The Magician’s Memorial - Chapter 255



Only Noblemtl

255. Unexpected reaction (4)

When interest rates are lowered, house prices rise.

When interest rates rise, house prices fall.

It was a simple formula that everyone knew, but Wall Street ignored it.

Did they really ignore it because they didn’t know?

Rather, it was likely that they ignored it because they knew it so well.

Blinded by madness, they tried to make money, but they themselves ended up being engulfed in madness.

“If the real estate bubble has the expected impact, there is a high possibility that more than half of Wall Street’s investment companies will go bankrupt. Lehman Brothers, which produced and sold the most synthetic bonds, is particularly at risk.”

“Lehman Brothers has been a representative investment company on Wall Street for nearly 150 years. Is it really possible for it to go bankrupt? The U.S. government will not give up on Lehman Brothers, even if it is for symbolic reasons.”

Even Rajan, who has a bad feeling about Wall Street, said this.

Anyone who has experienced Wall Street could not help but think that way because they know full well how enormous the symbolism and power of Lehman Brothers is.

In Korea, you are too big to fail.

In English it is TOO BIG TO FAIL.

It was an American economics term that said that large corporations were bound to cause enormous repercussions due to their numerous interests, and that was why they never went bankrupt.

“Someone must be held accountable for the fraud committed by all of Wall Street’s investment firms in concert, and Lehman Brothers will not be able to avoid responsibility even for symbolic reasons.”

“Hmm, it looks like a lot of things will happen that are difficult to interpret using the economic theories we have so far. Let’s put everything back to square one and conduct a new study.”

Seven scholars including Rajan.

They didn’t leave the conference room at SAVE Investment Company for two days.

They were burning with a passion for research and learning in the face of an unprecedented economic crisis.

“It’s good to conduct research, but shouldn’t you be able to have your voice heard in order for your research achievements to be recognized?”

“I have tried to raise my voice several times so far, but I have been unable to do so properly due to the checks and balances of Wall Street investment companies.”

“I will create a channel where you can properly voice your voice. To do that, we need to create an organization.”

An organization was needed to speak out on behalf of SAVE Investment Company.

If SAVE Investment Company comes to the forefront, various problems will arise.

However, if those already marked as heretics formed a group and raised their voices, SAVE Investment Company could be free from that problem.

In some ways, you can think of it as a cannon fodder.

However, there was absolutely no intention to turn them into cannon fodder; rather, it was more of a process to turn them into heroes.

“Are you saying we should form a separate organization?”

“You can think of it as a separate unit of SAVE Investment Company. Wouldn’t it be difficult to gain trust if you bring up these issues while belonging to Wall Street?”

“It doesn’t matter as long as the research can continue as it is now. But have you decided on a name for the organization?”

“We are planning to choose a name related to this real estate situation.”

Rajan and the scholars were not opposed to forming an organization.

In fact, there were scholars who preferred working in groups rather than investing in Wall Street investment companies.

“If the name is related to the real estate crisis, how about Subprime Mortgage Group? Aren’t subprime loans the biggest cause of the real estate bubble?”

“If we were to find a more fundamental cause, wouldn’t it be the moral hazard on Wall Street?”

“That’s right. It’s because they knowingly but pretended not to know and created and sold synthetic bonds in order to make a profit on Wall Street.”

“So, we are going to name the organization Moral Hazard.”

Moral hazard.

It refers to the act of avoiding responsibility and pursuing profit by exploiting loopholes in the law and system.

It was an appropriate name for an organization that targets the financial sector, including Wall Street.

“Then, let’s name the group Moral Hazard and gather like-minded people to grow the group a little more.”

“In order to increase the influence of an organization, shouldn’t we start strong from the beginning? Why not announce the beginning of the organization by presenting the data we have researched so far?”

“We would like to do that, but as I said, there is no space for our voices to be heard.”

“Don’t worry about that. The media can be controlled by Wall Street, but now we live in an age where influence can be exerted even without media such as news or newspapers.”

Only in the past was it possible to control the world by controlling the media.

However, with the advent of the Internet, the era of controlling the media has passed.

* * *

The moral hazard organization founding ceremony was held.

It was broadcast in real time through various internet media such as Google and Facebook, as well as WeTube live broadcast.

Rajan, as the representative, announced the current situation without making any additions or omissions.

He poured out words criticizing not only Wall Street but also the U.S. Federal Reserve.

Even without any provocative editing, it was a very provocative video, and a team leader checked and reported the reactions in real time.

“Moral Hazard Inauguration Ceremony ranked first in popular search terms on SNS.”

“What about the response from search portals?”

“Same. Thanks to Google’s support of the founding ceremony content, we are receiving a lot of attention.”

“Are there any moves in the media yet?”

“Internet newspapers produce some news, but large media outlets are still quiet.”

As the issue grew, large media outlets had no choice but to publish news.

As long as it received a lot of attention on SNS and portal sites and raised the issue to a level that Wall Street’s power could not reach, it was possible to move large media companies.

“Sooner or later, large media companies will start to take action.”

“We will focus on checking media companies that do not have a good relationship with Wall Street.”

I wasn’t just waiting quietly.

We further promoted the Moral Hazard founding ceremony using SNS algorithms.

A request was made for greater exposure on portal sites such as Google.

Around 3 hours had passed.

Finally, large media outlets began to publish articles.

“A variety of news and columns are pouring in. However, most of them are columns that refute what moral hazard groups say.”

“It doesn’t matter. Whether you are for it or against it, as long as you raise the issue above water, it is a success.”

There was no need for public support.

Rather, the more heated the opposition, the more dramatic the effect could be.

While I was satisfied with the flood of articles, David hurriedly came inside.

“Boss! The Federal Reserve is said to be holding an emergency press conference. Federal Reserve Chairman Bernanke is said to be attending the press conference himself.”

“The second-highest ranking person in the United States is stepping forward. It can be said that the first goal has been achieved.”

The moral hazard organization was created for several reasons.

One of them was to move the U.S. government, and the moral hazard group paid the price just by making the Federal Reserve Chairman move.

Although I smiled at the current situation.

Team leader Han looked at him with a straight face and cautiously opened his mouth.

“You can tell the tone of the U.S. government depending on what the Federal Reserve Chairman says. If it is in the form of criticizing the logic of the moral hazard group, it can be seen that the U.S. government is not properly understanding the current situation.”

“Let’s see what will be said.”

Soon after, the Federal Reserve’s emergency press conference began.

There probably wasn’t a lot of time to prepare, but Chairman Bernanke spoke for over 10 minutes.

One team leader summarized the 10-minute speech in one sentence.

“The housing market is strong. The Federal Reserve Chairman has officially declared the stability of the U.S. real estate market.”

“You are confident that America’s real estate system is working properly.”

“They went so far as to say that the possibility of a worst-case outcome for the housing market is very small, so it’s not like they’re pretending not to know what’s going on, but they really don’t.”

The Federal Reserve Chairman’s remarks carried considerable weight.

It contained the U.S. government’s policy, and could be seen as a green light to continue investing as there were no problems in the housing market.

“David, you know that the White House is behind the moral hazard group, right?”

“The boss said there was no need to hide it, so I made it so that if you do a little searching, you can easily find out the connection.”

“Then, I’ll be hearing from the White House soon. If possible, I’d like to meet the VVIP in person, but I’m not sure if that’s possible.”

“Is it really necessary for the President of the United States to make the move himself? Why not send someone from the Treasury Department or have someone from the Bush election campaign come visit us?”

“The rank of the person visiting will vary depending on how seriously the U.S. government takes the current situation.”

They were doing this to get the U.S. government to come find me.

The one who proposes the price first is bound to suffer a loss. In order to proceed with favorable negotiations, we had to wait until the U.S. government contacted us first.

* * *

The last day of my business trip to the US.

Contrary to expectations, the US government did not send anyone to me.

In the end, we moved to the airport, having only partially achieved our intended goal.

Not long left until the airport.

Sigh! The driver suddenly applied the brakes.

In front of us, two large SUV vehicles were blocking the road.

Then, security guards in black suits got out of the vehicle and completely covered the area around our vehicle with black cloth.

Knock knock!

A person who looked like a bureaucrat in a gray suit knocked on the window.

“Mr. Kim, please come out for a moment. This is very important.”

Situations where safety may be threatened.

Since guns are legal in the United States, it could have been an armed robbery.

But what kind of robber would do something so reckless?

It was obvious what kind of organization would do something like this, so I smiled and opened the car door.

“If you just quietly tell me the meeting place, I will find it difficult to find it. That’s a bit excessive.”

“That’s because you can’t make separate appointments. He’s waiting in a quiet place near the airport. Please take our vehicle and travel with us.”

“The day is coming when you can ride in an American government vehicle. I can’t keep this precious person waiting, so let’s go.”

I slyly got into the SUV.

Maybe they put on a show like this to kill me?

It seemed like the intention was to give me a gentle step because I was acting against the principles of the U.S. government.

* * *

“We have arrived. Please wait a moment.”

Grumble! The door opened and the security guards got out at once.

They again took out a huge cloth and covered the entire car, blocking the entrance to the building.

This was a measure that made it impossible to tell from the outside who was entering the building.

“We will conduct a brief body search. We will keep your cell phone and electronic devices in our custody.”

I was able to go inside only after going through all the cumbersome procedures.

As expected, President Bush was waiting for me.

“Welcome! My strongest supporter, Mr. Kim!”

President Bush offers to shake hands with a bright smile.

It was difficult to see the person threateningly blocking the road and ordering me to be brought in as if kidnapping.

It doesn’t matter anyway.

Because I have achieved the purpose of my business trip to the United States to meet President Bush.

And now President Bush is acting like A, but how long can he do that?