Information from existing reports and see, in recent years, many Belstaff Outlet individuals and businesses in Wenzhou speculation in real estate, so with the nationally renowned Wenzhou "real estate corporation", and profit is arriving. The realization of profits is so easy, continuous influx of real estate force, requires a lot of money, financing needs also will expand exponentially; bank deposit interest rates so low, the stock market disadvantage, small deposits on hand entering the real estate market can not to invest in people, so fund raising is also pushing into the influx of real estate, the individual can not hold the group, was persuaded to join a high yield of usurious ranks. So real estate funds from individuals, businesses, banks and across the country. Wenzhou enterprises on foot, most industrial companies are not doing, or that the industry do is virtual, speculative real estate is real.
Perhaps you say, not Gregory Lan Chu, the private sector, not the flow of money across the country, Wenzhou, the flow of real estate, real estate bubble will not do so big. But the sky rain, the ground could not up the river and the formation of vortices; money over, awash with liquidity, how the money may not be brought together to promote asset bubbles, resulting in demand for funds into the vortex? When the huge tornado rolled over the Pacific Ocean, how can you expect on the horizon calm it? This is the market behavior. You do not control interest rates, usury will produce. You control interest rates, usury, or to produce. Usury market behavior itself is or is not under the control of the legal usury interest rates, or under the control of illegal usury interest rates, is that so little difference between the Bale. Strictly speaking, the case of usury unlawful because the cost of capital will be higher, but will push up market interest rates.