always in the minority. The vast majority of enterprises have not made technological breakthroughs in the main business, nor have their side businesses started, and can only rely on continuous financing to survive.
It was fine before the stock market crash, and there are successful examples to stimulate, investors are still relatively tolerant of high-tech companies. Including many capital consortia, all fooled into jumping into the pit.
After all, the high-tech enterprises created by the royal consortium are indeed all engaged in scientific research. The financial accounts are also clearly arranged, except that it does not make money, it is a proper conscience enterprise.
After the stock market crash, it was revealed at once. Suddenly, everyone found out what kind of company they invested in.
A huge amount of money has been invested in it, but it has not been profitable for several years or even decades, or it is a company that only maintains meager profits. What is it
If that's the case, that's fine. After all, there are still a series of special train technologies, which may be used one day. However, the valuations of these companies are still high, and the price-earnings ratio of hundreds of times is not only a bubble or a bubble.
In fact, this non-loss is the result of the intentional manipulation of the royal consortium. Use other vests to allow these companies to earn income from sideline businesses.
It is really too big a hole, there is no way to balance the account, or the R&D team is really capable, it will be abandoned and let it go bankrupt.
A patent this month, another technological breakthrough in a few months. Good news emerges one after another, constantly stimulating market confidence. The financing of enterprises is increasing, and the market value is constantly expanding.
If it weren't for the stock market crash, this game of picking up the drums and passing the flowers could go on forever. Until one day a technological breakthrough, and then another story.
It is a pity that there is no such thing as reality. Now that the bubble has burst, such a company without performance support will naturally fall into a mess.
"Cut in half" and then "slash in half", that is only the treatment of the 5% of successful people. The overall decline in the technology sector is more than 80%, and some individual stocks have fallen as much as 99.9%.
If the net worth is calculated by market value, after the stock market crash, Franz's paper wealth evaporated at least 8 billion Aegis, which is more than the combined annual fiscal revenue of all countries in the world.
The bubbles blown out by oneself naturally have to swallow the bitter fruit. Of course, this is only on the surface. If you study in depth, you will find that since the outbreak of the European Continental War, the major shareholders of these companies have begun to reduce their holdings.
The major shareholder is still the major shareholder, and the reduction of the shares is only a small part of it. However, it is this small part that can buy the whole company right now.
Franz, who has made a lot of money, is not happy now. In the past, I was picking wool and doing scientific research with other people's money. Naturally, I don't feel bad when I burn it.
The situation is different now. There is no financing in the market. These high-tech companies are on the verge of bankruptcy, and they are about to fall into their own hands.
There are only two paths in front of Franz: either save these companies with his own money;
There is no doubt that neither path is a good choice. "Contribution" is simple to say, but it is definitely tears when it is done.
You must know that this is not a family or two, but thousands of companies need money, and Franz can't stand such a prodigal because of his wealth.
"Broken Wrist" did not lose much in the short term, but the previous efforts were all in vain. Moreover, with this lesson, it will not be so easy to make up stories in the future.
There is no way, the stock market crash came too fast, and as a major shareholder, he couldn't escape at all. What is even more tragic is that in this stock market crash, Franz missed his own property when he went short because of his unshakable conscience.
A momentary misstep created eternal hatred. Franz, who has missed many billions, suddenly finds himself a poor ghost.
After hesitating again and again, Franz said helplessly: "Miyagi, find someone to carefully screen it, and go bankrupt and reorganize all the companies with serious losses and no results.
The remaining companies should also compress their expenses, cut research funding, and develop profitable side businesses as much as possible.
The royal consortium has secretly given some help to these enterprises within its capacity. In principle, we will give priority to helping our domestic enterprises, and give up overseas enterprises when they should.
In addition, people are sent from the secondary market to successively acquire the stocks of domestic high-quality enterprises. It's not far from the bottom, and it's time to bounce back. "
The stock market that has squeezed out the bubble is a piece of chicken feathers. Compared with the valuations of tens or hundreds of times before the stock market crash, the valuation of several times now seems to be much more pleasing to the eye.
The strong man broke his wrist and cut off some companies with serious deficits. Franz's heart is bleeding, and he urgently needs to buy some high-quality assets to supplement it.
Palace Prime Minister Mirabellon persuaded: "Your Majesty, now that the economic crisis has come to an end, large-scale bankruptcy liquidation, our losses will be very large.
It is better to let these companies transform. When necessary, the consortium can help them generate performance and raise the stock price, and find opportunities to throw them to the next pick-up man. "
In fact, this is why consortia like to play with finance. Do not talk about the benefits of doing business by yourself, the key is to suffer heavy losses in the event of an economic crisis.
In contrast, playing with finance is much easier. "Economic crisis" not only has "crisis", but also "opportunity".
For ordinary people and businesses, it is a catastrophic crisis, but it is a big opportunity for financial consortia.
When the crisis breaks out, you can play short; after the crisis breaks out, you can buy the dips; after the crisis is over, you can turn around and sell the companies that have bought the dips, and wait for the next round of crisis to continue to play.
In the capitalist world, the economic crisis every ten years is not only the self-regulation of the market, but also the guys behind the scenes who see the fruit ripe and want to harvest it.
Otherwise, for something as big as an economic crisis, with such obvious signs before the outbreak, how could everyone not notice it
Franz shook his head: "I think you misunderstood, this economic crisis is not so easy to end. Although the bottom is approaching now, the end is still a long way off.
In the most optimistic estimates, the Empire will also emerge from the Great Depression next year. As for other countries, it depends on their own circumstances. Preliminary estimates suggest that it will take at least two years to get out of the crisis completely.
It will take longer before the market regains confidence and finds a new successor. If we do not close down these companies with serious losses, our losses will be even greater if we keep going. "
Unlike in the past, this time the economic crisis has been artificially delayed. According to the normal economic development in the capitalist world, there were signs of economic crisis three years ago, but the initial location was in France.
If not for the outbreak of the continental war, the French would be the first to explode. Perhaps realizing the seriousness of the crisis, the French chose to wage war before the bubble burst.
While the war transfers crises, it also brews new crises. If the European War had just ended, and the crisis had been allowed to break out, it would have lasted a year and a half.
Regrettably, for their respective interests, the British and Austrian governments have taken action 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, the greater the damage it will bring. The Vienna stock market has evaporated by three-quarters, and other financial markets are similar, and the damage caused is far from what the previous economic crises can match.
Hearing this bad news, Mirabellon's face changed greatly. The Great Depression that lasted for more than two years was as destructive as the Great Revolution of 1848.
If the Holy Roman Empire cannot come out first and promote the recovery of the world economy, it is possible that the Great Revolution of 1848 will be repeated in the European continent.
In a sense, the European world now has more foundations for revolution than it did in 1848.
The wave of unemployment affecting all countries, the deteriorating economic situation, the complex international contradictions, and the hatred between European countries are all breeding grounds for revolutionary ideas.
The French, who were unwilling to lose, Spain, which was mired in the Philippine war, Portugal, where the monarchists and republicans were about to lose their minds, and the Italian states that had just gained independence and had not yet stabilized, all had the basis for a revolution.
As the new boss of the Holy Roman Empire, it seems to be majestic, but in fact it has reached a crossroads. Once the revolutionary wave broke out on the European continent, the troubles of the Vienna government were too great.
In particular, there is also a Britannia that is secretly eyeing and wanting to do things; and the tsarist government that seems to have restrained 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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