Free Web Novel“You’ve arrived, Boss.”
I landed at New York Airport.
Eric, who was in charge of Black Bear’s administrative work, and Team Leader Oliver welcomed me.
“Oliver, weren’t you supposed to be heading to Kosovo?”
“Ah, I’ll be leaving a little later than planned. While you’re staying in New York, our team will be attending to you.” fɾeewebnoveℓ.co๓
“We figured that would be more convenient for you, Boss,” Eric added as an explanation.
“Is that so? Then that’s good for me. But shouldn’t you be resting? How’s your injury?”
“I’ve had plenty of rest.”
“Let’s go, then.”
Walking alongside Eric, we continued talking.
“I heard you successfully sealed your first contract with the U.S. government. I knew you were reliable.”
“Well, Washington still has to care about public opinion. Since most of us are former U.S. military, they trusted us. Of course, legal lobbying helped as well.”
“Earning that salary well, I see.”
Eric smiled and nodded.
“The conditions are good, and the operations aren’t too risky. We’re mainly assisting the peacekeeping forces stationed in Kosovo.”
He kept reporting until we reached the limousine he had prepared.
“I trust you’ll handle everything well.”
“Yes, Boss.”
“Then, when my New York schedule’s done, let’s have a meal together.”
I shook hands with Eric and got into the car.
Team Leader Oliver and his men boarded other vehicles.
“Oliver, you already have my schedule, right?”
“Yes, Boss.”
“First, take me to Dreamhigh.”
When I got out of the car, Han Kyungyeong greeted me.
“Muhyuk! How long has it been?”
“Long time no see, Hyung.”
“The trip must have been tiring. Come on in.”
We took Han Kyungyeong’s private elevator to his office.
“It’s changed a lot.”
“Well, since I do most of my trading here, I lined the place with computers. How does it look?”
“Impressive.”
“Sit down. We have a lot to talk about.”
No sooner had I sat than Han Kyungyeong asked,
“How did things go in Korea? All good?”
“I didn’t expect to actually use that card. It was something I had prepared just in case, but I really ended up playing it.”
“Wall Street made a fortune thanks to us, but the U.S. government won’t be too happy. They might make unreasonable demands.”
Han Kyungyeong shook his head with a bitter expression.
“Why? What are they saying?”
“They said they’d explain to you directly, but from what I heard, the damage is big. Some predict losses worse than what they gained in Japan.”
Wall Street had poured most of the profits it earned from Japan into Russian bonds.
They believed in Russia’s abundant natural resources, and many investors bought Russian government bonds. Risky, yes, but the yields were at 50%.
Until the summer of 1998, investing in Russia seemed safe. Nobody expected Korea’s and Japan’s economic crises to ripple into Russia.
Up until the day before declaring a moratorium, Russian authorities confidently insisted they would never devalue the ruble, and investors believed them.
But Russia broke its promise, and the aftermath swept through Wall Street like a hurricane.
“Traders even asked why we weren’t investing in Russia. In hindsight, you were right. A few months ago, they called us insane, saying the Dreamhigh legend was over... Wall Street bastards aren’t likable at all.”
“Well, Japan’s the one left looking pathetic. If they’d just held on, Wall Street money would’ve returned on its own. But they had to humiliate themselves by begging the U.S. That outstretched hand might turn their lost decade into a lost thirty years.”
I had escalated the scale, sure, but if Japan had just relied on its foreign reserves and endured, Wall Street would’ve withdrawn because of Russia anyway.
One Wall Street fund, failing to foresee the yen’s surge, lost billions in a single day by selling yen and buying dollars.
Everyone had predicted a strong dollar.
But Japan, to protect itself, dumped dollars and bought yen, flipping the trend, and Wall Street’s dollar-bullish bets suffered massive losses.
“Even Wall Street couldn’t foresee this. Despite U.S. Treasury pressure, they dragged their feet. Too greedy.”
“Well, it’s not our problem. Now it’s time for us to make money. We spent too much in Korea. Did you finalize all the gold collected from the gold drive?”
“Yes. But why leave it in Korea? What a waste.”
“What does it matter where it’s stored? Korea or the U.S., it’s not going anywhere. Consider it a carrot for Kim Hakgwon. Gold prices will inevitably rise.”
Han Kyungyeong nodded in agreement.
“Secretary Rubin isn’t an ordinary man. He’s been through it all on Wall Street and still holds his ground in Washington. Be careful not to get eaten alive.”
“Me? Get eaten? No matter how unreasonable their demands, I can turn it to our advantage. Don’t worry.”
“Yeah, you’re the last person I should worry about,” Han Kyungyeong muttered, complaining that following me was ruining his health.
“Soon, Russian bonds will flood the market at dirt-cheap prices. Meanwhile, buyers will be clamoring for the U.S. Treasury Bonds (TB) we’ve hoarded. Wait until next week, liquidate our TB, and buy up all the Russian and other distressed bonds.”
“Again?”
Han Kyungyeong looked like he was having déjà vu.
“They’ll drop to a tenth of their value. Sellers will outnumber buyers by far. Bonds always rise again unless a country collapses. And we have time, don’t we?”
In times of global crisis, TBs naturally strengthen.
Because people believe the world’s strongest nation won’t collapse, investors dump other currencies for U.S. dollars, ensuring dollar strength.
“The dollar’s strength will hold for now. But it won’t stay in the U.S. forever. Eventually, other bonds will rise again.”
“I’ll watch the market and time our entry and exit points.”
With Han Kyungyeong’s sense, he’d nail the perfect timing.
“What do you think Rubin will ask for?”
“He might ask us to lend money to Wall Street banks.”
“Come on. The U.S. Treasury Secretary asking you?”
“You’ll see.”
After discussing investment strategies for quite a while, I left.
“Let’s head to the Plaza Hotel.”
“Yes, Boss.”
With the security team, we drove to where Treasury Secretary Rubin was staying.
‘Ironic. Trump, who once owned the Plaza Hotel, even became president later.’
A pointless thought for now.
As we arrived, I told Oliver,
“The rest of you stay on standby. Only Chief Ma and Oliver are coming with me.”
“Yes, Boss.”
Bringing too many bodyguards to meet the U.S. Treasury Secretary would be rude.
We took the elevator to the top floor.
“Mr. Kim?”
“Pleasure to meet you, Secretary. Charlie Kim.”
“Hahaha, finally! Pleasure to meet you.”
Rubin stood, extending his hand eagerly.
“It’s an honor to meet the owner of Dreamhigh.”
“The honor’s mine. To have a private meeting with the man responsible for America’s economy—it hardly feels real.”
Up close, Rubin’s face looked every bit the typical Russian-American.
He was the man credited as the main architect of the Clinton administration’s economic boom.
Criticized for his pro-Wall Street policies, yet ironically, those very policies advanced the U.S. economy.
“Your win against Wall Street is still a hot topic. Of course, James executed it, but we all know your advice was decisive.”
“You flatter me. James did well. Everyone knows your policies drove America’s economic growth. Praise from someone like you is humbling.”
We exchanged pleasantries, painting each other in gold.
I played along—no need to sour the mood. But the longer the small talk, the tougher the ask would be.
Rubin, smiling politely, finally got to the point.
“This request has caused me great trouble. The State Department and Pentagon strongly opposed it...”
“I understand. Tell me what you need. As long as it’s not outrageous, I’ll help.”
At my direct response, Rubin sipped his now-cold coffee and said,
“Are you familiar with Long-Term Capital Management (LTCM)?”
“Who isn’t? A hedge fund of geniuses, boasting astronomical returns.”
“Good, that makes this easier. Thanks to Russia, LTCM has taken heavy losses. The issue isn’t just Russia—it could destabilize the entire U.S. financial market. The Federal Reserve’s consensus is for 16 Wall Street banks to form a consortium for a bailout.”
The Fed’s opinion carried enormous weight in U.S. economic policy.
Rubin added with a troubled look,
“But... the Wall Street wolves are each scheming for themselves.”
“If it’s the Fed’s stance, the banks can’t just defy it.”
“Yet they’re circling to buy LTCM for pennies. Warren Buffett even issued ⊛ Nоvеlιght ⊛ (Read the full story) an ultimatum—told them to sell their stake cheap, giving them only 30 minutes to decide.”
Buffett’s LTCM acquisition attempt was famous.
The moment Russia defaulted, Buffett took the opposite positions, pressuring LTCM.
When they were on the brink of collapse, he offered to buy 100% of LTCM’s shares for $250 million, promising to invest over $4 billion with Berkshire Hathaway, AIG, and Goldman Sachs.
“Of course, Meriwether refused, but that revelation nearly broke the banks’ alliance.”
Goldman leaked bailout talks to Buffett.
Buffett, rushing, gave his absurd 30-minute ultimatum, but Meriwether, a veteran of finance, rejected him after catching wind of the bailout talks.
“So, what role do you want from me?”
“Join the consortium. Lend money to Wall Street banks. They’ve taken heavy losses too—every few hundred million dollars counts.”
In other words, they wanted me to bankroll the bailout.
“How big is the bailout?”
“Estimated at $3.65 billion.”
“That’s all?”
“Positions only realize losses when liquidated. If they have time, cash flow for investors demanding withdrawals, and margin funds, they can hold out. That’s the Fed and Treasury’s position.”
Smooth talker.
I smiled, asking,
“But isn’t LTCM holding over a trillion dollars in debt? You think you’ll douse the fire with that?”
Truthfully, $3.6 billion would be enough.
But Rubin, unaware of the future, didn’t know that.
At my jab, Rubin coughed awkwardly.
“If LTCM falls, the U.S. financial system falls, and then the global financial system panics.”
Rubin nodded at my words.
“If we intervene, we won’t let them go bankrupt. We’ll return all investors’ principal and acquire 100% of LTCM for $400 million. No government assistance, even if it costs $10 billion or $100 billion.”
Rubin looked hesitant.
I pressed him gently.
“Isn’t this better than bearing the disgrace of a hedge fund bailout? I doubt your proposal will get unanimous approval.”
Indeed, the LTCM bailout later became a bad precedent for U.S. banks.
“Wouldn’t my buying them outright look better than the largest bailout in U.S. history? I can hold out. With Wall Street banks staggering, who’s helping who here?”
Rubin was great, but he didn’t know the future like I did.
