Holy Roman Empire

The turmoil in the Austrian financial market is still manageable.Everyone knows that the Russian-Austrian alliance has not broken down, and even if the Russians fail to pay, they will eventually rely on their allies.

Now that the Russian-Austrian negotiations have reached an impasse, to some extent, it is good news.Some talks are always better than no talks.

Prior to this, the Russians had communicated with many countries to no avail.Many financial institutions have been crying, and the capitalists have been forced to choose Jin Chan to shell.

Among them, the two financial markets of Paris and London have the greatest impact. Don't think that the enemy will have no loans.In the face of interests, capitalists don't care about cooperating with anyone.

The Russians used the proceeds of export as mortgages, and in advance everyone had no fear that the Tsarist government would default.As long as the Russians sold their food, they could collect the money.

However, the plan did not change quickly. With the loss of the grain silos in the Pod plain, coupled with the civil war that cost the Moscow region, the Russians now have little food to export.

Opening up wasteland is hard work, you have to eat more naturally, and the demand for food also increases.

Since the outbreak of the Russo-Prussian War, the Russians stopped exporting agricultural products to Britain and France, and even imported grain from Austria on the way.

The Russians withdrew from the grain export market, and this share was naturally occupied by others.The so-called mortgage of grain export earnings has now become a joke.

Expecting the Russians to repay their money by selling food, it is better to say that the Russians have lost the market and want to return to the market in the future, asking them to help open the market.

Otherwise, if the food is not sold, what can you do to pay the debt?

According to the current situation, the Russians cannot return to the international market within two or three years.Investors cannot wait that long, and capitalists naturally accompany the Russians.

Directly declared bankruptcy, these losses are passed on to ordinary people.When these bonds have fallen to the bottom, they can also control the vest to be recovered again, waiting for the future debt recovery from the Russians.

Of course, the possibility of debt collection is very small.Compared with a country, this gap is still very large. Even a consortium is not willing to match up with a big country like the Russian Empire.

Without the government, these problems are difficult to solve.If you think about the bad international relations between the two sides, everyone knows that there is no drama.

Restricting the entry of Russian food, this looks pretty good.However, in the face of interests, the capitalists have no morality.

As long as the Russians are willing to lower prices, the grain capitalists in Britain and France will cooperate in bringing grain in.When it comes to the market, who knows where the food comes from?

If it weren't for the economic crisis that just passed, the financial turmoil that broke out in Britain and France now is enough to detonate an economic crisis.

The telegraph brought people closer, and the financial turmoil that occurred in London and Paris quickly spread to Vienna.

Larger market turmoil has occurred, and speculators can no longer do it, preferring to pay the Russian debts in advance in default.

If it were not for securities companies to open up default payment windows one after another, Wells Fargo Securities bought Russian bonds at a low price to appease the people and now Austria is also lively.

Taking Paris as an example, at least 180,000 people participated in demonstrations protesting against Russians' breach of contract.

Under normal circumstances, there are definitely not so many people buying Russian bonds in Paris, even if they add their families.

To Franz's surprise, this scene was also staged on the streets of New York. It seems that the Americans were also pitted by the Russians.

Facts once again proved that it is risky to be an ally with the Russians.The United States and Russia have not had time to form an alliance, and the Americans have passively recruited.

The worst thing is not the securities company, but the bank that took over the loan from the Tsarist government.The Russian bond is also the most difficult to sell among national bonds. This sales volume has always been very touching.

Worldwide, one or two hundred million Aegis can be sold, and the limit is reached.Even if there is a pit, it will not take everyone to go.

Bank loans are different. Although the money lent out is by depositors, it is also the bank's own bad debts.

That's right, the Tsarist government did mortgage a mess of taxes, and now the Russians do not intend to cash them.

The tsarist government cheated on the rogue and asked the creditors to tax themselves.No creditor is so daring to run to the Russian Empire to collect taxes himself.

Not to mention whether you can receive taxes, even if you really receive the taxes, can you safely take them away?

To test the morality of the impoverished Czar government, no one wants to try this kind of death.

In the face of high interest rates, banks did not resist the temptation.Always thinking that the Russians have joined the civilized world, they will obey the rules of the game.

Only ignore that once the tsarist government is insane, everything can be done, and now they have paid a painful price for it.

Securities companies can get out of business, and banks can't follow suit?The investment costs of the two parties are not at the same level, and the social influence brought by them is also very different.

In this era, there were not many clients of securities companies, but basically they were all started from the middle class.

Even if it goes bankrupt, it will affect thousands of people, and it will be a big company if it can have tens of thousands of customers.

Not everyone buys Russian bonds, even if they go bankrupt, the social threat is not great.

Banks are different, and the standards for depositors are not so high.Their customer base is much larger, and once bankruptcy is declared, it is easy to cause bad social impact and cause government intervention.

Moreover, although the loss this time is not small, it has not reached the point of killing everyone.It is easy to create a bank. It is not easy to build credibility to attract depositors, and it is not easy to give up.

This is the last time for the nobles. The time for the capitalists has not yet come completely. Except for the two United States, most countries are dominated by nobles.

Including Britain and France is no exception, nobles suppressed the capitalists.However, their advantages are not obvious enough. Unlike Austria, Russia, and Prussia, this kind of government is completely controlled by the nobility.

In the face of large amounts of bad debts, banks will inevitably shrink their money supply in a period of time to cope with the possible run-out crisis.

For securities companies that want to raise funds, this is undoubtedly worse.

Inside Wells Fargo, Phillip Porter growled: "What? At two percent monthly interest rate, why don't you rob it?"

Not all the way, not on a boat.Banks holding shares in Phillipport were also caught up in the debt crisis with Russia, and now they are too busy to protect themselves and are unable to save him.

He had no choice but to come to Wells Fargo Bank.There is no other reason, mainly because Wells Fargo Bank has never undertaken loans to Russia. At the same time, it is one of the four largest banks in Austria and has strong financial strength.

Account manager Albert said without changing his face: "Sorry, Mr. Phillipport. This is a high-risk loan, and we must add the risk cost of capital."

A high-risk loan made Phillip Porter wake up dreaming and asked quickly: "Is it still to be issued according to 10% of the loan amount, and still repay the principal and interest monthly, and even deduct the principal and interest of the first year ? "

Account manager Albert said with a smile: "Yes, Mr. Phillipport. I didn't expect you to know the banking industry so well. Have you been to other banks before?"

Although Phillip Potter didn't show up on the face, he was already scolded.Anyway, I am also a shareholder of a bank. How come I do n’t know this kind of pitfall?

But when I saw these routines, Phillip Porter was still very happy. After all, it was used to pit others. Now it is my turn and the situation has changed.

According to a series of routines, you can get 60% of the loan, which is blessed by God.

If you are unlucky, you can only get a half of the loan and get half of the loan. This is normal.

The actual funds available are less, but the principal and interest of the debt must still be repaid in full, as long as there is no shilling.

Phillipport went straight out the door without looking back. If he borrowed this kind of loan shark that was taking advantage of the fire, it is estimated that he would work for Wells Fargo in the future.

Rather than this, he might as well sell his bonds and cash out from Wells Fargo Securities to survive the crisis.

Thinking of this, Phillipport was even more depressed.It seems that Wells Fargo Securities is also a subsidiary of Wells Fargo Bank, which can't be avoided.

As for going to other banks, there is no need to dream.Phillipport has visited more than a dozen large banks, and the conditions given by everyone are similar.

When the fire is looting, banks are all the same.This is not to blame for the banks. In the event of a run-in crisis, the risk factor of external loans is greatly increased, and the interest rate is naturally increased.

As for the so-called interest rate loans, only exist in theory.In practice, in addition to policy loans, otherwise such low interest rates are difficult for banks to accept.

So far, it is natural to cut meat.Phillipport's funding gap is not too large, as long as the Russian debt in his hand is sold, he can get through this moment.

As a result, although his losses were heavy, the risks were reduced.If he goes through the crisis with loans and holds a lot of bonds of unknown value, he will go bankrupt if the Russian-Austrian negotiations fail.

There are still many people who make the same choice. Basically, they are not financially strong enough. They are forced to cut the meat because of the crisis of life and death.

Schönbrunn Palace, looking at the increasing Russian debts in his hand, the palace is all bad for Mirabello.

That's right, this is another trumpet that Franz tossed out.It's just that it has developed unexpectedly and has become one of the four largest banks in Austria.

In the eyes of the Mirabellon palace, this is a high-risk investment. At present, the Vienna government has no way to let the Russians fully fulfill the contract.Now the possibility of acquiring Russian bonds is almost zero in a short time.

If you wait ten or eight years, you will lose money.The time cost of capital also needs to be taken into account.

Franz comforted: "Miyazaki, don't worry. The Russians will pay these bonds, but not in our hands.

Now you can buy at a low price, and when it is almost ready, we will sell back to the Russian Empire.The Russian nobles would not mind making a fortune.

It ’s no big deal to sell them at half price, which is also double the profit.With these bonds, the aristocrats would not mind using them to offset tax."

This trick can only be used once, and once the Russians are prepared and the legislation prohibits bonds from deducting taxes, it really cannot be sold.

It will be at least ten years after the Czar government pays in the future, and it cannot guarantee full payment.For such a long time, Franz didn't know what other people thought, he couldn't wait anyway.

After listening to Franz's explanation, Mirabello, the palace minister, fell into a slack, which was completely beyond his imagination.

He originally thought that Franz had inside information and could use his connections to let the Czar government give priority to this debt.

Unexpectedly, the method was so violent, and the problem was solved directly by the nobles' greed.