Chapter 79 The financial wind is still blowing to New Taipei (10,000 collection milestone added)
Financial crisis?
This is not the first time I have seen this word. When I was surfing the Internet during the summer vacation, Li Yan had already seen many related reports.
His related memories have always been vague, and it seems that he didn't know much about it before his rebirth.
Among the roommates present, only Lin Heng could exchange a few words with Chen Fan. The others basically looked like they were waiting for popular science.
However, for this group of people who don't even understand the meaning of the word "finance", Chen Fan's words such as "subprime mortgage crisis", "stock market", "financial system", "inflation"... are completely incomprehensible.
Actually, Chen Fan himself doesn’t understand it very well. He brought it up because he wanted to hear everyone’s opinions, not to take the lead in popularizing science.
After listening for a long time, Lin Heng concluded:
“In the final analysis, finance is about playing with money. The United States has lost its money, and now there is a big problem.”
"What does that have to do with us?" A literary person like Li Ruofei couldn't understand it at all.
"It's very important! This is the United States. If they collapse, it will affect the whole world." Chen Fan was very positive.
"Uh...can I understand that," Liang Ban frowned, "this crisis is because the United States sells houses and has been desperately trying to lend money to people. As a result, the borrowers cannot pay back the money and collapse. ?”
“That’s probably the case. Normally, lending money to others requires appraisal. If it doesn’t repay the loan, there will be problems. But this subprime loan means there is no appraisal. Whatever. Borrow." Chen Fan nodded.
“I borrowed two to three million from a beggar, how could the beggar still get it back?” Lin Heng also nodded.
“Let me interrupt, why does the United States need to lend money to buy houses? Or conversely, why do people need to borrow money to buy houses?” Li Yan asked.
"Because house prices have been rising, you will make money if you buy it." Chen Fan continued to answer.
“Why are house prices rising?”
“Because there are so many people buying!”
“Isn’t it a question of whether a chicken lays an egg or an egg lays a chicken? ?"
"Ah..." Chen Fan was stunned, "Anyway, there is a reason. Well, the United States has lowered loan interest rates, and people took the opportunity to borrow money to buy houses. As more people bought houses, It’s easy to understand that the price of a house will go up, right?”
"Then why should the loan interest rate be lowered?"
"..." Chen Fan was stuck, "Anyway...this should involve some, um, more complicated things, so let's ignore it for now."< br>
“Then according to Liang Ban’s summary, why do banks lend a large amount of money to the people?”
“Banks make money by borrowing interest.”
“Oh... So the more you borrow, the more you earn, provided that everyone can repay the money. "
"The house you buy belongs to the bank."
"And because house prices have been rising, the bank is guaranteed to make a profit without losing money?"
"Yes, yes." Chen Fan became excited, He liked the back-and-forth Q&A with Li Yan very much.
“But the bank’s money is limited. If you borrow too much, you will have to wait for others to pay you back slowly or be left with a pile of houses.”
“You are right. Got it!" Chen Fan's eyes lit up, "So the financiers in the United States are very good at playing, and they did something... I don't really understand, but they just sold the arrears again!"< br>
As soon as these words came out, the whole dormitory was stunned. Can you still sell it if you owe money?
“It’s packaged as a financial product, just to let others spend money to pay for the bill. Don’t those who borrow money have to pay back the principal with interest? The principal paid back at that time will be used to pay for the bills. People, part of the interest is given to the bank and part is given to them."
"What the hell?" Zhu Qinglun frowned fiercely, "The person who pays the bill in this way earns a little more interest, but the bank is making less money. "
"The bank has cash," Li Yan added, "so we can continue to borrow money."
"Holy shit..." These little geniuses know little about finance. We still feel the risks involved.
"Li Yan is right. Banks continue to lend money because housing prices have been rising, so they don't care if the people who borrowed the money still have to pay it back." Chen Fan continued.
“One thing has not changed,” Li Yan actually began to summarize, “all this is still based on ‘everyone can pay back the money.’”
“I kept talking. , but I got myself involved. If the bank does this, others are not afraid of not being able to pay it, so why..." Chen Fan was suddenly confused.
"Chen Fan, what you just said has another premise, 'house prices will keep rising', but this is impossible."
Suddenly the whole dormitory became silent and listened to Li Yan expressed his opinion.
"House prices will rise because everyone is buying them, but people are limited and things are rare and expensive. What will happen if everyone can't pay and the bank repossesses the house?"
No one answered, everyone listened eagerly.
“There are more houses, the supply and demand relationship suddenly turns into oversupply in the short term, and housing prices are already very, very high, and banks may not be able to sell them even if they want to. What will happen at this time?”
"House prices...have dropped?" Li Ruofei asked in a low voice.
“Yes, ‘problem’ refers to this problem. The bank has lent so much money. Where did it come from? Everyone deposited it in the bank and the people who bought the bank bills gave it. There are more and more people who cannot pay their mortgages. What has become of them? "House?" Li Ruofei asked softly.
“The price of the house has dropped again. What does this mean? The money has evaporated directly.”
“This is too short-sighted!” Liang Ban became inexplicably irritated, “These people, It’s just for the sake of making more money. It’s all just a game, and it doesn’t produce any value at all.” Li Yan said it for him.
"Yes! These financiers are disgusting, aren't they? They just play it by themselves, but the money we deposited in the bank is gone? Why do they have to make money like this? The bank can't borrow money Why continue to lend it out?”
Li Yan's memory of work was suddenly touched, and he vaguely remembered the most disgusting part of his one-year working life...
The faces of capitalists.
"The game of capital," Li Yan shook his head, "You can read Marx's "Das Kapital" and you will have some understanding, although I haven't read it yet..."
This sentence After waking up everyone who was immersed in thinking, Zhu Qinglun was the first to fire:
“Hey, Li Yan, where did you know this knowledge?”
It's shameful to say that before his rebirth, Li Yan had never been very interested in finance and didn't know much about it. Even after his rebirth, he only briefly read a basic book on economics during the summer vacation and had only a partial understanding of it.
So this series of practical questions and answers just now allowed him to deepen his understanding a lot. At least before, he had only a vague understanding of "banks make money from the interest on loans".
Ding!
Here he is.
[Economics +1, level 3 skills, 12/50]
This is what Li Yan asked the system to note. He has too many skills now.
"Well, I still read some basic books." He was really embarrassed to say that he relied on logic, it was too pretentious.
“I thought at first that you didn’t know, so you came to ask us, but later I found out that you were trying to guide us to understand clearly.” Liang Ban cast a sincere look, “My summary is indeed just about talking about It's superficial."
"Indeed, it's true that there is a problem, but it's not clear what the problem is." Chen Fan also began to reflect.
Lin Heng was stunned, "Damn it, then my beggar can't pay back the money... I'd better hide under the quilt."
No...it's not like this. Brothers, Li Yan didn't dare to say anything.
"Alas, but no matter what," Chen Fan shook his head, "The impact of this crisis will affect the world. What will China do then?"
"Our house will not be like this. Will the price increase?"
"Absolutely not. You might as well worry about your parents losing their jobs."
"Is there anyone in your family who is trading stocks? Awesome, even though I don’t understand it.”
"My family's money in the bank will not evaporate, right..."
"It seems that we haven't heard much about the impact on us yet?"
"The rain is coming, the rain is coming. ..."
"No, it's okay." Li Yan said this and the whole place fell silent again.
His gradually awakening memories of the financial crisis were very, very thin.
This means that the financial crisis he experienced in 2008 and even 2009 did not have much impact on his life.
Although my family runs a small business and has neither bought a house nor engaged in finance, it may not have been greatly affected in the first place.
But my parents did not show any anxiety, worry or frown at that time.
The memory has lost details, but the emotions are very clear.
China must have found some way, or the wind of the financial crisis has not crossed the ocean.
It is also possible that it actually caused a big impact, but my home was not within this scope - but this also means that it did not cause much social impact.
"Why?" Chen Fan asked.
That’s it, I accidentally opened my mouth when I thought about it. How should I answer this?
"Anyway...it won't have any impact on my family, so it should be."
Because his family has no money, and it is not linked to finance, as long as there is no such terrible social disaster as the evaporation of bank deposits, Incidents - that is, exaggerated inflation, we are no longer afraid.
After the lights were turned off, while Li Yan was sleeping peacefully, the roommates with mobile phones specially created a new group just to discuss his level of wealth.
“How rich does this guy’s family have to be so that he is not afraid of the impact of the financial crisis?”
(End of Chapter)