The Fourth Lingshi Financial Crisis

Chapter 318 Lu Yang's Prosperity
Since receiving the support from Haiya Bank, the Qingning Chamber of Commerce's cash flow has improved greatly.

Youdao is reluctant to let his children not be caught by wolves. Now is obviously not the time to save money. If he accidentally stumbles on the battlefield outside the territory, no matter how rich he is, it will be meaningless.

When they came to Yunlai City this time, Yang Lu and Li Qingning brought a full 200 ​​million Lingshi coins, just to purchase materials for the trial of the foreign battlefield and increase the winning chips of the foreign battlefield. Rao, the profitability of the Qingning Chamber of Commerce has already been reduced. It can be called the first class in Kyushu, and such a huge amount of Lingshi coin cash is equivalent to the profit of the Qingning Chamber of Commerce for many years.

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

Although the furnace cauldron of 30 Lingshi coins is extremely expensive, he can really afford this huge sum of money.

This is the power of credit!

Today's Yang Lu has become more and more sure that there must be a huge financial hole behind the sea cliff system.

This is not because he suddenly discovered that the moral bottom line of the Haiya family is very low, and morality is bound by ordinary people. For a big chaebol like the Haiya family, only profit is the only consideration.If maintaining the moral bottom line is beneficial to oneself, the Haiya family is a moral model. If maintaining the moral bottom line is not good for oneself, it is normal for the Haiya family to traffic female practitioners.

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

He made this judgment entirely from the perspective of human nature.

Borrowing money is a business in which the profit is pre-positioned and the risk is post-position. This kind of disadvantage is more obvious in the Kyushu cultivation world where strength is king.

Just like Yang Lu and Li Qingning are willing to prepare for the extraterritorial battlefield at all costs, and are even willing to overdraw the income of the Qingning Chamber of Commerce for several years in the future. How much you have achieved, how many years of life you have gained, and whether you can successfully survive various battles.

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

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

It has been more than [-] years since President Lu left the world of comprehension, but his reputation is still in full swing. His main political legacy "Lu Yang prosperity" is one of the important reasons. The "golden generation" is actually a by-product of Lu Yang's prosperity.

Even today, even the slowest cultivators have realized that the new generation of masters of cultivation born in the last 500 years, even if the three Ascension Immortals are eliminated, their cultivation speed far exceeds that of the previous seniors in the cultivation world :

Tian Daxiao, the leader of Huoyun Prefecture, cultivated from the fourth floor of foundation building to the first floor of Yuanying in 500 years; the childlike heart of Zijin Pavilion, the elder of Zijin Pavilion, practiced from Qi Refining Dzogchen to the second floor of Yuanying in 500 years; Root has cultivated from the fourth level of Qi Refining to the early stage of Jindan; Ye Wan, the head of the Shenxiao Sect, has risen from the Great Perfection of Qi Refining to the fourth level of Yuanying in 500 years...

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

You must know that Lin Jianxing, the head of the Wuliang Sword Sect today, is already considered the most talented cultivator in the entire Kyushu in the "Qianluyang Era". That is to say, Lin Jianxing's practice speed is not even up to the average level of the new generation of Nascent Soul monks today!
At first, Yang Lu didn't understand why the new generation of Kyushu monks would be so vigorous, but now he has somewhat understood that behind the so-called "Luyang prosperity" is actually the overdraft consumption caused by the establishment of Kyushu's credit system, which led to the overheating of Kyushu's economy. The cultivation resources enjoyed by practitioners in the past 500 years are far more abundant than ever.

During the "Luyang Prosperity" period, even ordinary mortals have benefited from credit spillovers. The living standards of ordinary mortals have been greatly improved compared to before the third Lingshi financial crisis, which also makes it easier for cultivators to drive mortals to do things.

However, the economic prosperity brought about by overdrafts is obviously not sustainable.

The economic downturn that cultivators have generally felt 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 implemented very strict supervision on the issuance of cultivation credit, the overdraft behavior takes full advantage of human weakness and separates the benefits of borrowing money from the pain of repaying money It turns out that the sect seniors who borrowed money enjoy the benefits of borrowing money, but the consequences of repaying the money can be borne by the sect juniors who do not know how many generations later, it is obviously a game of unequal rights and responsibilities.

Under such circumstances, no one can refuse the fatal temptation of using the bank as a cash machine to overdraft 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 a policy loophole to bypass the compliance supervision of the Comprehension Financial Supervisory Committee.Obviously, this kind of loophole cannot be directly plugged to solve the problem.

You must know that the easiest way for banks to avoid excessive credit expansion and reduce the bad debt rate of the credit system is to ask for an increase in the mortgage rate. However, the judgment of the value of collateral itself involves the most complicated valuation issue.

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

It's like a mortgage on Earth.

If housing prices continue to rise, bank loans are bound to be as stable as Mount Tai. The debtors can’t pay the money, and they only need to sell off the mortgaged houses to wipe out the bad debts. No loans at all, otherwise, no matter how high your mortgage rate is, you will end up with a pile of unrealized steel and concrete on your hands.

And is it possible for house prices to fall by 90%?
It's entirely possible!
Because many houses in third- and fourth-tier cities in remote locations are actually negative cash flow assets. Not only will they not bring cash flow benefits to the holders (cannot be rented out), but they will also pay additional fees 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 excited, this asset can rise infinitely. If the market trading behavior is pessimistic, this asset will inevitably plummet without a bottom line, and it is impossible to value it according to the return on investment.

Today, the fixed assets under the names of major chambers of commerce are very similar to real estate on Earth.

The major chambers of commerce have large-scale and hard-to-realize assets, but it is difficult to generate a rate of return, just like the Luanshicheng Black Iron Mine acquired by Li Qingning. Although it has been struggling at the breakeven line for a long time, Guyun Zong's investment in fixed assets for this mine may not be worth hundreds of millions of Lingshi coins.

Even so, when Li Qingning came to buy it with more than 300 million spirit stone coins, Gu Yunzong sold the black iron mine without saying a word, and many people even thought that Li Qingning was being taken advantage of.

Then the question arises, how much is this black iron mine worth?

Is it worth [-] million spirit stone coins at cost?

Or is it worth more than 300 million at the market price?
If Gu Yunzong put it in the bank for mortgage, he would definitely claim that it is worth [-] million. After all, the scale of the Xuantie mine is indeed very large. When I bought stone coins, I found that it was an out-and-out mountain of garbage, and no one was willing to pay for it.

(End of this chapter)