The Magician’s Memorial - Chapter 264



Only Noblemtl

264. Countdown (3)

Huge logistics warehouse.

Comparatively small number of employees.

And a variety of automated facilities that are several times more numerous than employees.

Jeffrey raised his voice, proud of the appearance of such a warehouse.

“What do you think? Although it is difficult to achieve full automation, it is still a facility that can save labor costs by more than 30%.”

“There were a lot of different techniques used.”

“The most helpful equipment is the forklift robot. Just enter the product code and shipping location, and the forklift robot will automatically move the stored product to the shipping location.”

The most difficult task in the warehouse was, of course, loading and unloading.

When products were received from the producer, they had to be stored in a warehouse.

When an order came in, the stored products had to be moved back to the truck.

Although a lot of manpower was needed in that process, manpower could be greatly reduced with only forklift robots.

“We can reduce the number of forklift drivers and loading and unloading staff.”

“And by modifying the algorithm created by Taewoo IT, we have also completed an automatic inspection system. So we were able to reduce the number of employees in charge of inspection.”

“Have automation facilities been applied to other factories as well?”

“As of now, it has only been applied to our warehouse here. We would like to expand it, but we have not yet done so because labor costs are cheaper than automated facilities.”

“If labor costs rise further, the application will be expanded.”

The United States was a country that boasted high labor costs.

However, labor costs are still cheaper than deploying automated equipment or robots.

As time goes by and labor costs rise, it was inevitable that various automated facilities would be applied in the near future.

“I also want to see where robotic arms are being applied.”

“It is applied to places where forklift robots cannot move. And although there are still some problems, we are also using drones to move products.”

There were many technologies that could be applied to automobile factories as well.

It was Amazon, which was developing automation equipment through collaboration with Taewo-Kai Automotive.

There are plans to soon apply the technologies applied to Amazon’s warehouses to automobile factories as well.

“There are still a lot of things to improve, but it is a far superior facility compared to the automated facilities that have been available so far.”

“Once equipment and robots are developed and appropriate algorithms are applied, unmanned factories will be possible.”

“We plan to make unmanned factories possible within 10 years at the latest.”

“Taewoo Group is also planning a huge investment, so let’s make sure we do it!”

I held Jeffrey’s hand tightly.

For the future of Taewo Group, the development of automated facilities and robots was essential.

* * *

Apple, Amazon and Google, Facebook, WeTube, etc.

I visited IT companies where I had shares and had many conversations.

From stories about existing projects to new projects starting.

It didn’t just end with a story.

We envisioned a business worth tens of trillions of won and promised collaboration.

Time passed by quickly, and when we returned to SAVE Investment Company, a team leader started reporting with a subtle smile.

“New Century Mortgage Company has filed for bankruptcy, and Bear Stearns plans to announce investment losses in its mortgage-related businesses.”

“The ramifications will be quite large.”

Bear Stearns was a legendary investment company on Wall Street.

Bear Stearns Investment Company was selected as the most respected securities company by Fortune magazine.

Because it was a highly trustworthy investment company, it was bound to cause further repercussions.

“Credit rating companies can no longer remain silent. How can they remain silent when even large investment companies announce that they are suffering huge losses?”

“The credit ratings of subprime mortgage bonds will soon be significantly lowered.”

“Then our insurance becomes a piece of gold. It becomes more valuable than gold, but more than diamonds.”

How much pain must you have suffered so far?

Clearly, the real estate market is deteriorating, but credit ratings remain the same.

Since he was a team leader actually leading the SAVE investment company, the stress he was under must have been considerable.

“Boss! Fintech Bank President Dimon has come to visit.”

“Ask them to come in right away.”

It certainly seems like Bear Stearns has had a big impact.

Even Dimon, who had quietly guarded Silicon Valley until now, rushed to Wall Street.

“Representative! It’s finally time. No one will ever know how long we’ve been patient for this day. We’re going to eat up the whole of Wall Street!”

“Take a breath and speak. And isn’t the bank president speaking too harshly?”

“Where else would I say this, not in front of the CEO? Oh! And I’m late to say hello. It’s been a long time. I wanted to go to Korea to meet you several times, but I held back and waited.”

Dimon’s eyes were bloodshot.

Eyes burning with revenge, but a mouth with a smile.

It was a bloody look reminiscent of the Joker, but since I had been with Dimon for a long time, I didn’t feel too uncomfortable.

“If we eat too quickly, we get sick. We have to eat it slowly, bit by bit. Even if we don’t want to eat it, the fruit will come into our mouths on its own.”

“I feel like I want to go around to financial companies on Wall Street holding an insurance policy right now.”

“If you use it now, you will only see 3 to 4 times the benefit. If you want to see at least 20 times the benefit, wait a little longer.”

Now, only one investment company was shaking.

Shouldn’t the largest financial company in the U.S. be shaken to make our cards worth the price of gold?

“That’s why I’m holding on.”

“CITI Group cannot be free from this incident. No, it will be one of the financial companies that has suffered the most damage.”

“We are already monitoring the CITI Group 24 hours a day. It is said that they are going through a large-scale staff reduction. As many as 20,000 employees will be laid off.”

CITI Group was the world’s largest financial group.

Because it had influence not only in the United States but also in the United Kingdom and Asia, it had a large number of employees.

Having more employees means higher labor costs.

When a company is in trouble, the first cost it wants to save is labor costs.

“How much is CITI Group’s subprime-related loss?”

“It is estimated to be at least $60 billion. CITI Group’s cash reserves are absolutely unstoppable.”

Losses amounting to 70 trillion won in Korean won.

Even for the world’s largest financial group, it was nearly impossible to cover a loss of 70 trillion won.

Rather, because it was a financial company, the loss of 70 trillion won would have had an even bigger impact.

Dimon smiles in remorse.

Next to him, a team leader carefully spoke a word.

“CITI Group also contacted me, saying they wanted to sell subprime mortgage-related assets.”

“You want to hand over the bomb to us. Dimon, would you like to meet him? It seems like a good opportunity to look down on the CITI Group.”

“If we step forward now, it’s just a matter of looking down. The situation needs to get a little worse to completely crush it. I’ll step in a little later.”

Although he was blinded by revenge, he did not lose his cool-headed judgment.

It was a CITI group that still had some strength left, and it was Dimon who was planning to appear after he had exhausted all of his remaining strength.

“Then please be patient and wait a little longer in Silicon Valley.”

“I didn’t just come here either. The Federal Reserve is said to be holding a meeting with large banks soon. I think it will probably be a meeting related to interest rates.”

“Now is the time to introduce the interest rate cut card. Let the Federal Reserve do whatever it wants. No matter what you do, the fire on the fuse will not be extinguished.”

“Okay, then I’ll come back after the bomb explodes.”

Dimon moved to Washington.

When he came to Wall Street again, he would play the role of the Grim Reaper, not the bank president.

The subprime mortgage bond insurance policy held by Dimon’s fintech bank would become the Grim Reaper’s scythe.

* * *

I was spending a long time in America.

However, the situation in Korea could not be neglected, so the head of the planning office visited the United States and reported important matters periodically.

“Director of Planning, your face looks very tired. I’m sorry for making you come all the way to America.”

“I’m definitely not tired because of the flight. On the contrary, I’m grateful. I’ve had so much work these days that I haven’t had time to rest, but I was able to rest for a while on the plane.”

He was the head of the planning office who was exhausted.

Since I was in America, there was only one person who could tire him out.

“Is your grandfather giving you a hard time?”

“It appears that the Chairman has returned to his prime. In fact, he is working at the company with more passion than in his prime. He is taking care of every detail of all affiliates, and when a problem arises, he goes out to the site and resolves it himself.”

It was thanks to my grandfather that I was able to go on a long-term business trip to the United States.

It may be a little rude to say this, but my grandfather was the only person I could trust.

“I’m glad nothing happened.”

“The Chairman told me to convey this message to the Vice Chairman: ‘I will take care of the Taewoo Group, so you can focus on American affairs. It doesn’t matter if it takes a year or two, so finish it perfectly and come back.’ So, he told me not to report anything to the vice president unless it was absolutely important.”

I can’t be this reassuring.

Sometimes I felt like I came to the United States too early, and there were times when I thought about going back to Korea for a while.

But when my grandfather said this, my anxious feelings disappeared.

“Please tell me that I will return after finishing it perfectly. Also, please tell me that the moment I return to Korea, Taewoo Group will be twice as big as it is now.”

“Are you saying that Taewoo Group will double in size? Even now, Taewoo Group is one of the largest groups in the world. But how can it double in size in a short period of time?”

“I plan to achieve that level of results, so wouldn’t I be staying in the U.S. for a long time? I can’t tell you the detailed plan right now, but you can look forward to it.”

I briefly told the planning director the scale of the big picture I was drawing.

Of course I couldn’t believe it now, but I had already finished sketching it.

* * *

I trusted my grandfather and spent a year in the United States.

In the meantime, a lot of things happened.

[Bear Stearns Investment Loss Announcement]

[Multiple mortgage loan companies file for bankruptcy protection]

[US Federal Reserve announces interest rate cut]

etc.

Really big events occurred every month.

And today, big breaking news broke out.

“Boss! The U.S. Congress announced that it will release over $160 billion to stimulate the economy.”

“There is no choice with $160 billion. It’s just peeing on frozen feet.”

“And there’s even bigger news: There are rumors going around that Lehman Brothers may go bankrupt.”

Finally, Lehman Brothers began to falter.

Another name for the subprime mortgage crisis was the Lehman Brothers crisis.

The season of sowing seeds and growing seedlings is now over, and the season of harvest has arrived.