Chapter 50
Chapter 50
-----------------------------------------------------------------
Translator: MadScientist
Chapter: 50
Chapter Title: Bubble Collapse (3)
-----------------------------------------------------------------
December 29th.
The final page of the 1980s was turning.
A beautiful girl with deep dark circles under her eyes scanned the people around her with fervent gaze.
Yoo Ha-yeon, who had pulled an all-nighter, still boasted translucent skin and pitch-black eyes as she rallied her spirits.
"Is the short-selling prep done?"
Her red lips parted, and the soldiers in stiff suits roared in response.
""Yes!""
"Good.... We've all worked hard, haven't we?"
Intermediating with investment trust companies and the Japanese securities market, stirring up public anxiety, selecting targets for shorting....
"Don't let those investment trust companies that are cushioning us catch on.... And don't hit too hard, or they'll die too soon. Just plant moderate bombs. Prep some moderate results to leak to the press too. Si-hyeon, you've already handled it, right?"
The secretary with her long hair tied back in a ponytail smiled calmly.
"Yes, I've spread decoy plans around the newspapers. No way it'll leak to Uncle."
"Good..., if you say so, then it is. Whew...."
The girl stared at the vast web of connections on the whiteboard with ecstatic eyes for a moment before nodding with a bright smile.
"Alright, let's proceed."
That day.
A total of $300 million in short sales worldwide poured into the Japanese stock market.
◇◇◇◆◇◇◇ Matsui, a section chief at a major Japanese securities firm, considered himself lucky.
He wasn't particularly well-connected or from a good family, yet he'd joined Yamaichi Securities—a true big-league financial company—and even risen to section chief.
He might have chalked it up to his own talent, but the era had been too kind.
'Even a regular guy like me could thrive just grabbing any stock with heavy leverage.'
Matsui was the epitome of a typical Japanese corporate salaryman.
He golfed, occasionally hit hostess clubs with his subordinates to enjoy the nightlife....
And being just a notch above average, he had no desire to stray from that path.
Which was why this crisis exhausted him to no end.
"...Short selling. This is short selling. Big trouble."
The massive short-selling wave rocked the market instantly.
Of course, the Nikkei Index oscillated between rises and falls, locked in struggle.
Japanese companies took immense pride in their economy. The world's second-largest after the U.S., with potential to claim the top spot—a great Japan....
That faith propped up the bubble. A hollow belief in an illusion, but faith nonetheless.
"Section Chief, at this rate, the margins are at risk. Should we liquidate the leveraged positions?"
A nervous subordinate asked. Leverage was extremely dangerous amid volatile prices.
With 10x leverage, a mere 10% drop wiped out your capital. Fail to liquidate, and you'd have to cover the shortfall, potentially going negative.
Matsui, an ordinary everyman, wanted to avoid risk at all costs—sell all stocks and bonds.
But as Yamaichi's Matsui Section Chief, he couldn't.
"No, we ride it out."
Forcing his sluggish brain to the same conclusion, he submitted the report.
[Suspected heavy short selling by Wall Street hedge funds on select stocks. Heightened anxiety among retail investors spilling over to others...]
In summary:
-It's the short sellers! The Americans are directly attacking the Nikkei—show 'em what we've got!
Daring to short the rising-sun Nikkei.
His pride as section chief wouldn't let him back down.
They were already leveraged with equity investments; a true bear market meant resignation.
"It's just panic amplification. It'll revert eventually. Japan's fundamentals are still solid! We weathered the oil shock fine, didn't we?"
"But sir, the drop speed is huge."
To steady himself against his subordinate's worry, Matsui shook his head and cited evidence.
"No! Short-selling articles have been flooding lately. Even that hot new Alpha Fund is reportedly short. They're pros at price manipulation—this is totally normal."
Delusion. Japan's internal bubble had simply hit its limit; the shorts were just moths to the flame, drawn by a reincarnator who foresaw the future.
"Market closes today, won't reopen for nearly a week...."
Matsui scowled, sighing faintly. The timing was too perfect.
Which was why the shorts picked now, of course.
"Ugh.... Fine, ease off the leverage a bit. Down to about 5x—should be safe."
Downing coffee like water in frustration, Matsui scurried about adjusting leverage.
.
.
.
.
A few hours later.
Chewed out by his boss, hounding his team—Matsui collapsed into his chair, drained.
'Overtime tonight for sure...'
But no rest granted, a colleague from next door sought him out.
"What is it?"
"...Call from Korea's Daeha Securities."
"Daeha Securities?"
He eyed the employee quizzically.
"Not exactly the firm—the president. Ha Joo-seong, you know, the Korean who got booted from Nomura for overstepping."
"Ah, yeah, that guy."
"Says he'll take the losses if we dump stocks and bonds cheap...."
Grinding his teeth, Matsui waved him off.
"Forget it! What does a Tokyo reject know? Just sour grapes, stirring trouble. Cut contact."
"But..."
The subordinate hesitated before adding,
"Nomura took their offer."
"..."
Conflict flickered in Matsui's eyes, but pride wouldn't let him retract.
"No, my call stands. They took it 'cause he used to work there."
-Shoo.
"Go on. I need a break.... Whew, hope the holidays bring some rest...."
Dismissing him, Matsui blinked wearily, craving repose.
◇◇◇◆◇◇◇ Yoo Ha-yeon awoke from a nap, sprawled diagonally in Daeha Securities' president's office.
"Ah, Si-hyeon. Still here?"
"Nanny was worried..., I reassured her."
"...Sorry. Tell her I'll be holed up here for a week."
"Got it. New Year's plans... canceled?"
"All of them. Monitoring from here."
Slipping back into her wrinkled suit, Yoo Ha-yeon rose and downed a glass of water.
Sunset glow filtered through the distant window. Clock read 7:00.
"Si-hyeon. Is that 7 a.m. or p.m.?"
Secretary replied flatly.
"...Dawn, miss."
"December 31st? No..., market closed earlier...."
"January 1st, dawn. Get some sleep."
Nodding calmly, Yoo Ha-yeon straightened her clothes again.
"Then New York's closed too. Prep—back to Wall Street. I'll sleep on the plane, don't worry."
As Yoo Ha-yeon headed out, Lee Si-hyeon grabbed her. In her hand, a small slice of cake.
"Miss, happy birthday. January 1st, right?"
"..."
Yoo Ha-yeon paused, then nodded.
"Yeah, it's my birthday today. Never told you—how'd you know?"
"Nanny mentioned it."
"Such a hassle.... Tsk, fine. Don't bother the staff, focus on work. No..., you rest more. Japan meeting on the 5th, right? Build stamina."
"...And you, miss? I'm going because of you."
Chuckling, Yoo Ha-yeon pointed out the window. Volcanic fire reignited in her eyes.
"The 1990s are signaling from afar—shouldn't I go claim my birthday gift?"
Japan's bubble collapse.
The historic New Year's event heralding the 1990s had begun.
◇◇◇◆◇◇◇ Japan's Ministry of Finance.
Two men sipped sake in a quiet room.
"Real estate lending curbs.... This'll make speculators bleed."
"Isn't that the point? Can't buy homes no matter how much they earn..., public sentiment's souring. LDP sees it as critical."
"No choice then. It'll hit stocks too, but signs showed since that semiconductor plunge. Can't be helped."
"Bank of Japan raises rates soon. Note that."
"Announcement when?"
"Judged sooner the better. So..., January 5th."
◇◇◇◆◇◇◇ January 5th, 1990.
Having barely rallied on the 4th, Matsui had cheered on the way to work.
"Whew, shoulda gone harder on leverage... Huh? Why's everyone like that?"
"Section Chief! N-news—you see it?"
"What news..., huh?"
Matsui froze at the TV screen.
-Click-click.
News showed a Ministry official explaining policy amid shutter clicks. Red banner headline below in white text:
[Ministry of Finance Introduces Authorized Capital System to Curb Real Estate Speculation. Secured Loans Capped at 80% of Last Year's Levels.]
Mouth went dry instantly.
"N-no way. Why now?!"
Good reason to curb speculation, but cutting loans meant cutting investments.
'D-damn.... Nomura?'
If they had insiders in government, they'd know ahead. Leaking such massive news warranted seppuku if caught—but that's Nomura.
No wonder they dumped inventory at a loss!
One word burned in Matsui's mind:
Austerity.
The Ministry was slamming brakes to pop the bubble.
"S-section Chief! Investors dumping stocks en masse!"
"I know, just... hold on!"
Nikkei dipped post-announcement, then plunged madly.
But... the reversed tide never returned.
"Deputy! NTT, Tokyo Electric...! All down 10%! W-what do we—leverage at least—"
"We can't liquidate now!"
Chaos engulfed the department. New hires to grizzled deputies—all panicked, scrambling.
"Section Chief! Section Chief...?"
"..."
Silent Matsui stared bloodshot at the screen.
Streaming news, shutter clicks, construction din outside, chirping birds, murmuring subs....
Noises faded behind perception as his mind blanked—
-Ring-ring-ring!
Phone shrilled, piercing panic like a spike.
-Ring-ring-ring!
-Ring-ring-ring!
Lines lit up like fire. Office chorused in high-pitched frenzy.
Startled birds fled the concrete jungle's din. In the glass pond they'd sipped from, people flailed amid blue candlesticks.
"Ph-phone... You should take it...."
Trembling subordinate handed it over.
Matsui lifted it shakily; familiar lines dropped it clattering on the desk.
"Ah, ahh...."
Unabated clamor echoed his groan sharply.
-Ring-ring-ring!
-Ring-ring-ring!
-Ring-ring-ring!
No need to look.
Margin call.
Mitsubishi Bank, Sumitomo Bank, Nippon Life....
Japan's financial giants heralded his ruin.