"Don't worry, I know what you are worried about. You think we are losing money, right?"

Carter smiled calmly, threw a cigarette to Goodman, and motioned for him to sit down first. Don't be so impatient...

"From the current point of view, I am indeed losing money on this interest rate. But isn't the current situation very clear? Why does the Federal Reserve raise interest rates? Or, what will happen if he keeps raising interest rates like this?"

As mentioned earlier, Goodman also understands Carter's logic about the impact of the Fed's interest rate hike. It's just that he understands it, but no matter how he thinks about it, Goodman feels that this is something completely unreliable.

Then, Carter heard Goodman mutter with a hint of resentment:

"It will cause us to issue loans, not only not making money, but also losing money!"

"The losses have only happened in the past few years. Wait until the inflation rate comes down in two years and you will see again! You know, our contracts are ten, fifteen, or even twenty years at most!"

"If you lose a little bit in the first two years, you will lose a little bit. In the future, when interest rates return to normal levels, our interest rates will be, right? In normal times, can you sign a contract with such a high interest rate?!"

Carter spread his hands and his thoughts were extremely clear.

In normal years, the interest rate on long-term real estate loans rarely exceeds 4.4%, and my 12% interest rate has almost tripled. Just looking at the past few years, it seems that I am losing 1% or 1% every year.

two...

But what happens after these few years have passed?

When the interest rate of 4.4% arrived in the same period, a large number of 12% interest rate contracts...

"Goodman, you think so! Isn't the latest inflation rate now 12.9%? There is still half a year to the end of the year, I think it will rise to 13.5%! How many loans have we given out now?"

"6.8 million, it is estimated that it will exceed 7 million tomorrow, no, in the afternoon! You don't know, more and more people have taken out loans in the past few days, and I am worried about the 10 million by then, even if the bank's original loan is added

This loan is not enough money."

Goodman was still depressed. He always felt that the more he loaned out, the more pain he felt. He couldn't feel Carter's happiness at all...

"The current 6.8 million is actually enough to open 44 stores. There is not much left to reach your target of 50 stores. Let's stop when the demand for opening 50 stores is met!"

"No, no, no, we can't stop! Fifty stores can't actually expand much. Really, Goodman, believe me, the more this loan is extended, the greater the income will be!"

Hearing that Goodman intended to reduce the loan, Carter was so frightened that he waved his hands repeatedly. How could such an opportunity be stopped?!

"Listen to me, let's do the math. Let's take 10 million as an example. Suppose that by the end of this year, the inflation rate will reach 13.5%, and it will rise to 14% next year, and continue to rise to 15% the year after that, and then begin to return to stability."

"In this case, in three years' time, 14.88 million will be equivalent to our current purchasing power of 10 million. Is this correct?"

"uh-huh..."

Goodman snorted and said nothing, indicating that he agreed with Carter's point of view.

"Okay, let's make a comparison. Do you think it would be more profitable to lend out 14.88 million at a maximum interest rate of 4.4% for ten years, or to lend out 10 million at 12%, which would be more profitable?"

"First calculate the book income after ten years. 10 million, and the total income after ten years is 12 million. Of course, this does not include the reduction of principal. Now we will give a rough overview. The same is true for 14.88 million. After ten years, the total income will be 12 million.

Theoretical total income is 6.55 million."

"Now let's add inflation factors, such as 10 million, which is our current lending model. The first three years are 13.5%, 14%, and 15% per year respectively. The next seven years are calculated at about 5%. Ten years later

The total inflation is about 109%. That is, the actual income of 12 million, if it is doubled, it will be calculated as 6 million."

"Then there is 14.88 million. After ten years, the total inflation will be about 62.8%, which is 6.55 million, and the actual income will be only 4.02 million. So, Goodman, the annual profit of 12% is not low! If it goes higher, there will be no

If a person dares to lend, he will suffer a loss!"

"The question is, why are you so sure that high inflation will only last three years? What if..."

Everyone knows the theoretical model. Naturally, Goodman also knows that the actual unit profitability of the current loan model is definitely not as good as the profitability of low-interest loans in normal years. But as long as the scale increases, it will be as small as the profit margin.

It looks like sales, and the total profit in the end will definitely not be weak.

But if this inflation rate does not only last for a few years, as Carter thought, but if it continues, not to mention 10 years, but even if it lasts for about five years, they will face the problem of not only not making money, but actually losing money.

money situation.

"Why else? With the current interest rate, how many people dare to lend money? Goodman, not every bank dares to do what I do! And not every bank has the financial support like us!"

After a trip to New York, Carter is now particularly confident. Not to mention Peter Lynch's side, just for the Quantum Fund, the account split day is coming soon! By then, at least a few million US dollars will have been brought in, and the funds will be very strong.

One batch.

Don’t be afraid of such a small loss at all!

"Coupled with the rise in deposit interest rates, on the one hand, banks are constantly taking money out of people's pockets into their own vaults, and on the other hand, there are high loan interest rates, making it impossible for the money in these vaults to get out. One is ebbing away from the other.

Under this situation, the consumption power in the market will inevitably decrease sharply."

"The market's consumption power is insufficient. Even the goods produced by the factory cannot be sold. How can it continue to increase prices?! Besides, it has been going on for so many years. Prices have been rising every year. It is time to end it."

Got it!"

"The current situation is just the darkness before dawn. Don't be frightened by the darkness at this time..."

"Hey, okay. Since you firmly believe in your judgment, what else can I say..."

Goodman sighed. After getting along with Carter for a year, he also understood the personality of this little boss. When he couldn't make up his mind, it was easy to persuade him, but as long as he made up his mind, he would be the best.

Can't pull it back...

"The future belongs to you young people after all. Perhaps your decision is the most correct, especially in the hearts of the people. By the way, I suddenly remembered that the last time you communicated with Mr. Benjamin about restricting naturalization, you still

Remember?"

"Of course I remember!"

"The regulations haven't been introduced yet, but more and more people are flocking to Douglas and Pearson recently! I guess in addition to the job problem, our low interest rates during the same period are also a core factor that attracts them."

Goodman took a look at his hair, which looked a little messy due to the recent turmoil and lack of care:

"Last night, I heard Mrs. Browne, my neighbor, praise that our bank has a conscience and is a real savings bank for citizens. At that time, I just took it as a courtesy, but now I think about it, if you insist on such low interest rates,

, maybe it will be a blessing in disguise.”

"For example, some people have recently come to the bank to inquire about the land beside our highway and asked us if we can sell it. They hope to buy the land near the outskirts of the city to build housing, and then apply to become Douglas citizens..."
Chapter completed!