Rebirth: Japanese investor

   Chapter 711 Credit

  Kishimoto Masayoshi is more clear than Takahashi Kazuya and Minamino Takayuki that the establishment of the bank credit system is for credit lending, that is, credit.

   Once it changes from good credit to bad credit, it will immediately cause panic in the society. This will first manifest itself in the stock market.

   In the following days, if South Korean banks appear one after another, whether it is short-term debt that cannot be repaid, or long-term debt that cannot be repaid, it will mark the highlight of the problem.

   A credit card is a financial product built on credit. The money spent with it is not personal savings, but personal future income.

  Why is there a credit card used for a while, and the repayment is like a crematorium? In the future, there must be a reduction in spending to make a repayment.

  The main purpose of credit cards is to use them for consumption, which belongs to consumer loans, not for development and production, to create more value. Reducing spending without rising incomes is a pain in itself.

   If the income in the future is also reduced, it will be even more painful. After all, the debt will not be reduced because of the reduction in personal income.

  Unless there is a significant increase in future income, the part of the debt that was spent in advance in the past can be filled. Otherwise, personal indebtedness will snowball and only get bigger and bigger.

  From one credit card to dozens of credit cards, and the credit paid by the credit card issued by the bank can also be used for real-world consumption like cash.

  Credit is not cash. Just like the credit limit provided by a credit card to the cardholder, it does not mean that it is his own deposit limit. Banks will not directly create social wealth.

  Its main role is the same as that of the government, one of which is to regulate distribution. Once there is a problem with the adjustment and distribution function of the bank, it will cause a financial crisis.

   "Then do we have to quickly inform Kobayashi Kiyoshi to short the stocks related to the Bank of Korea?" Takayuki Minano asked purposefully.

"I'm only now starting to plan for shorting, how much meat can I have left? Earlier, I told you that a neighbor next door to your house was on fire, and you need to actively rescue it because you are worried that the fire will burn in the direction of your house. Come over, and then let yourself suffer property damage.

   Even if you actively participate in firefighting and rescue, you can't control the fire, let alone anything that can completely extinguish the fire.

   At this time, is there an urgent need for firefighters to come in to help you put out the fire? The firefighters are still on the way, if they encounter traffic jams or something, it may take more time to arrive.

   Firefighters refer to the Korean government and the central bank. In my opinion, they are probably also powerless. I'm waiting to see a picture of The Walking Dead in Korea. " Kishimoto said with a smile.

   Kazuo Takahashi didn't quite understand the meaning of his words: "The Korean government can once again go to the IMF for help like it encountered the Asian financial crisis in 1997!"

   "It's very unlikely. First, the Korean people's national self-esteem is too strong, and it's only five years later that the financial crisis has occurred again, which is simply a huge shame for the nation.

When the South Korean government signed a rescue agreement with the IMF, it not only mortgaged a lot of high-quality assets in the country, but also almost completely relaxed the control measures on the financial market. It also changed some employment terms in the country, etc. It is regarded as a kind of loss of rights and humiliation by the Koreans.

   Second, if this is signed with the IMF again, won’t the Koreans stand up and oust their president? The President of South Korea would not do such a stupid thing.

   Besides, the IMF may not be willing to bail out South Korea again? Don't forget that in 2001, when Argentina's financial crisis broke out last year, it also asked the IMF for assistance, but was rejected.

   Later, the reason why the IMF carried out economic aid to Argentina was to sign a more stringent agreement with the other party on the content and terms.

  If South Korea wants to get economic assistance from the IMF again, it can only sign the content and terms of the agreement with the other party with more stringent conditions.

  Otherwise, the IMF would never conduct a related economic rescue. Our hard gold group also shorted Argentina and had an unprecedented bumper year.

  This year, whether we can have a good year depends on South Korea? Pigs must be killed when they are fat. I want to kill the New Year pig. "Kishimoto Masayoshi smiled again.

   "Isn't it possible that you have already laid out South Korea? Today, the banking sector of the Korean stock market that some institutions are smashing, also obeyed your orders and implemented it?" Minamino Takayuki asked thoughtfully.

   "The secret cannot be leaked. You just need to sit on the sidelines." Masayoshi Kishimoto shook his head suddenly, and did not completely break the line.

   Minamino Takashi understood completely. This must be something that the president has planned for a long time. Otherwise, how could the other party chat with them so calmly?

  Hard Gold Group has a lot of investments in Korea. Among these online games, real estate is the main force. Online games are fine, the impact should not be large.

  Real estate is closely linked with banks. Once there is a problem in the bank, it will inevitably drag down the real estate industry.

   "The South Korean government and the central bank will never sit idly by and will definitely help the country's banking industry." Kazuya Takahashi also blurted out his debut.

   "The Korean government and the central bank will naturally come to a rescue. If the banking industry collapses, then the Korean economy is almost finished.

   At this critical moment, the Bank of Korea did not dare to directly print a large amount of banknotes for an overissue. Doing so will only exacerbate domestic inflation and further panic the Koreans.

  If I’m not wrong, there should be a run on banks big and small in South Korea. Some people use credit cards, some people don't, and not everyone uses credit cards.

   Few of the elderly use credit cards. They tend to like to keep their money in the bank. If there is a problem with the bank, of course they can't wait to get their money out of the bank.

  If the bank goes bankrupt, who do they go to for money? Even if the Bank of Korea and the government have introduced laws to protect small depositors, they are determined not to stop their enthusiasm and wave of bank runs.

  Because it is the relief of human nature, after all, it is only safe to say. As long as you don't put money in your pocket, you will always worry about gains and losses in your heart.

   Always think about your money. I tossed and turned at night and couldn't sleep, thinking about my money. When you meet people, talk about your own money. I can't keep up my energy even when I'm working, and I can't help but think about my money in my head...

   They are bound to have all kinds of guesses. Even if there is such a law to protect the interests of small depositors, it does not mean that they will be able to give you immediately. When will it be given? It's not up to the South Korean government and the central bank to decide.

   When you need money, can you tell the other party and let them wait? It's not that you don't have money, it's that you can't get the money in the bank.

   South Korea is in urgent need of foreign aid, and the funds of major foreign banks are life-saving straws. At the beginning, when the Asian financial crisis broke out in 1997, the South Korean government had sought out large Japanese-funded banks.

   This time, I should look for it too. If the guarantee is not complete, I will personally come to the hard gold bank under our hard gold group. " Kishimoto said eloquently.

   (end of this chapter)