Chapter 1664: Burnt

However, the bubble will eventually burst.
The model of .Com companies has a natural flaw: a large number of companies have almost exactly the same business plans in the same field. The basic logic of operation is to use the Internet, a cheap customer acquisition tool, to "burn money" to attract new users at the same time. Also exclude competitors, the final goal is to cultivate user habits and then form a market monopoly, and finally harvest profits.
Obviously, because the market is always limited, no matter how good the plan is, there will be only a few winners in each industry sector. In fact, many sectors do not even have the ability to support a leading company, so most Companies with the same business plan will fail-readers and friends can recall the "bicycle sharing wars" and "takeaway wars" a few years ago, and then look at the recent "community group buying wars", which will surely give you some insights .
When the wind blows, pigs can fly to the sky, but when the wind stops, the first one to fall must be a pig.
Many .Com companies are destined to be unprofitable from the day they are created. They are only burning money, actively or forcedly. After they burn out the capital of the venture capital, their life span will be too. It's over.
But such an end will not be unknown, especially those companies that have already been listed on the Nasdaq and have obtained public subscription for stocks.
Since mid-1999, many Internet companies have experienced unsustainable business operations. At the beginning, they were just small companies that were not well-known. Later, many small and well-known companies in the industry have also spread out. The scope of this kind of news is no longer limited to .com companies, but began to spread to enterprises in related industries, until the well-known old communication equipment manufacturer Motorola also reported similar news.
"Iridium" company was filed for bankruptcy by shareholders, and the outstanding interest-bearing debt involved was as high as 4 billion US dollars!
In the first few days of the news, people once hoped that Motorola could save the company from bankruptcy. Therefore, the market's response was fairly stable. It stabilized only after a drop of more than a hundred points that day, but when more The news came out later. People knew that many shareholders of the "Iridium Star" company had already cashed out through various methods. They knew that most of the company's huge liabilities were guaranteed by Motorola. Therefore, the $4 billion is very likely. Motorola needs to repay, and Motorola's own operations will be greatly affected after repaying these debts, the market finally can't bear it.
A series of bad news completely shattered the confidence of investors in the market. In a market whose value is obviously overvalued, confidence has always been more important than gold.
The Nasdaq plummeted by more than 900 points in 6 days, a full drop of 18%. One month later, the Nasdaq had fallen from its peak of 5048 points to 2586 points, which was almost cut in half, and there was no stabilization and rebound at all. sign.
This is the performance of the broader market, and many stocks have fallen horribly. According to the statistics of some research institutions, more than 5 trillion US dollars have been wiped out in this short month!
With the bursting of the Nasdaq bubble, the problems that were previously covered up by false prosperity have also surfaced, and many companies have burst out financial scandals. For example, World.com was found to have exaggerated its profits by 10% through accounting fraud. In billions of dollars, after the incident was revealed, its stock price plummeted, and it applied for liquidation within a few days, which became the largest liquidation case in the history of the United States. Similar examples include NorthPointCommunications, GlobalCrossing, JDSUniphase, XOCommunications and CovadCommunications... etc.
So you see, there is nothing new under the sun. A certain coffee is neither the initiator of this kind of event, nor the terminator. As long as there is greed in human nature, these things will always happen in a loop.
It was not only the Nasdaq stocks that fell sharply. Of course, Dow Jones was also affected. In 1999, when the economy was already highly correlated, no one could be alone.
The Internet bubble was burst like this, as if accidentally, but in fact it is inevitable. No matter whether Tan Zhenhua participated or not, these things will always happen. He just lightly fanned his wings and made these things as long as he needed. Point, it happens in the way he needs, at the rhythm he needs.
This is his inherent advantage as a rebirth, isn't it?
While Tan Zhenhua wielded his sickle to his heart's content, harvesting the despair and tears of countless U.S. investors, Creighton also faced his biggest crisis since he was elected president of the U.S.
Because he will become the second president in American history to be impeached during his term!
Here, we must first introduce the US impeachment system and some basic conditions of the US Congress at this time.
In the United States, impeaching the current president is easy and easy, but difficult. It is easy to say because the procedure is not complicated. As long as someone in the House of Representatives thinks that the president is not a thing, they want to initiate an impeachment against the president. After everyone discusses the vote, more than half of the people also think that the president is not a thing. The formal impeachment proceedings.
Then the baton of the procedure is handed over to the Senate, which will try the president. How to judge? Still vote. But this time the requirements are stricter. More than two-thirds of the senators must vote that the president is guilty. The president just wants to do it any more and step down. After stepping down, the impeachment process continues to go down. Whether the trial will impose additional penalties on the president who stepped down, this is a fall in the wall.
In the history of the United States, only one president had been impeached before Creighton. The unfortunate one was Andrew Johnson, who was fortunately succeeded as the 17th President of the United States as Vice President because of the assassination of Lincoln.
Well, it’s not very appropriate to say that this Mr. President is a hapless guy, because he is actually a lucky guy. Not only did the assassin who came to deal with him temporarily changed his mind and escaped being assassinated with President Lincoln at the same time, he also found an inheritance for nothing. Datong's presidency, and after being impeached, was even more fortunate to pass the Senate by a margin of one vote.
Andrew Johnson, who only served as president for half a term, actually made a significant contribution to the United States, because it was he who bought Alaska from Maozi for $7.2 million. History has proven that this is a very good deal. Trading, it can also be seen that the guy who opened the record of the impeachment of the US president is indeed a personal thing, so what about himself?
At this point when the term of office was about to end, he was going to be impeached. The House of Representatives has passed two charges, namely "perjury" and "obstruction of justice." Okay, Mr. President, ask yourself, these are true. , But now what I have to consider is not whether these are facts, but how I can avoid being removed from office, or how to avoid being held legally responsible after leaving office.
As for the stock market, which marked his economic achievements during his tenure, he "has worked hard for many years and once returned to the pre-liberation" stock market.
It's really burnt!
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