Chapter 711 Credit
Masayoshi Kishimoto knew better than Kazuya Takahashi and Takayuki Nanno that the bank credit system was established for credit lending, or credit.
Once it changes from good credit to bad credit, it will immediately cause panic in the society. This will first show up in the stock market.
In the next few days, Korean banks will be in trouble if they fail to repay their short-term debts and long-term debts one after another.
Credit card is a financial product based on credit. The money spent on it is not personal savings, but personal future income.
Why is it that credit cards are used for a while and repaid like a crematorium? In the future, it is inevitable that you will have to reduce your expenses to make a repayment.
The main purpose of the credit card is to be used for consumption, which is a consumer loan, rather than to develop production and create potentially more value. Cutting back on expenses without increasing your income is a pain in the ass.
If the future income is reduced, it will be even more painful, after all, the debt will not be reduced because of the reduction of personal income.
Unless there is a significant increase in income in the future, it will be possible to make up for the part of the debt that was spent in advance in the past. Otherwise, personal debt will be like a snowball that only gets bigger and bigger.
From one credit card to dozens of credit cards, and the credit paid out on the credit cards issued by the banks is able to be used like cash for real world, full-court purchases.
Credit is not cash. Just as a credit card provides the cardholder with a line of credit, it does not represent a line of credit for his or her own savings. A bank does not directly create social wealth.
One of its primary roles, which is similar to that of government, is one of regulating distribution. Once the bank’s function of regulating distribution went wrong, then it would trigger a financial crisis.
“Then do we have to hurry up and notify Kobayashi Kiyoshi to short the Bank of Korea related stocks?” Takayuki Nanno asked with a sense of purpose.
“It’s only now that we’re proceeding to start laying out to go short, so how much meat can be left? Earlier, didn’t I tell you that if your next-door neighbor has a fire and you need to actively participate in the rescue, it’s because you’re worried that the fire will burn in the direction of your house, and then you’ll suffer property damage.
Even if you actively participate in the fire rescue, there is no way to control the fire, let alone anything that can completely extinguish it.
At this point in time, isn’t there an urgent need for firefighters to come in and help you put out the fire? The firefighters are still on their way, and if there is a traffic jam or something, it may take more time to arrive.
The firefighters are the Korean government and the central bank. In my opinion, I’m afraid they have their hands full. I’m waiting to see a thousand-mile walking corpse map emerge in Korea.” Masayoshi Kishimoto laughed a little and said.
Takahashi Kazuya didn’t quite understand the meaning of his words and said, “The South Korean government can once again go to the IMF for help like what happened in 1997 when they encountered the Asian financial turmoil!”
“The possibilities are slim to none. For one thing, the Korean people’s national pride is too strong, only after five years, the financial crisis again, is simply a great shame of the nation.
Back then, the South Korean government and the IMF signed a bailout agreement, not only mortgage out a lot of high-quality assets in the country, almost completely liberalized the financial market control measures, but also changed some of the country’s terms of employment, and so on, but also by the South Koreans as a kind of loss of power and humiliation.
Secondly, if they sign another agreement with the IMF, won’t the South Koreans stand up and throw their president out of office? The South Korean president would not do such a stupid thing.
Besides, the IMF may not be willing to bail out Korea again. Don’t forget that when Argentina’s financial crisis erupted in 2001, it also sought help from the IMF, but was rejected.
The only reason why the IMF bailed out Argentina was because it had signed a much tougher agreement with the other side.
If South Korea wants to get another IMF economic bailout, it can only sign an agreement with the other side with even harsher terms and conditions.
Otherwise, the IMF will never provide a bailout. We at the Hard Gold Group had an unprecedented year shorting Argentina as a result.
This year, will we have a good year, it all depends on South Korea? When the pig gets fat, you have to kill it. I’m going to kill the New Year’s Eve pig.” Justice Kishimoto once again laughed a little and said.
“It’s hard to believe that you’ve already laid out Korea a long time ago? In today’s day, there are organizations smashing the banking sector of the Korean stock market, and they are also following your orders in execution?” Nanno Takayuki asked thoughtfully.
“The heaven’s opportunity cannot be divulged. You guys just need to watch from the wall.” Masayoshi Kishimoto suddenly shook his head, not completely breaking the news.
Nanno Takayuki completely understood when he heard this. This must be something that the Chairman had laid out long ago. Otherwise, how could the other party chat with them so calmly?
The Hard Gold Group had a lot of investments in Korea. The online game, real estate aspect of this is the main force. Online games are fine, the impact should not be too big.
Real estate is closely linked to the bank. Once the banks have problems, it will inevitably drag down the real estate industry.
“The South Korean government and central bank will definitely not sit idly by, and will definitely come to the rescue of the country’s banking industry.” Kazuya Takahashi blurted out.
“The South Korean government and central bank will step in to make a bailout since. If the banking sector collapses, then the Korean economy is pretty much finished.
South Korea’s central bank at this critical moment, do not dare to directly print a large amount of money for a super-issuance. Doing so will only exacerbate domestic inflation and further panic Koreans.
If I’m not mistaken, there should be a run on the banks in Korea. Some people use credit cards, some don’t, and not everyone uses credit cards.
Not everyone uses credit cards. There are very few elderly people who use credit cards. They tend to like to keep their money in the bank. When the bank has a problem, of course they can’t wait to get their money out of the bank.
If the bank goes bankrupt, who are they going to ask for money? Even if the Central Bank of Korea and the government introduced laws to protect small depositors, it will never stop their passion and wave of bank runs.
Because it is human nature to release the money, after all, there is only one thing that can be said about putting money in one’s pocket. As long as the money is not put into their pockets inside to go, inside the heart is always suffering will be uneasy.
Always thinking about their own money. You can’t sleep at night without thinking about your money. When I see people, I still talk about my money. Doing the work, also can not lift the energy, head inside can not help but still think about their own money ……
They are bound to speculate, even if there is such a law to protect the interests of small depositors, it does not mean that they can immediately give you. When will it be given? It’s still not up to the Korean government and the central bank.
When one needs money, can one give the other side to say, also let it wait? They do not have no money, but the money in the bank can not get.
South Korea is in urgent need of foreign aid, foreign capital big bank funds is a lifesaver. When the Asian financial crisis broke out in 1997, the South Korean government has looked for Japanese big banks.
This time, should also look for. Unusually, it will also personally come to our Hard Gold Group’s Hard Gold Bank.” Masayoshi Kishimoto spoke eloquently.