Chapter 529: Can’t Save, Can’t Save at All
As the Japanese property market began to reach a turning point, many real estate companies felt a sense of crisis and began to sell off their land.
However, after analyzing the overall situation, the Ministry of Finance feels that the market is still under control.
After all, it seems that prices have dropped, but they are still at a high level compared to last year.
The Ministry of Finance explained this phenomenon by saying, "The decline in asset prices has only resulted in the loss of unrealized gains that were excessively inflated."
In other words, although housing prices have fallen, everyone can still make money.
The advantage is mine, so it's not a big problem.
This is the Ministry of Finance's current view on the falling housing prices. They even feel that their land policies have taken effect and the neon bubble has achieved a soft landing.
What is the most important thing for the Ministry of Finance right now? Of course, it is to suppress various economic scandals!
It doesn’t matter if house prices fall, but Japan’s finances must not have any problems.
Especially banks, which shoulder the economic lifeline of Japan.
If there is a problem with the bank, then there could be really big problems.
However, despite the Ministry of Finance's efforts to eliminate the negative impact of the "Hayama Incident".
However, the continuous uncovering of scandals made the Ministry of Finance's various rescue measures completely useless.
First, the incident in which Yamaichi Securities suffered a huge loss of 260 billion yen in special operating funds was exposed.
This time the negative information did not come from Yeshan, but from problems within Yamaichi Securities itself.
In fact, this bad debt had already occurred when the stock market plummeted at the beginning of the year.
Because the business special funds are closely related to the stock market, if the stock market plummets, the business special funds will go bankrupt.
When this loss occurred, Yamaichi Securities chose to cover up the facts.
However, the stock market crash in September has caused some people within Yamaichi Securities to feel a strong sense of crisis.
Business Planning Director Yoshida Yunaki repeatedly suggested to the board of directors that a public offering be used to eliminate the deficit.
However, the directors of Yamaichi Securities were afraid of taking responsibility, so they all did the opposite and chose to cover up the incident.
Yoshida Yunaki was powerless and had no influence on the directors' decision.
However, the "Yeshan Incident" revealed the losses of Yamaichi Securities, which made him see another way to solve the problem.
The inferior defeated the superior! Yoshida Yunaki disclosed the losses of Yamaichi Securities to the media without the consent of the directors.
If Ye Shan's revelations made everyone doubtful, then Yamaichi Securities' own disclosure undoubtedly confirmed the authenticity of the "Ye Shan incident" materials.
This 260 billion yen of special operating funds is the capital that many companies have entrusted to Yamaichi Securities for financial management.
Now tell them that all the capital has been lost, will these companies just let it go?
After this news announcement was published, the Metropolitan Police Department received numerous calls accusing Yamaichi Securities of financial fraud.
As the main bank of Yamaichi Securities, if Industrial Bank had stepped in, the situation might not have been so chaotic.
Yes, Yamaichi Securities has always been controlled by Industrial Bank, which will provide it with strong financial support at critical times.
However, at that time, Industrial Bank itself had a lot of history. According to Ye Shan's revelations, the loan it gave to Onoue Feng had serious problems.
According to the information disclosed by reporters at the scene, the deposit certificate that Ojou gave to Industrial Bank as collateral was most likely fake!
If it is fake, whether Industrial Bank can finally recover the loan of hundreds of billions of yen is another matter.
At present, the Osaka police have arrested Onoue Hiashi, although the final result has not been confirmed.
But judging from the authenticity of the Yamaichi incident, all the revelations about the "Yayama incident" are not groundless.
The most crucial thing is that Industrial Bank did not make any statement on this matter, even though Yamaichi Securities was in crisis.
It took time for the news to ferment, and by the end of October, the Tokyo Special Investigation was preparing to summon the chairman of Dai-ichi Kangyo Bank to question him about his financing incident.
Something happened that shocked Japan's financial industry. The night before he was summoned, Kunihiro Miyazaki, chairman of Dai-ichi Kangyo Bank, committed suicide at home.
The next day, Dai-ichi Kangyo Bank surrendered to the Special Investigation Department through the financing incident of the General Association.
The revelations about the "Yeshan Incident" were once again proven to be true.
Then the Long-Term Credit Bank and Fuji Bank...
In early November of that day, the neon market gave its most authentic feedback.
The Nikkei index dropped sharply from nearly 20,000 points to around 15,000 points, and land prices in the real estate market plummeted 11.4% on the same day.
The land price decline, which has lasted for nearly a month, not only shows no signs of easing, but is even falling faster and faster.
At this time, except for ordinary people, everyone (banks, securities, government, real estate companies, etc.) knew that Japan’s economy was about to run into big problems.
This is not a problem of a certain industry, but a crisis of Japan's entire economic system.
The "land myth" and the "bank infallibility myth" are about to be shattered.
Faced with such a crisis, what is the Ministry of Finance doing?
Ministry of Finance officials and bank executives dare not face the reality. They are afraid of being held accountable, so they turn a deaf ear to it.
They are now considering shifting the blame for the bubble economy to securities companies and those "bubble gentlemen".
The Ministry of Finance is not concerned about how to save Japan's economy; the key is to protect itself.
However, at this critical moment, there was a man who stood up, that was Yasushi Mieno.
It was he who brought down Japan's stock and property markets, and it is he who wants to save them now.
This is actually not a contradiction, because Yasushi Mieno's goal from the beginning to the end was to hope that Japan's economy would return to normal.
There are no major problems with the current property market, but the stock market cannot fall any further.
If the stock market falls below 15,000 points, it will lead to a crisis in Japan's entire credit system.
In mid-November, Yasushi Mieno directly found the current Cabinet Secretary Toshiki Haebe.
"Sir, if the Nikkei index falls below 14,000 yen tomorrow, the Bank of Japan will request to initiate special financing."
Bank of Japan Special Financing is a special measure used by the government to maintain the credit of the financial system.
At that time, the Bank of Japan will provide unsecured, unlimited special financing to financial institutions that have difficulty in cash flow.
In other words, it is like opening the floodgates and printing money indefinitely to save the country's largest banks such as Industrial Bank, Dai-ichi Kangyo Bank, and Changxin Bank.
When Toshiki Kaifu heard Mieno Yasushi's suggestion, he was stunned.
"Mie Ye-san, has the situation gotten this bad?"
Mieno Yasushi nodded seriously, "If no action is taken, the credit system of Neon Bank will collapse."
After hearing Mieno Yasushi's reply, Kaifu Toshiki remained silent for a long time.
Just when Mieno Yasushi suspected that he wasn't listening, Kaibu Toshiki slowly spoke.
“Sanchongye-san, don’t take this step unless it’s absolutely necessary.
Let's gather the heads of the big banks together to hold a meeting and work out a solution."
The decision to print money indefinitely is not an easy one to make. If it is not done well, it will leave you with a bad reputation both at home and abroad.
After careful consideration, Mieno Yasushi decided that this was a possible measure, so he nodded in agreement.
When he returned to the office, the first bank that Mieno called was Kitato Bank.
Others may not know, but as the president of the Bank of Japan, he certainly knows that Kitato Bank is very strong and is even the bank with the healthiest assets in Japan.
He also knew that Kitatoshi Bank had nearly 20 billion US dollars invested in international investment banks.
So if there is anyone who can take on the burden of saving Japan's credit system, Kitato Bank is definitely one of them.
Yasushi Mieno did not call anyone else, but called Shirakawa Kaede's office directly.
"Moshimoshi?"
"Shirakawa-san, it's me, Mieno from Higin."
"It's Mieno-san." Shirakawa Kaede, who was originally sitting there enjoying the massage of the little canine teeth, immediately sat up straight.
"Neon's economic system has reached a critical moment, so I implore the Kitato Bank to lend a helping hand to the Ministry of Finance.
Turn the tide and save the Japanese economy at this critical moment! "
"If there is anything that Beidu Bank can help with, I will do my best."
"Yoshi, next week I plan to invite the heads of all the guilds to a gathering at the Prime Minister's residence. I hope Baichuan-san can be on time."
"must!"
After hanging up the phone, Baichuan Feng's mind started to race.
It seems that his previous series of swift operations have indeed pushed Neon’s economy to a certain extent.
According to the normal historical progress, the decline of Neon’s real estate market should occur next year, and the speed will not be that fast.
But now this process has been brought forward by more than half a year, and the progress has been greatly accelerated.
Ever since the "Yeshan Incident", Baichuan Feng hasn't done anything small for some time.
One is to avoid suspicion, and the other is that everything that should be done has been done, and now we just have to wait for the market reaction.
To be honest, the chain reaction in the market also caught him by surprise, especially the self-explosion of Yamaichi Securities and the suicide of Miyazaki of Dai-ichi Securities.
These were all beyond his expectations. As expected, a flap of a butterfly's wings created a storm.
What's more, he directly set up a blower, and the shock caused could not be exaggerated to say that it was a tsunami.
The most crucial thing is that the peak of the tsunami has not yet arrived, and the transmission of the bubble burst has not yet shown its power.
As for cooperating with the Bank of Japan to save Japan's economy? This is something that the Kitato Bank cannot do.
However, we cannot save Japan’s economy, but we can save Japan’s banks.
Well, that's too naked.
But no matter what, Baichuan Feng decided to go and see which bank has the fattest money when the time comes...ah, to see if he can be of any help.
As for whether it was a help or a hindrance, only he himself knew.
However, just as Baichuan Feng was thinking about where to start, a dramatic scene happened.
…
The day after Mieno called the major banks, the 77th Cabinet Chief Minister Kaifu Toshiki announced his resignation!
The reason he gave was that a series of scandals occurred in Japan's financial industry during his tenure, and he needed to be held responsible for them.
By the time Sanye learned the news, our Minister of State had already bowed and apologized in front of a large number of reporters.
This... this... Sanye, who is already quite old, almost died from suffocation.
After coming to his senses, he cursed Kaibu Toshiki in the office, calling him a "coward", "a man of his word", and "a runaway".
Do you think this is the end?
Just as Kaifu Toshiki announced his resignation, Finance Minister Ryutaro Hashimoto also led his team to announce their resignation from the post.
The reason he gave was that his confidential secretary, Kobayashi Toyoki, was involved in the Fuji Bank loan fraud.
He was forced to resign in order to take responsibility for this matter.
Ryutaro Hashimoto is Mieno's nominal direct superior, and now his immediate superior has also run away.
Although Mieno does not usually rely on this great treasure minister, what will outsiders think?
The Cabinet Chief and the Minister of Finance are the first to flee. Is there any hope for Japan’s economy?
The unyielding Mieno did not give up his plan. While urging Congress to elect the next president, he continued to lobby major banks.
However, the time wasted before and after this also missed the last chance to save the Japanese economy.
