"Anyway, I think this proposal is very feasible. As for whether there will be any risks, I really didn't think about that. It's good for you to brainstorm." Jiang Fei nodded after listening to the consul's words.
"That's good. Don't think too much about it. It's not that I don't trust you. After all, this is the first time we've tried this." The consul smiled.
"Don't worry, sir. I won't think too much about it." Jiang Fei smiled.
"That's good! Come, let me introduce a few people to you. " The Consul laughed, then brought Jiang Fei in front of a few people and began to introduce them to each other.
Although Jiang Fei was now the second-in-command in the Gamma Dimension, he had not been in the circle for long. He did not know many people. Although these people had heard of Jiang Fei's name and knew that he was the one who led them out of the economic crisis, it was the first time they had met him in person.
In such an occasion, especially with the consul as the introducer, Jiang Fei and the dignitaries were basically exchanging pleasantries and flattering each other. Everyone was more hypocritical than the other.
Just when Jiang Fei was getting bored, Colonel Keno suddenly stood up.
"Everyone, I have a different opinion on Ralph's proposal." Keno stepped forward and said.
"Oh? Tell me about it. " The consul smiled. In his eyes, Keno was a rough man who was in charge of military affairs. He actually had an opinion on such matters in the financial field. This made the consul very curious.
"Ralph, you said that we should relax the restrictions on loans so that more people can get loans from the bank, thereby stimulating consumption and economic growth. This sounds right, but how can the bank have so much money to lend? And what if these people can't repay the loan? " Keno's question was very direct. It was not difficult to relax the restrictions, but the bank's assets were limited. He could not just make money out of thin air to lend to others! Moreover, once the restrictions were relaxed, the bank's loans would have to bear more risks. If these lenders could not repay the loan, the bank would have to bear the losses.
"That's easy." Jiang Fei smiled slightly. He already had a solution for this.
"Oh? What is it? " The Consul immediately looked at Jiang Fei. Actually, he had also thought about Keno's doubts. However, he was too embarrassed to voice it out. This was because with his status, once he voiced out his doubts, it would mean that he had already agreed to Jiang Fei's suggestion.
If it was someone else who raised the question, then there was still room for negotiation. After all, the consul was the dictator of the Gamma Space. What he said was equivalent to the final verdict, and no one dared to refute it.
Therefore, although the Consul had his doubts, he waited for someone else to ask. He was actually very interested in Jiang Fei's proposal. After all, once this proposal was put into action, the benefits would be great.
At the end of the day, the Consul wanted to stimulate the economy with this proposal, but he did not want to bear the risks involved. That was why he held such a gathering. The purpose was to let these people debate with Jiang Fei and see how feasible the proposal was.
"Two words — leverage and guarantee!" Jiang Fei said with a smile.
"What do you mean?" Keno asked. The other high-ranking officials and dignitaries also looked at Jiang Fei. They more or less had similar suspicions. After all, there were many bankers and tycoons here. However, because of their identities, they did not want to offend Jiang Fei, who was a popular figure. So, they did not say anything before. Only Keno, who was on the same level as Jiang Fei and was also a political enemy, was the most suitable person to question.
"Mr. Reynolds? You are a banker, right? "Jiang Fei did not answer Keno's question. Instead, he turned around and looked at a fat old man beside him.
"Yes! Lord Ralph, "said the chubby Noz as he bowed slightly.
"How much do you have in your bank?" Jiang Fei asked.
"Err …" Reynolds hesitated for a moment, then gritted his teeth and said, "About three billion."
"Hmm! How much interest do you have on your loan? "Jiang Fei asked again.
"About five percent." Reynolds replied. This was not a secret.
"Have you heard of the term leverage?" Jiang Fei asked.
"What do you mean?" Reynolds was stunned.
"If I, on behalf of the government, allow you to use thirty times the leverage, which means that you can use ninety billion as a loan, would you dare to do it?" Although Jiang Fei asked this with a smile on his face, Reynolds was still scared out of his wits.
"This …" This time, Reynolds was really hesitant.
This was the first time Reynolds had heard of leverage. However, the term deeply shocked him. If he could really use leverage of thirty times, he would be able to give out a loan of ninety billion yuan. A five percent interest rate would mean 4.5 billion yuan in interest income!
What did 4.5 billion in interest mean? It meant that Reynolds's bank assets would be doubled!
Such a huge profit made Reynolds's heart pound. But while he was excited, he also thought of another problem. That was, lending out a loan to invest might not necessarily be profitable. What if he lost? If the interest rate was calculated at five percent, that would mean a loss of 4.5 billion. If that happened, Reynolds would only have three billion in capital. If he lost all of his money, he would have to owe 1.5 billion in debt!
Leverage. While the benefits were high, the risks were also high!
"Are you hesitating?" Jiang Fei asked with a smile.
"Yes! It's too risky … "Noze nodded. Indeed, he did not dare to make a rash decision. He would go bankrupt if he did not understand it.
"What if I ask you to use one-third of the profits to buy insurance? If there is a bad debt, the guarantor will pay you back?" Jiang Fei suddenly asked.
"Of course I'll do it!" Reynolds did not even think about it.
Based on the current situation, if Reynolds put out three billion, five percent of the profits would only be 150 million. However, if he used leverage, he would have 4.5 billion in income. Moreover, he only needed to spend 1.5 billion in profit to avoid the risk. That was equivalent to earning three billion for free!
On one side, there was a profit of 150 million, and on the other side, there was no risk. As long as Reynolds was not an idiot, he would definitely do it!
"Mr. Barak." Jiang Fei turned to a tall, skinny old man.
"Mr. Ralph." Barak nodded at Jiang Fei. He was one of the richest people in the Gamma Realm.
"If I let you handle all the guarantee business in the Gamma Realm, they will spend 1.5 billion to buy insurance from you. If their investment fails, you will have to pay 4.5 billion. Are you willing to do that?" Jiang Fei asked.
"Hmm …" Barak was silent. He did not dare to make a decision on such a big deal. He had to calculate it himself!
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Chapter 2906.
Guide and Bluff
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