1035 The Importance of Banks

The effect of marin's worship was very obvious, first of all, the priests of the Lateran Basilica saw the unknown Giovanni after that day. Advance. Lorenzo. Morality. The Medici began to smile and nod.

The Lateran Basilica is currently the seat of the papal papacy, and most of the clergy inside are close associates of Julius II. Although their status is not high, because they are cronies of the pope, they are usually above the top. Ordinary bishops, they don't bother to give a good face. Only cardinals can be respected by them. When I used to go to the Lateran Basilica, the priests did not look at him squarely. But now, obviously, the grade has improved a lot......

And Jean Giovanni. Advance. Lorenzo. Morality. The Medici were even more ecstatic about the economic gains. Because, Julius II later talked to him and said that he wanted to return some important economic properties of the city of Florence to the Medici family.

Before Charles VIII entered Italy in 1494, the Medici were the ruling family in Florence and controlled many of the industries that were the economic lifeblood of the Florentine Republic. But with the French invasion in 1494, the Medici were driven out of Florence. Then, the Medici began to decline.

What are the pillars of Florence? Mainly the wool industry, as well as the financial industry, and of course various handicrafts, but not as good as the first two. Moreover, this financial industry includes highly profitable coinage.

After losing control of Florence, the Medici lost control of the Florentine wool industry and the financial industry, and only a few humble handicraft workshops and service industries continued to lurk in the city.

After Marin helped the Papal States capture the city of Florence, Pope Julius II returned many of the Medici estates, mainly in the woollen industry. And the particularly important financial sector, including the coinage, was not returned.

How important is the financial industry? It's just that you can borrow a lot of money! And how important is money? When it comes to pope elections, money is the decisive force!

Why was Leo X elected pope in history? It's because he has the backing of the Florentine bankers!

Historically, the Papal States conquered the Republic of Florence in 1511. Then, in 1512, the Medici family regained control of the Florentine Republic. The Florentine banks (not modern banks, more like ancient money banks, which did not pay interest to depositors) also fell back under the control of the Medici family.

After the death of Julius II in 1513, Giovanni. Advance. Lorenzo. Morality. The Medici was able to succeed in being elected pope as an aco-priest thanks to the support of the Florentine bankers.

Because of the loss of the reign of Florence for more than ten years, at that time Giovanni. Advance. Lorenzo. Morality. The Medici didn't really have much money in their hands. But with the support of the Florentine bankers, he had enough money to run for office, and he was elected.

Historically, many historians have wondered why it took only two years for Leo X to wipe out the vast wealth accumulated by the two previous popes. In fact, Leo X, although he squandered it, did not throw gold coins to play. The reason why he lost the Holy See's deposits so quickly was because he needed to pay off the debts of the bankers......

……

Of course, that was originally historical. In the time and space in which Marin participated, Julius II, after taking Florence, did not immediately hand over control of the banking industry to the Medici family, but only returned the woollen mills. And the reason why the financial industry did not return it was actually Marin's idea. Because, he wants to use it as a favor......

It's not, Marin and Giovanni. Advance. Lorenzo. Morality. After the Medici swore to him, he swore to him that I would fight for more benefits for you......

Then the Pope went to Giovanni. Advance. Lorenzo. Morality. The Medici talked - or would the management of the financial industry in Florence be returned to the Medici family?

Giovanni. Advance. Lorenzo. Morality. The Medici is not a fool, how can they refuse? nodded violently in agreement......

In fact, there were not many banks in Florence that originally belonged to the Medici family, only two large industry leaders. However, this time, Julius II returned not only the two big banks, but the management of the Florentine banking industry, which is very powerful.

You must know that in this era, most of the nobles in Europe lived by borrowing money. The main reason was that the kings and nobles of Europe at that time did not have the right to tax ordinary people. So, before the Religious Revolution, the Church in Europe was the richest because it had the right to "tithe". The religious revolution was inseparable from the fact that the kings and nobles coveted the wealth of the church.

Because of the lack of money, if the king at that time wanted to start a war, he had to get the support of the bankers, otherwise the war would not be fought. Both the Pope and the Selected HRE Emperors had to be strongly supported by the bankers. Otherwise, ordinary people will not be able to pay for so much campaign funds.

At this time, there were three main financial centers in Italy - the Venice Financial Center, the Genoa Financial Center, and the Florence Financial Center.

These three financial centers, with many banks, and kings and nobles, could borrow a lot of money from here. Of course, the price to pay is also high. Because, the interest rate on borrowing money is as high as more than 10%. One of them, the financial center of Genoa, later lent a lot of money to the Spanish Habsburgs, but when Philip II declared the country bankrupt (that is, the official debt, and more than one bankruptcy), the financial industry in Genoa suffered a heavy blow and then declined.

In Germany, on the other hand, there are mainly family chaebols headed by the Fugger family. Whoever they support will have enough financial resources to run for emperor.

As for France, there is also a large number of bankers in Paris, and there is a high concentration of bankers in France. This led to one consequence – that is, the French revolution in later generations, as long as it took Paris, achieved a complete victory. Because, taking Paris is equivalent to controlling most of the banks in France, and there is not too much money...... If you occupy Paris, you will occupy the headquarters and coffers of those banks, can you be short of money? Therefore, in France, as long as you occupy Paris, it is equivalent to taking control of most of the wealth of France, which is equivalent to occupying the whole of France. As soon as Paris is lost, the French will surrender immediately, without delay......

……

Giovanni. Advance. Lorenzo. Morality. This is the reason why the Medici was excited: to control the Florentine banking industry was to control the distribution of Florentine funds. Although the Medici had no money at this time, the Florentine bankers did......

What the? You say those bankers don't want to borrow money? What does stewardship do? Give him a suspension of business for rectification, revoke his license, and see if he dares to blow up the thorns?

You say the money isn't yours, it's just borrowed? Brother, you probably don't know what a big guy is. The meaning of the big man is not to see how much money you have, but how much money you can mobilize......

Ma Yunniu, right? is worth more than 200 billion. However, most of his assets are stocks and real estate, and only a small fraction of the living money he can use is actually available.

And those big bank presidents, such as the presidents of the five major banks, have far less than a fraction of Jack Ma's personal assets. However, their ability to influence far exceeds that of those rich people. Even if Ma Yun is known as Ma's father, he has to kneel and call his father in front of those big governors...... Because, the funds that those governors can mobilize are much more than Jack Ma's total assets...... Therefore, Ma Yun is very well-behaved in front of those bigwigs, and says that he is "ready to be co-opted at any time......

……

Florence is the third largest financial center in Italy, and so many bankers will be reintegrated into the management of the Medici family in the future. Advance. Lorenzo. Morality. The Medici, of course, were excited.

Although the Medici family is relatively poor now, if they master those bankers, they can use the money of those bankers to "make money with money" for the Medici family.

To give a simple example, there are some noble second generations in later generations, who have no money themselves. However, by virtue of their connections, they were able to get a lot of money from the bank. Then, they take the land and engage in real estate development, a community, which can make them hundreds of millions or more. And before, he didn't have a penny. But as long as the bank is willing to lend him money, plus he can get the land, he can easily become a rich man......

Therefore, the role of banks is very large. The premise is that you can borrow money from the bank. In that case, you'll be able to make money out of it. The reason why the gap between the rich and the poor in China is getting wider and wider in later generations is mainly because banks are only willing to lend money to the rich or related people, and the poor who are really short of money cannot borrow money in the bank...... Those who have money or can borrow money from the bank will use the money to make money, and become richer and richer; Those who have no money can't borrow money, and they will never have money, unless they can win the lottery......

Whichever industry the bank supports, the industry can develop rapidly, even explosively. For example, in real estate, if banks don't offer loans for 20 or 30 years, ordinary people can't afford to buy a house at all. If you can't afford to buy a house, you can't develop real estate because you can't sell it. The five, eight and one hundred articles are useless, as long as the bank announces that it will not provide mortgage services, the real estate will collapse immediately......

So, if you want to make a fortune, hurry up and get to know and associate with bank executives. As long as you know someone who has the right to decide to lend, and lends you tens of millions in violation of one rule, you will be able to reach the peak of your life in the future...... What the? You say there is no good project? Hoarding...... That doesn't need to use your brain, it's a pig that can make a fortune...... (Well, Lao Niu is talking about the past few years, and Lao Niu will not dare to conclude in the future, but don't really do this, don't look for me if you lose...... )