Chereads / Rebirth as an American Tycoon / Chapter 312 - Chapter 312: Chaotic Market

Chapter 312 - Chapter 312: Chaotic Market

"Sir, your debt ratio is increasing; we need to secure our margins," Filson said.

"Filson, finance and real estate aren't where the real value lies. To put it bluntly, it's just a game of hot potato -- we're going to redirect our investment into the real industries, like cars, using the money from Mark and yen," William White replied.

"So, you're saying you plan to significantly reduce the proportion of financial assets in the future?"

"Naturally, we need to invest in the auto industry and other capital-intensive sectors. Keep an eye on things; once the yen stabilizes, we'll need to divest."

"Got it. I'll take care of it right away." With that, Filson felt relieved; the boss had been a bit reckless this time. Although it might have a deterrent effect, the losses would be substantial.

Getting rich was certainly easiest through financial means. Getting into industry would be fraught with troubles. If he really went after a car company like Chrysler, he'd be taking on a heavy burden.

The rise of the markets in Japan and Hong Kong surely brought him wealth. Yet, that wealth was fleeting; it was best to go in quick and get out even quicker, especially with Japan. Don't wait until the last moment.

...

The news that the richest man was investing in the industry, while not shocking, certainly stirred some waves. Overall, not many were optimistic. Everyone was wary of his immense capital.

If he could create an auto group out of thin air, he could just as easily create a chemical trust by following the same blueprint.

They couldn't understand why William White was acting this way. They had their own theories about whether finance could generate wealth. If they only knew what was on his mind, they probably would have laughed maniacally.

...

From an academic standpoint, sure, William White couldn't argue with them. 

When property prices soared to a certain extent, the competitiveness of enterprises naturally diminished. If the auto industry could uplift dozens of related sectors, real estate could lift hundreds.

But with such high rents, who could still run a small business? 

Traditional shops couldn't stay afloat because the rent was too steep. Housing prices pushed away laborers, who couldn't afford the high costs.

So, there's nothing inherently wrong with speculation; just don't take it too far. If you really push your luck, big trouble could arise.

Now, the folks in Japan were heading straight into that abyss. After a year of hard work, they felt pretty good about themselves. Then they went home and saw the house their wives had stubbornly purchased last year had skyrocketed by over 25%.

After working so hard for a year, they earned way less than their wives. What was most absurd was that it seemed to go up every single day.

Thus, the real estate army only grew stronger. 

...

"Sir, we might need to revise our targets," a subordinate mentioned.

"What's up? Did the Japanese folks do something crazy?"

"Sir, I honestly don't know how to explain it; all investment banks have raised their expectations."

"Well well, are they trying to blow Japan high into the sky?"

Filson was at a loss for words. If the office buildings remained stable, the residential market was ridiculous, changing prices almost daily.

"Alright, let's just wait a bit longer. The exchange rate isn't settled yet; were they planning to go all in on yen assets like that?"

"Not just housing prices; the stock market is clearly on an upward trend. It's not just one sector that's optimistic; the entire industry is booming."

"I'm curious if these guys plan to replace the NYSE's position."

Filson was left speechless. If the U.S. stocks hadn't been doing well, it wouldn't have ruled out that possibility. He truly couldn't wrap his head around this Plaza Accord -- was it meant to prop up the U.S. or were they pouring medicine into Japan?

But none of that mattered anymore, since the boss decided on a dual approach, divesting from Japanese assets became inevitable.

Not long ago, he felt the loan ratios were high and posed a certain risk. In under a month, it seemed that risk had vanished. Yet, everything was utterly insane. If the exchange rate hit its target, how much would the boss actually make?

Filson swallowed hard, his throat parched. All he wanted to confirm was that this wasn't some fever dream.

...

"Sir, Legendary World has abandoned its royalty system. Any company or individual can now develop games on the PS1 system. They've also announced that the PS2 is a 16-bit system and will no longer be compatible with PS1 games, nor with any software other than Legendary World," an employee reported.

"Are you sure about this? Isn't the hearing still a week away?" the subordinate managed a wry smile.

"Sir, our analysts believe this hearing won't lead to any conclusions. Legendary World can stall this matter, and the earliest resolution won't come until late next year."

"So what? Can someone tell me what exactly happened?"

"Sir, I think he's gotten himself ready for this. If so, it'll put the Justice Department in quite an awkward position."

"Awkward?"

Well, there weren't many fitting terms to use. Should one say foolish? Or perhaps this was the antitrust version of The Shawshank Redemption?

How deeply do you distrust the Justice Department to act this way?

After spending all that time and money, this is the outcome? How do you think the public will feel? Most importantly, you can do whatever you want with your own money, but the Justice Department isn't yours.

As potential beneficiaries, numerous game developers looked ashen.

"Any individual or company?"

Come on, do they think we haven't suffered enough? The reason the Legendary World platform was attractive was not only due to its vast user base but also because of its scarcity of game resources. They firmly believed that it wouldn't take long before the market would be flooded with video game cartridges.

Honestly, it must be said, there were certainly a lot of smart people around. It's just unfortunate that they still misjudged the situation.

On the third day after Legendary World released its announcement, an unknown game company began distributing products.

At this stage, the events couldn't be controlled anymore. Unlike the games from Legendary World, these new games were very cheap, with the most expensive ones costing no more than $9.99. As for the quality of the games, you shouldn't expect much.

That's the current state of the gaming market. No matter how you look at it, the variety of game cartridges was quite tempting.

According to reports from consulting firms, market sales figures skyrocketed by at least twofold in just two weeks.

Surprisingly, the general negative feedback from users was ignored by everyone. In this harvest season, no one could stop them from cashing in.

As for that absurd hearing? That naturally wrapped up hastily.

The bystanders were furious, expecting a big show, not this lackluster conclusion. What did it all mean?

The office was in disarray.

As for its owner?

Unfortunately, someone ended up back in the hospital. Unlike last time, no one paid any attention to this unlucky fellow.

Encountering someone who constantly played by their own rules was truly unfortunate for him. All prior arrangements lost their significance, resulting only in chaos.

Thus, a chaotic market was born. There were no more constraints or reviews, and everyone seemed to be having a wild time.

Of course, there were those who were wise to the situation. The current players were left scratching their heads. They had no idea how to navigate this market, but they did know one thing: this heat wouldn't last much longer.

Wall Street elites were also unprepared, unsure why things turned out this way. If you were willing to choose an open system, why would you want to act like this? Were they just bored?

This so-called unknown game company was merely a subsidiary. What was the reason for their actions? Was it truly necessary?

What they really cared about was how many game cartridges this guy could potentially sell.

As for this company's future?

Well, it was clear: the PS2 wouldn't be including them; if they had any complaints, they could take it to the Justice Department, which welcomed whistleblowers.

A bunch of fools were naturally very unhappy, but unfortunately, the head of the Justice Department was in the hospital. No matter who took over the task, they might not be willing to tread these murky waters.

Furthermore, the company just stated it was still a proposal, not finalized. Did they want to humiliate us some more?

*****

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