What's the difference between Saint-Simon Chattel Credit Bank and today's banks?

French practiced Saint-Simon's industrialism and established one of the four-in-one financial institutions. The chattel credit bank in Saint-Simon belongs to Industrial Bank and is in the core position. It is similar to the current joint-stock investment bank and the predecessor of early commercial banks. It is a financial institution engaged in financial loans and derivative financial instruments.

The theory of entrepreneur bank (that is, using capital purposefully to realize economic development) was systematically expounded by Saint-Simon, a social philosopher in the Napoleonic era. Although Saint-Simon's reputation is prominent, the first venture bank was founded by its students Jacob and Isaac Pereire about 30 years after Saint-Simon's death (1825). It was called "Credit Mobilier bank" and introduced what we now call financial capitalism.

Chattel credit is essentially a company that actively creates new industries by guiding the direction of social floating capital. From the day of "Parisian Day"-first France, then the Netherlands and Belgium-the company immediately became a model for the "underdeveloped countries" in Europe to develop the whole banking system. Later, in Germany, Switzerland, Austria, Northern Europe and Italy, imitators of chattel credit set up commercial banks in succession. These banks later became the main driving force to help European countries develop their industries. With the end of the American Civil War, this idea also spread across the Atlantic to the American continent.

A few years later, two young men, American J P Morgan and German Georg Siemens, summed up the theories of French entrepreneur bank and British commercial bank and established the first batch of successful modern banks: J P Morgan &; Company) and Deutsche Bank Berlin. 10 years later, Shibusawa Eiichi, a young Japanese, revised the concept of Siemens and applied it to his own country, laying the foundation for Japan's modern economy.

Whether they know it or not-from American Credit Mobilier, which was founded by Jay Cooke and later became the main source of income for the construction of the East-West Coast Railway, to J.P. JPMorgan Chase, the American financial giant-these famous bankers who established the American banking industry are actually imitators of the Parrell brothers. As for Japan's chaebol, that is, those large enterprise banking groups that help Japan to lay a solid foundation for economic construction and make it successfully move towards a modern country, they also follow the business philosophy of Parier Brothers.

Marx once said that this is a trap, which should refer to a large number of financial innovations carried out by chattel credit companies, especially credit innovations (financial derivatives), which will create a huge economic bubble and increase the instability of the financial market. Just like the current economic crisis, it was triggered by the initial credit crisis and caused by excessive securitization of housing loan assets. Once there is a problem with the capital chain, the scope of the economies involved will be infinite.

Buffett has a similar view.