"I'll tell you another set of data. From 1929 to 1933, in just four short years, over 5,500 banks went bankrupt, more than 130,000 businesses closed down, and the unemployment rate skyrocketed from 3.2% to 26.7%. On average, one out of every three Americans was unemployed."
Even though this event happened nearly fifty years ago, Goodman still shuddered with fear, taking two deep drags from his cigarette to calm himself before continuing.
"For those who weren't unemployed, life wasn't much better. Wages for workers dropped by over 60%, and farmers didn't fare much better. With city dwellers strapped for cash, even high-priced vegetables and grains couldn't sell, leading to price drops of over 50%. Carter, the lessons of '29 were too painful. I admit that installment loans can attract a large number of borrowers and bring prosperity to Blake Bank. But we must never, ever go down that path!"
"We can see this clearly. With so many banks nationwide, they can't possibly be blind to the benefits of installment loans. Yet, until now, not a single one has dared to start! It's like opening Pandora's box; we must never do it! The lure of immense profits can blind people."
"I understand. Let's put that aside for now. I'll get back to my studies. I need to brush up on my history."
Having his supposedly clever proposal shot down left Carter feeling a bit dejected. But he wasn't one to ignore advice, even though he remained steadfast in his determination to pursue installment loans in the future. However, he no longer felt the urgency.
While Carter might not understand American economic history of the 1920s and 30s as deeply as Goodman and the others, he knew enough about the future. He knew that installment loans would become commonplace.
Furthermore, Carter knew that the real boom in the American financial industry didn't start in the 1970s but gradually opened up in the 1980s as restrictions on the financial sector were lifted. Perhaps many banks at that time, like himself, gradually forgot the pain of '29 and began to have dubious ideas, especially in times of economic hardship like now.
In the coming years, there would be more upheaval, especially with Volcker's reforms. Without relaxing some restrictions on the financial industry and resorting to some shady practices, how could the economy develop?
"Alright, now that you understand the severity of the situation, it's good. But your idea still has merits. For example, monthly installment payments can greatly increase the utilization of funds. Although installment loans have been around, no one has done monthly payments like this before, probably because it's a bit labor-intensive. But, you really need to brush up on your history. Ha ha ha!"
Rarely did Carter listen to his advice, and Goodman was almost moved to tears. Unconsciously adopting the posture of an elder, he left with a hearty laugh.
As Carter watched Goodman's departing figure, he sighed with a bit of resentment. It seemed that to make money now, he would have to get into investment banking. But really, wasn't his bank a savings bank? If possible, Carter didn't want Blake Bank to remain stuck in Douglas forever.
After all, what did he know about investment banking apart from a few future mega companies? He couldn't even understand stock indices. Without foresight, he wouldn't even qualify as a market sheep.
Starting an investment bank, investing in those companies, and then what? Having money was good, but such a leisurely life would become boring over time. Just like during quarantine, many people realized that sometimes it wasn't work needing them, but they needing work. People always needed to keep moving; lying around too long would drive one crazy.
Blake Bank was what Carter had in mind for his future. Just like those Guangdong demolition households in the future, owning three houses in Shenzhen wouldn't stop them from renting them out; owning ten buildings in Shenzhen wouldn't stop them from selling duck rice.
Time flies, and life goes on. Days passed one after another, uneventful. Before school vacation, Carter reviewed what he had accomplished in the past half-month since his arrival, and it seemed that borrowing money was the only thing he had done. And even borrowing that money required dipping into the nest egg left by Old Blake.
Thinking about it this way, Carter suddenly felt like a failure among time travelers. But now wasn't the time to dwell on these issues.
"Melissa! Are you ready yet? The supermarket will close soon. Don't you still want to go to Los Angeles?"
Sitting on the sofa in the living room, Carter, who had been watching TV for almost half an hour, finally couldn't stand it anymore and resorted to his last resort. Girls doing makeup seemed to have no age limit; they were always so slow!
The key was, some people looked the same with or without makeup. Carter couldn't understand the point of wasting time like this.
"Alright, alright, patience, my boy. Carter, when you get a girlfriend in the future, you can't be so impatient! Going to the supermarket isn't urgent. There's plenty of time during summer vacation. Whether you leave today or tomorrow won't make much difference."
Sitting beside Carter, Jenny smiled and patted the boy, her eyes showing both concern for the upcoming trip and encouragement and appreciation for Carter's independent completion of this travel plan.
Don't assume that American teenagers are always very independent. In some aspects, American high school education still lags behind China. A normal 16-year-old American wouldn't be capable of independently completing a cross-country road trip, let alone a solo trip. Someone as bold as Carter was truly exceptional.
"Hey, no, no. Time is a bit tight. After arriving in New York, I still need to find a place to stay and visit the various banks on Wall Street to gain some insights. I've taken over Chris's shift; I can't just stay put, can I?"
Feeling embarrassed about his embarrassing performance as a time traveler, Carter thought about the more than six million dollars sleeping in his account. To say he didn't feel any urgency would be a lie.
Being able to sit on the sofa for half an hour was already a sign of great patience! Starting this week, Carter's heart had already flown out of Douglas.
"Son, you're doing great already. Chris will be proud of you. Don't put too much pressure on yourself. Sometimes, enjoy life a little more. You're at the age to find a girlfriend. Look at Anna now."
"Hey, Jenny, you're at it again. I've said many times, I don't want to think about having a girlfriend right now. I don't like any of the girls at school; they're all covered in freckles and not pretty at all!"
"Oh, you, oh, you. Freckles disappear in a couple of years. Many people actually like that youthful look. You don't appreciate it now, but you'll regret it later."
"Let's talk about regrets later. Right now, I believe in one thing."
"What thing?"
"Without women in mind, making money comes naturally!"