I was acting crazy in North America, and all the crazy people there took it seriously.

Chapter 79: So advanced it made Wall Street question its existence.

"Investment Value and Prospect Assessment Report on the Fox River Private Jail Business in Chicago":
...

3.1 Core Asset Situation: Asset Positioning with Three Attributes
• "Minerals": The core asset of this project is an inexhaustible supply of cheap, highly obedient labor (prisoners). The government not only provides the "minerals" free of charge, but also pays a daily allowance per person (food, lodging, and supervision fees).

(This section provides a stable cash flow.)
• "Labor-intensive factories": These factories convert labor into actual profits through outsourcing contracts (such as garment manufacturing and simple assembly).

(The report includes a detailed financial forecasting model, based on current financial data, showing that a single prisoner generates far more profit per day than an ordinary worker, with an astonishingly high gross profit margin.)
• "High-end service industry": Providing "luxury package" services (private cells, improved food, entertainment facilities, visitation convenience, etc.) to specific clients and charging high fees.

(This part has a higher profit margin and can effectively improve "customer" satisfaction and "compliance".)
3.2 Risk Assessment:

The main risk is the policy risk of prison privatization.

...

Conclusion: In the foreseeable future, this project is a virtually guaranteed profitable, monopolistic business with extremely strong cash flow. We recommend paying close attention and seeking investment opportunities.

"Kylos, the risk section of your report seems rather vague."

High-rise offices in Morgan Tower, Manhattan, New York.

A senior manager in the investment department of JP Morgan rubbed his temples, put down the report in his hand, and looked at the young investment manager, Kairos.

Kelos was slightly nervous, "Because there are some situations that are inconvenient to mention in the report, such as certain shareholders of Fox River Company who have congressmen backing them..."

The senior manager immediately understood and smiled meaningfully: "So, the policy risks are almost non-existent?"

Kylos nodded slightly. "At least in Illinois, I assess the risk as minimal."

"Very good, tell me more about the specifics..."

Kelos immediately recalled his experience of visiting Chicago.

The cause was a financing plan proposed by the Chicago Fox River Company to JP Morgan.

Fox River Corporation intends to expand its private prison business. If it can raise $500,000, it can acquire two large state prisons from the government and carry out corresponding expansion and renovation.

After securing the Illinois business, Fox River is expected to raise further funds to expand, replicate this business model in other cities across the United States, and even seek an IPO. The IPO business could be handled by JP Morgan.

Kelos was then ordered to travel from New York to Chicago to examine Chicago's private prison business, determine whether to invest in Fox River Company, and the specific terms of the investment contract.

This was an investment due diligence process that Kelos had never conducted before.

J.P. Morgan's main business was financing the development of advanced industrial companies such as U.S. Steel, General Electric, and Telegraph and Telephone.

And prison operations?
What kind of outdated, sunset industry is this? Does it have any investment value?

The reason why Kelos did not refuse was because the person who contacted JP Morgan was Logan, the "development consultant" of Fox River Company.

Logan's ownership of The Sun and Voice of Liberty radio stations are high-quality assets that JP Morgan is very willing to invest in.

But Kelos really didn't expect that prison operations could be so "technically sophisticated"!
"The Chicagoans said their private prisons have a full suite of 'core technologies,' mature managers and management systems, and..."

The senior manager interrupted him, “The whole set of ‘core technologies’? That’s what the Chicagoans say? What an interesting guy.”

"Well, I won't go into detail about the 'minerals' and 'factories' sections. Let's talk about the 'high-end service industry' section."

The Morgan Company was no stranger to using prisoners as slaves.

In the early years, railway companies and mining companies that received financing often rented government prisoners as laborers and made huge profits.

The current privatization of prisons is simply a repeat of history, only done in a more covert manner.

What has driven the privatization of various public businesses in the United States has never been nice-sounding concepts like civilization, freedom, democracy, or institutions, but rather the naked pursuit of "more profit." He was well aware of the profits involved in "mining human resources."

If it were just that, he might not be interested.

Senior managers were more interested in the "luxury custom prison" business mentioned in the report.

At this point, Kelows perked up and began to describe his "magical Chicago trip" in detail:
“Chicago provides ‘luxury packages’ for wealthy prisoners—private rooms, better food, entertainment facilities, and even relatively free space to move around…”

"Of course, the price is extremely high."

"Anything else? Like healthcare, sports facilities, and so on?" The senior manager was very interested.

Kairos nodded: "The people in Chicago said that once the funding is in place, all of these are possible."

“They will provide small hospitals for luxury prisons, and even state-of-the-art dental clinics.”

“Prisoners also have the right to religious belief, so prisons also have chapels prepared for prisoners.”

"And there's no need to worry about being bored, because there are workshops specially provided for prisoners—not for them to do manual labor, but to give prisoners with good hands-on skills 'toys' to keep them entertained..."

Kairos spread his hands and smiled wryly, "Sir, I must say, I never thought this could be called a prison!"

"The innovative ideas of Chicagoans in the private prison business are so advanced that they can make Wall Street question its very existence!"

Questioning the meaning of life? No, the senior manager's eyes were getting brighter and brighter.

He slammed his hand on the table, startling Kelos.

We've invested in this project!

After saying that, he picked up the phone on the table and dialed a number.

When the call connected, he switched to a relaxed and cheerful tone: "Honey, our troublesome little brother still can't get away with it?"

"It's alright. Tell the lawyer to stop working on it. Just plead guilty, but we need to arrange for you to be transferred to Chicago to serve your sentence."

“That’s right, it’s related to the project I’m about to invest in. It’s a private prison in Chicago, and I guarantee he can live comfortably there and easily serve his sentence. I can also help his brother-in-law check out this project.”

After hanging up the phone, the senior manager gave the dumbfounded Kairos a troubled smile, like a wealthy man: "There are always some troublesome relatives in the family, you know how it is."

What else could Kelos say?

No wonder my boss decided to invest in this project so quickly.

Kelos then wondered how many wealthy people across the United States might also need this kind of service?

Looking at it this way, Chicagoans have indeed developed a new market with unlimited potential!
“Alright, here’s another target for you in Chicago. What did Logan say? Are The Sun and Voice of Freedom preparing for a fundraising IPO?” The senior manager interrupted Kelos’s daydreaming.

The latter paused for a moment, then gave a wry smile: "He said it's unnecessary, and he doesn't even plan to go public."

"Huh? Why?"

Kelos recalled Logan's answer, and his expression became even stranger.
"He said that after the company goes public, he won't be able to freely criticize people in newspapers and on the radio anymore!"

"..."

What kind of bizarre reason is that?

……

　Wall Street: Mining people? Outdated! Serving high-end clients? Advanced!
　　
　
(End of this chapter)