Extraordinary Genius Chapter 985 – Japan’s tragedy

Soros should not have succeeded because of j.a.pan’s economic power. But because of the financial crisis in Southeast Asia, j.a.pan was affected.

j.a.pan’s banking industry is very developed and had used its excess currency to invest in the finance and real estate industry of Southeast Asia. Many Southeast Asian countries’ finance and real estate industry become their core industry are because of j.a.pan.

This investment model had once brought j.a.pan to become one of the top economic powers of the world.

However, because of the US, j.a.pan fell into recession, and j.a.pan decided that it should use this investment model in other countries. If anything happens, it will be that country that suffers. This is what j.a.pan learned from the US. At the same time, j.a.pan can continue to be the economic superpower of Asia.

But j.a.pan had never expected that someone had acted before them, and those countries’ economies crashed before they could exit!

The j.a.panese banks have operations in those countries and had invested and gave out loans in large amounts.

These investments will help those countries economically and can yield significant returns. So, j.a.pan increases its investments every year, and the invested amount becomes bigger and bigger.

In the end, Feng Yu and Soros attacked the countries in Southeast Asia last year, cras.h.i.+ng their economies, and caused the depreciation of their currencies.

Those countries suffered ma.s.sive losses, but every country that was. .h.i.t by the crisis had implicated j.a.pan.

Since the middle of last year, j.a.pan starts to have banks and brokerages going bankrupt. Within a few months, the number of banks and brokerages going bankrupted increased. This is due to the increasing number of bankrupted companies in those countries.

The j.a.panese banks cannot recover their loans and investments, how can they still stay afloat?

j.a.panese banks and brokerages bankrupting and recovering their investments and loans caused bigger miseries to the affected countries.

At this time, Yen started to fall slowly. At the start of this year, the rates of Yen against USD had fallen to 120:1. Around the middle of last year, the exchange rates are 115:1, and it is still within an acceptable range.

But today, Yen fell to 124:1 suddenly. This is the biggest single-day drop for a long time.

j.a.pan was alerted and knew someone is attacking Yen. The only possible suspect is Soros!

j.a.pan was right. Soros and his men had started to attack Yen. Even if they don’t attack Yen, Yen will also depreciate because of their bad debts.

Yen depreciating caused panic for investors in j.a.pan. No one expects the Asian Financial Crisis to affect j.a.pan.

Soros started to spread rumors on mainstream media that j.a.pan’s economy is going to collapse again and persuaded all investors to dump their Yen for USD quickly.

Some people believed Soros, and with Soros’ attacks, Yen starts to fall.

After Feng Yu receiving this news from He Zhaoji, he took a look at Yen and j.a.pan’s stock index graphs. He is sure that it was Soros behind the fall!

“Old He, follow our plan to short Yen. Remember to hedge against the short position. Any fluctuations will cause ma.s.sive losses for us.

Futures trading has high returns, but at the same time, the losses are high.

“Don’t worry, Boss. We will be careful.”

After hanging up He Zhaoji’s call, Fu Rongqi called and discussed with Feng Yu about their strategy to invest in Yen.

Feng Yu and Fu Rongqi agreed to use low leverage to short Yen and, at the same time, hedged against their position to prevent any sudden increase of Yen.

After getting high returns in their previous investments, Feng Yu and Fu Rongqi became risk-averse now!

……

“President Norio, our share prices fell again.”

“I know. Stop reminding me!” Norio Ohga snapped at his subordinate.

This d.a.m.n financial crisis had caused the collapse of several Southeast Asia economies, and Sony’s investments in those countries, especially their factories and branches, suffered ma.s.sive losses.

Sony’s production and sales fell. Some factories even go bankrupt, and they still owe Sony their deposits and material fees!

Norio Ohga was frustrated, as even their shares on the Tokyo Stock exchange, start to fall.

Of course. Sony is not the only j.a.panese company that is. .h.i.t by the Asian Financial crisis. Many other j.a.panese MNC were affected, and j.a.pan’s stock market is falling.

Everyone had thought that j.a.pan’s economic recovery had been doing well, and should withstand the impact of the financial crisis.

But as the j.a.panese banks and brokerages are bankrupted, the situation in Thailand and many other countries worsen, their economies crashed.

All these formed a vicious cycle, and there is no way for j.a.pan not to be affected.

Although many j.a.panese MNCs and financial inst.i.tutions join-hands to try to stabilize the stock market and Yen’s exchange rates, they failed.

No j.a.panese MNCs and financial inst.i.tutions dare to invest too much in stabilizing the stock market and Yen. If they fail, their companies will be in a worse situation.

Those organizations that own banking shares suffered the most. j.a.panese banks’ shares plummet, and their a.s.sets shrink. The banks have more than 35% of bad debts, and many of their outstanding loans had requested extensions. The amount the banks can recover is too little.

The loans in other currencies caused the banks to suffer more losses. The j.a.panese banks did not know that those countries’ currencies will crash so fast.

This month, many of those countries’ property bubble crashed. Thailand, Singapore, and those affected countries’ property prices plummet and can no longer be stabilized.

The property market cras.h.i.+ng in those countries caused increased losses in j.a.pan.

j.a.pan had thought that j.a.pan’s economy would improve when those countries developed, and they can cause those countries’ economies to crash when they withdraw their investments suddenly.

But Soros acted faster than the j.a.panese, and j.a.pan was implicated in it!

……

“Feng, you said that once Yen falls, Soros will start to target Hong Kong or Russia. Should we start preparing?” Kirilenko asked.

“No. We will wait. When the stock market or currency starts to rise abnormally, that means Soros and his men are starting to attack. At that time, we will retaliate and give them a deadly blow!”