Film and Television Series 1 "The Rise of Money—A Dream of Greed"

Throughout the ages, people have never stopped pursuing money. Human nature is greedy. Currency has a huge temptation for human beings. For human beings, success is also money, and failure is also money. In the past few years, many banks in Wall Street and the City of London played with money and set themselves on fire.

In 2007, a huge financial tsunami swept through, resulting in the bankruptcy of many banks and the nationalization of many banks. Finance is the driving force behind the development of human history.

Regardless of whether it is in a financial crisis or not, the amount of money circulating in the market is huge. A long time ago, the Incas had no official currency. At that time, they highly praised rare metals such as gold and silver, but soon their peaceful life was broken. Pizarro, the invader from Spain, led a group of people Starting a frantic pursuit of wealth, they discovered Toyama and obtained huge wealth from it. However, as the Spaniards continued to fight north and south, they dug too many silver mines, which led to a sharp drop in the price of the entire silver and a sharp rise in prices. In the end, Spain did not gain substantial wealth.

Regardless of the form of money, silver, shells, bills, etc., as long as people have enough confidence in it, it is valuable. In ancient Babylon, some people even used clay as currency. Money is dependent on trust, or even faith. Let's go to the northern part of Italy in 1200 AD. The Roman Empire was indeed prosperous, but the wealth code left to future generations was very complicated. Even a simple transaction needs to involve 7 currencies and complex Roman numerals , which is the lack of trust. Later, Fibonacci introduced many eastern arithmetic methods to Europe, making calculations easier, which is the application of numbers in the business field. The merchant Shylock described by Shakespeare is a businessman who borrows money. Usually, there is a risk of default in borrowing. Therefore, when borrowing money, the two parties will also agree on a certain interest rate as an additional condition. The church in the middle world opposed the charging of interest on loans, which became the main obstacle to the development of the European financial circle. Jews cannot lend money to Jews at interest, but they can lend money to strangers at interest. At the end of the story, Sherlock also failed. Facts have proved that money lenders are a very risky profession. Money lenders did provide services, but the price was too high. How did they solve this problem? Banks came into being. In Italy in the 15th century, lending went out of the Jewish Quarter and became the exclusive business of legal banks. The Medici family took advantage of the trend and the era of credit officially came. The Medici family made money by engaging in foreign exchange transactions and collecting commissions. This was the first time that lending developed into a sizable banking industry. The Medici family also learned to diversify risks, switching their lending business to foreign exchange transactions, reducing the impact of borrowers defaulting. They had a lenient policy on lending to the nobles, but only got a lot of defaults.

America's success is based on borrowing money, they seem to be willing to lend money to anyone, in the United States where subprime mortgages are developing rapidly, defaults are easy to happen, if people don't pay back their money, they will have their property confiscated, such as their car, and then These cars are auctioned off to the poor, and if these poor people fail to pay back on time, the cars will be auctioned again, and the cycle repeats. From 1996 to 2006, 1 to 2 million people went bankrupt in the United States every year. Many people would rather go bankrupt than repay their debts. Today's bankrupt may be tomorrow's millionaire. As the loans are securitized and resold to some unwary investors, how the relationship between the bank and the borrower is broken, and the bond market is hot at the same time as the bank is booming. We will continue in the next issue.