America's No. 1 financial conglomerate

Chapter 565 Nobody Wants to Not Become a Dragon

There is an ironclad rule in human society: in the absence of external pressure, the development of any organization will tend to favor its elites.

The financial market is the most obvious example.

Without organizational oversight, various financial institutions, and even securities dealers, could become tools for organizational elites to pursue their own interests.

The U.S. Securities and Exchange Commission (SEC) was established in 1934, more than 140 years later than the New York Stock Exchange (NYSE). For a long time, the NYSE was a private organization controlled by Wall Street brokerage firms.

They can cut whoever they want, and make the rules however they want, without ever losing.

Until one day, they met Alan Ryan.

Ryan was the owner of Stutz Motors in the United States. Although many people may not have heard of this name, in the late 18th and early 19th centuries, his reputation was no less than that of Ford or General Motors.

Back then, Stutz was the fighter jet among American sports cars. If it weren't for Wall Street, America might have had a world-renowned sports car brand like Porsche or Ferrari.

Even now, the company still exists, but it mainly builds ultra-luxury, fully manual custom sedans for customers in the Middle East, with an annual production of only about ten vehicles.

Ernst's initial strategy of spending money to inflate the stock price was modeled after Ryan's approach.

When Wall Street saw Stutz's stock price soaring but couldn't profit from it, they plotted to short Stutz and then buy its shares at a low price. Little did they expect that this would turn into a battle between heroes and villains, even indirectly leading to the creation of the U.S. Securities and Exchange Commission.

When Ryan discovered the short selling on Wall Street, he mortgaged all his assets and frantically bought up the short sellers' orders.

Then, they borrow money again to buy the stocks they bought and continue to buy into the sell orders.

(Please remember 1110.com for the fastest chapter updates)

With Ryan's relentless buying, Stutz's stock price not only didn't fall, but rose all the way up, increasing by 200% to a value of over $380 per share.

When Wall Street discovered that Ryan had bought up all the stocks on the market, short sellers not only couldn't borrow stocks, but even closing their positions became a problem.

If we want to close out our positions, we'll have to find a way through Ryan.

Wall Street tried to coerce and entice Ryan, but he remained unmoved.

Want to close out your position?

can.

$750 per share.

Faced with Ryan's unwavering stance, the negotiations naturally broke down.

So Wall Street came up with a plan: to force Stutz's stock to be delisted. Delisting would mean Stutz's stock was removed from the NYSE and delisted.

Since it has been delisted, Stutz's stock can no longer be traded. Without trading, short sellers no longer need to close their positions and are not liable for default.

However, this would destroy the century-old reputation that Wall Street has built up, and the government would never allow these capitalists to do that.

Then they intervened, indirectly leading to the establishment of the China Securities Regulatory Commission (CSRC).

As for the two parties involved, with the government's mediation, Ryan ultimately helped Wall Street liquidate the positions at a price of $600 per share.

But capital is capital, and a dragon is a dragon. A warrior may win once, but he cannot win forever.

The Great Depression that followed dealt a heavy blow to the American auto industry, causing a sharp contraction in market demand and putting many automakers at risk of bankruptcy.

In an effort to save its domestic auto industry, the U.S. government launched a series of relief policies, providing substantial financial support and preferential policies to major automakers such as Ford, GM, and Chrysler to help them overcome difficulties.

However, as one of the symbols of the American auto industry at the time, Stutz was excluded from the government's bailout list, leaving it to fend for itself during the crisis.

This made it clear to everyone that as long as Wall Street exists, it is invincible regardless of whether there is regulation or not.

When a crisis strikes, Wall Street, with its vast wealth, is the true god.

Since Stutz, there have been many cases of bulls and bears on Wall Street, some profitable and some not. But no matter who caused Wall Street to suffer huge losses, none of them showed Wall Street as much shamelessness as Ryan.

Therefore, Wall Street believes that Ernst will not be like Ryan, since his company will still need Wall Street's financial support in the future.

But as Ernst said, Wall Street is no longer the Wall Street it used to be.

If he wants, he can eventually bypass Wall Street as a financing channel.

Silicon Valley investment firms rose to prominence during the dot-com bubble, and Ernst Asset Management will never lack funds as long as it can provide investors with a steady stream of returns.

As long as his business continues to succeed, global capital will flock to him.

What did Toyo Denning say?

Capital fears no profit or too little profit, just as nature fears a vacuum.

Capital becomes bold when there is a suitable profit.

If there's a 10% profit margin, it's guaranteed to be used everywhere.

It becomes active when it has a 20% profit margin.

With a 50% profit, it will take any risk. For a 100% profit, it will dare to trample on all human laws.

With a 300% profit margin, it dares to commit any crime, even risking the gallows.

If they're not even afraid of the gallows, would they care about obstacles from Wall Street?

Ernst wasn't after Wall Street's capital, but rather its century-old reputation.

As he grows into a new capital giant, and as he himself becomes the embodiment of a dragon, the brand reputation and rule-making power of Wall Street will become important tools for him to consolidate his position and expand his influence.

The meeting is almost over, and that's about all we can talk about for now. We'll just have to take it one step at a time.

Ernst glanced at his watch, which pointed to eight o'clock, and said softly, "I didn't expect it to be so early."

The atmosphere in the meeting room relaxed slightly, and Parker Houston couldn't help but mutter, "I like standard time. Why not cancel daylight saving time and keep it indefinitely?"

This seemingly casual remark resonated with many people present, which surprised Ernst.

He smiled upon hearing this and asked curiously, "Many countries around the world have already abolished the switch between daylight saving time and winter time, but they all use the time of daylight saving time as the base time to fix it. This is the first time I've seen someone like you who want to abolish daylight saving time and continue with winter time."

"No." Parker Houston shook his head. "No one in the finance industry likes daylight saving time."

In the United States, time can indeed be reversed. For example, during standard time, time is slowed down by one hour.

At 2:00 AM on the first Sunday of November each year, when the time in the United States approaches 2:00 AM, it doesn't jump to 2:01 AM, but to 1:01 AM.

In terms of time, eight o'clock is still eight o'clock, but the reality is that it is now nine o'clock during daylight saving time.

This is why, in many countries, Nasdaq opens and closes an hour later during winter time.

In the United States, the opening and closing times are always fixed.

It's not that time was lost, but rather that time has been rewound.

"Tell me your reasons?" Ernst asked.

"Because for us, our work hours have been reduced by one hour."

Ernst didn't understand at first, but he quickly figured out the reason.

During winter time, although the time is the same, the reality is that you start work an hour later and finish get off work an hour later.

The timeline in the United States has changed, but the timelines in many countries in the international market, such as the Asian market, have not. Any financial professional whose company involves international business will inevitably be involved in the Asian market.

The same closing time, the same late-night trading, but during daylight saving time you can leave work an hour earlier.

Another psychological aspect is that, compared to staying up late, it is harder for people to accept waking up early.

During winter time, the time to get up each day is equivalent to being an hour later.

And there are many similar cases.

As the people in the conference room prepared to get up and leave, Ernst remembered something, clapped his hands, and attracted everyone's attention.

"Oh, right, I ordered coffee, pizza, and sandwiches for everyone. Come here to pick them up later; they should arrive soon."

I called everyone over at six o'clock. Many people probably woke up at five o'clock and hadn't had breakfast yet.

Ernst would still make this kind of caring gesture towards his subordinates.

"Thank you, boss."

Sure enough, many people smiled.