The Magician’s Memorial - Chapter 261



Only Noblemtl

261. An eye for an eye (5)

US Embassy in Korea.

Since I was also an honorary U.S. citizen, I was able to enter the embassy through simple procedures.

“Ambassador Chris, it’s been a while since I saw you.”

“I am truly sorry for calling someone who was busy at the embassy. The matter was so urgent that I had no choice.”

“When you say it’s an urgent issue, are you talking about American real estate? I also heard that mortgage companies are going bankrupt one after another.”

“Things are going quite differently than the Fed says.”

Ambassador Chris seemed to have a different opinion than the U.S. government or the Federal Reserve.

Perhaps it was because I was able to analyze the situation more objectively because I lived in Korea rather than the United States?

“I guess you don’t believe in the Fed’s optimism.”

“Honestly, I want to believe it, but the situation is too serious for optimism. And many officials in the White House feel the same way.”

The White House seems to be divided now.

Previously, the White House had simply followed the Federal Reserve’s policies, but as debt default rates rose and mortgage companies began to go bankrupt, they began to doubt the Federal Reserve.

“But what are we going to do? Nothing will change unless the Federal Reserve Chairman or the President takes action.”

“The Federal Reserve said it will continue to maintain its current policy.”

“I cannot say that cutting interest rates right now will improve the situation, but if we maintain the current situation, it will 100% worsen the situation.”

“······Why don’t you speak to the President directly?”

“I already told you this a few months ago, but you have strong faith in the Federal Reserve.”

Speaking of the U.S. ambassador to Korea, he was quite high up in the White House.

However, that didn’t mean he knew everything about the White House, and he didn’t seem to have received any information about my meeting with President Bush.

“I know that we had a meeting some time ago. But hasn’t the situation changed a lot between then and now? Perhaps that’s why the President said he would like to meet with Vice Chairman Kim again and have a conversation.”

“Did President Bush say that?”

I can’t believe I’m already getting a bite.

I thought President Bush would look for me until the second half of next year.

But I never thought they would already send an SOS signal.

“If President Bush calls me, of course I have to go to the United States. When can I leave?”

“It’s difficult right now, and they want to set a schedule for early next year. This is a schedule where Treasury officials and the Federal Reserve board will also meet.”

“Is this an unofficial event?”

“You want a comfortable place to discuss things, so it will be held informally.”

It was proof that the White House was shaking.

Until now, I had great faith in the Fed’s words, but things were not going as optimistically.

So, it meant that everyone would listen to me expressing opposing opinions.

“Then I’ll go to Washington early next year. But this time, I don’t want to be seen off in the middle of the road.”

“······I will definitely pass on your message.”

It was Ambassador Chris who lowered his face as if embarrassed.

Well, it wasn’t his fault, so I had no intention of blaming him.

“I think the important things have been conveyed, so can I speak comfortably now?”

“Hehe, I’d like to drink a glass of water too. I really don’t know how the world is going.”

We adjusted our posture and sat down comfortably.

After dispelling the serious mood with a glass of water, he raised his tone of voice an octave and continued speaking.

“Do you own any real estate or stocks? It would be best to sell them all within this year. This is not what I am saying as the vice chairman of Taewo Group.”

“Are you speaking from the perspective of a SAVE investment company with one of the highest rates of return on Wall Street? Hmm, I own a few real estate properties and have put money in a fund, but…”

“I don’t know if you’ll be holding on to real estate for 20 years, but if not, sell it all. Also, if it’s not an IT-related fund, I recommend canceling all of it and keeping it in cash.”

We didn’t see each other for a day or two.

Since the U.S. ambassador still had a lot of time left in his term, I helped him with asset consulting.

“You can do that with real estate, but do you have to sell all your stocks as well?”

“Most stocks will fall significantly. However, even if IT-related stocks fall, they can rebound within a few years, so you can hold on to them. SAVE Investment Company is also investing in that way.”

“Wow, you’re predicting that the situation is really serious.”

“It’s not a prediction, it’s already a serious situation. All that remains is whether the bomb will explode during this presidential term or during the next presidential term.”

“······.”

It was Ambassador Chris who could no longer continue speaking.

Since you said it so strongly, I guess you’ll take care of it.

* * *

The last day of 2006.

I was in my room packing my bags for a business trip to the United States.

I straightened my back after filling up one suitcase, and only then did I notice my grandfather looking at me.

“Why are you doing this? If you come, please at least make an appearance.”

“I felt very reassured as I was looking at your back. I was just watching. Please sit down for a moment.”

Grandfather sat down on the bed.

I also sat on the chair across from my grandfather and waited for him to speak.

“Are you worried about anything?”

“What do I have to worry about when I get to this age? If I have any worries, I have no one but you.”

“Are you worried about me?”

“I am roughly aware of the current situation. This business trip to the US is to deal with the US economic crisis?”

“The situation is too serious to deal with in Korea. I will try to understand the situation and deal with it myself in the United States.”

Grandpa looked at me with a face full of worry.

I guess I still look like a child in my grandfather’s eyes.

“Don’t go too far. It’s said that a sharp stone attracts affection.”

“I will refrain from doing so as much as possible. I will just move to prevent damage to the Taewo Group.”

“I guess that’s true of you. As you get older, you lie more and more.”

My grandfather knew right away that what I was saying was a lie.

I was just saying this to reassure my grandfather, and I was planning to take a very active role in this situation.

“It is essential for Taewoo Group to expand into the world.”

“That’s why I’m not stopping you either. But do you really think a global economic crisis is coming? I’m still not convinced.”

“I’m coming unconditionally. Isn’t that why I’m going to the US? After this business trip to the US is over, the Taewo Group will be in a position that no one can touch.”

“Those are very sweet words. Have a nice trip. I will take care of Taewoo Group while you are away.”

Grandpa got up and tapped my shoulder.

I had no intention of making my grandfather happy with just sweet words.

The plan was to return to Korea with hundreds of very sweet fruits.

And that’s a fruit worth over tens of billions of won each.

* * *

I spent the first day of 2007 on an airplane.

When I arrived at the airport, I saw people filled with anticipation for the new year.

But I didn’t have time to feel that happiness, so I immediately got into the prepared vehicle and headed to SAVE Investment Company.

“Representative, are you here!”

“How are things going?”

Even though it was late, everyone stayed in their seats.

A team leader was taking center stage and directing the SAVE investment company.

“It’s getting very urgent. We’ve just received information that HSBC, Europe’s largest bank, will announce that subprime mortgage losses are expected to exceed $10 billion.”

“The signal flare has finally been fired.”

HSBC was the signal for the subprime mortgage crisis.

The moment Europe’s largest financial company stepped forward and announced the seriousness of the subprime mortgage crisis, a global economic crisis became a reality.

It hasn’t changed in this life either.

HSBC fired a signal.

“And we have received information that New Century, America’s second-largest mortgage company, is also close to filing for bankruptcy. It is expected to file for bankruptcy in the first half of the year at the latest.”

“Until now, small dominoes have fallen, but now bigger dominoes are starting to fall.”

“But the Federal Reserve is still not moving. It looks like they are still unable to give up their optimism.”

Should I call it stubbornness or stubbornness?

The Federal Reserve still maintained its previous position.

“It looks like they are trying to silence the explosion by force. In fact, the more pressure you put on it, the stronger it will explode.”

“And we are receiving frequent calls from insurance companies. They are even contacting us asking if we would like to cancel the derivatives insurance contract.”

“I guess you were in a good mood.”

“Honestly, I felt a little good. When I first inquired about signing up for insurance, he looked at me like I was some kind of idiot. When I met him this time, he lowered his head at a 90-degree angle.”

There was a rumor in the Wall Street financial world that a team leader was a hot guy.

Since they were paying huge insurance premiums every month, they were competing with each other to sign insurance contracts.

But now the situation has changed, and Hogu must have realized that it was them, not team leader Han.

“You didn’t cancel the insurance contract, right?”

“The rating agency still maintains the reliability of subprime mortgages at AAA level, so why is this happening?”

“The rating agencies are also very harsh. They still haven’t lowered the ratings of subprime mortgage bonds.”

“So there is a lot of talk. It is said that groups other than us who purchased subprime mortgage insurance products collectively protested to the rating agency.”

We weren’t the only ones betting on subprime mortgages.

Of course, it was true that we and the fintech bank made the largest bets, but there were quite a few funds and forces other than us who read the trend and made bets.

But our situation was very different from theirs.

We had enough cash to pay huge insurance premiums every month.

The premiums they pay every month were a huge burden, and they had to wait for the insurance conditions to be activated as soon as possible, drying up the blood every month.

“Try to approach them. They will help you with some of the insurance premiums, so ask if you can transfer some of your insurance rights.”

“I wonder if it is necessary to go that far. The amount is a small amount compared to the insurance we and the fintech bank have.”

“In order for us to take the lead, we need to have as many insurance policies as possible. If you say you don’t like something, don’t necessarily step forward. Try to approach it in a way that’s okay if it works, but if it doesn’t work out.”

When the conversation is in full swing.

David appeared, hurriedly opening the conference room door.

“Boss! I got a call from Washington. They want to meet me tomorrow.”

“Then I guess I’ll have to catch a plane right now. I’m not giving you time to adjust to the jet lag.”

“I have already prepared everything. You can leave now.”

I was very excited.

My heart was pounding in anticipation of what nonsense the White House officials and the Federal Reserve would come up with.

I headed to Washington hoping they would bark loudly because the more bullshit they talked about, the more I would profit.