Chinese people always say that my country's A shares is not good, and that investing in A shares is not as good as gambling. They must be envious of the bull market where US stocks continue to rise for more than ten years, and envy of why their supervision is so in place, but how many years have they developed? New York Stock Exchange was established in 1817, more than 200 years ago; Nasdaq was established in 1971 and has a history of 50 years. In fact, the US capital market has always been full of scams. From its establishment to the present, the US regulatory bill has been issued after some major vicious incidents occurred. Xiaosheng, today I will reveal the black news of the US stock market, so that Chinese people can know that my A-share market is actually not worse than the US stock market.
The number one player with water-dried stocks Daniel . Drew.
The early Wall Street had no laws and regulations, and there were no police. The early Wall Street was more like a private club. Wall Street was crazy at that time, full of insider trading and false information. In an era without supervision, Wall Street grew wildly. Before the 20th century, the information of listed companies was not disclosed, which meant that you could not obtain the company's financial information, and the reliability of buying and selling stocks was entirely due to character. At that time, many so-called financiers on Wall Street were almost equivalent to liars, such as Daniel Drew, the number one player who was mixed with stocks.
Daniel Drew had come to New York from another place to sell scalpers. He sold cattle from the countryside to the city. In order to sell his cattle at a good price, he would take his cattle to the stream before selling and drink a lot of water. This way, the cattle would be heavier when sold because there was a lot of water in his body. After he came to Wall Street, he used the same theory to add water to the company's stocks and issued excess stocks at a value higher than the company, so it is called water-dried stocks.
Wall Street speculator Daniel Drew
Drew relied on the invention of water-dried stocks and quickly became a financier on Wall Street. By 1833, Drew had become the major shareholder of the Eastern Railway of the United States, Erie , but he himself was just using these stocks to sell for a good price. In 1863, railway king Vanderbilt fell in love with Yili Railway and decided to complete the acquisition by purchasing Yili Railway stocks in the securities market.
Drew saw the opportunity and he sold Erie railway stocks to Vanderbil. In short, as long as Vanderbilt wants to buy, Drew will sell some, and it seems that he will never buy it, because while Vanderbilt is buying stocks in the trading hall, Drew prints stocks and issues new shares at the printing factory. When Vanderbilt found out, he was very angry and began to sue Drew, who bribed justices at all levels everywhere. They finally made peace in private.
Vanderbilt
There is only one principle for early stock trading: buyers, be careful. In 1870, a Wall Street newspaper wrote that in such an era full of conspiracies, one condition for success is confidentiality. If someone has the opportunity to learn all the information about the value and prospects of a company that only a company director knows, then the good days of a speculative director are gone forever. From these lines, we can see that the listed company at that time was the most appropriate description of the world's crow.
Bernard Madoff, the father of Nasdaq, is the number one player in Ponzi scam .
Ponzi Scam is an imported product, originally from the Italian speculator Ponzi , who immigrated to the United States in 1903. In 1919, he began planning a fictitious corporate investment project, promising investors to get a 40% return on profits within three months. Ponzi paid new investors' money as quick profits to the initial investor to maintain his capital chain. In just seven months, Ponzi attracted 30,000 investors. A year later, Ponzi could no longer find new investors, and the capital chain was finally broken. The scam went all out, and later generations called Ponzi scam, or Ponzi scam.
Madoff deeply understands the essence of the Ponzi scheme, and he begins his Ponzi adventure in wealthy clubs across the United States. He has strict screening of investors, the investment amount must exceed US$1 million, and there must be reliable recommendations to join.Finally, Madoff promised a return on investment, exceeding 10% per year, while the return on investment in the United States during the same period was only about 3%. (10% is not much, it seems much more reliable than the Ponts scam). Among the list of investors is the great director Spielberg, Nobel Prize winner Wischel, Spanish banking giant Santander , BNP Paribas in France, Nomura Holdings in Tokyo, Japan, HSBC, and so on.
Bernard Madoff
Madoff looks kind-hearted and innocent. Even if it is a scam, Madoff lives quite well. Nasdaq was founded in 1971, and Madoff was one of the founders. He first introduced an electronic automatic quotation system into securities trading, known as the father of Nasdaq. In 2000, Madoff Investment Company became one of the five most active securities agents in Nasdaq, with Madoff holding $300 million in assets. At this time, Madoff was really gaining fame and fortune, and lived a very relaxed life. As soon as the financial crisis broke out in 2008, he was finished. After the financial crisis, a European investor hoped to redeem $7 billion in investment as soon as possible, and Madoff's capital chain broke early . On June 16, 2009, Madoff was sentenced to 150 years in prison.
Just as the incident occurred in Madoff, this simple scam was being repeated all over the world. On February 5, 2009, a 75-year-old Japanese businessman was arrested by Japanese police. He promised investors an annual return of 36%. When the case occurred, he defrauded tens of thousands of investors, with an amount of US$1.4 billion.
wave and 2, Japanese Pomse scam player
On March 17, 2009, a Chinese Canadian was warned by the local Securities Regulatory Commission to stop investment business. He had previously promised investors a 1% return per week. On May 23, 2009, two British men were arrested by police and were charged with a 250 million pound Ponzi scheme.
Great Depression in the 1930s led to the establishment of the United States " Securities Law ", "Securities Exchange Act" and US Securities and Exchange Commission .
In 1929, the US stock market was full of speculative atmosphere. People would rather borrow money than try their luck in the stock market. The Federal Reserve has been lowering the borrowing interest rate for a long time, making it easy for people to get bank loans and speculate in stock markets. That year, 40 cents were invested in every dollar of loan.
The children who polish their shoes receive all the tips they receive, and everyone invests the money in the stock market. On October 24, 1929, the stock market collapsed without warning, and the stock price fell by one third in one day. Eleven people chose to jump off the building and commit suicide on this day. People later named this disastrous day after Black Thursday. Since then, the United States began a four-year economic depression. From 1929 to 1932, the market value of the New York Stock Exchange in the United States dropped from US$89 billion to US$15 billion.
The US economy is in the Great Depression, hungry children
The US Congress held a hearing on this matter. The hearing report pointed out that the main reason why the stock market flourished before the Great Depression was that securities companies used false information to hype, and the company's internal personnel also conducted a large number of insider trading to plunder small shareholders. Listed companies do not disclose information at all, and they do not even publish annual reports.
In 1933, the US Congress passed the Securities Act, establishing the information disclosure system for the securities issuance market, and specifying in detail the information content that should be disclosed in the prospectus and the legal responsibilities that should be borne for the initial information disclosure. In 1934, the Securities Exchange Law was promulgated to legally bind information disclosure in the securities trading market. In 1934, the Securities Regulatory Commission was established, and the first chairman was Kennedy.
Enron scandal, the Saipans Act was issued.
At the beginning of the last century, Enron was one of the largest comprehensive natural gas and electricity companies in the world. It is the number one natural gas and electricity wholesale seller in North America, with more than 20,000 employees. Since 1995, it was named the most innovative company in the United States by Fortune magazine for six consecutive years. In 2000, it ranked 16th among the Fortune 500 in the world.
In the eyes of the outside world, Enron's has performed well, equivalent to a blue-chip stock, but just one year later, Enron announced bankruptcy. In February 2001, Bethani McLean, then editor of Fortune magazine, wrote an investigation article about Enron, "Is Enron's stock price too high?". From the complex and obscure financial statements, Bethani conveyed a clear message to the public: Enron's financial fraud, and the audit opinion was Anderson, the fifth largest accounting firm in the United States. Enron paid Anderson's consulting fees of $1 million per year.
Once Andersen
On November 8, 2001, Enron admitted that between 1997 and 2000, a total of US$552 million in profits were reported by related transactions. Enron went bankrupt on December 2, becoming the largest bankruptcy restructuring case in US history. Enron's stock price fell from a low of $90.75 to $0.26. In 2002, Enron's vice chairman, Ford Bucks, committed suicide. In 2004, Enron's chief financial officer Di Fasto was sentenced to 10 years in prison. In 2005, Enron's chief accountant Richard Cousey was sentenced to seven years in prison.
In July 2002, the Enron incident prompted the United States to introduce the Saipans Act, which is the most extensive reform action of the United States on business standards since Franklin. Roosevelt , and is also called the most expensive bill by Wall Street. The bill stipulates that all financial statements and corporate legal persons must sign to ensure their authenticity and bear legal liability.
is also a capital market. The United States has experienced more than 200 years, and I don’t know how many scams, how many stock market crashes and collapses there have been. Every time the American retail investors who are hurt are probably more pitiful than the small scammers in my country. No scam has exposed that the supervision of the United States is also full of problems. my country’s stock market is only established at 30, so we should give more patience and firmly believe that the future of China’s stock market will be bright.
