Chapter 32
Chapter 32
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Translator: MadScientist
Chapter: 32
Chapter Title: Black Monday (1)
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Bull market.
It's not from "fire" meaning to burn up, but from "bull" meaning an ox. In English, an upward market is called a bull market... because it's like an ox charging upward with its horns.
There's a very famous symbol representing this bull market: the Charging Bull statue on Wall Street.
One of Wall Street's landmarks. But... it doesn't exist at this point in time.
It was created after Black Monday.
They say an Italian sculptor used his own funds to make it, in the hope that such a horrific crash would never happen again, and to console the investors who suffered massive losses in that insane downturn.
Maybe that bull statue will end up even bigger. To console people, it feels like an even bigger bull market needs to come.
"A massive crash is coming soon."
"... ."
After the Japanese market closed, when I said that, no one contradicted me.
By now, they all knew. Not just Tokyo, but Wall Street too—hell, the entire world—was headed for a downturn.
The top three semiconductor stocks leading Japan had hit the daily limit down for three days straight. There was no way the market could stay unaffected.
"First, contact Ha Yeong-il and let him know it was a success. It's only 2 a.m. in New York, but he'll be awake."
Friday's U.S. market was going to be a spectacle. The real crash would hit next Monday, but the signs would be even clearer by then.
"Yes, ma'am!"
I could see the employees nodding gravely. They looked like they felt swept up in something enormous.
Clap.
I clapped my hands lightly to lighten the mood.
"Alright, let's rest up for now. Our work's basically done, right? Time to raise a glass."
Clink.
I playfully lifted a glass of water and made a toasting gesture.
This was all just groundwork for the hedge fund we were setting up in the U.S. Preparation for Ha Yeong-il's flashy debut. We weren't shorting Japan ourselves or anything.
The Daeha Securities folks had nothing much left to do.
Well, aside from singing my praises, that is.
"Want some wine?"
Normally, you'd pop champagne at a time like this...
"Absolutely not until you're an adult, miss. You're still in elementary school."
I chuckled at Si-hyeon glaring at me from the side.
"Fine, I won't drink."
I'm no good with spicy food, let alone booze—I'd hate to see what kind of embarrassing spectacle I'd make. Rack up a real black history, and I'd want to die.
"Grape juice is fine for me. I'll just watch you all drink. Come on, Si-hyeon, you too."
I shoved one of Ha Joo-seong's collection bottles from the president's office at Lee Si-hyeon and grinned like a mischievous kid.
"...Can I really have this?"
"Why not? I'm the boss here. After handing your son such a huge win, this is a bargain."
"Ah, you mean Ha Yeong-il."
Exactly.
Now the ball was in Ha Yeong-il's court.
As long as he followed what I taught him, it'd be a sure win.
More importantly... this needed to build name recognition for his hedge fund. Plenty of funds die from lack of reputation, regardless of skill.
"Let's just enjoy the weekend to the fullest."
The tightrope act was over. Time to watch someone else's performance.
◇◇◇◆◇◇◇ Wall Street, New York.
In a small office, a young Asian man clasped his hands in prayer after hanging up the phone. The signal had come from Korea... and he'd carried out the orders faithfully.
Even his colleagues, who'd always followed his lead, had tried to stop him from this insane gamble.
"This is... crazy."
"Yeong, you sure about this? Even with all the bad news piling up, this is a bit..."
Ha Yeong-il opened his mouth and calmly persuaded his colleagues.
"The trend is clear. Bad news has stacked up enough... we can't wait any longer. This is a rational call."
On October 14, the Dow Jones dropped 3.8%.
On October 15, Iran attacked a U.S. tanker. The index fell another 2.4%.
And on Friday, October 16, a massive storm shut down London's markets early, while Japan's star semiconductor firms all hit their daily limits down.
That's when the signal came...
The moment the market opened, they bought massive put options.
On every stock, stuffed to the brim with as much leverage as possible.
"Trust me this time. The market will drop on Monday for sure."
His dark-skinned friend scowled deeply at that.
"Just do a short sell instead."
"Margin calls would hit midway. Our effective leverage is nearly 100x right now."
At 100x leverage, a 1% rise wipes you out, no matter how far it drops later.
That's why trader skill matters... but honestly, he wasn't at that level yet.
Unlike leveraged short sells, buying options only costs the premium if you're wrong. Sure, time decay would eat it alive...
But if she was right, it'd pay off big.
"You fucking monkey! Who told you to go 100x leverage? And why the hell were you long this whole time if you bet on a downturn...?"
Fair point. No lunatic on Wall Street would pull this off.
Or more precisely, anyone who tried vanished quickly.
"I'm different. This analysis is perfect, at least."
Despite his words, cold sweat poured down his back.
Would Yoo Ha-yeon's prediction hold? Or had he fallen for some clueless kid's overconfidence?
Maybe even her father had been fooled?
'...If she fooled even her father, that makes her one hell of a mad genius.'
Ha Yeong-il endured his burning anxiety with that thought alone. Faith in her father's judgment.
Luckily, his poker face was solid, so he roamed Wall Street's banks and hedge funds like the prophet Jeremiah proclaiming doom.
-The U.S. market is overvalued. A massive crash is coming soon.
That's what he said.
The connections he'd built on Wall Street gave it a rational assessment.
"...It was getting uneasy. With how the market's moving, Dow's probably dropping 3% today. You buy puts too? How much? You crazy bastard—"
"OTM at 20% lower? ...What's the expiration? Just hedging your fund's longs, right? ...You switched to pure short? This week?"
"No way, the market's been down but it's Friday—shouldn't it bounce?"
That was the morning reaction.
But...
After grabbing a quick burger at McDonald's for lunch and heading back to the banks, the vibe had shifted. News of Japan's semiconductor implosion had spread everywhere.
"You see this news? Japan's market... Damn, Nomura pulled it off."
"Yeong-il, you knew? Figures! Daeha Cartel—your dad's the president there, right?"
Skepticism turned to intrigue, personal fondness shifting to interest in his background.
Finally, as Friday's close approached.
The Dow plunged 5%. The worst day ever for most... but not for his fund.
"Yeong! Ha, haha! We did it. Massive crash! 5% in one day—that's the biggest single-day drop ever!"
Their excited, admiring stares thrilled him, but fear overshadowed it.
'Just like she said. The index... dropped over 5%.'
And Yoo Ha-yeon's prediction for Monday's Dow drop?
Minimum 22%, maximum 26%.
◇◇◇◆◇◇◇ ......
The weekend passed, and a nightmare of a day began.
Screams and shrieks echoed.
Ha Yeong-il's fund and those who heeded his shorts reaped massive gains, but...
No one could celebrate. No one dared show it.
With people glaring murderously at the sky and screens, no one had the guts.
Click, click.
Automated programs hammered sell orders nonstop. Volume piled up insanely. No one bought stocks. No one dared stop the computers.
Panic finally gripped the market.
Sell, sell, sell.
Only sell orders rang through the exchange. Shell-shocked people staggered along Wall Street.
Even the fast-food joint owners took losses—no one wanted food.
Ha Yeong-il, clutching his windfall, stared blankly at them. It didn't feel real.
Thud.
Someone jumped from a building. People glanced, then looked away. They were too exhausted to care.
After close, $500 billion had vanished from the U.S. in one day.
Everyone called it the same.
Black Monday.
Wall Street's worst day ever.
◇◇◇◆◇◇◇ Tuesday morning, October 20.
I woke up in the Daeha Securities president's office, spread out the freshly printed newspapers and magazines, and smiled faintly.
I could sense the employees frozen stiff beside me. Cheers, shock, fear... all praise for me. I savored it happily.
Even Lee Si-hyeon, who knew me well and had zero interest in economics, looked grim.
It warranted it.
📰 Breaking News [Historic 'Black Monday' Crash: Dow Plunges 25.2% in One Day, Global Markets Reel] 📰 Breaking News [NY Stock Shock: Dow Tumbles Over 550 Points in a Day... 'Black Monday' Panic Spreads] 📰 Breaking News [October 19, 1987: Wall Street Grinds to a Halt – 'Black Monday' Aftershocks Rock the World] Wall Street had crumbled.