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Chapter 2918: Chapter 2906, guidance and deception
Translator: 5496903
âAnyway, I think this proposal is very feasible. As for whether there will be any risks, I really did not think of that. It would be good for you to brainstorm.âJiang Fei nodded after listening to the consul.
âThatâs good. Donât think too much about it. Itâs not that I donât trust you. After all, this is the first time weâve tried something like this.âThe consul smiled.
âDonât worry, sir. I Wonât overthink it,âsaid Jiang Fei with a smile.
âThatâs good! Come, Iâll introduce you to a few people,âsaid the consul with a laugh. Then, he brought Jiang Fei to a few people and began to introduce them.
Although Jiang Fei was already the second most powerful person in the gamma dimension, he had only been in this circle for a short period of time. He did not know many people. Although these people had heard of the name Jiang Fei.., they also knew that he was the one who had led everyone out of the economic crisis. However, this was also the first time that they had actually met.
On such an occasion, especially when the Archon was acting as the introducer, Jiang Fei and the other influential people were basically exchanging pleasantries and flattering each other. Each of them was more hypocritical than the other.
Just when Jiang Fei was feeling very bored, Colonel Kono suddenly stood up.
âEveryone, I have a different opinion on Ralphâs proposal,âsaid Kono as he took a few steps forward.
âOh? Tell me about it?âsaid the consul with a smile. In his eyes, Kono was just a boorish soldier. He actually had an opinion on such matters in the financial field. This made the consul very curious.
âRalph, you said that you want to relax the restrictions on loans so that more people can get loans from the bank. This will stimulate consumption and stimulate economic growth. This may sound right, but how could the bank have so much money to lend out? âMoreover, what if these people donât repay the loans from the banks?âKonoâs question could be said to have hit the nail on the head, it was not difficult to relax the audit. However, the assets of the banks were limited. He could not just make money out of thin air and lend it to others! Moreover, once the audit was relaxed, the bankâs loans would have to bear more risks. Once these borrowers were unable to repay the loans, the bank would have to bear the losses.
âThis is easy.âJiang Fei smiled slightly. He had already come up with a solution to this.
âOh? What Solution?âThe consul immediately looked at Jiang Fei, actually, he had also thought about Konoâs doubts. However, he was too embarrassed to mention this because with his status, once he raised his doubts, it would be equivalent to rejecting Jiang Feiâs proposal.
If it was someone else who raised their doubts, there was still room for improvement. After all, the Archon was the dictator of the gamma dimension. What he said was the same as closing the coffin. No one dared to refute it.
Therefore, although the Archon had doubts, he waited for someone else to bring it up. This was because he was actually very interested in Jiang Feiâs proposal. After all, once this proposal was put into action, the benefits would be huge.
In the end, the consul wanted this proposal to stimulate the economy, but he did not want to take any risks. That was why he had organized this party. The purpose was to let these people debate with Jiang Fei, he wanted to see how feasible this proposal was.
âTwo words â Leverage and guarantee!âJiang Fei smiled and said his answer.
âWhat do you mean?âKono asked. The other high-ranking officials and dignitaries also looked at Jiang Fei. They had similar doubts. After all, there were many bankers and rich people here, however, because of their status, they did not want to offend Jiang Fei, a popular figure. Therefore, they did not say anything before this. Only Kono, who was at the same level as Jiang Fei and was also a political enemy, was the best person to ask questions.
âMr. Notz? You are a banker, right?âJiang Fei did not answer Kono. Instead, he turned around and looked at a fat old man beside him.
âYes, Sir Ralph.âThe Fat Notz bowed slightly at Jiang Fei.
âHow much assets do you have in your bank?âJiang Fei asked.
âUH...âNotz hesitated for a moment. Then, he gritted his teeth and said, âAbout three billion.â
âHMM! Then, what is the interest rate for your loan?âJiang Fei asked again.
âAbout 5% ,âNotz replied. This was not a secret.
âThen, have you heard of the term âleverageâ?âJiang Fei asked.
âWhat does that mean?âNotz was stunned.
âIf I, on behalf of the government, allow you to increase the leverage by 30 times, that is to say, allow you to use 90 billion to lend, would you dare?âAlthough Jiang Fei asked with a smile, however, Notz was still scared out of his wits.
âThis...âthis time, Notz was really hesitant.
This was the first time that Notz had heard of the so-called leverage that Jiang Fei had mentioned. However, this word had deeply shocked him. If he could really use the leverage by 30 times, he would be able to lend out 90 billion, and 5% interest rate meant 4.5 billion interest income!
What did 4.5 billion interest income mean? It meant that Notzâs bank assets had more than doubled!
Such a huge profit made Notzâs heart pound. However, while he was excited, Notz also thought of another problem. It was not necessarily profitable to invest in a loan. What if he lost it? Similarly, with 5% interest, it would be a loss of 4.5 billion. In that case, Notz, who only had 3 billion capital, would lose all of his money. He would still have to owe 1.5 billion in foreign debt!
Leverage. While it brought high returns, it also brought high risks!
âYouâre a little hesitant, arenât you?âJiang Fei asked with a smile.
âYes! The risks are too great...âNotz nodded. He did not dare to make a decision easily.
âWhat if I ask you to take out one-third of your profits to buy insurance? Once there are bad debts, the guarantor will pay you back?âJiang Fei suddenly asked.
âOf course, Iâll do it!âThis time, Notz did not even think about it!
Based on the current situation, Notzâs 3 billion was only 150 million with 5% of the income. However, if he used leverage, he could have 4.5 billion in income. Moreover, he only needed to spend 1.5 billion in profits, he could eliminate the risk. This was equivalent to earning 3 billion for nothing!
On one side was 150 million in revenue, and on the other side was three billion. Moreover, there was no risk. As long as Notz was not a fool, he would definitely do it!
âMr. Ballack.âJiang Fei turned to a tall and thin old man.
âMaster Ralph.âBallack nodded at Jiang Fei. He was a very wealthy person in the gamma dimension.
âIf I hand over all the bank guarantee business in the gamma dimension to you, they will spend 1.5 billion to buy insurance from you. If his investment fails, you will have to pay 4.5 billion. Are You Willing?âJiang Fei asked.
âHMM...âBallack fell silent. He did not dare to make a decision on such a big deal. He had to calculate it himself!