The Japanese government has put up more than 200 billion US dollars of foreign exchange reserves, so Kyle certainly cannot sit idle.
On the one hand, he began to formulate plans for the next stage, and on the other hand, he analysed the causes of the financial crisis in Japan.
What?
Do you think Kyle still has the time to analyse the reasons for the crisis?
Of course!
"If you know the facts but not the reasons behind them, you will not be able to find opportunities in the cracks of crises!"
For most crises, especially the Asian financial crisis, one of the main reasons is the worsening of asymmetric information problems, which has led to an extreme deterioration in the asset-liability situation of key financial factors.
Especially private financial institutions!
They are a complete mess, and to make money and profit, they open lending services with no regard for the consequences.
Excessive financial liberalisation, which leads to a surge in borrowing supported by capital inflows, is the beginning of all financial crisis processes.
Without saying anything else, this is how many Japanese banks have performed in just a few years.
To make high profits, banks continue to open up lending!
That's right, it's borrowing, or lending.
And the loan service is widely open!
Even if your mortgage value or personal credit limit is not enough, it does not matter. As long as the bank thinks it is profitable, it will dare to lend you money and lend you a large amount.
In just a few years, Japanese banks' annual profit margins exceeded 45%. The pursuit of profit led to a sharp increase in loan ratios, resulting in widespread bad debts and illicit loans.
"What?"
"You want to borrow money from our bank?"
"Sure."
"Just borrowing 10 million yen, how can that be enough? You're too stingy. Don't talk nonsense, even if you ask for a loan of 100 million yen, we can afford it."
"Oh?"
"You said your assets aren't enough to cover a 100 million yen loan? No problem, we'll help you out. However, the interest rate will be a few percentage points higher than normal. Is that acceptable?"
Man, look at this, this is why the banking industry in Japan's financial industry is booming.
You need to know one fact, that is, the money loaned by the bank is actually the depositors' money!
They don't worry about not being able to collect the money they lent out. After all, this is the money that the public has deposited in the bank, not the personal money of the bank employees. Even if the bank eventually goes bankrupt, it can still make a lot of money, and it is not the employees themselves who will suffer the loss of assets.
"As long as we can make money, who cares whether the depositors can get their money back safely?"
This was a popular phrase in the Japanese banking industry in the mid-to-late 1990s.
In short, the Japanese banking industry's large-scale opening of lending services is a major reason for the damage to Japan's foreign exchange market.
"Hehe~"
Kyle looked at the data in the report in his hand and said to Henry in amazement, "Wow, it's only been three months since the Southeast Asian financial crisis broke out, and only half a month since the Japanese foreign exchange market plummeted, and 22 of these Japanese private banks have gone bankrupt?!"
What does the collapse of 22 private banks mean?
Everyone knows that this means that all the money depositors have deposited in the bank is gone!
Where are you going?
Of course, it went into the pockets of bank employees and the national speculators involved in the financial crisis. Well, some of it also went into Kyle's account.
"Boss, I estimate that even if Japan can survive the financial crisis this time, the number of its banks that will go bankrupt will definitely not be less than 40." Henry judged from the side.
Kyle chuckled and didn't say much.
Kyle is a time traveller. Even though he cannot know the number of banks that went bankrupt during the financial crisis, he dares to make a bold judgment: the number of banks that went bankrupt in Japan is definitely not less than 60.
Far more than the 40 companies Henry judged.
In short, the Japanese suffered a lot this time!
Kyle and his international speculators will never give up unless they take away three feet of your land this time!
The Japanese government is using $200 billion to rescue the market. Is it trying to stop us from getting rich?
You try it!
....
Around 10 am on the 25th.
That is, one hour after the Japanese Ministry of Finance announced the launch of the rescue plan, it immediately invested hundreds of billions of dollars in the foreign exchange, futures and stock markets.
Matsushita Shinmotoji, a 52-year-old financial advisor to the Japanese government, immediately stated in the media: "We are not a small country in Southeast Asia, we are a global power. We are confident that we can defeat any country, region, or investment institution that dares to provoke us."
"Our government has used $200 billion in foreign exchange reserves, which is the third largest in the world."
"You mean the Wall Street clowns?"
"You heard me right. In my eyes, they are nothing but clowns. If you don't believe me, just wait and see!"
Regarding the remarks made by financial expert Matsushita Shinmotoji, Japanese people are naturally full of confidence, believing that this is the truth.
However, several investment banks and international speculators, including Kyle, scoffed at this!
Even if we cannot unite our trillions of dollars of international free capital, even if we cannot work together and act in unison, it is not certain that a mere 200 billion dollars will be enough to successfully rescue the market.
In the following period of time, the Japanese yen foreign exchange market completely turned into a battlefield in full swing, the kind of type where a shocking battle took place.
Did the Japanese Yen rise sharply?
It did rise, but before it could rise much, it was instantly suppressed.
You invest heavily and we follow suit. Before you can react, we sell at a high point and continue to make profits.
Absolutely delicious!
No matter how much the Japanese government invests, the capitalists led by the five major investment banks can handle it.
One day!
For a whole day, Japan's three major markets, foreign exchange, stock market, and futures, were in a mess!
As of 10 a.m. on the 26th, the Japanese yen appreciated by 1.2% in 24 hours.
Did the Japanese government win?
Win nothing!
Just a 1.2% appreciation costs nearly $20 billion in foreign exchange reserves.
Looking back at the international speculators and investment banks, some of them did suffer considerable losses, but there were also giants like the Big Five investment banks that made direct profits of hundreds of millions.
Kyle's Gale Capital did not suffer any losses today due to several good entry points, but instead made a small profit.
Not much!
But it's still 3 million US dollars!
...
On the 26th, the Japanese government invested another $15 billion;
On the 27th, the government invested $13 billion;
On the 28th, another $17.5 billion was invested
...
Ends November 8th.
The US$200 billion bailout funds launched by the Japanese government have basically been spent, and the overall foreign exchange ratio of the Japanese yen has not increased significantly.
This is essentially a failure!
A series of financial experts and people in Japan were completely dumbfounded.
"Baka!"
Matsushita Shinmoto, a 52-year-old Japanese financial expert, roared with astonishment, "Impossible! How could our country's market fail?! It's fake, it's all fake! This is definitely not true. I firmly believe it!"
At this moment, refutation and shouting are completely the rights of losers.
On the Japanese TV evening news that day, the Japanese Minister of Finance made a direct and painful announcement - the rescue plan had failed.
At this moment, the Japanese people are crying bitterly;
At this moment, investment banks on Wall Street and around the world are popping champagne to celebrate!
Soros said loudly in front of everyone at the Quantum Fund: "Japan has now become a delicious cake that we can take whatever we want. Guys, now is the time to usher in our harvest season."
"Yes, boss!"
...
Gale Capital.
At the same time, Kyle stood in front of everyone and shouted, "Guys, what are you waiting for? The Japanese have spent their $200 billion in foreign exchange. Now she is like a naked girl. We can do whatever we want to her!"
"Hurry, hurry, it's time to make money!"
Quantum Fund, Gale Capital, the five major investment banks on Wall Street, including investment banks and individuals around the world, were so excited at this moment that they almost fainted.
The opportunity to reap a great harvest has arrived!
Heaven collapsed and the devil came to the world. There is no doubt that the people on Wall Street turned into devils and began to enjoy the delicious food.