Chapter 2918: Chapter 2906, guidance and deception
Translator: 549690339
“Anyway, 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.”Jiang Fei nodded after listening to the consul.
“That’s good. Don’t think too much about it. It’s not that I don’t trust you. After all, this is the first time we’ve tried something like this.”The consul smiled.
“Don’t worry, sir. I Won’t overthink it,”said Jiang Fei with a smile.
“That’s good! Come, I’ll introduce you to a few people,”said 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.
“Everyone, I have a different opinion on Ralph’s proposal,”said Kono as he took a few steps forward.
“Oh? Tell me about it?”said 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.
“Ralph, 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? “Moreover, what if these people don’t repay the loans from the banks?”Kono’s 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 bank’s loans would have to bear more risks. Once these borrowers were unable to repay the loans, the bank would have to bear the losses.
“This is easy.”Jiang Fei smiled slightly. He had already come up with a solution to this.
“Oh? What Solution?”The consul immediately looked at Jiang Fei, actually, he had also thought about Kono’s 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 Fei’s 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 Fei’s 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.
“Two words — Leverage and guarantee!”Jiang Fei smiled and said his answer.
“What do you mean?”Kono 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.
“Mr. Notz? You are a banker, right?”Jiang Fei did not answer Kono. Instead, he turned around and looked at a fat old man beside him.
“Yes, Sir Ralph.”The Fat Notz bowed slightly at Jiang Fei.
“How much assets do you have in your bank?”Jiang Fei asked.
“UH…”Notz hesitated for a moment. Then, he gritted his teeth and said, “About three billion.”
“HMM! Then, what is the interest rate for your loan?”Jiang Fei asked again.
“About 5% ,”Notz replied. This was not a secret.
“Then, have you heard of the term ‘leverage’?”Jiang Fei asked.
“What does that mean?”Notz was stunned.
“If 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?”Although Jiang Fei asked with a smile, however, Notz was still scared out of his wits.
“This…”this 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 Notz’s bank assets had more than doubled!
Such a huge profit made Notz’s 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!
“You’re a little hesitant, aren’t you?”Jiang Fei asked with a smile.
“Yes! The risks are too great…”Notz nodded. He did not dare to make a decision easily.
“What 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?”Jiang Fei suddenly asked.
“Of course, I’ll do it!”This time, Notz did not even think about it!
Based on the current situation, Notz’s 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!
“Mr. Ballack.”Jiang Fei turned to a tall and thin old man.
“Master Ralph.”Ballack nodded at Jiang Fei. He was a very wealthy person in the gamma dimension.
“If 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?”Jiang Fei asked.
“HMM…”Ballack fell silent. He did not dare to make a decision on such a big deal. He had to calculate it himself!
