Chapter 50: Bubble Collapse (3)

December 29th.

The day the last market of the 80s opens.

A beautiful girl with dark circles under her eyes was staring at the people around her with passionate eyes.

Yu Hayeon, who stayed up all night, still boasted transparent skin and a black heart, boosting her spirits.

“Is the short selling preparation finished?”

When her red lips opened, the soldiers in stiff suits answered loudly.

“Yes!”

“Yeah… we’ve worked hard, right?”

Brokering between comprehensive financial companies and the Japanese stock market, creating anxiety by moving public opinion…, and even selecting companies to short sell.

“Don’t forget to make sure the comprehensive financial companies that will support us don’t notice us… And don’t hit them too hard, they’ll die early, so just plant the bombs appropriately. Prepare some results to be announced to the media appropriately. Sihyeon, you’ve already done it, right?”

The secretary, who tied her long hair in a ponytail, smiled calmly.

“Yes, I spread a camouflage plan while going around the newspapers. There will be no leaks to your uncle.”

“Yes, if you say so, then it is so. Sigh…”

The girl, who looked at the numerous networks connected to the whiteboard with eyes full of delight for a moment, smiled brightly and nodded.

“Okay, proceed.”

That day.

Short selling worth a total of $300 million poured into the Japanese stock market worldwide.

Matsui, a manager at a major Japanese securities company, thought he was a lucky person.

He joined Yamaichi Securities, a reputable large financial company, without any special connections or a good family background… and he even rose to the position of manager.

If it was only that, he would have simply thought that he was outstanding, but the times were really too good.

‘Even if I leverage a lot and bring in any stock, even an ordinary person like me can earn this much.’

Matsui was a typical Japanese corporate employee.

He went to golf courses, sometimes went to entertainment establishments to enjoy himself with his subordinates…

And he was just a person slightly above average, so he had no intention of getting out of there, nor did he want to.

Therefore, he was feeling a great deal of fatigue about the current situation.

“…Short selling, this is short selling. It’s a big deal.”

As a huge amount of short selling poured in, the stock market immediately fluctuated.

Of course, the Nikkei index was in a tug-of-war, repeating rises and falls.

Japanese companies had great pride in their economy. The second largest economy in the world after the United States, Great Japan with the potential to become the world’s best in the future…

That belief was supporting the bursting bubble. Although, it was an empty belief in fantasy.

“Manager. At this rate, the margin is at risk. Should we liquidate the leverage position?”

One of his subordinates asked anxiously. Leverage is very dangerous in fluctuating stock prices.

If you leveraged 10 times, you lose all your money if the stock price drops by only 10%. Even if you can’t liquidate in time, you may have to fill in the insufficient leverage margin, resulting in a loss.

Matsui, an ordinary citizen, wanted to avoid risk as much as possible, so he wanted to sell all the stocks and bonds he held.

But Matsui, the manager of Yamichi Securities, couldn’t do that.

“No, we’ll go as it is.”

He rolled his head that didn’t work well and came to the same conclusion, and submitted a report.

[It is estimated that hedge funds on Wall Street have made large-scale short selling on some stocks. Anxiety among individual investors is intensifying, and some other stocks are also negatively affected…]

In summary, it was as follows.

-It’s a short selling force! It seems that the American guys are trying to directly attack the Nikkei index, let’s show them!

How dare they try to mess with the soaring Nikkei index.

The manager’s pride did not allow him to back down from this fight.

He’s already leveraging and investing his own capital, and if the stock market really enters a downtrend, he might have to resign.

“Anxiety is overly amplified. It will eventually return to its original state. Japan’s basic physical strength is still strong! We passed the oil shock without any problems.”

“Ah, no matter how much, the speed at which the stock price is falling is great.”

At his subordinate’s concern, Matsui shook his head as if to calm himself and gave a reason.

“No! Articles related to short selling have been pouring out since a few days ago. There’s a rumor that Alpha Fund, which has recently gained a reputation, has also bet on short. They are experts in this kind of stock price manipulation, this is natural enough.”

It’s a delusion. It’s just that the bubble inside Japan has reached its limit, and the short selling forces have just rushed in like moths, led by a returner who saw the future.

“The market will open in almost a week after it closes today…”

Manager Matsui frowned deeply and let out a faint sigh. The situation was too coincidental.

That’s why the short selling forces chose the time as now.

“Sigh… Well, let’s liquidate the leverage appropriately and keep the ratio low. About 5 times would be safe.”

Matsui, who drank coffee like water as if he was burning inside, ran around to adjust the leverage.

A few hours later.

Matsui, who was exhausted from being scolded by his boss and scolding his subordinates, sat down in his chair as if he had collapsed.

‘I’m sure I’ll be working overtime today too…’

However, as if not allowing a moment’s rest, another employee from the next department found Matsui.

“What’s the matter?”

“…There was a call from Korea’s Daeha Securities.”

“Daeha Securities?”

A puzzled look turned to the employee.

“To be precise, it’s not Daeha Securities, but the president of Daeha Securities… Ha Jusung, you know. The Korean who was kicked out of Nomura for making a fuss without knowing his place.”

“Ah, I know. That guy.”

“He said to pass on the stocks and bonds cheaply because he’ll take care of the losses…”

Matsui gritted his teeth and waved his hand.

“Forget it! What would a loser who was kicked out of Tokyo know? He’s just causing trouble because he doesn’t like to see others doing well. Cut off contact with them.”

“But…”

The subordinate hesitated and continued.

“There’s a rumor that Nomura Securities accepted.”

Conflict flashed in Matsui’s eyes for a moment, but it was difficult to take back the words he had already said because of his pride.

“No, my judgment is the same. That guy, he worked at Nomura in the past, so they accepted it.”

-Flick.-

“Go now. I need to rest… Sigh, I hope I can rest during the holidays…”

Matsui, who ordered him to leave, blinked his tired eyes and continued to rest.

Yu Hayeon lay down diagonally in the president’s office of Daeha Securities, took a nap, and woke up.

“Ah, Sihyeon. Are you still here?”

“Your nanny was worried… I explained it well to her.”

“…Sorry. Tell her I’ll be here for the next week.”

“Yes. What about the New Year’s appointment…?”

“Cancel everything. I’ll watch the situation here.”

Putting on the crumpled suit again, Yu Hayeon got up again and drank a cup of water.

The sunset light was visible from the window far away. It was 7 o’clock when I looked at the clock.

“Sihyeon. Is it 7 a.m. now or 7 p.m.?”

The secretary answered in a sullen tone.

“…It’s dawn, Miss.”

“December 31st? No, the market ended a while ago…”

“January 1st, dawn. Please get some sleep.”

Yu Hayeon nodded calmly and straightened her clothes again.

“Then the New York guys would have finished the market too. Get ready, we’re going back to Wall Street. I’ll sleep on the plane, so don’t worry.”

Lee Sihyeon stopped Yu Hayeon, who was about to leave the president’s office. She had a small piece of cake in her hand.

“Miss, happy birthday. Your birthday is January 1st, right?”

Yu Hayeon paused for a moment and nodded.

“That’s right, it was my birthday today. I didn’t tell you, how did you know?”

“Your nanny told me.”

“Annoying… Tsk, I see. Don’t bother the kids, focus on work. No, Sihyeon, you rest a little more. We have a meeting in Japan on January 5th, right? You need to save your strength.”

“…Miss. I’m going because of you, Miss.”

Yu Hayeon laughed and pointed beyond the window. The heat like a volcano was swirling in her eyes again.

“The beginning of the 90s is being announced far away, shouldn’t I go get my birthday present?”

The bursting of the Japanese bubble.

It was the beginning of a historic New Year’s event that heralded the 1990s.

Japanese Ministry of Finance.

Two people were clinking glasses in a quiet room.

“Restrictions on real estate loans… At this rate, speculative forces will suffer a bit.”

“Isn’t that the point? No matter how much money they earn, they can’t buy a house… public sentiment is getting worse. It’s a very important matter in the Liberal Democratic Party as well.”

“I can’t help it. Hmm, this will affect the stock market, but it can’t be helped because there were signs of it when the semiconductor stock price plummeted last time.”

“The Bank of Japan will also raise interest rates soon. Keep that in mind.”

“When will it be announced?”

“It was decided that it would be better to do it quickly. So… January 5th.”

January 5, 1990.

Matsui, who succeeded in a stock price rebound on January 4th and rejoiced, went to work.

“Phew, if I knew this would happen, I would have called for stronger leverage… Huh? Why is everyone like that?”

“Manager! Did you see the news?”

“What news… huh?”

Matsui paused at the television screen.

-Click click.-

The news showed a person from the Ministry of Finance explaining the policy along with the sound of shutters. Below the screen was a headline with white letters on a red background.

[The Ministry of Finance introduces a total equity limit system to prevent real estate speculation. Real estate mortgage loans will be reduced to less than 80% compared to last year.]

The moment he saw the news, his mouth went dry.

“N-no way. Why now!”

It’s a good reason to prevent real estate speculation… but reducing loans means reducing investment.

‘C-could it be… Nomura, those guys?’

Those guys who have a few people planted in the government might have known in advance. It’s a serious crime that deserves seppuku if you get caught taking out such a huge issue in advance, but Nomura does it because it’s Nomura.

No wonder they were passing on the goods even at the cost of taking losses!

At this moment, the word that came to Matsui’s mind was one.

Austerity.

The Ministry of Finance was implementing a strong austerity policy to prevent the bubble.

“M-manager! Investors are selling stocks in large quantities!”

“I know, just. Just… wait a minute!”

The Nikkei index hesitated for a moment after the announcement of the Ministry of Finance, and then began to plummet like crazy.

However… the changed situation after the crash did not return.

“Deputy Manager! NTT, Tokyo Electric Power…! Everything fell by 10 percent! Wh-what should we do… First of all, at least the leverage-“

“There’s no way we can liquidate that now!”

The department becomes noisy. From new employees who have just entered to seasoned section chiefs and deputy managers, everyone was running around anxiously.

“Manager! Manager…?”

Matsui, who remained silent, looked at the screen with bloodshot eyes.

The news and the sound of shutters, the noise of the construction site outside the noisy window, the chirping of birds, the whispering of subordinates…

All kinds of noise flowed behind Manager Matsui’s perception, and the moment his head turned white…

-Ring!

The sound of the phone filled the office. It was like a solid awl was stabbed into the ears of Matsui, who was in a panic.

-Ring!

-Ring!

The phone rings as if it’s on fire. The office was shaking with high mechanical sounds as if in chorus.

The birds that entered the concrete forest were startled by the sharp noise and fled. People were struggling in the transparent glass pond where the birds approached to quench their thirst, submerged in the blue candlestick.

“Y-you should answer… the phone…”

A subordinate handed him the phone with trembling hands.

He lifted his hand with difficulty and picked up the phone, but as soon as he heard a few familiar sentences, the phone dropped and rolled on the desk.

“Ah, ah…”

The uncontained outcry echoed sharply, overlapping with his moans.

-Ring!

-Ring!

-Ring!

It was obvious.

Margin Call.

Mitsubishi Bank, Sumitomo Bank, Nippon Life Insurance…

The big players in the Japanese financial world were announcing his ruin.