Rebirth of the Financial Overlord

Is this guy an idiot?

An idea couldn't help popping up in the minds of the HSBC team.

HSBC is a global chain bank, and Meriwether is the executive president of HSBC Holdings Hong Kong and also the top executive director of HSBC Asia.

He knows better than many people the real estate market in Southeast Asia.

From 1983 to 1989, after the European economy had been growing continuously for seven years, the economy was improving, and production would naturally grow accordingly. However, as the continuous injection of capital promoted the increase in production capacity, the market economy began to experience oversupply.

In 1988, the European economic growth rate was 4.3%, and in 1989 it dropped to 3.3%.

The slowdown in economic growth has made many prophetic capitals feel the crisis.

Because history has been verified countless times, economic development is cyclical. When the contradiction between productive forces and production relations in capitalist society expands, economic crisis will come.

There is no avoiding economic cycles.

Capital determines the price. When the price rises, the supply system will rise driven by profits, and then the supply and demand relationship will expand, including human resources, material resources, and production capacity. Overcapacity will trigger an economic crisis and the industry will be reshuffled.

This is an insurmountable contradiction between productive forces and production relations in capitalist society, and it can also be called systemic risk.

In 1990, the European economy as a whole slowed down again, and the growth rate dropped to 2.2 percent.

After all, capital is in pursuit of profit. The European economy has been down one after another, and liquid capital has begun to target the whole world.

The U.S. market has just come out of the economic crisis, but it is still volatile and has great risks. The Japanese market has experienced a disastrous crisis and has been dragged into the bottomless abyss by real estate. Every day, investors who go bankrupt and jump off buildings line up on the top of the building.

Only Southeast Asian countries are in the early stages of development because of the low price of manpower and resources.

In particular, neon capital, the world's second largest economy, continues to inject Southeast Asian countries. With these capital injections, the economies of Southeast Asian countries are developing rapidly.

The four countries headed by Thailand, the Philippines, Malaysia, and Indonesia have already had a tendency to catch up with developed regions such as Hong Kong and Singapore, and are called the miracle of Asia.

The "Four Little Tigers" and the "Four Little Dragons" stand side by side, showing the world the unlimited potential of Asia.

According to HSBC's bank data, in addition to Neon, Western European capital is also pouring into Southeast Asian emerging market countries. The real estate and securities markets in these countries are booming driven by capital.

Almost every week, the securities markets of Southeast Asian countries are rising, and real estate prices are also rising continuously.

The data sent back by branches in various countries is very clear. The income of residents in these countries has been rising, the GDP growth rate is changing day by day, the number of real estate investors is also increasing, the supply of loans is good, and the bad debts of real estate are almost less than 1%.

The momentum is like a sky-high sharp blade, and the strong development trend can be seen at a glance.

However, some people want to short sell real estate in Southeast Asia.

Meriwether looked at Shen Jiannan strangely.

He was thinking in his heart, is this guy dizzy, or is he so young and frivolous that he has forgotten the heights of the sky and the earth?

Take Thailand for example.

With the injection of capital, Thailand has experienced more than ten years of slow development, and the economy has been advancing all the way. In May, the Bank of Thailand released restrictions on the inflow of foreign capital. Every month, the capital flowing into Thailand from HSBC is in the unit of 100 million U.S. dollars.

Driven by these capitals, Thailand's SET continues to rise, and the real estate industry is booming in the morning sun, all of which are in an upward cycle.

It can also be understood as a trend.

This is an economic law that the capital market cannot violate.

As a senior banker, Meriwether knows how terrible the periodicity of this economic law is.

History has proved countless times that if you go against this kind of periodicity, you will definitely die miserably.

The most intuitive manifestation is the securities market. A downward market is like a bomb falling from the sky. Whoever dares to pick it up will be blown to pieces.

A rising market is a sharp sword drawn from its sheath, and it is also a bullet that has just been fired. If you don't block the bullet before it reaches its maximum range, you will definitely be shot to death by the bullet.

Just like America.

After 1929, the U.S. stock market and real estate industry rose continuously for fifty-seven years. In these fifty-seven years, no matter how sluggish the U.S. economy has been, real estate prices have never really fallen.

Because real estate is the most important asset in any country, all countries will try their best to protect the stable development of the real estate market at all costs.

It was not until the US dollar exchange rate instability in 1985 that the US financial crisis broke out and real estate was dragged into the abyss.

But before that, the U.S. economy has been in a downturn, and the dollar exchange rate has continued to depreciate, which has already been foreshadowed.

The current Southeast Asian emerging market countries only have a good momentum, and it is impossible for a sudden real estate crash to occur.

The same goes for Hong Kong and other countries.

After 1949, Hong Kong's economy has been advancing all the way, and real estate prices have continued to rise.

The reason, Meriweather is very clear.

Since the emergence of currency, human beings have established countless currency systems. Gold standard, silver standard to silver standard, and then to today's credit standard.

But no matter what kind of currency issuance system, it cannot avoid the final collapse.

The reason is that the human society is in the shape of a pyramid structure.

In this state, no matter what monetary system it is, it will eventually face the day of collapse.

Human selfishness and greed drive the progress of society.

Under the purchasing power of currency, let countless people create value for this society.

But everyone's ability is different after all.

Some are smart, some are hardworking, some are stupid, and some are lazy.

Due to various reasons, the scale of currency issuance will only increase until the day it collapses naturally. Because if the currency supply is not increased, then a fixed amount of money will make some of them impoverished.

Just like distributing one hundred yuan to one hundred people, if the total amount of money is not expanded, then the final result must be that 80 of them will be penniless.

But this result is not conducive to the stable development of society.

Therefore, the currency can only be flooded and issued when needed. Only by ensuring that the people at the bottom can live normally can they create greater value.

Based on this economic and political principle, the circulation of currency will only increase, and the symbol of money will only increase.

Therefore, in theory, prices will only rise.

As for falling.

It's not impossible, but very unlikely.

From the perspective of data and economic theory, the rise can be unlimited, but the fall is limited after all. Even if Japan's real estate is currently collapsing, it has reached its limit after decades of continuous rising market saturation after the war.

And if you want to get to the bottom of the reason, the main reason is that the Japanese government chose to retreat bravely, which is not the market's own trajectory at all.

"Shen. I think our bank needs to discuss it. It may take a while. Do you think it's okay?"

"certainly."

"Thank you for understanding."

"..."

Soon, Meriwether led the team to send Shen Jiannan and his party out of the bank. As the back of the lengthened Lincoln gradually faded away, he immediately showed the response ability that a top banker should have.

"John. Let's confirm the data of the real estate markets in various countries. We need to carefully study the possible risks."

"ok!"

"."

You go away, I don't listen, I don't listen, I don't listen, 2000 coins reward.

Thank you boss for your support!

Sao.