The stock market crash of 1929, which occurred globally, is the most severe, harmful, and far-reaching economic event to date, and is considered the darkest day in American securities history. Affected by the crash, the entire Western world entered a decade-long period of economic depression.
In the last ten days of October 1929, the New York Stock Exchange experienced its darkest period. Massive selling began on October 21st, leading to the "Black Thursday" of October 24th, when stock prices plummeted like a breached dam. Even the personal purchase of stocks by Richard Whitney, the president of the New York Stock Exchange, could not reverse the trend.
The next day, President Hoover, who was in office at the time, was forced to issue a statement, attempting to restore confidence in the U.S. market, but to no avail.
On October 28th, another historic day, "Black Monday," the Dow Jones Index fell by 13% in a single day, and no one believed the market would recover.
On October 29th, "Black Tuesday," investors, having lost all confidence, sold their stocks at any cost. The massive sell-off swept through the market, and the index plummeted. That day, the stock market saw a record high of 16.41 million shares traded, with the index falling from a high of 386 points to 298 points, a drop of 22%. A trader described it as the "worst day" in the 112-year history of the New York Stock Exchange.
In November, the stock market continued to fall, with the Dow Jones Index sliding to 198 points, losing nearly half of its value compared to its peak.
From 1930 to 1932, the stock market experienced six more major crashes, with the Dow Jones Index falling to a mere 41 points, and 90% of its value evaporating. Thousands of people committed suicide by jumping from buildings, and even the renowned economist Irving Fisher, who created the quantity theory of money, lost all his Rand Company stocks within days, leaving him impoverished and heavily in debt.
The stock market crash not only shattered investors' confidence but also devastated the banking system and the entire economy. The stock market's collapse led to severe losses for investors, who could no longer afford to consume, causing a surplus of goods in the market. Banks faced crises, cutting off financing channels for businesses, which in turn worsened the economic situation, creating a vicious cycle that ultimately led to a severe economic crisis. Given America's significant role in the global economy, its economic crisis triggered a worldwide depression, resulting in tens of millions of people losing their jobs, countless people becoming homeless, and trillions of dollars in wealth evaporating.
Anyone with a basic understanding of securities history knows this period, and Liao Xiaohua was no exception. He had initially thought that the speech by Secretary Baker would cause the stock market to fall, but he never expected Zhong Shi to compare it to the 1929 crash.
"This can't be possible, right?" Liao Xiaohua was full of disbelief, but he spoke very tactfully.
"I know you don't believe it, but just think about how much international capital is in the U.S., and how much capital will flee if the dollar depreciates. How much money will be withdrawn from the stock market?" Zhong Shi, unfazed by Liao Xiaohua's insincerity, instead patiently explained.
"I don't know!" Liao Xiaohua frowned, thought for a long time, and then sighed, somewhat helplessly.
It was no wonder; he had been indulging in eating, drinking, and playing for years and had not paid attention to economic matters. He probably hadn't even noticed the monthly economic indicators. Moreover, Zhong Shi's knowledge came from the future, and he couldn't compare.
"Can't you tell by looking at today's market?" Zhong Shi chuckled, picked up his coffee, and sipped it. After a few sips, seeing that the Liao family was still confused, he said, "Haven't you eaten yet? Have some breakfast here. We'll go watch a good show when it gets light!"
Liao Chengde and Liao Xiaohua had different schedules from Zhong Shi, as they were active during the day. After the commotion, Liao Chengde was quite tired, yawned several times, and waved to decline Zhong Shi's offer, then got into his car and drove back home.
Liao Xiaohua, however, stayed to have "breakfast" with Zhong Shi. It was around 3 a.m., and the Zhong family's servants, who had not yet gone to bed, prepared a rich "breakfast" in just a few minutes.
Golden fried eggs, fragrant bacon, crisp and tasty salad, freshly squeezed orange juice, and a large plate of toast made up their breakfast. Liao Xiaohua was surprised to find that Zhong Shi's taste was so Westernized; he had thought Zhong Shi, like his father, preferred soy milk and oil sticks for breakfast.
Under British rule, Hong Kong's cuisine had a blend of Chinese and Western influences. Most Hong Kongers had buttered buns, Western-style fried eggs, ham and noodles, coffee, or tea for breakfast. Only people like Liao Chengde, who were old-fashioned, still maintained the dietary traditions they brought from mainland China. Fortunately, Hong Kong had restaurants of all regional cuisines.
After finishing their meal, they rested for a while until it was bright outside. They then set off for the Liao family's mansion.
"Today will be a very busy day, and we might not have a moment to rest!" Zhong Shi muttered, gazing at the Victoria Harbour.
Liao Chengde, who had been up half the night, was not in good spirits. He only got up after the servant notified him half an hour later. By the time everything was ready, it was almost time for the market to open.
They all got into a seven-seater minivan and headed for Central.
Speaking of this minivan, there was a small story behind it. Previously, Liao Xiaohua had pursued a famous female star surnamed Liu and bought a sedan for her without her consent. However, Liu was in a hot relationship with a male star surnamed Liang and ignored the sedan, completely ignoring Liao Xiaohua. Deeply hurt, Liao Xiaohua, in a fit of rage, wanted to smash the sedan on the street, but was stopped by a patrolling police officer. The entire incident was captured by entertainment reporters and became a sensation in gossip magazines, making the sedan famous.
Liao Chengde and Zhong Shi, of course, did not know this. In the morning, Liao Chengde remembered there was a sedan in the garage that could seat everyone, so he had the driver bring it out. When they got in, they found that the car had hardly been used, with a brand-new interior and even a refrigerator.
Since the car was brought out, Liao Xiaohua's expression had been strange, but everyone thought he was just tired from the night before and did not pay much attention, unaware of the backstory.
Hong Kong's paparazzi were world-renowned, and several dedicated paparazzi had been lurking around Liao Xiaohua's house for a long time. When the famous sedan drove out of the Zhong family's mansion, several unremarkable taxis quietly followed behind.
"Huh? Someone is following us?" Lu Hu, sitting in the front, noticed the unusual activity in the rearview mirror and was surprised. He couldn't understand why someone would be following them, as they hadn't offended anyone recently, unless someone was planning to harm Zhong Shi?
Thinking of this, Lu Hu clenched his fists and quickly considered the situation, glancing at the three people in the back. Zhong Shi and Liao Chengde were completely unaware, still listening to the pre-market broadcast, where a fluent Cantonese-speaking stock commentator was enthusiastically saying, "Given the improving economic situation and the record high in local employment, the Hang Seng Index is expected to continue to rise in the coming days..."
"This is nonsense! It's like saying I've been cuckolded by my wife!" Zhong Shi thought to himself. Liao Chengde, looking tired, yawned uncontrollably, clearly not well-rested. Only Liao Xiaohua looked uneasy, his eyes frequently darting to the back.
"Hmm? Could they be after Young Master Liao?" Lu Hu thought, recalling Liao Xiaohua's past antics, and began to understand.
"It seems I'm being overly suspicious!" Lu Hu thought, but he still couldn't relax. He would need to investigate when they arrived at their destination to find out who these people were.
Half an hour later, the sedan stopped in front of a skyscraper, home to hundreds of brokerage firms, where billions of dollars were traded daily. Liao Chengde had an account at a small, unassuming brokerage firm here, but he managed his own money.
Given Liao Chengde's current wealth, if he announced he was looking for a brokerage firm, the wealth management departments of major securities firms, investment banks, and even banks would likely vie for his business, using all their persuasive skills to win him over. He chose this area with many brokerage firms to keep a low profile.
"Mr. Zhong, Mr. Liao, you go ahead, I'll catch up!" As they got out of the car and entered the building, Lu Hu suddenly said.
Zhong Shi simply nodded and continued walking without a word. Liao Chengde, subconsciously shrinking his neck, looked around uneasily before telling Lu Hu, "Fifteenth floor, Renfu Brokerage."
Liao Xiaohua, feeling guilty, walked ahead with his head down, not even hearing what Lu Hu said.
Li Guohao, a reporter for a gossip magazine, specialized in photographing the dates of rich second-generation heirs and female stars. After waiting for a long time at the famous Liao family's gate, he finally got what he wanted, though the female star had not yet appeared, and he had to wait a bit longer.
"Friend? What are you doing here so sneakily?" Just as he was feeling smug, a cold voice came from behind him. He was startled and turned around, only to have a large hand land on his head, immobilizing him.
Feeling the coldness from behind, Li Guohao panicked and said, "What are you doing? I'll tell you, Hong Kong is a place of law..."
Before he could finish, a hand struck his neck, and he lost consciousness.
...
Liao Chengde and Zhong Shi entered the brokerage firm and saw a scene of chaos. Brokers, ignoring the sweat on their foreheads, were making phone calls one after another, their voices filled with anxiety.
"What's going on?" Liao Chengde was puzzled, grabbing a broker who happened to be passing by and asking.
"Ah? Mr. Liao, the Hang Seng Index has plummeted! It fell 120 points at the opening, and everyone is panicking!" The young, pale-faced broker, initially angry at being grabbed, immediately became respectful upon recognizing Liao Chengde and explained the situation with the Hang Seng Index.
"Sure enough!" Liao Xiaohua clenched his fists, ready to shout.
"Mr. Zhong, what's happening?" Liao Chengde glared at his son in dissatisfaction and then turned to Zhong Shi.
"Mr. Liao, your short position is making a fortune!" Before Zhong Shi could speak, a fawning voice rang out, belonging to the vice president of the brokerage firm and Liao Chengde's broker. (Clicks, recommendations, and collections are appreciated)