0152 The Last Straw

  The high society reception was so boring and tedious, Lynch also saw some local "actresses" in the process of chatting with others and building social networks, including two famous hostesses of Sabine TV.

  Young, beautiful, and always in a positive light, they were accompanied by male companions who were old enough to be their fathers, but perhaps Lynch's mind was too evil to think that could actually be their respective fathers.

  He returned his attention to the smaller man in front of him, who was selling some of his ideas, his company, and the inevitable glorious future.

  Lynch would surely make a lot of money in the future if he was willing to join his program, and there were already a lot of people who had decided to invest in his project, he just saw that Lynch was right on the eye, so he left Lynch alone with a spot to invest.

  "Maybe the bank will be interested in your project ...," Lynch took a sip from his wine glass, and the small man's expression froze.

  If the bank's wind control could pass, why did he have to come around to pull people to invest, it was precisely because the bank thought he might be scamming money that the goodwill agreed to lend to him.

  Lynch looked at him, and under the gaze of Lynch, the small man twisted his neck in discomfort as if he had thorns on his back, apologized, and quickly left.

  His handful of donations of one hundred thousand dollars had become the center of attention, which made many people want to get to know him, some with good intentions, but some with ill will.

  Some people wanted to get to know the young tycoon, especially since it looked like he had a personal relationship with the mayor.

  Not all tycoons maintained a good relationship with the mayor, the entire market of Sabine was so big that there couldn't be just one person or one business in every industry, and the Federation's laws wouldn't allow them to do so.

  There is competition, there will be conflicts, some people rely on the relationship with the mayor to get some orders or policies, will inevitably attract the dissatisfaction of some other people.

  But in general everyone wanted to have a good relationship with the mayor, after all, the mayor was the supreme leader and designer of a city, they could plan a city according to their own preferences, and with the mayor's help, everyone's business would become easier and more profitable.

  One after another, people exchanged business cards with Lynch and briefly talked about their own business, they would not talk about too deep things when they first met, but mostly had a brief understanding of each other's identity and the business they were running.

  When there is a need for such an "acquaintance" in the future, they will probably think of Lynch.

  Of course, what people talk about most is still the topic of finance, which is a phenomenon that no rich person or celebrity can avoid.

  After the initial exchanges, people formed one circle after another, the circle of people are discussing their in the stock and securities market in the big kill four winds, people constantly for those figures of the myths to send out a gasp, a million invested in it.

  Lynch watched from outside the crowd, and he found it interesting that most of the people in this society who were actually involved in the financial game didn't know anything about finance itself, about stocks, securities, futures and the like.

  For example, the Fox father and son, they had talked to Lynch about it not long ago, and given that they now belonged to the ranks of the rich, the bank had raised their customer rating and arranged for a service manager to specialize in their operations in finance.

  This manager started by telling them how stupid it was to keep their money in the bank, and that probably the female bank manager didn't know exactly what the father and son did for a living or how much money was in their accounts, and that she didn't have the authority to go right through depositor information off the job.

  She gave some examples, some examples of putting money into the financial markets to quickly realize the myth of freedom and wealth in life, which impressed the Fox father and son.

  Since and Lynch know, this pair of father and son began to earn legitimate money has a strong interest, the bank even said that the bank's money for their own money, they only need to take out a dollar of the principal, will be able to get as little as five or ten dollars, more than dozens of hundreds of "extra money" to trade.

  As long as the bet is right once, a dollar can become a hundred or even hundreds of dollars in one night, hundreds of times the profit in an instant firmly grasped the father and son's little heart, they almost really open an account.

  But Mr. Fox's caution led him to contact the only person he thought might know the inside story, namely Lynch, who gave him the simple answer that if he wanted to go broke, now was a good time to enter the financial markets.

  Leverage, or "capital allocation", itself is the bank used to make a profit, of course, it is not completely absolute, because sometimes the risk control will exceed the bank's prediction, for example, they thought it was just a rainstorm, but it turned out to be a meteorite, but most of the time, they are not losing money.

  Suppose a man has a hundred dollars in his hand, and he buys a stock which goes up ten percent, and he makes ten dollars.

  But if he applies for a placement and the bank gives him a credit of ten thousand dollars, and his stock still makes ten percent, then he makes a thousand dollars at once this time.

  His capital is the same, it's all one hundred dollars, but before the allotment he only made ten dollars, and after the allotment pries up a hundred times that amount, he makes a thousand dollars at once, a whole hundred times the profit!

  And he only need to pay a few dozen dollars for this can be, a few dozen dollars to pay and a thousand dollars of revenue, many people are in this strong contrast began to lose, and eventually became cannon fodder.

  (The above is just a simple explanation of the example, the actual situation of funding needs to be approved in addition to the calculation)

  For the bank, no matter how much money the lender earns, the bank is a steady profit, but what if the lender's stocks or futures fall?

  This time the bank's risk control system will come into play, as long as the fluctuation is close to or exceeds their safety indicators, they will immediately force the exchange to close the position.

  In fact, most of the time it is too late, because so far the three major exchanges are still manually filling orders and automatically splitting them over the phone, which can cause some delay.

  If after closing the position the bank finds that there is no problem with their allocation and they have recovered their share of the profit, then the matter will end here, as for how much the client lost and they have nothing to do.

  But if the bank realizes after closing the position that not only have they not recovered their share of the profits, but that they have also trapped some of the matched funds, they will start the process.

  They start by freezing the lender's bank account, and if the savings aren't enough to compensate the bank, they'll start auctioning off the lender's real estate, cars, and anything else that might be worth something.

  If that's not enough, then the matchmaker will have to file for personal bankruptcy and the bank will provide the person with a job that will go directly into the bank's account every month, except for the necessities of life.

  The debt will never go away as long as the person doesn't die - but this doesn't involve the family repaying the criteria because the money was used for personal investment practices and the allotment holder's family didn't enjoy all the benefits that came with the money, and they could not inherit the debt.

  This is also the reason why there will always be people jumping off buildings. It is better to die alone than to drag their family members down to hell with them.

  However, these people in front of us actually do not know about this, their stocks, futures accounts, are by their financial managers or stockbrokers in the management, which naturally also includes all kinds of capital allocation behavior.

  For these managers, they give the customer capital allocation is a commission, the bank will give them some rebates, they need to do is just let their customers in a capital allocation application to sign their names.

  As for whether their clients will jump off the building later, they don't care at all. Anyway, they have made money and have become loyal partners of the bank.

  Looking at those high-flying people, Lynch only felt pity for them, probably in the end they didn't even know why they jumped off the roof of the building, and ended their short and twisted lives.

  After the reception, Lynch returned home with a pocketful of business cards, in the next two days he had to sign agreements with other investors to sell his company at a good price.

  Meanwhile, it was already late at night, and the president and cabinet members hadn't gone to bed yet, much less showed up at the reception or anything like that, they were meeting in the conference room next to the president's office.

  Currently they had a big problem, the Baylor Federation had remained neutral in the international war, not being pulled down by anyone, and had actually paid protection money, or paid for peace.

  The Baylor Federation had purchased the war bonds of the core countries of the two camps in the name of the country, and with the isolation policy, this had allowed the Baylor Federation to escape the world war.

  But now, whether it was the victorious country, or the defeated country, neither of them were willing to honor the bonds according to the agreement, which gave them a bit of a headache.

  If it was placed in the previous years, not honoring it was not honoring it, the Baylor Federation at that time was highly prosperous economically and financially, and didn't care about that little bit of money, but now the situation was different after all.

  A large amount of capital flight led to the economic development speed slowed down at once, more terrible is that these capital flight also drove the real market to go downhill - a lot of factories closed down, the workers lost their jobs, no work, no income, the consumption ability and standard continued to decrease, more factories could not sell their products and had to be shut down, which was A vicious circle.

  People had to put their money into the financial market to escape the losses in the real business, at least the financial market is still prosperous.

  If these bonds can be honored, it can more or less stimulate the domestic economic development, even if it can't change the current situation, but it will not continue to slide.

  But whether it is in the name of an individual, or in the name of the country to propose to cash in, the international community did not give a positive response, they refused to communicate!

  Billions and billions of bonds now littered their vaults as much as scrap paper, and the President of the Federation, who hadn't appeared in front of a screen in days, had several blisters growing around the corners of his mouth.

  "We have to do something, gentlemen!"