In a few, he went out of my office with a mood among the ‘’who I am’’, and ‘’my God’’.
a) I asked for curiosity a very small loan, we are an ‘’A’’ rated corporation, refused, we have no money at the time
b) I asked for curiosity as well, a new credit card, in a new bank a black one, (note, I still have one with an unlimited credit in another Institution), this means a credit rank of 15k €, the bank told me ok, but why don’t you deposit 30k€ in bonds before, LOL
c) Italian bank are taking money from BCE at 1%, giving their new issued bonds as a guarantee, same bank bonds are guarantee from Italian state, with the fresh money the Italian Bank don’t make loan or finance the system but they purchase Italian Bonds that give an average of the 5%. With the difference, 4%, they pay their fixed cost.
So, i.e., I produce buttons, and instead of being the best to produce them and to sell them at the best clients I make an agreement with my competitor, saying, listen me colleague, why being crazy to convince our customers that we are the best, I sell to you, you sell to me, together we sell to another button producer, we increase our turnover and profitability, we claim cash from the system, because our profitability and performance will be great and one day or another when all of our colleagues have made the same ‘’game’’ we will retire to the Bahamas.
Is it the concept clear for you guy? The Bank are getting cash giving debts as a guarantee, and when you’re asking them to be financed, no game no party, too much complicated.
Now, they only accept bonds, or real estate property as a guarantee, people who has the bonds like me don’t need credit, and people who has real estate just give it on guarantee in last year’s.
So, listen me, bank don’t make loans, (really don’t make it at all, the doors are closed), real estate entrepreneurs cannot sell, they will fall short, bank will be full of useless properties, here again the bubble and the crash.
We have one sole and only life jacket, a market recovery and a bullish stock exchange!
For the wise, be free, work with your own money, stay at the door and do not pretend that someone that is mad will admit to be insane, the mad always tell himself, I’m sound or in some cases I’m Napoleon.