Rebirth: Japanese investor

   Chapter 712 The Domino Effect

   One after another call came into Kishimoto Masayoshi's office one after another. All he heard on the phone was related to the slump in South Korea's stock market.

   Minamino Takayuki and Takahashi Kazuya saw that he was so busy, so they didn't stay to continue to disturb more, and each went back to their own department to continue their work.

   As soon as lunch time came, Masayoshi Kishimoto went to Makoto Natsui. In the past, he was in Ueno, Taito, but now he is Roppongi, Minato. The house has changed, but the people are still the same.

As soon as Kishimoto entered the door, before he had time to change his shoes at the entrance, Natsui Makoto hurriedly took a small step and came to him and said, "The Korean stock market has plummeted. TV TOKYO's noon economic news was only reported. , 18 Korean banks have officially declared bankruptcy."

   Masayoshi Kishimoto changed his slippers without rushing, and blurted out: "It's fast enough! Eighteen Korean banks have already declared bankruptcy."

   "Listening to what you mean, it seems that there will be more Korean banks going bankrupt?" Xia Jingzhenqin asked seriously.

   "The first dominoes have started to collapse, and then they will fall one by one. As for where it stops, it mainly depends on the active rescue measures taken by the South Korean government and the central bank.

   Of course, South Korean chaebols are also a force that cannot be ignored. After all, many commercial banks are their respective companies. " Kishimoto said bluntly.

   "Why aren't you surprised at all? I'm so nervous for you. Once the bank has a problem of insufficient liquidity, the lending will be tightened.

   As far as I know, you have quite a few investment projects in Korea. Among them, the real estate in the three districts of Gangnam in Seoul will more or less have a loan relationship with commercial banks.

   Furthermore, you told me a long time ago that once the stock market plummeted, the real estate market would plummet, and then it would spread to the real economy.

   The situation caused by this kind of stock market crash cannot be controlled in time, and it will cause a Great Depression in the long run. Shops, factories, etc. will close one after another, followed by a surge in unemployment. "Xia Jingzhenqin said seriously.

   Kishimoto Masayoshi smiled and walked towards the living room sofa: "You can still remember what I said to you in the past, it's not easy."

  Xia Jingzhenqin followed him closely and walked inwards, looking at his calm expression, the second monk asked in confusion, "Did I say something wrong?"

   "The real estate industry does need to borrow with banks, after all, it is necessary to carry out an advance financing. The larger the project, the greater the financing amount.

  Hard Gold Construction’s project development in Gangnam Three District, Seoul, South Korea, is indeed a loan from a commercial bank. However, it is not any commercial bank in South Korea, but a hard gold bank under the hard gold group.

   As the saying goes, fertile water does not flow into the fields of outsiders. Even if you want people to earn interest, you will also earn them for yourself. The root cause of this stock market crash in South Korea is that the banking industry is not fake.

  Why are there problems in the banking industry? It's on the credit cards they issue. A person's overdue credit card debt can be completely ignored by any bank.

  What if one million people, two million people, three million people, or even more are overdue? How about not just one bank, but many banks, with their respective overdue credit cards?

   That would cause a big problem for the entire Korean banking industry. The total population of South Korea is only 50 million. If the minors under the age of 16 and the elderly over the age of 60 are subtracted, and only the main economically active population between the ages of 16 and 59 is counted, there will be far less than 50 million people.

   The money that so many people previously spent on credit cards has long since flowed to the people who provide them with goods or services.

   also means that each bank made a transfer payment for them in advance through the credit card center. Today, they can't pay off their credit card debt, which means the bank won't receive the money.

   In addition, commercial banks mainly lend to those enterprises and companies. When the loan time is not up, others can of course not rush to repay it.

Then there are the mortgages lent by commercial banks, various securities and stocks purchased... Its actual cash volume is very small, and it is not as much as imagined. After all, the market value is a one-time thing, and Cash is another thing.

  The bad debt rate of a bank has a control point. If it exceeds the red warning line, it will go bankrupt. Today's Korean commercial banks are not only facing the problem of an extremely high bad debt rate of credit cards, but also have to deal with the crowds crowded to the bank for a cash withdrawal.

  Only relying on the little reserves of commercial banks in accordance with the central bank's regulations is far from enough to cope with the current crisis. "Kishimoto Masayoshi turned around and sat down on the couch.

  Natsui Makoto sat beside him and said solemnly, "Then there is no solution?"

   "Of course there is a solution. The simplest, crude and direct solution is for the Bank of Korea to inject a large amount of loans to various commercial banks."

  Kishimoto Masayoshi is not talking nonsense in front of her. In 2008, the global financial crisis broke out in the United States. That is, the Federal Reserve, known as the U.S. central bank, injected $850 billion, and then gave it to ten large commercial banks in the United States.

   In addition to negotiating with them the annual interest and how many years to repay, they were also forced to accept the additional condition of ten large commercial banks, which is to reduce the content and terms of supervision.

  Otherwise, they would collectively not borrow this sum of money, and the big deal would be to watch the sky crumble. At this time, hundreds of millions of ordinary Americans were unaware.

   "Since it's so simple, why doesn't the Bank of Korea rush to bail out the market?" Xia Jingzhenqin still said something she didn't understand.

   "Who made the Bank of Korea not have so much money? Even if it wants to save the market, there is no way." Masayoshi Kishimoto said with a smile.

   "You lied to me. You must be lying to me. A country's central bank is the only institution that can issue currency. Commercial banks do not have such power. It is absolutely impossible for the central bank to be short of money." Xia Jingzhenqin said in disbelief.

   "What's the use of the Bank of Korea printing the Korean won to inject into the market? That will only increase the current market panic and inflation.

   At this critical moment, whether it is the governor of the Bank of Korea or the president of South Korea, only if the head is kicked by a donkey, will they wantonly over-issue money to the death.

  The South Korean government wants to stabilize the current situation and urgently needs hard currency. I am not talking about precious metals such as gold, but referring to currencies with good international credit, stable currency values ​​and strong exchange rates.

This includes not only the US dollar, but also the Japanese yen, the British pound, and the euro. After all, they belong to the currency basket (as a foreign currency combination for setting the exchange rate reference, the proportion of a foreign currency in the combination is usually based on the foreign currency in the domestic international trade. It is a set of currencies composed of multiple currencies according to a certain proportion) as the benchmark.

   The South Korean government and the central bank have seen that it is better to wait for it instead of pouring foreign exchange reserves into the water. This is because he wants to use the power of foreign aid to stabilize the market and restore investors' confidence in South Korea. " Kishimoto said with a smile.

   (end of this chapter)