Chapter 671 The Importance of Information

Under the guidance of the government, there is still no enthusiasm that can resist the capital. The interests are always easy to lose and the risks are ignored.

If you can't get government support, you will find ways to reduce costs. For example, if you put the factory in the suburbs or in a town with convenient transportation, the land cost will be saved by more than half.

It doesn't matter if there are no tax incentives, both Prussia and Russia are buying, buying, and buying, and now the factories are very profitable, not less than a few points.

"It's hard to persuade a damned ghost with good words. Great mercy will never cross oneself."

Seeing the constant influx of capital moths to the flames, Franz could only choose to be invisible.

In addition to greed, the madness of the market has more serious social problems. The capitalist world economy is once again experiencing excess capacity, especially in Britain and Austria.

The crisis did not break out, and it has something to do with the international situation. From 1873 to 1878, the Second Near East War broke out successively, and the colonial war initiated by Britain, France and Austria to divide the African continent.

The war consumed a lot of wealth and materials, and the prosperity of the market concealed the crisis of overcapacity. If the Russian-Prussian war does not break out, a new economic crisis will break out next year at the latest.

After so many years of accumulation, the excess is not just production capacity, but also excess capital.

As the saying goes, money spent is money, and the money lying in the bank is just a bunch of numbers. Under the background that most industries are saturated and surplus, capital needs new investment channels.

According to the practice of dying, at this time, the stock market should be on the rise. A lot of money poured into the stock market, creating an unprecedented boom, and then the bubble burst, and the excess capital evaporated with the bubble.

A dead Taoist friend is not a poor Taoist, and the contradiction between Prussia and Russia has been taken advantage of. Austria supported the tsarist government, and Britain and France supported the Berlin government. In addition to political needs, there was also the role of capital.

When the money is lent out, the problem of excess capital will naturally disappear. The large number of orders brought by the war also promoted economic development.

The most important thing is that the industrial crisis, which was mainly caused by the two major industrial powers of England and Austria, has spread to the entire European continent through the stimulation of war, and no one should want to be alone.

To drag everyone into the water together, starting from the national level, this is not to harm others and not oneself. To be precise, it's called hitting a potential competitor.

Economic wars are not the same as military wars. The country that suffers the most may not necessarily be fighting against each other. It is more likely that the boss will play against the second. In the end, the third, fourth, fifth... will be killed.

Under the free trade system, the global market is still very limited, and it is impossible to satisfy everyone's appetite. It can only compete according to the law of the jungle.

The industries of Britain and Austria account for 29.8% and 36.5% of the world's total industry respectively, and the total import and export volume of the two countries account for 49.6% and 24.7% of the world's total export volume respectively.

Because of the relationship of interests, conflicts are inevitable. Capital wants to eat people. In this world where the weak eat the strong, the first to fall must be the weak.

Now speculators are rushing to make a fortune in war. It is not that they are completely unaware of the risks. They are just fans of the authorities. Many people think that they can run faster than others.

As long as you find a pick-up man before the crisis breaks out, you can get huge profits.

Vienna Palace

Palace Minister Mirabellon: "Your Majesty, so far, we have sold 76 factories one after another, and the rest are also under negotiation, and it is expected that all of them will be sold in the next two months.

Stocks and bonds held are also being slowly sold off, and in order not to cause market turmoil, only about one-tenth of them have been sold.

Affected by the hot market, the gains from the reduction of assets this time are a bit richer than expected. Now 130 million Aegis has been harvested, and about 440 million Aegis can be obtained after all are sold.

However, our actions have attracted the attention of those who are interested. Follow-up actions may encounter certain troubles. "

Franz nodded, being discovered was inevitable. Selling assets when the market is the hottest, such an alternative approach, it is only a problem if it is not noticed.

But there is no way, the royal family assets have grown like a snowball over the years, if you don't retreat sooner, you won't be able to retreat later.

Franz can only say that he was living in a dream about finding a high-priced pick-up man the day before the crisis broke out.

Where in the world are there so many fools? If nothing else, as soon as the Russian-Prussian war was over, the value of these factories would be greatly reduced.

Perhaps in times of war, the huge profits gained can make up for the loss caused by the decline in enterprise value, but it will be difficult to find a buyer at that time.

If there is no successor, then we can only resist hard, relying on strong financial strength to survive the most brutal years of competition.

It seems that there is nothing, anyway, these low-tech industries, the last remaining ones must be rich in financial resources, but they can't stand the royal family's stall. Franz was at a loss for not stocking up on ammunition in advance.

After deciding to start a dumping war with the British, Franz decided to completely abandon the food processing industry, textile industry, and primary processing manufacturing.

Once the crisis breaks out, these low-tech industries will definitely be hit the hardest, and Franz is not ready to die on this.

Selling 274 factories at one time, covering more than 14 countries, such a big deal can apply for the World Gillis Record.

The factories are no longer needed, let alone the stocks and bonds invested in. It is easy to sell them early. Money still has to be put in pockets, and the nominal market value is the most unreliable.

After thinking about it, Franz

: "Well done, the market is so crazy now, we don't need to be buried with them.

In addition to these selling assets, starting from May next year, we will gradually reduce our long-term investment in several listed companies.

Including our holding companies, as long as the stock price exceeds the normal market value, we must reduce our holdings, and then repurchase after the stock market crash.

In particular, overseas investment should be dealt with as soon as possible. For example: investment in the Panama Canal, take the opportunity to find someone to take over it!

This crisis is likely to be much bigger than it has been in the past, and it will last for a long time. Investments in the next two years will be short-term and conservative. "

Man-made disasters are far more terrifying than the laws of the market. Once an economic war breaks out, it will not end in a day or two.

Without eliminating a large number of outdated production capacity and freeing up enough market, capital will not give up.

At this critical moment, the bigger the spread, the bigger the final loss.

Most of the consortiums in later generations have turned to the financial industry, and few of them have devoted themselves to the manufacturing industry. This is also an important factor.

The reality once again proves the importance of confidence. Franz is self-aware and has never been a business genius.

If it weren't for the first-hand information, grasp the investment opportunities, and avoid the crisis in time, the royal family's industry would have lost its money.

Of course, if there is not so much information, the stall of the royal industry will not be so big. It is unscientific to invest in whatever makes money.

Even a giant consortium cannot take care of all industries. The "Samsung" of later generations is an example. The stalls are too large and the eggs are involved. Otherwise, the whole country will be rescued, and they will die.

In order to develop better, it is inevitable to lose some burdens. This is just the beginning, and in the years to come, the royal consortium will give up more business.

Don't give up now, mainly because of the huge profits. Traditional fields and emerging fields are themselves relative. Today, they are still high-tech with bright prospects, but they may become traditional fields tomorrow.

Mirabellon asked in surprise: "Your Majesty, give up the shares of the Panama Canal now, without waiting for the final harvest?"

Franz shook his head: "It's unnecessary. Judging from the current situation, I'm afraid I won't wait for the last harvest moment.

Once the economic crisis broke out, the Panama Canal could not go on. It is not appropriate for us to remind the French, unless they take the initiative to close the net in advance.

We have limited shares in our hands, and even if we harvest early, our profits are very limited. Exit now, just to avoid the storm behind.

If investors were told that the canal they were looking forward to suddenly disappeared, they still don't know what would happen. "

The royal family wants fame, not all money. It’s also a good thing to quit early, as it saves you having to spend resources on the aftermath.

No one else knows, but Franz does know that the Panama Canal will not be navigable in the next 30 years.

It's not a technical problem, it's mainly a political disallowance. The Vienna government has always held objections and has not taken any action, because the canal has just been dug and is not in a hurry.

French capitalists took the Austrian royal family into shares, in essence, to reassure the shareholders and to release the illusion that the Vienna government would not intervene.

If it wasn't for the knowledge that these people are only there to harvest in the stock market, Franz would not have participated in it, even if it was lucrative.

The purpose of the platform has been achieved, and there is no problem with leaving the venue with the appearance fee. As for the life and death of the Panama Canal Company, it has nothing to do with an investor who left early.

Anyway, the Panama Canal is listed in Paris, and the pit is also a French investor, which has little to do with Austria.

If the Canal Company went bankrupt, Franz would not be the one to take the blame.

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