Reborn Tokyo Golden Age

What was Neon's economic situation like in September and October 1990?

The fire is cooking, and everyone is covering the lid.

The first problem to arise was in the securities industry, because their profits are closely related to the stock market.

Then the stock market crashed for the first time in January of the year, and then fell sharply again in September.

No securities company, no matter how big, can escape unscathed after two consecutive real losses of tens of thousands of points.

The Ministry of Finance has even played a role in this, and it must have contributed to the situation.

Yes, the Ministry of Finance will also take the blame.

Because it was they who guided the securities industry to invent the highly illegal financial product of "trading special funds".

Enterprises entrust their funds to securities companies for various stock market and financial operations.

And the securities company claims to be absolutely profitable and will not lose money.

This part of the funds is the "business special fund". However, as long as it is a product circulating in the financial market, there is no guarantee of making a profit without losing money.

After two stock market crashes, industrial companies lost all the tens of trillions of funds they raised!

The amount of these losses is shared equally among the major securities companies, starting at least 200 billion yen!

So have these issues come to light?

No! Because the Ministry of Finance stated that securities companies, "the annual final accounts of special trading funds can be handled flexibly."

In short, I am telling everyone that it is time for the final accounts in March.

You can use "financial management skills" to deal with special operating losses, and do not include them in the account books and disclose them to the outside world.

What is this operation? ? ?

Fake! ! !

Yes, you read that right, the Ministry of Finance is suggesting that major securities companies engage in financial fraud, and it is also officially recognized financial fraud!

Therefore, the various traditions of fraud in childhood do not come from the private sector, but are inherited from the official line.

So why has the Nikkei Index fallen below 20,000 points and no securities companies have gone bankrupt?

Because these losses were not announced to the outside world, many industrial companies as clients did not even know that they had lost most of their funds.

This can be said to be that the Ministry of Finance has allowed losses caused by the negligence of industrial companies, securities companies, and banks, leaving the contradiction to the future.

Why did the Ministry of Finance do this? The fear of taking responsibility is one aspect.

In addition, there is a common creed within the Ministry of Finance at this time, "That is, Japan must not be the one that triggers the Great Depression of the world economy!"

In order to balance accounts, it also led banks to lend to securities companies.

This is equivalent to saying: Even if they borrow money, companies and enterprises must use "financial management skills" to eliminate losses in their accounts!

This is the case for the securities industry, but what about banks?

The bank's largest assets are various land mortgages based on the "land standard system".

In other words, land is the bank's wealth, because it uses land as collateral to lend hundreds of billions of yen.

At the same time, in order to cooperate with the Ministry of Finance's "financial management skills", it also underpinned the "trading special funds" incurred by the securities industry.

The fundamentals of the two major markets, the stock market and the property market, are now tied to one person, the bank.

Therefore, it is conceivable that the Ministry of Finance will definitely guard against the various financial scandals discovered by Yeshan about major banks.

However, contrary to expectations, reporters who ran too fast had already spread this information to Neon's major media groups.

Does the Neon government have control over domestic media groups? Some do, some don't.

Although neon capitalism is a bit strange, people in the media industry are very insistent on their principles.

Even government scandals are reported accurately, not to mention bank financial scandals.

"Yomiuri Shimbun", "Asahi Shimbun", "Mainichi Shimbun", "Nikkei Shimbun", without exception, all made extensive reports on this.

The anxious Ministry of Finance hoped to divert public attention, so it asked the "Tokyo Shimbun" to shift the focus of the report to the Yakuza fight.

In order to increase attention, the Ministry of Finance even requested the Tokyo Prefectural Prosecutor's Office to launch a special search.

On the eighth floor of the Central District Contract Office Building, there was a hurried knock on the door of Hiroyuki Ueda's office.

"Mr. Minister, Hashimoto-san of the Ministry of Finance hopes that you will issue an announcement to announce the launch of a public investigation into the Hayama Yakuza fight incident."

Hiroyuki Ueda, who was behind the desk, put down the pen in his hand and smiled.

"The Jidao fight is something that the Metropolitan Police Department needs to be responsible for, and the responsibility of the Special Investigation Department does not lie here.

However, in view of the huge impact of the incident and pressure from public opinion, the Special Investigation Department decided to lend a helping hand to the Metropolitan Police Department. "

"Eh?" The assistant looked a little confused as he watched Hiroyuki Ueda put on his uniform.

“The Yakuza affairs are left to the Metropolitan Police Department, but the Special Investigation Department takes over the economic crimes in the financial industry!

If the notice continues, a press conference will be held today to announce the launch of a special investigation into the Yeshan incident! "

Good guy, it’s too late for the Ministry of Finance to cover this.

Well done to you, I am preparing to add another fire.

"What are you doing standing still? Why don't you go quickly?"

"Hai!" The assistant hurriedly ran out again.

Financial crimes, isn't this what the Special Investigation Department is good at?

Hiroyuki Ueda said that in order to maintain a fair and just environment in the Neon financial industry, the Special Investigation Department is duty-bound!

The neon media circle has reported numerous financial incidents of major banks, which are like a depth charge, making everyone dizzy.

However, this was not enough. At 7 o'clock in the morning, the news media reported that at 10 o'clock at noon, the Tokyo Prefectural Prosecutor's Special Investigation Department announced that it would launch an investigation into this series of financial incidents.

As for the Yakuza Rush? That's a matter for the Metropolitan Police Department, and the Tokyo Prefectural Prosecutor's Special Investigation Department only targets financial crimes.

Moreover, Fuji Bank's fraudulent loan incident some time ago has not yet been resolved. This time, Hayama has implicated major banks such as Daiichi Bank, Industrial Bank, Yamaichi Securities, and Long-term Credit Bank.

Therefore, the Tokyo District Prosecutors' Special Investigation Department announced that it would combine all these financial incidents into one case for trial and investigation.

The incident was named in the report, "Hayama Incident!"

The special search department's press conference had just ended when Nomura Securities' Tabuchi Matsushita called Shirakawa Kaede.

All he said was, "The color of the water has changed."

Why does the color of sea water change? Because the tsunami is coming.

For the people of the island country, this is a well-known folk saying.

The public was already shocked by today's newspaper headlines, but now the Tokyo District Prosecutors' Special Investigation Department has publicly stated that it will investigate the incident.

Doesn’t that confirm that the bank scandals reported in the newspapers are true?

Ordinary people have long had a very bad impression of banks because they believe that banks have raised land prices.

Now this series of financial scandals started again because of banks, so the people are angry.

Many people held flags and rallied at the door of the Ministry of Finance, demanding an explanation from the Ministry of Finance.

The Undersecretary of the Ministry of Finance came out sweating profusely and explained that the government was conducting an investigation and would definitely give the people an explanation.

As for the high housing prices that everyone is questioning, the Ministry of Finance also stated that various measures previously issued to restrict real estate will take effect next month.

In January next year, land tax will also officially come into effect, all in an effort to keep land prices down.

The Ministry of Finance’s statement has just ended, and then the neon property market dropped!

Since 1985, Neon land prices, which have been rising for five years, have experienced a market drop for the first time!

There was the stock market crash before, then there were land restrictions imposed by various policies of the Ministry of Finance, and now there is a big thunderstorm in the banking industry.

Finally, neon land prices, which had always been like a mad cow, began to fall.

In just one morning, all the major intermediary companies and real estate companies quietly listed the land for sale.

If you don't run at this time, when will you run? Didn't you read what the newspaper said? Some banks have trillions of dollars in debt.

And next month, new rules on land transactions will come into effect.

Newly acquired houses within two years are not allowed to be traded, otherwise a super high transaction tax of 96% will be waiting for them.

If the land in the hands of the real estate company cannot be traded, then why bother?

What is the concept of annual land tax of 2%~3%?

According to the market price, the land currently held by most real estate companies is worth several trillion or even tens of trillions.

This means that the tax they will pay every year is likely to be hundreds of billions of yen.

The key is that many of these lands cannot be traded because they have to pay a 96% tax.

It can only be held in hand for two years before being allowed to enter the market.

Who can tell what will happen in two years? Who will pay for the hundreds of billions of yen in taxes in the past two years?

Real estate company? Expecting a real estate company to be reliable is worse than expecting a sow to climb a tree!

Therefore, the "Yashama Incident" that overwhelmed the real estate market today has just been reported, and real estate companies are already taking action.

Why don't you run away while the law is not yet in effect?

The market cannot be controlled, the market is irrational, and the market is also blindly obedient.

If there is one house to sell, there will be a second house and a third house.

With the snowball rolling, Neon’s land prices are not only falling, but also getting faster and faster!

Before September, land prices in Neon had increased by 56% this year compared to last year.

However, in just one day, this increase gap narrowed to 42%.

Is this the end? No, the avalanche has just begun!

As mentioned before, banks lend on a "land-based basis".

A large part of its assets are on land mortgaged by real estate companies.

Not only that, many private family assets are also linked to land.

From 1986 to 1989, Neon relied on the surge in the stock market and property market to bring in more than 1,400 trillion yen in revenue.

In 1989 alone, the Neon family's income from land reached 260 trillion yen.

It is precisely because of this terrifying profit that all people have joined this fanatical era.

However, these gains are all on the land, in other words they have not yet been realized.

Now that land prices are falling, it means that the assets of enterprises, real estate companies, and ordinary individuals are all shrinking.

The value of the land mortgaged to the bank is shrinking, but the loan still exists.

Back then, banks actually used their real money to lend to real estate and individuals based on the market price of land.

The financing amount is generally 70% of the guaranteed land price, but bold banks such as Changyin dare to lend at 120% of the land price!

The land is now less valuable than before, but the real estate and personal bank loans are still there.

In other words, no matter how the land falls in the future, this loan is indispensable.

And when the land falls into certain conditions, there may be a supply cutoff!

Because everyone feels that their land is no longer worth the price, but they still need to pay for high loans.

Of course this won't work! Besides, the reason why land prices were so high in the first place might be because your bank was doing something wrong.

There was Sumitomo before and Fuji after. This is the best proof!

Once the supply is cut off, those worthless lands will become non-performing assets for banks.

Because the loans it extended were real money, but the land it took back was worthless.

If non-performing assets exceed a certain level, a bank will become insolvent.

What is the end point of insolvency? Bankruptcy!

Bankruptcy? !

Think again about the responsibilities that banks bear now? !

It is providing support for securities companies, stock markets, and property markets!

Chain effect! A single move affects the whole body, that's how avalanches happen~

However, the current situation is not that bad yet, and both securities companies and the Ministry of Finance are considering countermeasures.

Besides, although land prices are falling, they are still higher than last year.

Many real estate companies and even the Ministry of Finance are still thinking that the price will rise back after meeting.

After all, no one can predict the market, and the market is unpredictable.