The Conglomerate Family Became A Villain [EN]: Chapter 286

286. Climax (4)

Morgan Stanley Chairman Kyle Montana raised his champagne glass high.

“To a great victory!”

In 1989, Morgan Stanley’s profitability was the highest it had been in the last decade.

Thanks to this, he was able to shake off the sluggishness of the past few years and have a stronger voice in the boardroom.

“To a great victory!”

Morgan Stanley executives and major shareholders were holding a Christmas party in a banquet hall of a luxury hotel in New York. Their faces were bright with the glow of success from the good performance.

“Howard! Come over here!”

Chairman Kyle Montana called Howard Robinson, whom he had personally pushed out some time ago.

“Mr. Montana, how are you?”

Thanks to his great success in Japan, Howard Robinson wasn’t intimidated by anyone anymore.

“Hahaha! How does it feel to be back in New York after so long?”

“Tokyo is nice, but I don’t think there’s any city quite like New York.”

“Why is that?”

“First of all, isn’t Wall Street here?”

Chairman Kyle Montana laughed loudly at his response.

“Hahahahaha! The roads of the world may lead to Rome, but all the money in the world gathers here!”

Morgan Stanley executives heard his proclamation and raised their voices in unison.

“Money to Wall Street!”

The confidence of Wall Street financiers in 1989 was soaring.

And on the other side of the world…

There were also people who were just as excited as the Wall Street financiers.

“Mori, this year was the best.”

Former Kajima Construction President Mori Kenta bowed deeply.

“It’s all thanks to the Chairman.”

Chairman Kajima Jiro stroked his white beard.

“You’ve completed the real estate acquisition?”

Mori Kenta straightened his back and replied.

“We finished all the contracts this month.”

As of December 1989, Kajima Construction had taken over all of Victoria Fund’s real estate.

Now, Victoria Fund did not own a single piece of land in Japan.

“Good job.”

Chairman Kajima Jiro poured wine into his glass himself.

“When that little brat Charlie Jung came to Japan, I thought things were going wrong.”

“Charlie Jung is just a lucky kid.”

Chairman Kajima Jiro said, raising his glass.

“Let’s celebrate our victory!”

Mori Kenta followed his lead and emptied his glass in one gulp. Chairman Kajima Jiro smiled brightly at the sight.

“You drink heartily.”

Mori Kenta put down his glass and said.

“The aroma was so good that I emptied it in one go.”

He had been forced to step down from his position as president of Kajima Construction because of Jung Hyun-woo and had to live as a recluse for a while.

It hadn’t even been half a year since he had returned to the Kajima Group.

“Mori, take on the position of Vice Chairman next year.”

Mori Kenta raised his eyebrows when he was offered the position of Vice Chairman of the Kajima Group.

“Chairman, how can I take that position…?”

Chairman Kajima Jiro raised his right hand halfway and said.

“None of my sons are ready to take that position yet.”

He was asking him to take the position of Vice Chairman until he decided on a successor.

“Chairman.”

Chairman Kajima Jiro said in a soft voice.

“Don’t I owe you one?”

He had ousted Mori Kenta in order to secure the contract with Victoria Fund.

“……”

“I know you had a hard time.”

“No, I didn’t.”

“I think you are the right person for the Vice Chairman position.”

Mori Kenta clenched his fist as if he had made up his mind.

“I will do my best.”

Chairman Kajima Jiro smiled at his acceptance.

“Haha, that’s more like you.”

Mori Kenta raised his head and said.

“Chairman, there is one thing I am concerned about.”

Chairman Kajima Jiro erased his smile and asked him.

“What is that concern?”

Mori Kenta lowered his voice and replied.

“The movements of the Kaifu Cabinet [the Japanese cabinet led by Prime Minister Toshiki Kaifu] are unusual.”

Chairman Kajima Jiro shook his head from side to side after hearing Mori Kenta’s answer.

“The Basic Land Act? That’s just a threat to the market. There’s no need to worry.”

“Chairman, what if Prime Minister Kaifu wants to apply Article 10…?”

Article 10 of the Basic Land Act stipulated regulations to suppress speculation.

This could be specified in various ways.

“He won’t be able to.”

Chairman Kajima Jiro’s optimism did not come from simple confidence.

However, Mori Kenta, who did not know this, raised his voice.

“Chairman!”

As his voice grew louder, Chairman Kajima Jiro stroked his beard and said.

“Tsuchida said so. He said that even if interest rates can be raised, regulating loans is against capitalism.”

Bank of Japan Governor Tsuchida was deeply involved in adjusting Japan’s money supply and interest rates. If his remarks were like this, there was no need to worry about the Basic Land Act.

“If Governor Tsuchida said that…”

“That means there’s no need to worry for the time being.”

Chairman Kajima Jiro poured wine into his glass again.

“Kaifu decided to raise interest rates to 5% after Tsuchida opposed it.”

Mori Kenta paused at his words.

“5%?”

“Kaifu is only capable of that much.”

Chairman Kajima Jiro thought that the current bubble could not be caught even with a 5% interest rate.

‘People have seen real estate prices rise by 20-30% every year. Would they really be afraid of a 5% interest rate?’

In December 1989, the myth of real estate infallibility dominated Japan.

If you have money…

Everyone was looking at real estate.

Mori Kenta frowned slightly and asked.

“Chairman, still, isn’t a 5% interest rate quite high?”

As the president of Kajima Construction, he knew very well how a 5% interest rate would affect the company’s management.

“Mori, I would have been worried if it were normal. But isn’t this a great boom right now?”

Japanese people called the bubble of the late 1980s a great boom, not a bubble.

“You mean that a 5% interest rate won’t shake the current great boom.”

Chairman Kajima Jiro smiled again.

“That’s right. We’ll make even bigger profits next year than this year.”

December 25, 1989.

The Kajima Group had completed the transfer of capital to real estate and construction.

‘Leave cars and TVs to Toyota and Sony.’

Making money with money is the best.

This was not just his idea.

It was a common thought among Japanese people living in the bubble era.

* * *

“Sera, I’m off.”

Sera said to Jung Hyun-woo, who was saying goodbye.

“You’re missing something.”

Jung Hyun-woo looked at her sulky expression and approached her. Then he took her hand and kissed her on the cheek.

“Is that okay?”

Sera raised her voice at his question.

“Again.”

“Huh?”

“The direction was wrong.”

“Hey, people are watching.”

In front of the mansion, his aides and bodyguards were waiting for his departure.

Jung Hyun-woo was burdened by their gazes. Then Sera raised her voice.

“More people will be watching at the wedding, right?”

Jung Hyun-woo chuckled at her words and hugged her with both arms. Then he kissed her on the lips and let go of her hands.

“Okay, I’m off now.”

Sera waved her hand and saw him off.

“Charlie, call me as soon as you arrive!”

“Okay.”

The place Jung Hyun-woo wanted to go to, even giving up his year-end date with Sera, was Tokyo.

‘In the end, it ends in Tokyo.’

It felt like the investment that started with the Atari shock [the video game industry crisis of 1983] was ending with the collapse of the bubble.

‘Of course, this is not the end.’

He didn’t know the distant future, but his memories up to 2020 were vivid.

25 hours later.

Jung Hyun-woo arrived at the Victoria Fund Tokyo branch. When he arrived, John Pierre and the staff came out to the front gate to greet him.

“Charlie, thank you for your hard work.”

Jung Hyun-woo shrugged his shoulders and accepted John Pierre’s greeting.

“The person who worked hard is not me, but John.”

He knew very well how much John Pierre had suffered in Tokyo over the past year.

‘His wrinkles and gray hair must have increased every time the Nikkei index [the stock market index for the Tokyo Stock Exchange] rose.’

The Nikkei index, which was near 20,000 points two years ago, was now approaching 40,000 points.

“Let’s go up.”

Jung Hyun-woo was guided by John Pierre to his office.

“The atmosphere in Japan is amazing.”

John Pierre nodded slightly and sat down.

“Tokyo is even more heated than the Nikkei index.”

“Is it just Tokyo?”

“Actually, it’s all of Japan.”

Jung Hyun-woo crossed his legs and asked.

“What was today’s closing price?”

“It ended at 38,542.”

“There are less than 1,500 points left until 40,000.”

John Pierre sighed briefly.

“Hoo… This month’s losses alone amount to 10 billion dollars.”

“What about net loss?”

This month, Victoria Fund had sold all of its remaining stocks and funds.

Jung Hyun-woo wanted to know the loss excluding the profit from that.

“The net loss is 10 billion dollars.”

A net loss of 10 billion dollars. That meant that the actual loss from short selling was even greater.

Jung Hyun-woo raised his eyebrows and asked.

“Is it that much?”

John Pierre had become somewhat accustomed to this situation, and he answered calmly to his question.

“In Tokyo, they call us crazy people.”

People who try to catch falling knives [investors who buy stocks as they decline] with both hands.

Tokyo investors also called them the most foolish people in the world.

Jung Hyun-woo frowned and asked.

“How much cash is left?”

“About 20 billion dollars in dollars.”

The 20 billion dollars was the money Victoria Fund received after selling off its last remaining stocks and real estate.

“Let’s load that money into short selling.”

John Pierre’s eyes widened for a moment.

“You’re going to spend more money on short selling?”

He thought Jung Hyun-woo had crossed the line.

‘In investing, reserve fund management is more important than anything else. It’s not time to use the reserve fund yet.’

Jung Hyun-woo put his hands together and replied.

“I think now is the time to make a bet.”

A bet.

A bet for what?

John Pierre let out a long sigh.

“Hoo… If Charlie wants to, we’ll have to do it that way. But I don’t know if this is the right thing to do.”

“John, the Japanese bubble is at its end.”

The end of the Japanese bubble.

John Pierre smiled.

“At first, I thought there was a bubble, but at this point, isn’t it just that Japan has grown?”

Many people were thinking the same thing as him.

Jung Hyun-woo put strength in his voice and replied.

“John, a bubble is a bubble.”

John Pierre nodded at his words.

“Okay. Tomorrow is the last trading day of the year, so I will go short tomorrow.”

A year ago, he would have raised his voice, saying it was dangerous, but now he didn’t have the energy left to do so.

‘Maybe I’m being mentally controlled by Charlie.’

The next day.

Jung Hyun-woo visited Victoria Fund at the opening time of the Tokyo Stock Exchange.

“Are you here to monitor whether I’m short selling properly?”

Jung Hyun-woo smiled brightly at John Pierre’s joke.

“I came to find out where the historical high of the Nikkei is.”

“Historical high? The Nikkei may rise next year as well.”

“That could be true.”

Jung Hyun-woo softly accepted John Pierre’s words.

“Okay, let’s start.”

After the opening, the Nikkei index fluctuated around 38,600.

“I’ve shorted 1 billion dollars for now.”

1 billion dollars.

In the past, it was an amount that would have been enough to break the upward trend of the Japanese stock market.

But today, there was no reaction.

“It keeps going up.”

“It’s like this every day these days.”

Even as the two were talking, the Nikkei index was rising.

“But I don’t think it will be possible to break 40,000 points today.”

John Pierre raised his voice slightly.

“Is it because of our short selling?”

Jung Hyun-woo shook his head.

“Even if it wasn’t for short selling, it seems like there’s not enough strength.”

No sooner had he finished speaking than the Nikkei index broke through 38,700.

Jung Hyun-woo clicked his tongue as he looked at the red arrow.

“Tsk, my mouth is the problem.”

John Pierre asked him.

“What are you going to do?”

“Let’s short about 3 billion dollars.”

“3 billion dollars?”

“We’re going to use all 20 billion dollars today.”

John Pierre realized that he was serious.

‘He’s really trying to make a bet today.’

He nodded and called the dealers to order short selling.

“We’ve shorted banks, construction, and electronics.”

“It might be better to exclude Nintendo.”

John Pierre nodded obediently.

“I’ll exclude Nintendo.”

In just one hour after the opening, Victoria Fund shorted 8 billion dollars, trying to suppress the rise of the Nikkei index.

But by 11 o’clock, the Nikkei index had broken through 38,800.

“It’s difficult.”

Jung Hyun-woo said with his arms crossed.

“How much margin is left?”

“About 15 billion dollars left.”

“That’s plenty.”

Victoria Fund was shorting twice the margin, so even after shorting 10 billion dollars, there was still 15 billion dollars of ammunition left.

“The upward trend hasn’t broken, but if a crash occurs, the authorities will call.”

“Short selling is not stock manipulation.”

Jung Hyun-woo didn’t care about the Japanese government’s concerns.

‘What the Japanese government ultimately wants is a soft landing [a gradual slowdown of economic growth].’

He thought that Victoria Fund’s short selling would help stabilize the Japanese economy.

“It’s going up again.”

It was when Jung Hyun-woo clicked his tongue.

The Nikkei index surpassed 38,850 and knocked on 38,900.

“It will be difficult to break through 40,000.”

No sooner had John Pierre finished speaking than the Nikkei index slipped to 38,720.

“Let’s keep shorting.”

Thanks to Victoria Fund’s short selling, the Nikkei index fell to 38,400, displaying a blue arrow.

“The highest Nikkei index was 38,867.”

It was when Jung Hyun-woo confirmed the historical high at 38,867.

“Wait! It’s starting to rise again.”

“John, where is the buying coming from?”

In the 2020s, you could check the buying with just a mouse click, but in December 1989, you had to make phone calls.

A few minutes later.

One of Victoria Fund’s employees raised his voice.

“It’s Morgan Stanley!”

John Pierre turned his gaze to Jung Hyun-woo after receiving the employee’s report.

“It’s Morgan Stanley.”

Jung Hyun-woo accepted the words with a bitter expression.

“I heard it too.”

“Charlie, what are you going to do?”

“We have to fight back.”

1 p.m.

Jung Hyun-woo’s short selling and Morgan Stanley’s buying started a war of money.

And at 2 p.m.

Sumimoto Securities joined the buying, pushing up the stock price.

It was the moment when Victoria Fund’s defeat was imminent.

“It’s our defeat.”

What was reflected in Jung Hyun-woo’s eyes was the historical high of 38,915.

“Charlie, we did our best.”

Jung Hyun-woo asked John Pierre.

“John, how much ammunition is left?”

“About 8 billion dollars left.”

If 12 billion dollars were used as short selling margin, it meant that the amount shorted today was 24 billion dollars.

John Pierre asked him.

“Shall we throw it all away?”

Jung Hyun-woo raised his right hand and replied.

“Let’s leave it.”

He thought that it might not be the highest point yet, considering Morgan Stanley’s offensive.

‘Isn’t the history and development I know changing?’

If so, he had made the worst investment today.