Wall Street of the third generation chaebol

Chapter 25

＜ A night of fear. (3) >

Sunday, February 13, 1898 at 6 am.

wall street.

beep profit-

“Suppress it!!!”

“Ahhh!!!”

From midnight to 6 a.m., Wall Street mobs were quickly disbanded by the New York Police Department (NYPD) rioters.

However, instead of using rifles and Gatling machine guns at the mobs, the police only wielded clubs and tore the mobs apart.

“After all, the New York Police Department has become quite docile.”

“What about these guys who weren’t shy about firing their rifles before?”

In fact, the biggest reason Wall Street investors showed up with rifles was the police firing, and when the New York police used only batons to suppress them, there was no need to carry them.

Moreover, the Wall Street mobs were not so large that they were completely disbanded in six hours.

“This…….”

“It burned cleanly.”

Firefighters from the New York Fire Department (FDNY) clicked their tongues as they looked up at the headquarters of the cleanly burned down railroads.

However, he quickly gathered troops and entered the interior to rescue the survivors who would remain inside.

Hundreds of firefighters were deployed for the rescue operation.

Parak-

“Outside! Outside!”

“The announcement was made by JP Morgan Bank and the U.S. Department of the Treasury. Outside! Outside!”

Investors on Wall Street, scattered by the dissolution operation, were able to receive the Wall Street Journal (WSJ) magazine, which is distributed by newsboys.

Investors on Wall Street were frantic and desperate to purchase the Wall Street Journal, with a sense of crisis loosing over the words of JP Morgan Bank’s announcement.

“Give me one!”

“I’ll give you two cents, so give it to me quickly!!!”

“me too!!!”

“I’m first, darling!!”

The Wall Street Journal’s (WSJ) Sunday morning was sold all over New York.

New York newspapers such as The New York Times, New York Tribune, New York Journal, New York World, etc. Washington D.C., including the Washington Post.

All of them carried announcements from the US Treasury Department by JP Morgan Bank.

[ JP Morgan Bank expressed regret over the accounting fraud scandal of railway companies. A total of five funding measures are expected to be fully reviewed. ]

[ The U.S. Treasury Department, the atrocities of railroads are serious crimes that can put the U.S. economy in crisis. The New York Public Prosecutor’s Office announced its intention to cooperate with the special prosecutor. ]

“Hey, hey!!!”

“Do you think JP Morgan Bank will abandon the railroad company? It is almost the same as saying that large banks will reject the full review!!!”

“Is that important? See the statement issued by the Treasury Department. The federal government pulled the sword!!!”

“It’s over…”

It’s really over….

Investors across New York City panicked after JPMorgan Bank’s negative comments and the Treasury Department’s strong statement.

However, investors who regained their composure and continued reading the article were able to find one article that stood out.

“Hedge fund…?”

“fund? Are you talking about the fund?”

But it wasn’t hedge funds that caught their attention.

[Instead, we will do a short sale. ]

Investors on Wall Street immediately fell in love with this short but powerful phrase.

“Short sale? Can individual investors do it?”

“Is that possible! Short selling is exclusive to institutional investors!”

“Then what is this article?”

Investors on Wall Street continued to read the article, half curious and half hopeful.

[Non-borrowed short sale implementation plan for all railroads found to be fraudulent accounting, such as New York Central Railroad, Iri Railroad, etc. ]

[ Class D. Short sale fund public offering. Instead, we will do a short sale. ]

[J.P. Morgan Bank President John Pierpont Morgan In. ]

[U.S. Treasury Secretary Lyman Gagein. ]

[Short selling funds are being accepted by hedge funds, JP Morgan Bank, Federal City Bank, Chase Federal Bank, and First Federal Bank. ]

[Minimum subscription amount starts from $100. ]

“This…this one.”

“The U.S. Secretary of the Treasury and JPMorgan Bank guarantee it, right? First of all, saying that there is an autograph from the US Treasury Secretary is not a scam.”

“You mean we can short sell too?”

A glimmer of hope began to appear in the dying eyes of Wall Street investors. Short selling was a sure win in the crash, as it was recognized that the stock prices of railway companies were going down due to accounting fraud.

They squeezed the rest of the dollar bills in their pockets.

‘It’s an opportunity.’

‘This is an opportunity to make up for the loss!!!’

I don’t know exactly what a short selling fund is. But at least I understood the meaning of short selling instead.

Frankly, in the eyes of Wall Street investors, nothing more, nothing less.

“How much money do you have left in Chase Bank? No, can I live if I bring an emergency fund into the house?”

“For 100 dollars, I can buy it!”

“Hedge funds save us!!!”

“By the way, isn’t today the bank closing day?”

Large banks on Wall Street are usually closed on weekends, but large banks affiliated with JP Morgan Bank opened their doors on a special day today.

Investors flocked to the big banks.

“Is the bank open?”

“Isn’t today a Sunday?”

“Is that a problem? The bank door is open! You should join the short selling fund!”

ur-

Investors on Wall Street rushed into banks like bees, tried to withdraw their deposits, and frantically bought short-selling funds.

The front desk of large banks was abysmal.

“Get out of here, I’m first!”

“I brought more dollars! You get out of here!”

“Uh-!!! This food!”

At this level, a bank run could have occurred, but large banks had already piled up cash in safes from branches across the country three days ago through cash trucks.

In addition, when the funds withdrawn from the bank were used to purchase the short-selling fund, the dollars withdrawn were returned to the vault of a large bank.

“You have received $100,000, and you are enrolled in a Class D. Short Selling Fund.”

“Next customer!”

Rather, all the dollars that had been sitting there rushed to a large bank, and the dollars piled up in the safe.

The big banks were screaming happily.

***

Sunday, February 13, 1898 at noon.

Hedge Fund Secretariat.

“The response has been hotter than expected. The popularity of short-selling funds and hedge funds is skyrocketing without knowing it.”

widely-

James put on my desk an abbreviated report of the public offering of the short-selling fund.

I picked up the report.

‘It’s hard to find madness in an individual. But in groups, factions, peoples, times, etc., there is almost invariably madness.’

Friedrich Nietzsche’s quote.

Indeed, the madness of the group was spreading like fire with a terrifying force. No one doubts, no one is interested in fact-checking, and no one wants to see the risk of this short-selling fund.

They just presume that a crash is coming, and they are crazy about short selling. The transformation of individuals into groups ignited the speed of madness.

‘I knew it…but this is terrifying.’

Veyron rolled up the corners of her mouth from the side.

“haha. The hedge fund’s debut was brilliantly played. Already, large bankers are constantly praising hedge funds as the heroes of Wall Street and the angels of short selling. Long live laissez-faire, literally.”

“What is the total amount of the fund so far?”

“As of noon on Sunday, February 13, a total of $15 million had been raised. The growing momentum is terrifying.”

“Yeah, it burns a lot hotter than we expected. It’s as if everything goes well if you just sell short. I mean.”

tak- tak-

But I unsatisfiedly tapped the desk with my fingertips.

James and Veyron looked puzzled at my reaction.

“Aren’t you filled with something…?”

“Or something is wrong.”

creak-

I sighed deeply and leaned back against the back of the chair. Then he looked at James and Veyron in turn.

“Did you know that the richest 1% of America owns 20% of America’s wealth…?”

“Yeah, isn’t it a story that’s always been talked about in the progressive media?”

“That’s right. But you seem to be missing out on this. The New York Stock Exchange hasn’t even opened on Monday, but I can already see a smile on my face.”

As I hardened my face, the air inside the secretary’s room froze. In the atmosphere of walking on thin ice, only my voice resounded.

“Do you think railroad tycoons look funny?”

“Yes?”

“You’re asking if you know that the majority of the wealthiest people in the top 1% of America I’m talking about are railroad tycoons. JP Morgan is too out of the box, so let’s put it out of the discussion.”

“…..!!!”

“If you think that the short-selling contract they signed with us and the collapse of the railroad company’s stock price alone will ruin us, you are making a huge mistake.”

I got up from my chair.

“Always keep in mind that even tomorrow, the railroad companies may give us a taste of hell, and prepare well.”

widely-

I just threw a letter from the Wall Street Journal (WSJ) headquarters on my desk.

[ Capture the movements of the railroad tycoons. Gathered around the Federal Railroad Association. Large families, including Vanderbilt, are joining one after another. ]

“If we don’t push it, on the other hand, we will be beaten.”

As if cold water had been poured, tension began to flow in the secretary’s office.

Federal Railroad Association.

Under the mediation of John Pierpont Morgan, an association formed by 30 members of major railroad companies to stop excessive price competition and set standard fares.

However, the railroads did not realize they were full and insisted on an expansion policy, and the Federal Railroad Association was in a state of disrepute.

With such a federal railroad association, 30 heads of state and tycoons of the owner family were enrolled one after another.

However, the atmosphere was cold and dark.

When the giants gathered in the association’s conference hall showed no sign of opening their mouths, Vanderbilt reluctantly spoke.

“Did anyone receive information in advance about this large-scale railroad scandal?”

“… now Chairman Vanderbilt intends to oust the insider and crucify him?”

“No, I am not trying to rebuke, I just wanted to know the details of this scandal.”

Vanderbilt responded cautiously.

Although the third generation of the railroad tycoon himself was the youngest here, most of the railroad tycoons were second-generation, mostly elderly people.

‘Thanks to you, I was staying at home at the time of the riots on Wall Street and I was relieved.’

close-

lucky old folks.

Vanderbilt chewed his molars and wiped the charcoal soot off his cheeks.

“Once we got into our Vanderbilt family’s personal connections, it is said that the conspiracy to expose fraudulent accounting was established at the Wall Street Journal (WSJ) headquarters.”

“The Wall Street Journal? Oh, isn’t that the economy where the ants that go to the New York Stock Exchange these days always carry one?”

“Yeah, but it was hard to delve into that. The task force inside the Wall Street Journal headquarters was guarded by the New York Police Department and the discharged Marines.”

“Pinkertone?”

A middle-aged man asked with a sharp gleam in his eyes. As Vanderbilt’s gaze turned to the old man, his eyes widened.

‘That human…!’

“You’re asking what happened to Pinkerton. Detectives in Pinkerton can dig up and steal information.”

Vanderbilt broke into a cold sweat.

“George Gould, your way is so wild! Then, what kind of disaster do you think will happen if the nerves of the New York Public Prosecutor’s Office, which are organizing the special prosecutor, are touched!”

“I admit that the United States is a country with the rule of law. But we are a race above the law.”

Corporate hunter Jay Gould.

The main culprit of ‘Black Friday’ on September 24, 1869, which shook the American economy by plunging New York Wall Street and the US Treasury into a hole.

He was the worst villain who caught any investor on Wall Street and made him tremble and swear at him just by telling him his name.

George Gould was his son.

“What can you do while hiding like a baby? I mean, I want to complete the transcontinental railroad system following my father’s legacy. Are you not?”

George Gould glared at the inside of the conference room with a laser-like gaze.

Clearly, the transcontinental railroad was the wish and ultimate goal of all railroad companies. At least none of those gathered at the Federal Railroad Association today did not dream of transcontinental railroads.

Vanderbilt swallowed.

“The transcontinental system is a goal that must be achieved step by step, just like the Centennial System. Isn’t the railroad industry devastated by your generation playing the nonsensical chicken game?”

“So you guys are ruined?”

At George Gould’s objection, Vanderbilt kept his mouth shut.

“The only thing that went to Golog was the railroad company. It’s not that our family is ruined. Shouldn’t it be that we don’t go bankrupt whether the railroad company goes to Golo or Jiral? In the first place, ordinary people like ordinary workers are not part-timers.”

gulp-

George Gould drank a glass of water.

bang-!

“Let’s proceed in a cool way. Collect all the available funds that each family can contribute and submit. Seniors can also submit. Now is the time to defend the stock against the monster JP Morgan.”

“Stock defense?”

widely-

George Gould threw a Wall Street Journal (WSJ) newspaper in the middle of the conference hall.

“These f*cking hedge fund bastards are looking for short-selling funds. Then, if only these guys cut off the buds, they can disrupt the short selling forces.”

“Cut off the buds…?”

George Gould had a bloody smile like a corporate hunter.

“I dry it out with a short squeeze. Hedge funds are motherf*ckers.”

short squeeze

short position. In other words, the stock price of the short-seller ticker soars, and the short-selling force suffers a massive loss and dies.

George Gould had the confidence to raise the stock price with the power of the Federal Railroad Association.

***

Follow-

Click.

“Yes, I’m Morgan’s director at a hedge fund.”

– Morgan, it’s me. Frank.

“Frank? What’s up.”