PDLP Chapter 54 The Clouds Over Wall Street
Chapter 54 The Clouds Over Wall Street
(Thanks to "Liang Wang who likes green fruit" for the great author certification! Thank you to "staying up all night to watch Liu Bei" for the great author certification! Thank you to "Jia Bei Li Meng" for the 20 consecutive update reminders! Here's an extra chapter~)
In October 1987, Tokyo had just weathered a powerful typhoon.
It was late at night in Chibada Ward, and the rain was still falling.
The torrential rain washed over the ancient black tiles of the Saionji main family residence, and the bamboo grove in the courtyard made a teeth-grinding screech in the gale, as if countless ghosts were wailing outside the window.
In the study, the warm yellow light of the desk lamp dispelled the damp chill.
Shuichi sat at his mahogany desk, holding a newly delivered quarterly financial report. The cover bore a gold-embossed logo.
SA Group (Saionji Group)
Below is a densely packed list of subsidiary names: SA Entertainment, SA Logistics, SA Investment, S-Collection...
"Satsuki".
Xiu put down the report, took off his glasses, and rubbed the bridge of his nose.
"I remember six months ago, you specifically instructed that the name 'SA' must be kept absolutely secret. Apart from a few core members like us, no one outside the family should know about its relationship with the Saionji family."
He pointed to the exquisitely printed report.
"But now, S-Collection merchandise is everywhere, and SA logos are sprayed all over the shipping containers in Shimokitazawa. Even Yoshiaki Tsutsumi knows we're doing this."
"Is this okay? What if someone accidentally uncovers SA Investment's overseas operations...?"
Xiu was somewhat worried.
After all, SA Investment has a huge amount of US dollars in its Cayman Islands account that would drive the Japanese National Tax Agency crazy; it's the spoils of their frenzied harvest in the US stock market.
"Father, have you heard the story of 'Leaves Hidden in the Forest'?"
Satsuki sat in the high-backed chair opposite her, casually fiddling with the Rubik's Cube in her hand.
"Six months ago, we were like little mice. If we ran around the streets with a huge sum of money, we would be eaten by cats. So back then we had to hide in burrows, which is what is called 'secrecy'."
"But things are different now."
"Click".
The Rubik's Cube rotated once.
"We've grown up. An elephant can't be hidden. Since it can't be hidden, let's dress it up in a circus costume."
Satsuki pointed to the report.
"What is SA in the eyes of outsiders now? It's a cutting-edge business group that sells trendy T-shirts, runs karaoke, and signs underground singers. It's a 'fashion toy' created by the Saionji family to cater to young people."
"This identity is the best camouflage."
A sly smile curled at the corner of her lips.
"While everyone is focused on that 30,000 yen T-shirt in the Shibuya store, discussing what kind of cotton it's made of, who cares how many Microsoft shares SA Group's subsidiary registered in the Cayman Islands called 'Investment' actually bought?"
"This is what they call 'the truly wise live in seclusion amidst the city.'"
Xiu was stunned for a moment, then suddenly realized.
Using high-profile real industries to cover up low-profile finance.
The brighter the S-Collection signboard is, the darker the shadows will be.
"Of course, I'm also on guard against capital from Wall Street. But their tactics... I happen to be quite familiar with them."
"You child..." Shuichi shook his head, automatically ignoring the question of why a teenage girl would be familiar with Wall Street.
"bell--!!!"
Just then, the red secure phone in the corner of the desk suddenly rang.
The piercing ringing of the bell sounded particularly terrifying on the stormy night.
This phone line connects directly to New York on the other side of the ocean, and only one person will call.
Shuichi's expression instantly turned serious. He glanced at the clock on the wall.
Tokyo time, 11 p.m.
10:00 AM New York time.
US stocks have been open for only half an hour.
Satsuki put down the Rubik's Cube, jumped off the chair, and went over to pick up the receiver.
Press the hands-free button.
"Satsuki."
"Frank."
The noise from the other end of the phone was deafening. The background was filled with traders' shouts, the beeping of the price quote machine, and the incessant ringing of the telephone.
Frank's voice sounded urgent, even with a slight, almost imperceptible tremor.
"Boss, something's not right."
Frank cut to the chase without beating around the bush.
"The opening today was too weak. The Dow Jones has been steadily declining. And... did you see the news? The German central bank just hinted at raising interest rates. Those Germans are crazy! If they raise rates, the dollar will plummet, and capital will flow back to Europe!"
"Furthermore, the yield on US long-term bonds has broken through 10%! Damn it, that's the risk-free rate! If you can get a 10% return by buying Treasury bonds, who the hell would buy high-risk stocks?"
Frank's heavy breathing came through the receiver.
"Boss, my gut feeling tells me a storm is coming."
"We have too much profit-taking on tech stocks. Microsoft, Oracle, Cisco... these stocks have already tripled this year. Now the market is full of profit-taking selling pressure."
"I suggest reducing your holdings."
Frank's tone became earnest.
"Sell half...no, sell 70%. Secure your profits. We've already made enough; there's no need to risk everything for that last penny."
The study was very quiet.
The only sounds were the rain outside the window and Frank's heavy breathing on the other end of the phone.
Shuichi looked at his daughter.
Although he didn't understand the complex indicators of the US stock market, he could hear the fear in Frank's voice. It was the instinctive reaction of an old hunter facing a forest fire.
Satsuki did not answer immediately.
She extended a finger and tapped it lightly on the table.
"Da, da, da."
The pace was steady, completely unaffected by Frank's emotions.
"Frank".
Satsuki finally spoke. Her voice was as calm as ice.
"I'm not selling."
"What?!" Frank's shocked voice came from the other end of the phone. "Boss! Didn't you hear what I said? Long-term bond yields have broken 10%! This is a sign of a crash! If you don't run now, you'll be stuck when the elevator cable breaks!"
"I will not sell those core assets."
Satsuki repeated it, her tone leaving no room for argument.
"Microsoft, Cisco, Oracle. Not a single share of these three stocks may be sold."
"but……"
"Let me finish."
Satsuki interrupted him.
"My not selling doesn't mean I'm not making preparations."
"Frank, I need you to do something."
"Sell all those junk bonds and those second-tier blue-chip stocks you bought because of the hype. I need to see cash."
"Then."
Satsuki paused, a glint of madness flashing in her eyes.
"Take our core technology stocks and go to the banks. Get mortgage loans."
"A mortgage?!" Frank's voice cracked. "Adding leverage now? Boss, if the stock price falls below the margin call level, we'll be liquidated! We'll be left with nothing!"
"Based on the current stock price, what is the collateral ratio that can be achieved?" Satsuki ignored his warning.
"...about 50%." Frank answered instinctively.
"Do."
"Pledge the stocks and get US dollars in cash."
"Adding the funds you recouped from selling off junk stocks, I want SA Investment's account to be overflowing with cash."
"All of them are demand deposits with the highest liquidity."
There was a long silence on the other end of the phone.
Frank was clearly bewildered by this instruction. He didn't understand why, if they sensed the risk, they wouldn't just sell the stocks and cash out directly, instead of resorting to such a high-risk method as mortgaging to obtain cash.
It's like watching your house catch fire, not only not moving out, but also mortgaging the house to the insurance company to get a bunch of fire extinguishers in return.
"Boss..." Frank's voice was a little hoarse, "What do you want to do?"
"I'm waiting for an opportunity."
Satsuki looked out the window at the dark, rainy night.
Lightning flashed across the sky, illuminating her tender little face.
"Frank, do you know what's most important in hunting?"
"It's patience."
"It is indeed the eve of a storm. Most people will be scared to death in the storm, or they will panic and run around aimlessly to avoid danger."
"However, after the storm, countless fish washed ashore by the waves will remain on the beach."
"Those high-quality assets that were wrongly sold off due to panic, those crown jewels that were forced to be sold at a discount due to liquidity shortages."
"In the end, only those who hold cash in their hands will be kings on the beach."
Satsuki slammed her fingers down on the table.
"Execute the command."
"Get the money ready."
"It'll probably be around mid-October. That day is almost here."
"...Yes, Boss."
Frank eventually gave in. Although reason told him it was a gamble, the Eastern ghost known as "Satsuki" had never been wrong in the past year. Every single one of her predictions had ultimately proven to be divine pronouncements.
"I'll take care of it. Wish us luck."
"beep--"
The phone hangs up.
The study fell silent once more.
Shuichi looked at his daughter and felt the hairs on the back of his neck stand up.
"Satsuki..."
He spoke with some difficulty.
"You mean the US stock market is about to crash?"
"A collapse?"
Satsuki turned around, picked up the Rubik's Cube, and turned it a few times casually.
"No, that's not a collapse."
"That is a gift from God."
She looked at the calendar on the wall.
Today is February 10.
There are twelve days left until "Black Monday," the day that terrifies the global financial world.
At that time, the Dow Jones Industrial Average would plummet by 22.6% in a single day.
Back then, countless Wall Street elites would line up to go to the rooftop.
At that time, assets all over the world were being sold off at a discount.
And SA, this behemoth cloaked in fashion, will open its bloody maw while everyone else is busy fleeing for their lives.
"Go to sleep, Father."
Satsuki placed the Rubik's Cube on the table; all six sides were the same color, and it was perfectly solved.
"The wind and rain outside will continue for a while."
"What we need to do is polish the guns."
"Then, wait for the gun to fire."
Shuichi watched his daughter's small figure walk out of the study.
The rain outside the window intensified, accompanied by thunder.
But he knew that compared to the impending financial tsunami across the ocean, this typhoon was nothing more than a gentle breeze.
SA Investment.
This "illegitimate child," shrouded in the glamorous guise of S-Collection, will finally reveal its true fangs to the world in twelve days.