I was the emperor in the Ming Dynasty

Chapter 750 The Harm of Capital

"At that time, he hesitated for a while, so he didn't buy it, but rented it.

But after a period of time, the shopkeeper discovered that the rent of the store had nearly doubled in just three months.

Let his income drop a lot.

According to his estimates, the rent here is estimated to double in the next few months. Such a high rent has already made him a little unable to make ends meet.

He regretted that he didn't bite the bullet and bought the shop.

Although it cost a lot of money at that time, compared to the high rent later, that money is nothing at all! "

After he finished speaking, Li Tian slapped his hands suddenly and said,
"Okay, very good, this is exactly the result I want, Wang Fu, you did a good job this time!"

Wang Fu was praised by Li Tian, ​​the flesh on his fat face swayed up and down, which was very interesting.

Seeing this scene, Sophia covered her mouth and snickered, and then asked Li Tiandao in a puzzled tone,
"My lord, the rent is so high that people can't even earn money. You should be worried. Why do you look happy instead?"

Li Tian smiled mysteriously, shook his head gently and said to everyone,

"You may not understand the reason for this in a short time, so I will explain it to you briefly!"

"First of all, housing prices in Beijing will rise in the future. This is an irreversible trend, and even I can't mediate it."

"Secondly, lively locations, locations with relatively high commercial value, will usher in an explosive growth in a short period of time, which is also predictable."

"In the end, capital is profit-seeking. Once they enter the market, they will inevitably squeeze out the remaining value. The rent increase is just their usual method."

These few words of Li Tian are quite advanced in the eyes of Sophia and the others.

If Li Tian doesn't explain it in detail, they probably won't be able to figure it out until next year!
At this time, Zhou Zhen, who was not thoughtful, said,
"Your majesty...Young master, you just said that the land price in the capital will continue to rise, which is a trend. This is understandable. After all, it was only four or five years before the Ming Dynasty. As more and more people come to settle in the capital in the future, many,
The oversupply of land prices is normal.

But what is the entry of capital, this subordinate is a little confused! "

Seeing that everyone has a confused look on their faces.

Li Tian smiled slightly and continued to explain to them,

"The so-called capital is like a royal bank, a consortium or organization with a lot of money."

With that said, Li Tian looked at Wang Fu and asked,
"If I'm not mistaken, the person who rented the shop to the shopkeeper didn't actually buy the shop in full. He should have borrowed a lot of money from the Royal Bank, right?"

Wang Fu froze for a moment, then nodded vigorously and said,

"That's right, young master, you are right. The shopkeeper said that the man increased the rent every once in a while because of the bank's interest rate adjustment."

Li Tian showed a clear expression and said,
"This is just an excuse for him. The bank's interest rate is fixed, and it will not be easily changed without a particularly significant impact.

My son thinks that it should be that person borrowed too much money from the bank at once, bought too many shops, and the remaining money in his hand is not enough to repay the monthly interest of the bank, so he has the audacity to make repeated adjustments rental. "

Then Sophia asked again,

"But what does this have to do with the so-called entry of capital. That person just borrowed some money from the bank, so it's not about the entry of capital!"

Li Tian shook his head again and said,
"Your understanding is still a little off.

In fact, from the moment that person borrows money from the bank to buy a store, it is actually equal to the entry of capital. "

"There are at least a hundred shops in this whole street, so many shops, it is impossible for them to belong to the same person.

According to the rising speed of the value of these shops, I have reason to believe that most of them actually use loans to complete their purchases. "

"In the beginning, only one family did this, and the bank's money was relatively easy to borrow, but in the same area, the same location, the number of people borrowing increased, and this situation began to become unfavorable for the bank."

This situation is actually the same as stock speculation as a shareholder.

At the same time, holding too many properties in one lot will be very unfavorable for future housing sales.

The value of the real estate will slowly shrink without buying or selling, and the bank may not be able to recover the previous loan in the end.

The essence of the bank's borrowing is to make money, so what's the use of getting a lot of real estate back.

Therefore, when the bank borrows from this area in the future, the review will become harsh, and even raise interest rates to avoid risks.

This has also led to the fact that if the borrower does not increase the rent, he will not be able to replace the loan. Therefore, the rent continues to rise and the loan interest rate is getting higher and higher, which has become the beginning of a vicious circle.

This principle, in fact, the same applies to many situations.

Sometimes, the addition of capital is a helper to improve social and economic mobility, but sometimes it is also a stumbling block to curb business activities.

Therefore, Li Tiancai said that the entry of capital is one of the culprits leading to the continuous increase in rent.

If this situation is not adjusted, sooner or later, a lot of bad debts will be formed.

Now the Royal Bank is still in the stage of exploration, as long as the other party has enough collateral, anyone who comes to borrow money will be accepted.

As everyone knows, sometimes the seemingly prosperous real estate projects are actually already very serious bubble economy.

This is very similar to the subprime mortgage crisis in the United States, and it is on the verge of bankruptcy at any time.

Now that the Gongyuan has not been relocated, the value of these shops is still strong.

But when the new Tiangongyuan headquarters in the south of the city starts construction in the coming spring, the housing prices here will definitely plummet.

At that time, without the receiver, the bank will not only receive a lot of bad debts, but those who borrowed money to buy high-priced houses will also go bankrupt one after another.

In the end, the bank not only fails to make money, but also makes many people burdened with a large amount of debts and cannot repay, and it is not impossible to become the so-called Lao Lai.

This kind of situation, in Li Tian's prediction, may happen in the future.

If changes are not made as soon as possible, there may be more than a few families crying.

Li Tian's explanation to everyone, to be honest, is a bit far beyond everyone's understanding.

But they may not know much about other things, but the last sentence Li Tian said, "A bubble will eventually form, and there will be nothing left!"

They still understood.

Zhou Zhen didn't want to see these hard-working people who worked hard day and night for a meal, because when the Tiangongyuan moved, they would have nothing and nothing to return.

(End of this chapter)