[Chapter 571: The Foot Basin Bank is Over]
After a long while, Lee Kun-hee felt he had a clear understanding of William White. He regretted that Samsung didn't clash much with White's system. That arrogant American was just a bit too controlling.
Looking at the current state of the Japanese, despite their suppression, many were still making good money. Some game manufacturers doing contract work for him had profit margins even higher than his.
It seemed that it wasn't just their Samsung Group. South Korea needed to improve its relationship with America. In his eyes, throwing away those orders from Taiwan could end up benefiting Samsung.
However, being a dutiful subcontractor was not what he wanted. Becoming a company like Sony was what he pursued.
One had to say, Samsung's development was precisely in sync with the pulse of the times. ....
Nowadays, Japan didn't have the energy to manage its relationships with South Korea. After the stock market crash, the real estate market also began to decline. Although the decline wasn't as severe, cashing out became very difficult.
Banks were startled three times a day. At first, they were reluctant to give loans for real estate, but now they didn't intend to release any loans at all.
Some said it didn't matter whether the place they lived in appreciated or depreciated. It seemed to have no relation, right?
If the value of collateral decreased, you needed to increase the collateral. This meant that if real estate prices dropped even by just twenty percent, you would have big troubles.
Those who bought a few years back were better off. As long as they hadn't increased their borrowings, they could still maintain the situation. But if they bought last year, there was nothing left to say -- better declare bankruptcy ASAP! The longer you dragged it out, the bigger the trouble became.
"Sir, after William White's bank refused loans and collateral, the banks in Japan have also tightened credit. Our office buildings there can't be cashed out in the short term. If prices drop again..."
"Ugh, we're in trouble this time. By the way, how's Rockefeller doing?"
When people were down on their luck, they always hoped to see someone worse off. Richard Fisher, after taking over at Morgan Stanley, had to first deal with the mess left by his predecessor.
"Sir, they're not having a good time. The money from selling parts of Rockefeller Center is almost used up. If that runs out, they may continue selling off assets."
"Ha, isn't William White looking to acquire the oil industry? Nowadays, not many have more money than him."
"Sir, he seems to be very wary of Rockefeller's properties. Forget about acquisitions; he isn't even interested in consulting on prices. I heard they're negotiating with Japan, and if that goes well, Rockefeller Center may just become White Center."
"Ha, is this guy just out to slap faces?"
"Only the other 20% of shares are hard to acquire. Otherwise, ha-ha."
...
The two gossipy guys were thinking too much; how could William White possibly jump in now? Many of the banks struggling in Japan were already quite solid and temporarily unaffected.
Of course, if a wave of small and medium bank failures expanded, then large banks and consortiums would also suffer.
"Sir, this time, the banks in Japan are going to be in trouble."
"Hmm, why is that? The stocks are down, but it shouldn't affect the banks that much, right?"
"Sir, there are significant issues with their financial statements and loan contracts. I suspect they don't have enough reserves at all."
"Cough-cough." William White wore a grim expression; in his impressions, the Japanese folks were always quite serious and meticulous. It wasn't surprising for Wall Street folks to do such things; one of their professions was being con artists.
"Is it really that outrageous? Damn, let's hope they have deposit guarantees." Looking at Filson's expression, William White knew it was probably true.
"Conservatively speaking, at least twenty percent of banks will have problems. The savings rate in Japan is still quite high; if a bank run happens, it could spell big trouble."
"Ha, what do those so-called experts say? It'll stabilize by year-end. But it's already the end of the year, and I feel like things are getting worse."
Filson wanted to say that those so-called experts had many ties to Rockefeller. Their boss had become a landlord through real estate speculation, and of course, their underlings would back him up.
"Too bad their financial system is too closed off. In this phase, acquiring a bank in Japan would practically be a gift."
Hearing his boss complain, Filson didn't know what to say.
Acquire a bank in Japan? Don't be ridiculous; the biggest landlords were these banks. If the boss actually did that, he would surely be laughed at by those big shots.
The uninformed public might not get it, but how many in the conglomerates didn't understand? The current real estate market in Japan had practically no transaction volume. When those banks couldn't hold out anymore, property prices would naturally collapse.
The peculiar situation in Japan could truly be described as a dying industry. Most inexplicable was that several of William White's enterprises had not been significantly affected.
Disneyland was still crowded, and comic magazines remained hugely popular. Although game console sales had declined somewhat, it wasn't too severe.
Is it better to actively pop the real estate bubble or let currency devalue slowly? Subsequent generations will find the right answers to this problem. Of course, there was a principle: you couldn't let prices surge too wildly.
When you earned three thousand a month, a five thousand per square meter house would feel too expensive. But when you made ten thousand a month, if the house was fifty thousand per square meter, I guess at that point, there would be nothing left to say but despair.
Well, you might also feel like giving a good beating to those so-called experts who urged you not to buy a house.
Damn it, after saving for over ten years, you suddenly realized that safety couldn't keep up with rising house prices.
Alright, you seriously calculated again. It wasn't worth it to buy a house with the money in the bank. Even with just a 5% yield per year, that money could cover your rent comfortably.
What will happen next? Heh, only heaven knows.
*****
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