Rebirth: Japanese investor

   Chapter 620 Fund Rolling Theory

What concept is this? The profit of the small workshop manufacturing industry is less than 10%, and many are even less than 5%.

  The annual interest that already belongs to the financial sector to sign a VAM agreement is generally only 12%. Why is it set at 12% instead of dozens of percent?

The truth of    is actually very simple. We are all smart people, professionals, and no one is stupid. How much the normal profit margin is, has long been calculated by each individual.

   What is not clearly calculated is that some of the future variables that are artificially uncontrollable are in it. Therefore, the paper gambling agreement signed by the two parties is based on these uncontrollable future variables.

  Soros, Buffett's famous financial investment guru, brings an average of more than 20% of the annual income.

   Could it be that there are ordinary people who are more powerful than them? The reason why ordinary people's money is scraped away by a very small number of people is that they don't know how to calculate it, and they don't understand it at all. After all, the inherent calculation method takes the lead.

   Or else, under the pressure of personal strong desire, you have to buy, buy, buy. As for the other consequences, it has already been ignored. Banks are not too afraid of bad debt rates when issuing credit cards, because high profits have been able to make up for it.

   As long as the bad debt rate of credit cards can be controlled to a certain level, it will never lose money, but only make money. Because it will lead to another concept, called the fund rolling theory (that is, within a certain period of time, the total amount of funds participating in the market is relatively certain, and these funds roll in two different directions, up and down, causing trade).

  Whether it is a bank, a small loan company, a loan shark, an underground bank, etc., this is how they operate when applying the theory of capital rolling.

   A portion of the principal + interest will be recovered from the lender every month. So, they will release the money to new lenders in the same way.

   In the next cycle, the new one will be taken back, and so on, and the rolling will continue. For example, 200 million yuan was released in the first month, and it was calculated according to the equal principal and interest repayment method.

   In the second month, part of the principal and interest can be recovered. Similarly, in the second month, I released part of the principal and interest that I had recovered. At this time, my total capital must be greater than 200 million.

In fact, this should be 200 million + 1/12 of the principal of 200 million released in the first month + 2% handling fee of the 200 million principal released in the first month = 220.6 million, an extra 2060 Ten thousand.

  The 20.6 million yuan can be lent out for profit in the same way. The 20.6 million lent out to make a profit for the next month can continue to be rolled over to the next month plus the second month's partial principal and interest recovered from the previous 200 million lent out...

  In the United States, all kinds of new tricks have been played, payday loans, quick money, easy money... They can be seen at check cashing points and street offices in poor and working-class communities.

   They have formed at least a dozen national chains, and they earn the equivalent of 500% APR. They also offer an emergency service.

   Let’s say you’re short on money, bills are piling up, and some of them are missing contact notices. However, payday is still two weeks away.

   Until then, your phone has to go off, and the electricity has to go off too. The guy who manages the check changing booth at the local convenience store will throw you a lifesaver.

   To borrow $100, you have to write a check for $120. Two weeks later, he took a $120 check to the bank to cash $120 in cash.

   This means that the interest for two weeks is as high as 20%, the daily interest is 1.428%, or the annual interest is 521%. If two weeks later, the ticket bounces (i.e. you can't cash the $120 check), that's fine.

   You add another $20 and re-write a check for $140, again cashed in two weeks. Simply put, you borrow $100 for four weeks and pay $140 for it.

  If you are an Ivy League college student, you can receive various preferential calls or text messages from the bank inviting you to apply for a credit card almost every day.

  The reason why the poor will be busy all their lives is because many people fall into the poverty trap of high interest rates. The money that I can earn hard every day is not enough to pay the loan interest for one day.

   As a result, it is even more difficult to think about things that are not clear. This directly became their gangrene.

  The representative film work "Saint" by the great Korean director Kim Ki-deok has a reaction. A hardware store street in Seoul, South Korea, was either forced to close down or was charged by loan sharks. Ordinary self-employed businessmen fell into predicament one by one.

   One of the most memorable is the calmness of a person before committing suicide. He said he came here to work when he was 16 years old.

   Fifty years have passed and nothing has changed. I didn't plan to repay the money I borrowed myself, and while talking, I went straight upstairs to the rooftop and jumped down.

   Another one is that the debt collector would rather cut off his hands. After all, he was forced to buy an accidental personal injury insurance by a loan shark.

Even the protagonist of the loan shark didn't want him to pay back the money in the end, and he answered a phone call after hearing that his wife gave birth to a child, and he said that he will spend a lot of money in the future, and he can't let the child be like him Growing up in a state of money and poverty.

   So, he also crushed one of his own hands by himself. No matter how high the interest rate of a credit card is, it will not be as high as a high interest rate loan. Those who embark on the road of borrowing loan sharks, I am afraid they have already completely killed the road of credit cards.

   The credit card issuing bank will blacklist people who have not repaid their credit card debts three months overdue, and will not be allowed to use credit cards for life.

  Otherwise, it is to sell the creditor's rights to a debt collection company to collect the debt. The credit card debt of a family of four can be as high as 15 million yen, and there is even a tragedy in South Korea where the whole family is forced to commit suicide.

   Even though Masayoshi Kishimoto knew all these things were unbearable, he did not intend to be soft-hearted. First of all, this series of social and financial problems in South Korea is not caused by themselves, but by themselves.

   Flies do not bite seamless eggs. At the beginning, if the South Korean government and the Bank of Korea were not eager to recover the domestic economy from the Asian financial turmoil, and adopted aggressive and loose financial policies on credit card restrictions, they would not have planted this time bomb for the future.

  Since South Korea has shown problems, then he can't miss the opportunity to loot. If you want to grow yourself, you must eat like a greedy snake.

   He also believed in a sentence in China's "Zengguang Xianwen", benevolence does not do business, righteousness does not keep wealth; love does not stand up to power, goodness does not hold office; kindness does not lead the army, softness does not supervise the country.

   (end of this chapter)