The Fourth Financial Crisis

Since receiving support from Haiya Bank, Qingning Chamber of Commerce's cash flow has greatly improved.

Youdao is reluctant to let his children catch the wolf. Now is obviously not the time to save money. If he accidentally misses the mark on the battlefield outside the territory, no matter how much money he has, it will be meaningless.

When they came to Yunlai City this time, Yang Lu and Li Qingning brought a full two million spirit stone coins, just to purchase materials for the extraterritorial battlefield trials and increase the winning chips in the extraterritorial battlefields. This is the profitability of the Qingning Chamber of Commerce today. It is already considered the best in Kyushu, and such a huge amount of spirit stone coins in cash is equivalent to the profits of the Qingning Chamber of Commerce for many years.

So Yang Lu now has no shortage of cash on hand.

Although the furnace cauldron worth 300,000 spirit stone coins was extremely expensive, he could still afford this huge sum of money.

This is the power of credit!

Today, Yang Lu is increasingly certain that there must be a huge financial hole behind the Haiya System.

This is not because he suddenly discovered that the moral bottom line of the Haiya Clan is very low. Morality is bound to ordinary people. For a large conglomerate like the Haiya Clan, only interests are the only consideration. If maintaining the moral bottom line is beneficial to oneself, the Haiya Clan is a moral pacesetter. If maintaining the moral bottom line is detrimental to oneself, it is normal for the Haiya Clan to abduct and traffic in female cultivators.

From the beginning, Yang Lu didn't think that the capitalists of the Haiya group had any moral standards at all.

He made this judgment entirely from a human perspective.

Borrowing money is a business that puts profits first and risks later. This disadvantage is even more obvious in the Kyushu cultivation world where strength is king.

Just like Yang Lu and Li Qingning are willing to prepare for foreign battlefields at all costs, and are even willing to overdraw the income of the Qingning Chamber of Commerce for several years, for cultivators from various sects, how many cultivation resources they have in their hands almost determines their future ability. How many achievements have been achieved, how many years of life have been gained, and whether one can successfully survive various battles.

Therefore, cultivators are born with a strong desire to overdraw.

It is precisely because of this that after President Lu Yang initially established the cultivation credit system through the Lingshi Reserve Bank, the entire Kyushu economy automatically ushered in the economic glory called "Lu Yang Prosperity" without the need for more top-level design.

It has been more than three hundred years since President Lu left the world of cultivation, but his reputation is still at its peak. One of the important reasons is that his main political legacy, "Lu Yang Prosperity", and the so-called Wuliang Sword Sect that was born during the third Lingshi Financial Crisis The "golden generation" is actually a by-product of the prosperity of Lu and Yang.

Today, even the most unresponsive cultivators have realized that the new generation of cultivators born in the past five hundred years, even if the three ascended immortals are eliminated, their cultivation speed far exceeds that of the previous cultivators. senior:

Tian Daxiao, the head of Huoyun State, has cultivated from the fourth level of foundation building to the first level of Yuanying in five hundred years; Tong Xingu, the supreme elder of Zijin Pavilion, has cultivated from Qi Refining Dzogchen to the second level of Yuanying in five hundred years; Li Qingyang has relied on his superiority to Pinlinggen has been practicing from the fourth level of Qi Refining to the early stage of Jindan; Ye Wan, the head of Shenxiao Sect, has been promoted from the Great Perfection of Qi Refining to the fourth level of Nascent Soul in five hundred years...

This kind of cultivation level of the new generation in the world of cultivation was simply unimaginable in the Kyushu world of cultivation in the past.

You must know that Lin Jianxing, the current head of the Wuliang Sword Sect, is already considered the most talented cultivator in the entire Kyushu in the "Pre-Luyang Era". However, it still took him more than five hundred years to cultivate from the Qi Refining Stage to the Nascent Soul Stage. , that is to say, Lin Jianxing's cultivation speed today is not even up to the average level of the new generation of Nascent Soul Stage monks!

At first, Yang Lu didn't understand why the new generation of monks in Kyushu were so aggressive, but now he has some understanding. Behind the so-called "Luyang prosperity" is actually the overdraft consumption caused by the establishment of Kyushu's credit system, which has led to the overheating of Kyushu's economy. The cultivation resources that cultivators have enjoyed in the past five hundred years are far more abundant than before.

During the "Luyang Prosperity", even ordinary mortals benefited from credit spillovers. The living standards of ordinary mortals were greatly improved compared to before the third Lingshi Financial Crisis. This also made it easier for cultivators to drive mortals to do things.

However, the economic boom brought about by overdrafts is clearly unsustainable.

The economic downturn commonly felt by cultivators in recent years is the sequelae of overdrafting the future.

Although the Lingshi Reserve Bank has long recognized the potential risks of overdraft behavior and has very strict supervision on the issuance of cultivation credit, overdraft behavior takes full advantage of human weakness and separates the benefits of borrowing money from the pain of paying back money. It turns out that the seniors of the sect who borrowed the money enjoyed the benefits of borrowing the money, but the consequences of repaying the money can be borne by the juniors of the sect who do not know how many generations later. It is obviously a game of unequal power and responsibility.

Under such circumstances, no one can resist the fatal temptation to treat banks as cash machines and overdraw future income without limit, and it is difficult to simply restrict it through laws and regulations. Haiya Bank, led by Su Yuanfeng, has already found policy loopholes to circumvent the compliance supervision of the Xiuzhen Financial Supervisory Commission. Obviously, this kind of loophole cannot be solved directly by plugging it.

You know, if you want banks to avoid excessive credit expansion and reduce the bad debt rate of the credit system, the simplest way is to ask for an increase in the mortgage rate. However, the judgment of the value of the collateral itself involves the most complex valuation issue.

The valuation issue has always been the biggest mystery in the capital market.

It's like a mortgage on Earth.

If house prices continue to rise, bank loans will inevitably be rock solid. If the debtor cannot pay back the money, the bad debts can be wiped out by foreclosure of the mortgaged house. However, if house prices plummet by 90%, it will be useless no matter how much the bank increases the mortgage rate, unless you Don't lend money at all, otherwise no matter how high your mortgage rate is, you will end up with a pile of unreliable steel and concrete on your hands.

Is it possible that house prices will fall by 90%?

Totally possible!

Because many houses in remote third- and fourth-tier cities are actually negative cash flow assets. Not only do they not bring cash flow income to the holders (they cannot rent them out), but they also incur additional expenses such as property fees, heating fees, and maintenance fees. .

The value of this negative cash flow asset depends entirely on the specific transaction behavior.

If the market trading behavior is exciting, this asset can rise indefinitely. If the market trading behavior is pessimistic, this asset will inevitably plummet without a bottom line, and it cannot be valued according to the return on investment method.

Nowadays, the fixed assets under the names of major chambers of commerce are very much like real estate on the earth.

Major chambers of commerce have large-scale assets that are difficult to monetize, but it is difficult to generate a rate of return. Just like the Luanshicheng Xuantie Mine acquired by Li Qingning, although it has been struggling at the break-even line for a long time, Guyun has been struggling for thousands of years. Zong's total investment in fixed assets in this mine may not even amount to hundreds of millions of spiritual stone coins.

Despite this, when Li Qingning came to buy it with more than three million spirit stone coins, the Guyun Sect sold the Black Iron Mine without saying a word. Many people even thought that Li Qingning was taken advantage of.

So the question becomes, how much is this black iron mine worth?

Is it estimated at 100 million spirit stone coins based on cost?

Or is it worth more than three million according to the market price?

If the Guyun Sect puts it in a bank for mortgage, they will definitely claim that it is worth 100 million. After all, the scale of Xuantie Mine is indeed very large. It is difficult for you to refute the Guyun Sect's statement, but you want to really turn it into a reality. When I bought the stone coins, I found that it was an out-and-out garbage mountain, and no one was willing to pay to pick it up.