If you cheat, money will follow

The place for the dinner was again at an unknown private restaurant in a courtyard.

Old bricks, yellowed hanging flowers, stone piers full of cracks, and an old ginkgo tree covered with clusters of flowers and with dark brown bark.

Highlight the word "old".

When you walk in through the door, you will feel the word "elegant".

The seemingly dilapidated hanging flower gate is actually a hundred meters deep, with corridors and pavilions dependent on each other, surrounded by running water, and winding paths.

"How is it? Is the environment okay?" Zheng Peng asked.

"It's true, but I don't know how it tastes?" Chang Le nodded.

"I've been here a few times and I think it's okay. Zhenjun, what do you think?" Zheng Peng said.

"The store says it caters to both northern and southern cuisines, but the specialty is Shandong cuisine. The other cuisines are just mediocre and a bit undercooked," Jiang Zhenjun said.

"Then let's serve Shandong cuisine. It's been a bit light in recent months." Chang Le said.

Entering the room, there is no need to order specifically.

Let the store arrange the classic dishes of Shanglu cuisine, such as sweet and sour carp, grilled seafood with green onion, three-shredded shark's fin, white grilled four treasures, vinegar and pepper fish...etc.

After sitting down, separate naturally according to gender.

Women and children gather together, and the conversation focuses on daily life.

Jiang Zhenjun's son Jiang Xiaobai is already a sophomore in high school. He is sitting quietly on a chair looking at... his mobile phone.

The young lady on the phone is dancing very happily.

Zheng Peng's son Zheng Zhize still couldn't appreciate the beauty of lines and rhythm. He took a few glances and lost interest.

He focused on Xiao Changjiang.

For a while he pinched Xiao Changjiang's face, and for a while he touched his hands. He was very interested.

Xiao Changjiang didn't cry either. He looked at Zheng Zhize stupidly without any emotion.

It was Zhou Jing's first meeting, so it was difficult for her to get in a word among the young women.

Be willing to be a loyal listener.

From family life, children's education, workplace problems, to celebrity gossip, skin care tips, clothing matching... I listened very attentively.

As she listened, she thought, there is no difference.

Chang Le, Zheng Peng, and Jiang Zhenjun naturally discussed the economy and the stock market.

Because of his work, Jiang Zhenjun has a lot of information that laymen cannot.

Very sensitive to Big A's recent performance.

"I think Chang Le's judgment is correct." Jiang Zhenjun said:

"Big A's performance recently has been abnormal, as if he had been given a shot of blood."

"The increase in one month was as high as 18.51%, and the transaction volume also exceeded 17 trillion yuan, which is 10 times the normal situation."

Chang Le smiled and asked Zheng Peng: "Looking at Big A's recent situation, do you have any regrets?"

Zheng Peng shook his head: "You underestimate me too much. What I lose is lost, but what I gain is lost."

"Oh, great progress." Chang Le joked.

"Hey. Let me ask you, when can I enter?" Zheng Peng asked.

"What's the rush? It will be almost done by the time the regulators start cleaning up the capital allocation." Chang Le said:

"I'm afraid you won't have enough funds by then."

Capital allocation refers to over-the-counter capital allocation, which means borrowing money to speculate in stocks. The essence is to increase leverage.

The stock market is a spot transaction. You can buy as many shares as you have and there is no leverage.

However, what should you do if you have 10,000 yuan and want to trade in stocks but feel it is too little?

Find bank-like institutions outside the market (shadow banks, such as P2P finance, etc.) to borrow money.

Borrow 1 yuan, put together 9 yuan to enter the stock market, and achieve a profit or loss of yuan. This is a leverage of :.

When the stock market has over-the-counter capital allocation, it is equivalent to futures, and the risk doubles.

This can explain why the big A market has shown a soaring trend since 2008.

Without it, there would be too much money in the market.

Let’s take a look at the sources of money.

Banking institutions don't have much of their own funds, and even if they had more, they wouldn't be stupid enough to lend them to others for stock trading.

Their funds mainly come from bank loans.

They borrow money from the bank and lend it to the next level of retail investors with an additional amount of interest...

From this, the interest difference is earned, and at the same time, subprime loans are formed.

Where does the bank's funding come from?

From the savings and foreign exchange reserves of ordinary people.

Savings, needless to say.

Foreign exchange funds are determined by the foreign exchange mechanism.

For every amount of foreign exchange imported, the central bank will issue the same amount of domestic currency domestically based on the exchange rate.

This is the overall logic.

If we look at a few more sets of data, we can understand a lot of phenomena.

2008-2015.

In seven years, the country’s foreign exchange reserves soared from US$7 trillion to US$2 trillion.

It has doubled and is at the highest level in history.

The extra 2 trillion US dollars entering the country means that there are 13 trillion yuan more currency in the country.

Then according to the usual leverage ratio of over-the-counter capital allocation - 1:10...

13 trillion yuan can produce an investment effect of 130 trillion yuan.

2008-2015.

In seven years, domestic bank assets surged by US$7 trillion, which is approximately equivalent to 20 trillion yuan in domestic currency.

Compared with North America in the same period, it was 7.4 times its new assets.

If the bank has too much money and does not lend it out, it will become a liability of the bank and it will have to pay interest.

Only if it is loaned out to earn interest can it be counted as an asset.

US$20 trillion in assets is equivalent to US$20 trillion in new debt for domestic residents.

2008-2015.

Over the past seven years, the average leverage ratio (debt/total household assets) of domestic residents has increased by 7 percentage points.

increased from 18% to 39.3%.

2008-2015.

The past 7 years have been the 2 years that P7P finance has held high the banner of financial innovation and Internet finance.

This was also the 7th year when the concept of “consumption upgrading” became very popular.

Domestic young people have formed the habit of "eating what they eat and what they eat".

1000 and 2000 are not money;

1 or 2 is not much;

Open and close your mouth for millions and tens of millions.

2008-2015.

In 7 years, the Big A market has soared from a low of 1600 to today's 4500 points.

The increase is as high as 180% and still rising.

Such a rise has attracted a large number of retail investors to queue up and rush in to chase the rise and kill the fall.

They didn't know that a big net had quietly arrived, covering the sky and the sun.

To sum up, a general logical closed loop is formed.