Rebirth 79: I opened a bank in the United States

"Mr. Lynch! Long time no see! I brought you some special products brought back from Korea. It's good for your health to make tea!"

Carrying two boxes of ginseng of unknown age, Carter and Lee Jae-yong stayed in New York for three days before transferring to Boston.

At Fidelity's offices, Carter made an appointment with Peter Lynch.

The polite greetings came to an abrupt end after Carter introduced Lee Jae-yong
"I just came over from New York and went to the New York Stock Exchange to check. The Dow Jones Industrial Index alone has almost exceeded 2500 points! The average daily increase is more than three points, which is too exaggerated!"

"Who says it's not, but even if we know that this is a bubble that is getting bigger and bigger, we have nothing to do!"

Peter Lynch spread his hands with a chuckle. With the growth of the Magellan Fund, more and more fund investors he is responsible for!So much so that even if he discovered the existence of the problem, he would not
"All I can do is to give my investors some early warnings of losses. I can't do more! In other words, Fidelity will not allow me to bluntly tell my concerns. Investors! Do you know how many investors Magellan has now?"

As a large investor in the Magellan Fund in the early years, although Carter later redeemed his fund shares.But this friendship has been preserved!

Or maybe there is no interest-related reason, but Peter Lynch is more willing to complain to Carter about his troubles.

"I can only say that it must not be too little! I remember that at the beginning of the year, Magellan's volume had exceeded 100 billion US dollars!"

"That's right, this huge volume is bound to more than 90 investors! It's also 90 Fidelity customers! The large volume makes it impossible for me to turn around even if I smell the crisis coming! $100, $100 A value of 100 US dollars and [-] billion US dollars are not a concept at all!"

Peter Lynch sadly brought two cups of coffee and placed them in front of Carter and Li Zayong.Regardless of Lee Jae-yong, he was amazed that in such a small, crude office, a seemingly innocent and honest guy had the expression of more than 100 billion US dollars of capital flow in his hands.
Peter Lynch jumped onto the desk straight away, and sat at the desk like this, dangling his legs, trying to relax himself:
"Even in such an environment where all stocks are rising sharply, in the eyes of ordinary people, it is definitely a big bull market environment. It is not easy for me to make a decision to reduce my holdings, because it will make clients question my ability as a fund manager!"

"Especially Fidelity will not allow you to do this! Perhaps insisting, or persuading them to redeem their shares, is your conscience finding out that you are considering the interests of customers. But for Fidelity, for them, in At this hot time, they will never stop because of your warning. There is a high probability that after redeeming the shares of the Magellan Fund, they will switch to another one. They may not see the risk, or they may see it, but they don’t care. in the fund"

Taking a sip of coffee, Carter understood Lynch's helplessness too well:
"But this, for Fidelity, means the loss of customers. If they are kept in Fidelity's funds, even if the bubble bursts and there is a loss, it is not for the Fidelity family. To lose, Everyone will lose together! Although the income will decrease, the customers are still Fidelity customers! Even if Magellan performs better and loses a little less, it will still become their firm choice of investment in the future!"

"Yeah, recently I have communicated with Julian, including Soros. Except that Soros has recently shifted his focus to the foreign exchange market, Julian's thoughts are similar to mine. We are all helpless against this situation! Now all The work has already focused on how to keep the books on the books, appear to have less losses, and judge when the bubble burst will probably burst, and how long it will take to recover!"

"It's hard to say when it will burst, but I think it will be soon! An overheated market will make people vigilant, and more and more people will realize that this will be a big bubble! But I have a guess about the time to fix it. "

Carter put down the coffee cup with a smile, but he didn't make a fool of himself:
"Next year will be the presidential election year. It just so happens that my senior brother, Mr. Bush, is going to run in next year's general election. So, regarding the abnormal rise in the U.S. stock market, I will give him a break and remind him to be prepared, such as contacting the Federal Reserve in advance. Chairman Paul Volcker has communicated well, and Secretary Baker is ready to rescue the market!"

"I have to say, this is the best news I've heard in a while!"

“But there are not so good places”

This time, Carter had a real smile on his face!Suddenly, I found out that teasing these big cows in history is really a lot of fun!
"You and I are well aware of the current federal financial situation. Funds are needed to save the market! The federation alone can't afford much money now. To restore the confidence in the collapse of the market after the big bubble burst, the amount of funds needed is in the end. How big it will be is simply impossible to predict! So, rather than reminding Mr. Bush to make a good reserve of funds, it is better to say that I suggest him in advance to communicate with the Federal Reserve now to make a good plan to increase the money supply. Get ready! The money printing machine has been out of service for a few years, and it's time to oil it up!"

"I also communicated with Finance Minister James Baker on the phone. He didn't comment on my idea, but this is actually acquiescing! He knows that his Ministry of Finance can't afford money, and the increase in money supply brings Currency depreciation, look at what he's doing now, he's not worried about that, is he?"

For a finance minister who is devaluing the US dollar currency to oppress countries with trade deficits represented by Japan.If the dollar depreciates even more, it may cause him a headache in the future, but right now, this is just in line with his plan!

In the future, I will have a headache when the value of the US dollar depreciates too much, how to pull it back!If he disagrees with the issuance of additional US dollars, then he should have a headache now, how to solve the problem of the financial bubble that is about to burst!

There is no resistance here, so this is naturally not bad news.But what about another place?

"Paul Volker!"

As soon as Peter Lynch slapped his forehead, he instantly understood what Carter was talking about:

"It must be that fellow Paul Volker, against this!"

Anti-Tong warrior, creator of the usury era, and usury dealer hidden in the federal government, Paul Volker. This is a smelly and hard hemp stalk!
All kinds of methods such as raising interest rates and stopping the increase of money supply are all the most brilliant, brave and awesome achievements in his life!Similarly, as a person, most of the highlights are used as the chairman of the Federal Reserve to fight inflation.

Needless to say, he has more research on inflation, anti-inflation, or fear of inflation will definitely be heavier than the average Fed chairman!
In front of such a grandpa, increase the issuance of currency.
"Hahaha, that's right! It's him. Mr. Bush told me that his communication with Mr. Chairman Volcker was extremely difficult! He was so angry that he even swears, saying that Volcker is a cold French president. Baguettes! It's beyond reason!"