"Are people starting to dump their stocks?" Jiang Fei sneered as he sat in his office.
"The timing is just right!" Jiang Fei was holding a stack of reports in his hand. The most eye-catching one was the lending situation of each bank.
The entire Gamma Space was immersed in a false economic prosperity. As they had never come into contact with all of this before, no one knew that it was all fake. Everyone was excited about their increasingly bulging wallets.
Only Jiang Fei knew that all of this was just a pie in the sky that he had drawn for these people.
In Jiang Fei's world, there was an old saying — labor creates value!
This saying was not false at all. Only actual labor, actual creation, and the development of the real economy were the only correct way to pull the economy up. Financial behavior never created value. It only transported value.
Everyone was speculating on the Moon Crystal Craftsmanship and futures, but no one thought about where the money came from. Who created the value of it? Of course not. This was just a transfer of funds. With the help of a small amount of Moon Spirit Crystal handicrafts and future orders, these funds were transferred from one person to another. From many people's hands, they were transferred to a relatively small number of people's hands.
Relying on the speculation of Moon Crystal Craftsmanship and futures, some people did make money. However, the money they made was not the value of the Moon Crystal Craftsmanship or the futures themselves. Instead, it was the money in the pockets of others.
Where did these people get their money from? Without the support of the real economy, did this money come out of thin air?
That's right! This money was really made out of thin air by Jiang Fei's little tricks! And the name of this little trick was — Leverage!
In the beginning, each of the 20 banks only had about three billion in reserve. Coupled with the flow of funds in the market, this was all the money in the entire Gamma Space. If these funds were only used to speculate on the Moon Crystal Craftsmanship and futures, the market would not be so hot.
However, Jiang Fei introduced the concept of leverage. Then, all the major banks started to take action. With thirty times the leverage, the original capital of 60 billion suddenly became 180 billion! With such a large sum of money in the market, it was reasonable to say that inflation was inevitable.
However, Jiang Fei had already planned to use the Moon Crystal Art to hype up the market. He had invested most of the 180 billion into the Moon Crystal Art and the futures market. As a result, there was not much free money circulating in the market. As a result, the impact on the normal goods on the market was not as obvious.
The relative stability of prices, coupled with the fact that everyone had more and more money in their wallets, made everyone think that the economic situation was good. It was not until the banks lent out their money that they had no more money to invest in the market that the crisis appeared.
Because the commoners took out loans to invest in the Moon Crystal Art and futures, they believed the price of the Moon Crystal Art and futures would continue to rise. Therefore, no one was worried about not being able to repay the loans, because there were always buyers taking over.
But now, the bank had no money in its hands. They had already given out the funds that they had inflated with thirty times leverage. It was impossible for them to lend to new investors!
Without the support of loans, how could new investors take over? Right at that moment, Jiang Fei's agent, the little girl, started to spread negative news. Although most of the people who were addicted to the Moon Crystal Art did not want to believe it, there were always a few who were clear-headed.
When these clear-headed people started to dump the Moon Crystal Art and futures, more people started to see the situation clearly. As the Moon Crystal Art was so expensive that no one could afford to buy it, many people were even willing to lower the price in order to sell it.
As we have said before, the commoners were born strange. The more expensive it was, the more they would buy it, and the cheaper it was, the more they would sell it!
When the commoners saw that the prices of the Moon Crystal Art and futures had started to drop, they immediately panicked. More and more people started to dump their Moon Crystal Art and the market instantly collapsed!
In just one night, the Moon Crystal Art that was originally priced at fifty thousand was instantly cut in half. The price of futures fell even more, and the average price was less than twenty thousand.
However, the more this was the case, the less people were willing to buy it. This caused the prices of the Moon Crystal Art and futures to fall again and again. In the end, it fell below the cost price. The price of each Moon Crystal Art was less than two thousand. The futures were like a piece of waste paper. No matter how much money was offered, no one was willing to buy it.
The fall of the Moon Crystal Art and futures directly caused a large number of speculators to go bankrupt. These speculators had borrowed a large amount of money from the bank. After they went bankrupt, they naturally could not repay the debt. Therefore, in order not to bear the loss, the banks immediately found guarantors like Balak and Mondoric, asking them to repay the debt.
However, at that time, Mondoric and Balak had already distributed the insurance policies in their hands. Almost all the financial groups in the Gamma Dimension, big and small, were involved in this. This nested debt relationship instantly exploded.
A financial bubble of one hundred and eighty billion could not be stopped even if the entire Gamma Dimension was squeezed dry, let alone the rich like Balak and Mondoric. The original economic capacity of the entire Gamma Dimension was only tens of billions.
The economic system of the Gamma Space collapsed in an instant, and the smiles on everyone's faces disappeared. Almost everyone in the Gamma Space was burdened with huge debts. Many people jumped from buildings in despair, and many families were torn apart in despair.
"Did I go too far …" Jiang Fei saw the desolate scene on the street and looked at the reports in his hands that looked like disaster reports. He even felt a little sorry for them.
However, things had already progressed to this point. Even Jiang Fei himself could not turn back. He could only continue and help these people recover a little after the disaster. For Jiang Fei, his most important task was to help the three-dimensional world get rid of the restraint of the Gamma Dimension. As for the other things, they were secondary.
"Boss, the Consul wants you to go over!" Anita hurriedly ran into Jiang Fei's office.
"Okay! I'll go now! " Jiang Fei nodded. When the crisis broke out, he knew that the Consul would definitely summon him. At this time, the Consul was probably more panicked than he was.
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