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Chapter 128 This country has a tradition of suicide

The Japanese have always had a tradition of suicide, and this sentence is also very suitable for their financial talents and policies.

In early April, Japan's Tripitaka Province introduced new policies to impose strict restrictions on the real estate industry. On the one hand, it strictly controlled financing and on the other hand, it imposed land price taxes. This typical decision made by a slap in the financial market became a "hydrogen bomb".

If the United States' short-selling policy on the Japanese stock market is an atomic bomb, the policy issued by Japan's Tatsuo Province toward real estate itself is a suicide "hydrogen bomb".

After the bombardment of two consecutive financial nuclear warheads, Tokyo's land prices were the first to be hit, plunging almost at a rate of 10% per week, and the latest housing prices hit a new low every few minutes. The speed of this plunge is several times the rate of decline of the stock market! Every day, Tokyo's assets evaporate rapidly. The average weekly loss exceeds the US dollar foreign exchange reserves in the Japanese government's treasury.

Because the reckless means of squeezing the economic bubble in the Dazo Province are too technical, even if the yen is still under the background of appreciation, it cannot stop the momentum of real estate and stock market plummeting. As the stock market, the largest investors in real estate have suffered the most losses, and the entire Japanese economy has been bombarded with holes.

Because a few years ago, when companies turned to direct financing to make money, banks could not stand loneliness. Risk enterprises and non-bank financial institutions eventually became the main financing targets of the banking industry. Countless bank funds were invested in stocks, securities, and real estate of various companies. For many years, the real estate bubble became bigger and bigger. Under the money-making effect, most banks were tempted to invest their funds continuously.

When all banks lost their minds, a financial disaster broke out. At this time, a dangerous signal appeared. The US Standard & Poor's began to continuously lower the long-term and short-term credit ratings of Japanese banks such as Tokyo, Sanwa, Mitsubishi, Sumitomo and Sakura, giving the Japanese banking industry a heavy blow.

Mitsubishi, First Quotes, Sumitomo, Fuji Bank and other large banks almost followed the footsteps of the previous Sanhe Bank. Countless depositors lined up to withdraw money, which quickly reduced the working capital of major banks. In order to cope with the run, banks had to sell various stocks and real estate, which further aggravated the overall plummeting of the stock market and the real estate industry.

Banks with smaller scale declared bankruptcy after only a few weeks.

As we all know, Japan has always been known for its developed indirect financing system. Among the external sources of capital for enterprises, bank loans account for 85.8%. The crisis in the banking industry is equivalent to the fact that Japan's financing system is seriously challenged.

Everyone pushed it. This sentence is appropriate to use it on many Japanese banks. It is stimulated by the bankruptcy news of countless financial institutions, and the bank run has further expanded. Even many companies have withdrawn their deposits from the bank back to the company in order to fear that bank bankruptcy will cause losses to themselves.

If many companies are not kind, banks will start to be injustice. Originally, banks just sold all kinds of stocks, real estate, and bonds, and because many companies were withdrawing deposits, banks began to retaliately withdraw their investments from major companies. Originally, financial disasters were only spreading in the fields of finance, real estate, etc., but now they have been withdrawn from various fields by banks, even manufacturing and agriculture have suffered unanimous disasters. Due to the removal of banks, various industrial companies began to lay off employees, or sell equipment, and reduce production scale to maintain their survival.

Before this, Zhang Bixuan had sold three villas near the Imperial Palace in Tokyo for a sky-high price of US$5 billion. Originally, he had four villas in the Imperial Palace, and now only one is left to entertain guests with status. Of course, this move is understood by market participants as his investment vision and his ability to avoid risks in a superb way.

At this time, the warm spring wind in Tokyo seemed to be blowing from the North Pole, exuding a huge cold that makes people from the soul to the fur.

Pedestrians on the streets of Tokyo have gone from being arrogant to sighing or silent. The information described in the newspapers about someone jumping off a building and committing suicide is densely packed, and many people suspect that they are the next person who can't bear the psychological pressure and commit suicide.

"This financial disaster is so beautiful! In the past, Japanese businessmen were always arrogant and pressing forward step by step, and even the United States seemed to gradually ignore it. They bought one symbolic location in the Rockefeller Center, the Pebble Beach and the Los Angeles business district one by one. " said Eddie Sekota.

Li Haoran said impatiently: "If it weren't for this disaster, you suspected that after waking up, you found that the entire United States had been acquired by Japanese merchants. Right?! Your argument has been repeated a lot, Old Eddie!"

Eddie Sekota said in anger, "I am declaring the justice of our actions. Do you understand? What is justice?!"

"They artificially restricted and discriminated against foreign investors with a corrupt financial system. After no competition, the entire financial market was inefficient and the financial companies were slow to respond. The decades of unchanging financial system have developed with loopholes, and the bureaucrats of their government never noticed it..." Zhang Bixuan smiled and said first, "I recently found that Eddie had a bit of a philosopher and a poet's talent. Listen to his words, recently, it was like a politician who was speaking and a poet doing poetry!"

Eddie Sekota had to spread his hands and said seriously: "Okay, I want to say something realistic! Boss, we have made too much money! We need to cash out most of the profits, exchange them for cash or purchase equipment. Otherwise, when most of the international hot money that blocks the Japanese economy retreats, we are all fighting alone, and then a few months of hard work will be a waste!"

"Of course, I don't doubt your investment vision." Eddie Sekota added.

Longteng Fund shorted index futures, and options profits have exceeded US$400 billion. Of course, this profit is just the profit on the books. If the index is pulled up by the Japanese government before the index futures expire, then Longteng Fund's profits may shrink significantly and even lose all their money.

Fortunately, bears are the main force now, and within the next year, the bulls will be defeated. It will not take a long time to rebound until they fall below 17,000 points. When the Gulf War breaks out, the Japanese stock market will enter a new round of decline due to panic about oil production cuts.

"Then, leave 30 billion to continue fighting. Find opportunities for the other 350 billion profits to be replaced with real money!" Zhang Bixuan said with a thrilling heart, "This 'battle' has achieved brilliant results. Our goal in the future is to ensure the smooth enjoyment of the fruits of victory."
Chapter completed!
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