Previously, with the government backing them up, the major banks naturally wouldn't not give GM face. Even if the loans were due, at most, they would urge them to repay. It was impossible to force them to repay the debt.
But now, they had no choice but to force them to repay the debt. A large number of investment banks and commercial banks were caught in the subprime mortgage crisis. They all needed funds to get through the crisis, and those loans to the three major automobile companies were the best choice.
Among them, the Morgan Financial Group was at the forefront. Morgan Bank's loans to the three major automobile companies totaled about 40 billion US dollars. This was a huge number. Even Rector Morgan personally called the CEO of GM and asked him to repay the money.
After receiving Rector Morgan's call, the CEO of GM didn't dare to disobey. He tried his best to get 40 billion US dollars to repay the loan. Then, GM's books were empty, and they couldn't even pay the next month's salary.
At this time, more bank calls came in. The CEO of GM took a helicopter to Washington and complained to the United States's Grand Marshal about being poor.
The CEOs of Ford and Chrysler also went to complain about being poor. They took a helicopter together and announced in front of all the media that they were going to close down. Millions of workers were going to lose their jobs, and they were here to ask for government help.
Then, these three people were scolded badly … Don't get me wrong, it wasn't the government who scolded them. The government didn't dare to scold them. It was the netizens who scolded them.
There was no shortage of smart people in the United States. Seeing how these bastards were wasting the taxpayers' money and doing all kinds of despicable things, yet they had no qualms about asking the government to save their lives, there was a sudden outburst of abuse on the Internet. Some people even went to the Black Palace's website to petition for the closure of these three automobile companies.
But the government didn't dare. So on October 3rd, Little Jack announced the first phase of the 700 billion US dollars rescue plan, which meant that 700 billion US dollars would be invested to save the entire market.
Some of the US dollars would be used to invest in the three major automobile companies so that they could repay the loans of various banks. After the banks received the repayment, they could offset part of their deficit. It was the best of both worlds.
However, considering that the capital loopholes of the banks were even bigger, 400 billion US dollars of the 700 billion US dollars rescue plan was directly injected to the banks.
That's right, directly giving money to smooth out the loopholes. It was a very simple and crude rescue plan.
Naturally, this plan was criticized by everyone without exception. This was because there was almost no benefit to this plan other than filling in holes and loopholes.
Most damning of all, the money was sent directly to the bankers.
These bastards who caused the subprime mortgage crisis not only didn't go to jail for trial, but also shamelessly asked the government to give them money to make up for the loopholes. And this money was all taxpayers' money!
It was as if Zhang San had been slapped by Li Si, and Li Si's hand had turned red from the slap. Hence, Zhang San had bought a bottle of safflower oil for Li Si to heal his hand so that he could continue slapping him in the future.
This was f * cking ridiculous.
The United States government was very confident in their plan, but they made a fatal mistake. They ignored the people who were seriously injured in this crisis.
It looked like the banks and investment institutions that went bankrupt one by one, but these people actually had little to do with the people of the United States. If they went bankrupt, so be it. After all, 99% of the population of the United States did not rely on financial institutions to pay their salaries.
At this time, the people who were really in crisis were the people of the United States, as well as small and medium-sized physical enterprises.
As mentioned before, physical companies were basically relying on the blood of various financial institutions to survive. They relied on loans to make ends meet.
Since the banks had the guts to directly force the three major automobile companies to repay their debts, the small physical enterprises naturally would not let them go. Not only did they cut off the supply of loan funds, but they also constantly urged them to repay. Some banks were afraid that other banks would beat them to it, so they directly blocked the assets used as collateral in advance and then entered the auction process to recoup their losses.
This directly led to 30% of the physical enterprises in the United States going bankrupt. By the time the United States government reacted, the unemployment rate in the United States had reached an unprecedented 15%. A large number of employees lost their jobs, and they did not have a single cent in the bank. Many people did not even have 100 USD in their pockets and bank accounts!
Therefore, the real financial crisis broke out. The stock market of the United States was able to maintain stability under various rescue plans and hundreds of billions of dollars of financial stimulus.
But with the announcement of the unemployment rate, various small and medium-sized enterprises went bankrupt. The US stock market collapsed instantly and began to fall like an avalanche.
The economic crisis of 2008 had completely broken out!
— — —
Outside the window, countless snowflakes were falling, and the scene was covered in silver.
"I don't know how many years it will take for this snow storm to subside!" In November, Rector Morgan, who finally had a few days of free time, looked at the snow outside the window and sighed.
Of course, the snow storm that Rector Morgan mentioned could not be the real snow storm, but the economic crisis this time. Since October, a large number of physical enterprises in the United States have gone bankrupt and collapsed. Even many enterprises under the Morgan Consortium were gone.
However, Rector Morgan, who had an economics degree from many universities and countless practical experience, had already figured out that this economic crisis had just begun. In a few months, it would spread to the whole world.
With the unemployment of workers and the closure of enterprises, the purchasing power of the United States would begin to decline. Imports from the United States would also drop by a huge amount. Then, the income and orders of many enterprises in the world that relied on the consumption of the United States would decrease, and these enterprises would go bankrupt.
And with the collapse of these enterprises, the workers under them would also lose their jobs. Then, the entire country's consumption would begin to decline. Consumer desire would decline, and a large number of products would be produced but no one would buy them. This would lead to more enterprises' capital chains breaking and collapsing. Countless people would go bankrupt. An economic crisis no less than the Great Depression was coming.
"After the snow storm, who will survive?" Rector Morgan fell into deep thought. The snow storm brought destruction, but after the snow melted, there would be new life.
The economic crisis would always pass, and after that, there would be rapid economic growth, which would also bring about a brand-new world structure.
For example, although the Great Depression began in the United States, it also made the United States the world's hegemony. They had the world's production capacity, and could produce seven aircraft carriers a year.
So, who would be the lucky winner after this crisis?
"I hope it's us!" Rector Morgan sighed, but he did not have much confidence. George Jr. was an obedient and good leader, but he lacked courage. It seemed impossible to expect him to lead the United States out of the economic crisis.
The secretary came over and said respectfully, "Sir, several enterprises have proposed plans to relocate their factories. They hope to get your permission!"
"Where do they want to move to?" Rector Morgan asked with a frown. With the collapse of a large number of physical industries in the United States, many physical enterprises under the Morgan Consortium complained that it was difficult to operate in the United States. Not only was it difficult to recruit qualified workers, but more importantly, the entire industrial chain was not supporting them. They were about to be unable to do business in the United States!
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