So, what is the stock exchange for Americans? We can say that if not everything, then very much. Today the stock exchange is the heart of America. Why are there America, the whole world. Lightning charts, frantic ecstasy of some and despondency of others when stock indexes rise or fall. It is said that over 90% of millionaires in the world increase or create wealth by investing their capital in the US stock market.
What is being done on the stock exchange that millions of Americans lose their heads when the stock market (stock prices) grows, and ... just lose their heads when the market falls. After all, on the stock exchange just buy and sell stocks. As in any market. Grocery, for example.
“The stock exchange is an institutionalized, regularly functioning securities market. Stock exchanges are designed to: mobilize temporarily free funds of enterprises and the population through the sale of securities to them, facilitate the movement of money capital between different economic entities. ”Encyclopedia of oil and gas.
Gambling is more than just trading. This is a national American sport. And it seems like it always has been. But no! From 1790, when the first stock exchange was opened in Philadelphia, until the twenties of the twentieth century, the stock exchanges were closed to the general public. Only for the elite. Yes, these were development centers, along with many. And yet, with the national sport, bordering on madness, the stock market had nothing to do.
Accordingly, the volume of trade was ... Well, let's not talk about sad things ... And the more these “temporarily free” funds will be in the stock market, the more economically certain entities will be. And vice versa!
And in the 20s of the twentieth century, the money of almost the entire adult American population came to the stock exchange. Trading on the stock exchange took the form of national madness. People refused the most necessary, if only to cut out the extra tsentiki and invest them in truly growing shares. He played on the stock exchange, as they say, "both old and young." Teletypes, which transmitted stock quotes (stock prices), stood in any more or less crowded place. It was then that consumer credit became available to wide sections of the population, and the “take today, pay tomorrow” lifestyle lives and lives to this day. Production remained virtually without investment, all the money of the population rushed to the stock exchange, invested in pieces of paper! Billions of the then (almost 13 times more expensive than today) dollars!
The story left a few notable personalities, equal to which, the broad strata of the American population bore money on the stock exchange. They are William Durant, Jessie Levermoore, Charles Mitchell, and other very famous people at the time.
First of all, it is William Durant, one of the founders of the car company "General Motors", which is still alive today. Based on the production of borrowed money and losing control of the company in 1910, he plunged into the stock market game. It is simply impossible to imagine what kind of power this man had when the “market grew”. He could raise the price of any security just by buying it. After him, everyone started to buy the same thing. When the price rose to an acceptable level, Durant sold it. That's the whole simple combination. According to rumors, his wealth exceeded $ 100 million, billions of today's, depreciated money.
Jesse Levermore, a speculator-mathematician who has never done anything else. Having started this strange business in a bookmaker’s office as a poor teenager, he “made” so much money at the height of the “exchange boom of the twenties” that he most likely would have headed the list of the richest people in the world. And simple Americans considered him the richest then. On him, coming from the bottom, they were equal, they believed him and ... bought the same shares as the "great Jesse."
The joke was that, in his own words, “money was not the goal of my life.” The goal was the game, the exact calculation of when to buy and when to sell. The same that millions of Americans are doing now, trying to guess where the market will go. His financial condition at the "peak of form" ranged from two to two and a half billion dollars. The power of this man was so great that everywhere, wherever his car appeared, he turned on the green signal of the traffic light (the traffic lights were then switched by the cops in the booths). Until now, among Americans, the saying goes: “I would have brains like Jesse’s”, which means ... Well, you understood what.
Initially, only large companies were operating on the stock market. William Durant and Jesse Levermore brought small investors to the exchange. Further more. President of the National City Bank Charles Mitchell I tried to attract broad sections of the American population to the exchange game. Ordinary workers, office clerks, merchants ... As we see, this revolutionary idea for that time was crowned with tremendous success.
They say the female audience "hooked" on the stock exchange game speculator Jacob Rascob. He turned to women from the pages of popular women's magazines. His slogan “Everyone must become rich!” Was heard and accepted with gratitude. By the way, it was then that the first emansipe appeared ...
Income inequality in 1928 reached its maximum, which allowed a small number of the elect to create enormous fortunes in a very short time thanks to the game on the stock exchange. The rest of the crowd sought to keep up with them.
"Continuing the policy of the last 8 years, we will soon see, with God's help, the times when poverty will leave this nation forever." Edgar Hoover, US Presidential Candidate, 1928
But "trees do not grow to the heavens." If a stock is overvalued, it means that sooner or later it must “fall”, lose in value. And if all shares are overvalued? Everything! And awesome overestimated ?! And many in general had no “commodity content”. Money in the market ran out and ...
“What happened then, on a black Thursday, October 24, 1929, will be remembered for a long time. And not only Americans. ” Bernard Baruch. The financier, the stock speculator, as well as the political and statesman of the time. Whoever doesn’t remember, type these letters in any search engine: “great depression”.
But even this did not discourage the Americans from playing the game. As soon as the economic situation leveled off, the money rushed back to the stock exchange.
“There is a way to make a lot of money on the stock exchange; unfortunately, it is the same as the way to lose a lot of money on the exchange ". American economists Peter Passel and Leonard Rose. You just have to play. That millions of Americans do. Just playing on the stock exchange, not remembering those who taught them to this. And what does this lead to ...
Well, well ... "The Exchange needs new and new losers - so the builders of the ancient Egyptian pyramids needed new and new slaves." Alexander Elda. American. Just a player on the exchange.
A simple player in the most populous and respectable casino in the world ...