showing only that they know nothing about how the credit system works today.
They feel satisfied, because they put their insights in the circle and receive the convinced applause of Mrs. Maria who did not have the mortgage to buy the apartment built by one of their competitors (which the work has financed and sold to a other customer).
In doing so, they vent themselves but condemn themselves to failure.
They have to change their mind; those who work in the real estate sector must evolve because the market has evolved.Famous caricature of Darwin appeared on La Petite Lune, 1879.
Why do they continue to remain firm on their convictions, to use the same language of the time, to reason with the same mental schemes as their father or when the market was pulling?
They should look around, read the boards of their city.
They will be able to read, right?
In every Italian city there are advertisements of banks that offer mortgages to customers, usually with the reflection of the larks of the interest rate (Mrs. Maria loves to read the interest rate because she thinks that is the cost of money).
Spread of the zero point, great deals and if you come to the BB (Banca Boccaloni) also amazing offers for the summer! – promise advertisements.
Then one focuses and in small law, with an asterisk at the bottom of the poster of many offers: “maximum financing value up to 50%”.
You will remember very well that less than ten years ago the banks financed up to 100% of the purchase: with the complacency of a somewhat extroverted accountant friend and inflating the quotes a bit with the architect friend a bit ‘saucy, someone did finance to customers well over 100%.
Or maybe I tell heresies?
The pages of IL SOLE 24 ORE are full of statistics of this sector, a real wound in the Italian financial market; for guilt not only of the adventurous entrepreneurs, but in most of the banks themselves who pretended not to see, to do business.
The banks also financed the expenses of the notary, the accountant’s fee and the parking lot.
Hannibal has passed the Alps
Do you know what happens in a period of crisis?
Without boring you with learned theories of economic Darwinism, nor with graphs on the curves of economic cycles, I briefly tell you what is foreseen in the first historical book of finance: the Holy Bible.
In it, it tells about the seven years of lean and fat cows.
In the downstream periods of an economic cycle, it is scientifically proven that only the best companies survive.