Hogwarts: The Wizarding World's First Capitalist

Carl turned into a straw out of thin air, inserted it into the coffee he had just brewed, and kept blowing air into it to make bubbles.

In less than a moment, a huge bubble appeared on the coffee cup.

The surface of the huge bubble reflected the faces of two people, one old and one young.

Carl looked at the bubble with a disdainful smile on his face.

"With the emergence of the first batch of wizards who suddenly became rich, more and more wizards began to participate in this game."

"They started to frantically look for banks to borrow money. As the number of people applying for loans increased, the qualifications and interest rates required by the banks also became higher and higher."

"Logically speaking, such a high interest rate should discourage many wizards, but on the other hand, the prices of shops and other rare items are rising rapidly."

"It was much higher than the rate at which bank interest rates were rising. Wizards began to leverage frantically, borrowing gold Galleons from banks at increasingly higher interest rates."

"And then you throw in some commodity price speculation, and at the same time the banks add so much debt all at once."

"It is impossible to just sit and wait for these debts to be slowly repaid, so financial products with annual yields of 8%, 10%, 12%, and higher and higher yields have appeared in the market."

"The emergence of these products will attract those wizards who do not have much money and are not very courageous to buy these financial products."

“And it happened to be at this time that the last batch of wizards who bought short-term financial products for six months began to reap the benefits and recover their principal.”

"Their presence will boost the sales of subsequent financial products. At the same time, where do you think they will put the money after they gain it?"

"To buy new financial products." Grindelwald replied calmly, but at this moment his expression was no longer as relaxed as before.

He looked at the high-spirited young man in front of him, but his expression became particularly solemn, although he had learned something about Muggle economics before.

However, the knowledge and cases in books are not as vivid as what you see with your own eyes and personal experience.

On the other side, Carl was still blowing air into his coffee, and soon the already huge bubble became even bigger, as if it would burst at any time.

"You are right. The money will return to the market, along with the money loaned out from the bank."

"They all move to this market together, and over time, the value of those fixed commodities becomes incredibly high."

"In the end, ordinary people simply cannot afford it and become collateral with no market, while those who profited at the beginning have become extremely wealthy."

"At this time, they also need to find new growth points. What should they do at this time?"

Karl patiently persuaded them, and although his tone was calm, he sounded like a devil bewitching people.

This made Grindelwald on the side shudder. He looked at Carl's handsome face with a smile on his face and couldn't help swallowing.

I just want to speak, but I don't know how to start.

Karl, who was waiting on the side, saw that he had not spoken for a long time, so he answered for him directly.

"It seems that you are not as decisive on the battlefield of money as you are in other aspects. You can even say that you are a little merciful."

"Of course, they would use these unmarketable collaterals to obtain a second mortgage loan from the bank."

“The huge amount of funds obtained will be invested in the debt market, which has just started to pick up, and continue to push up the price of the debt market.”

“Let the debt markets go into a frenzy and eventually explode together.”

As he spoke, Carl pulled out the straw and gently poked the huge bubble with the pointed tip.

The huge coffee bubbles collapsed instantly, leaving only some crystal clear water vapor floating in the air.

Looking at the water vapor in front of him, Grindelwald said thoughtfully.

"So the current situation of the British wizarding world stems from this principle?"

"Of course not!" Carl hastily denied it, and then smiled disdainfully, "This is just the beginning. This is far from reaching the point where the bubble bursts."

"There is just a little deflation in the British wizarding world right now."

"In the final analysis, it's just because the vast majority of society's wealth is now floating in the bond market, and there is too little money circulating in the market."

"This is just a prelude to the crisis. Everyone still has money, but it has not been invested in consumption and production."

“The real crisis will only come when the final harvester swings his sickle and harvests all the property of everyone.”

As he spoke, Karl pointed to his face and gave a kind and warm smile.

"I have no plans to do so. Now is not the right time."

"Really?" Grindelwald was full of disbelief. He narrowed his eyes and stared at Carl.

"You'd be so kind as to give these fools the time of day."

"Of course not." Carl couldn't help laughing. He turned his head away from Grindelwald and laughed to himself.

"Of course I'm not that kind. What you said makes me feel a little embarrassed. It makes me seem like I'm a good person."

As he spoke, Carl took a deep breath, tried to calm himself down, and turned to look at Grindelwald again.

Seeing the murderous expression on the old man's face, he quickly waved his hand and said.

"Don't get so excited. You've tricked me so many times before and made me look so stupid. I only tricked you once."

"Why do you have to show such a scary expression? I'll tell you the reason."

“Hurry up and tell me!” Grindelwald’s expression became extremely dark, and Carl just showed a mocking smile that he had been holding back for a long time.

It was something he had never experienced in his life, and it made him feel like his intelligence was insulted.

Carl on the other side did not dare to be too presumptuous at this moment and spoke quickly.

"In fact, it is normal for you to have such thoughts at the beginning. Many people like to think of themselves as human emotions."

"Applying this to the capital market, it is actually quite unnecessary. All the hunters did not kill immediately because the prey had already fallen into the trap."

"The only possibility is that he thinks the prey is too small to fit into his carefully constructed trap. I am the same."

"I am a very greedy person. How can I be satisfied with just eating these small fish and shrimps?"

"The reason why I haven't done anything yet is because the real big fish hasn't been hooked yet, and the British Ministry of Magic has not yet come to its conclusion."

"They have a considerable amount of assets stored in Gringotts Bank and their own underground magic vault."

"I want to eat them all at once."

Hearing this, Grindelwald was stunned for a few seconds, but he quickly reacted and looked at Carl hesitantly.

"How can you be sure that those pigs in the British Ministry of Magic will be fooled? Why would they listen to you?"

"Are you going to rob them again?"