Becoming Rich with Daily Scavenging APP-Chapter 659: Financial Games

When the market is in an upward cycle, it gives people a certain illusion.

It seems that making money is too easy, accumulating wealth is too effortless, and I'm incredibly capable.

The last point is especially deadly.

When someone, during a market uptrend, makes a fortune relying on their connections, network, and luck, and believes they're earning big bucks purely because of their personal capabilities.

Then once the market cycle starts to decline, and everyone has a tough time.

Such people often fall the hardest.

Wang Jianlin's luck was already pretty good.

Back then, he tried to create a fallback for himself through domestic loans and overseas investments.

But the result was that he drew too much attention because he overdid it.

However, this actually helped Wanda avoid the real estate trap.

Yet, this incident didn't calm Old Wang; instead, it made him feel the mandate of heaven was with him.

Since he couldn't go abroad to invest, he thought he could play around freely in the domestic market.

So the father committed the same mistake as the son.

He got involved in gambling with others.

The son lost the bet and at worst lost a live-streaming platform and owed a few billion.

His mother could cover for him and pay off the debts.

But the father gambled with thirty-eight billion.

If Wanda can't go public, then this thirty-eight billion will have to be bought back with principal and interest. 𝙛𝓻𝒆𝓮𝒘𝙚𝙗𝒏𝙤𝙫𝓮𝒍.𝓬𝒐𝙢

Wanda used this money to invest in many things.

Including Wanda Plaza.

Wanda Plaza is a quality asset, provided you invest idle funds in it.

Because although the profitability of commercial plazas is stable, it is very slow.

After all, no matter how prosperous a commercial plaza is, tenants couldn't charge customers extra because of a prime location and pay you more rent.

Wang Jianlin believes as long as Wanda can go public, repaying this borrowed money would be easy. He is confident in himself.

Then.

The IPO dream shattered, and the gamble was lost.

In reality, Chen Yiyang actually felt that Wanda not successfully going public was better than if it had.

Because if Wanda had successfully gone public and raised a large amount of cash, Wanda might not necessarily have settled its loans honestly.

Instead, they might continue to gamble with investors, telling investors to look, see how wealthy I am now, but I believe I can earn even more money in the future.

So I won't rush to repay you now, we'll continue signing betting agreements, I'll use this money for more investments and earn more money.

And this cycle repeats indefinitely.

Eventually, Wanda is bound to explode, only the explosion might be bigger than Hengda's.

This is the common mindset of bosses playing financial games domestically.

Because once they've reached that level.

The various trusts secretly assembled are sufficient to keep subsequent generations well-fed without worries.

Therefore, they'd rather gamble recklessly, hoping to win all the way to the top, rather than stopping.

Many people don't understand this, they say these wealthy individuals are already extremely rich, why continue playing financial games, why keep betting on earning more money?

Because the money they use to gamble isn't theirs.

Even if they go bankrupt, they and their descendants won't lack money.

So why not gamble?

For ordinary people, this is just a gambler at the table, whether win or lose, he and his descendants are guaranteed a worry-free future.

And the money you're using to gamble isn't yours, it's borrowed. In modern society, even if you can't repay the money, you won't be executed.

So if it were you, would you gamble?

The penalty for losing the gamble is nearly zero.

Winning the gamble could make you the richest person in the world, winning everything.

Only a fool wouldn't gamble.

Like the incident with Black Egg Stickers that Chen Yiyang participated in before.

Many people borrowed huge sums from various loan platforms to bet on Black Egg Stickers in the market.

According to them, if they made money, the profits were theirs.

If they lost money, the losses were born by the loan platforms; after all, they wouldn't repay the money anyway.

This is why Chen Yiyang detests business owners who play financial games.

The modern financial system allows a group of gamblers to legally use social capital to seek personal gain.

There have been so many financial incidents in North America, so many gamblers using others' money to gamble.

And after failing, spending two to three years in prison counts as a severe punishment.

In most cases, those who lost the gamble continue living on the monthly trust payouts they've earned.

Boss Xu from Hengda, even though he's been detained, his wife still shops daily and even made the news for spending too much.

"How many commercial plazas does Wanda have left to sell now?" Chen Yiyang asked out of curiosity.

"A few months ago, Wanda sold 48 plazas at once, currently they have about 140 left.

Currently, Wanda needs to repay short-term debts due within a year amounting to around 43.9 billion, but they only have 15.1 billion in cash on their books.

So now is the best time to buy at the bottom price because Wanda's insides are done for, and with Wang Jianlin being restricted, the outside appearance is out as well.

Stock equity frozen, most core quality assets sold.

If Wang Jianlin doesn't resolve the restriction issue promptly, it will further worsen Wanda's situation in the long run."

Actually, whether Wanda's stock equity is frozen isn't important anymore.

Because these equities aren't worth anything.

Wanda only has the commercial plazas to sell.

"Buying a few Wanda Plazas in good locations sounds appealing."

Chen Yiyang wasn't planning to buy too many Wanda Plazas.

He had insider information and his spare cash had better places to go.

So he'd buy a few plazas to amuse the little accountant.

Buying more wouldn't make sense.

"Sure." The little accountant said, " I happen to have time lately, I will personally visit and see if there are any particularly good plazas."

"As expected." Chen Yiyang looked at the little accountant, "You're just thinking of buying a commercial plaza yourself."

"Hehe." The little accountant leaned over to kiss Chen Yiyang on the cheek. "I once had a wish to create a super food plaza. In this way, you could taste the best food from all over the country just by visiting one plaza."

"If that's the case, why not buy land ourselves and build a commercial plaza?" said Chen Yiyang.

"Forget it." The little accountant quickly refused, "It seems like such plazas wouldn't earn much money. It's not worth the big investment."

Indeed, the most profitable in commercial plazas are the clothing stores.

A plaza can't be supported just by relying on restaurants.

"How about we create one plaza that is a combination of food, arcades, internet cafes, and various entertainment facilities?"

Chen Yiyang suddenly had a new idea.

"Such plazas can be constructed as large entertainment centers. Then, the plaza will only have escape rooms, mystery rooms, sports venues, console game shops, internet cafes, and various dining outlets.

There won't be any traditional clothing stores or other tenants in the plaza."