In Tokyo, even the most fierce dragon is afraid of the hatchet

After all, he just doesn't have billions of assets!

"Iue-kun, let's put it another way. What if I tell you that there is a huge opportunity right in front of you, the kind that can make a lot of money?"

"Opportunity? What opportunity?"

"Don't you think the stock market has risen too much? If we seize the opportunity to short the stock market, we can definitely make a lot of money."

Chapter 36: The licking dog is really awesome

“Shorting the stock market?”

"What's the problem?"

Iue Ryouta looked at me like an idiot and said, "You actually asked what the problem was? Why would you, a fellow Qingda Raptors like me, have such a stupid idea?"

Nima!

Wouldn’t it be because I see that you’re suffering as a bootlicker that I’d take the opportunity to help you?

Nagano Nao said angrily, "You are the stupid one! Don't you see that the stock market has been rising for many years in a row? This is absolutely not in line with the laws of economics."

"Economic laws? That's just a ridiculous trick of Western countries. Don't you know that Americans are just as stupid as you before this? They have lost billions of dollars by shorting the stock market."

"What? When did it happen and why have I never heard of it?"

Nagano Nao was stunned.

In his memory, he clearly remembered that Goldman Sachs came up with the Nikkei put option, which directly destroyed the Japanese stock market.

Why does this sound a little wrong?

"Of course you don't know! It happened a year ago. I heard my seniors at the company mention it. Morgan Stanley and Salomon Brothers made a bet with the company on the rise and fall of the stock market at that time. Not only did they sign a bet agreement with Tokyo Life, they also signed bet agreements with many life insurance companies that were bearish on the stock market."

"and then?"

"Why would you ask such an idiotic question? Of course, these stupid guys lost. My senior told me that Morgan has given up on the new round of agreements after losing more than a billion dollars, and Salomon Brothers has lost two billion dollars and is probably on the verge of bankruptcy. They were negotiating a sale with the Travelers Consortium some time ago."

"Fuck, is this true?" Nagano Nao was so excited that he spoke in Mandarin.

Iue Ryouta was confused when he heard this: "What?"

"I mean, how come I never knew about Morgan's huge losses?"

"Of course you don't know. Morgan is the biggest giant on Wall Street, representing half of the American people. How could they publicize their defeat to Japan under such circumstances?"

"How did they lose?"

"Why would you ask such an idiotic question, straight man? As a member of the Keio Raptors, don't you know that the five major financial groups control nearly one-fifth of the entire stock market, and that big companies like Nippon Seibu hold a large number of chips in the stock market.

Similarly, much of the funds of large companies such as Sumitomo Life and Tokyo Life are also used for stock market investment.

The Ministry of Finance has extremely strict restrictions on private equity funds and foreign securities investment. In this case, the stock market chips are in the hands of the major insurance companies. Do you think anyone can short the stock market? "

Damn it.

Is the water so deep in there?

So how the fuck did Goldman Sachs win?

Nagano Nao was stunned. For the first time, he realized that his vision seemed a little narrow.

Seeing him in a daze, Iue Ryouta began to get excited: "You haven't started working at the company yet, so you don't know the secret. So I'll tell you a secret. Don't tell anyone else."

"What secret?"

"Speaking of which, there have always been several political parties in the United States, but there are actually only two masters, you should know that."

"You mean Rockefeller and Morgan?"

"Yes. Then do you know where Mitsubishi got the money to buy Rockefeller Center some time ago?"

"Don't tell me that Morgan and Salomon Brothers lost money!!!"

"You're not that stupid! In fact, part of the money used by Mitsubishi Group to buy Rockefeller Center was provided by Sumitomo Life Insurance. Prior to this, Morgan and Sumitomo Life Insurance lost $600 million in the stock index betting agreement."

"..."

Nagano Nao didn't even know what to say.

Mitsubishi just bought the Rockefeller Center some time ago, which was equivalent to a slap in the face of the Republican Party. These Japanese insurance companies actually robbed Morgan of more than ten billion US dollars.

What the fuck!

This means that both the Democratic Party and the Republican Party in the United States were taught a lesson by the Japanese.

What's even more outrageous is that these guys actually used the money they won from Morgan to buy Rockefeller. This seems like a deliberate slap in the face of Americans.

Is little Japan so rampant?

This seems a bit too much!

Seeing that Nagano Nao was shocked by the gossip he knew, Iue Ryouta forgot the sadness of love and felt a sense of superiority.

"I don't know how a straight man could have such a stupid idea to short the stock market, but you have to understand that the Osaka Stock Exchange stock futures have been open for so long, why is the trading volume only 50 billion yen a day?"

"Is it because everyone in the financial industry knows the secrets?" Nagano Nao said with some enlightenment, and he began to understand the differences between circles.

Iue Ryouta laughed: "That's more like a Keio Dragon like me. That's right, since you are planning to work for Daiichi Biosafe, as long as you get in touch with your seniors, you will soon understand that you must not short the stock market. Speaking of which, I know a stupid guy who shorted the stock market in Osaka for three years, and his reason is the same as you said before, the stock price rose too much."

"Three years of emptiness?"

"Yes! What a stupid guy! Even if this guy is a pig, he will definitely feel the pain and change his ways after being taught the same lesson for three years. Even if other pigs see their companions being chopped in the same pit for three years, they will definitely not make the same mistake."

"Asshole, are you calling me a pig?"

"I didn't say that. Haha..."

"In that case, why didn't you make a lot of money from it?"

"Isn't this nonsense? It has already increased so much."

"Then leaving the money unearned would be similar to that guy who has been shorting for three years."

"Please stop. I'm already distressed enough. Come, have a drink. I won't go home until I'm drunk. But I've told you so many useful things. You have to pay for it."

"I'd rather not drink. Didn't you say you were going to buy movie tickets for Miss Mikami?"

Iue Ryouta looked at the time and couldn't help cursing, "Asshole, you almost made me forget such an important thing."

"Wait a minute, I have a condom in my pocket, maybe it will be helpful for you to take it."

"What do I need to get something for?"

"Of course they will. Maybe they will ask you to buy a condom when they book a room, so you can save yourself a trip."

"You have a point."

“…”

Lick the dog!

It’s really awesome!

Watching Iue Ryouta hurriedly leaving with the condom he gave him, Nagano Nao fell into deep thought.

Is it really a good idea to drive up the price of P like this?

Why does it feel like being with the fierce dragon who always praises Qingda is even more humble than being a bug?

on Monday.

The agreed internship begins.

Early in the morning, Kanako Nagano brought clothes into the bedroom, helped Nagano Nao put on his clothes and shoes, and sent him to the door.

"Be sure to pay attention to safety on the road."

As the woman bowed to him, Nagano Nao drove to the Nippon Life Insurance Company.

Standing downstairs.

Look at the skyscrapers dozens of times.

Nagano Nao secretly clenched his fists.

I talked with Ryouta Iue for so long yesterday, and I still got a lot of useful things.

Although it is still unclear how Goldman Sachs was able to defeat Japan in its completely intimidating stock market, this was undoubtedly a huge opportunity.

After all, if I short sell, I may make money but not live to spend it, but if I let the company and Goldman Sachs go long, both sides will definitely like me very much...

.......

Chapter 37 Planning Department

Next.

When Nao Nagano had nothing to do, he began to understand in depth what Iue Ryouta had said. Through newspapers and some memories, he was able to sort out a lot of useful things.

In 1984, the Ministry of Finance and the U.S. Treasury jointly established the "RB Dollar Yen Committee". Through this committee, the United States submitted multiple reports to Japan, provided all-round consultation, and guided the specific operations of financial opening.

This committee ultimately helped Japan promote the internationalization of the yen.

With the signing of the yen/dollar agreement, Japan's financial market opened up, mainly including interest rate marketization, allowing foreign financial institutions to enter the RB and money markets, promoting the internationalization of the yen, issuing international bonds, relaxing foreign exchange transactions, and relaxing restrictions on direct investment.

In April of the same year, Morgan Stanley established a Tokyo branch and was granted a securities business license; in December, the underwriting of Japanese yen bonds was opened to foreign institutions.

In 85, the government issued a notice on the current situation and prospects of financial liberalization and internationalization of the Japanese yen.

With the relaxation of international capital controls, the cost of issuing bonds in overseas capital markets for local companies is lower than in China, and the scale of funds they obtain continues to expand. Under pressure from competition, the Ministry of Finance has been forced to abolish the corporate "suitability for bond issuance benchmark" and stipulate that any company can issue corporate bonds as long as it obtains a credit rating from a credit rating company.

In this context, the convenience of social financing conditions pushed up the overall social leverage ratio. In addition, Japan is the largest creditor of the United States. After the signing of the agreement, the yen exchange rate rose by more than 5% annually. A large amount of hot money poured into the stock market and real estate industry, bringing about a crazy rise.

In October 87, the Ministry of Finance announced the implementation of a series of financial liberalization measures, including margin trading and securities lending, and Morgan Stanley was the first to be approved for margin trading and securities lending qualifications.

Last year, that is, in 88, TOPIX futures and Nikkei225 futures were established, and both foreign and domestic institutions were allowed to enter the market.

Sort these things out.

Nagano Naoio roughly understood what Iue Ryouta meant by what he said.

Obviously, in the eyes of Wall Street, the TOPIX stock index futures of the Tokyo Stock Exchange and the Nikkei225 stock index futures of Osaka are both good short-selling tools.

But Wall Street miscalculated one important thing.