Free Web NovelThe Bear Stearns crisis had been pushed forward by an entire year, and everything was accelerating.
Which meant that many things were changing from the future I knew.
“So the financial authorities have started auditing Wall Street?”
“That's right. They've requested documents from most of the investment banks.”
“And there's no legal force behind it?”
“Not officially. But just because it's not mandatory doesn't mean it isn't pressure. From what I heard, they basically warned them not to expect government assistance later if they were caught lying.”
The U.S. government was moving quickly.
In the original timeline, Bear Stearns didn't reach the brink of collapse until an election year.
But in the board I had created, the crisis had arrived much sooner.
In my previous life, Lehman's collapse right before the election had shifted every major campaign issue toward the economy.
This time, however, the economic crisis would likely become a central issue even during the primaries.
“Republicans won't want this situation growing larger before the primaries. That's probably why they're taking such hard-line measures now—to get ahead of it.”
Everyone had a different view of where this all began.
Personally, I believed it started when Bill Clinton signed the repeal of the legislation just before leaving office.
“The Bush administration started lowering rates and flooding the market with money after the New York attacks. That's when the wound really started festering.”
Han Kyungyeong seemed to think Bush's policies were the main problem.
“Well, neither party can claim innocence. But Wall Street's greed is still the biggest reason.”
After a brief silence, Han Kyungyeong asked:
“Muhyuk. What should we do?”
“Nothing. Just watch the situation until the U.S. government or the Federal Reserve contacts us.”
“You think they'll come looking for us.”
“Even if the financial authorities don't, the old foxes on Wall Street will. They'll ask for help. If they contact you asking for a meeting, agree to meet them.”
“Just meet them, right?”
He understood immediately.
I smiled faintly.
“Yeah. Don't promise them anything.”
Someone would definitely come complaining that the government's demands were excessive.
“By the way, how are the mortgage lenders doing?”
“Some have already been delisted. Others are filing for bankruptcy one after another. More than fifty companies so far.”
“So people still think it's only a mortgage market problem.”
“The government might think so. But Wall Street professionals already know better. The mortgage market is just a breeze before the storm.”
The mortgage crisis would awaken the monster sleeping at the very bottom.
That monster would begin shaking the banks that had purchased securitized American real estate products.
And amid that violent shaking, financial institutions would start collapsing.
“Just wait. It'll blow up before the end of the year.”
“Got it. I'll call if anything unusual happens.”
I ended the call with Han Kyungyeong.
The moment the call ended, Chief Ma reported:
“Boss. They'll be arriving soon.”
I nodded and looked out the window.
The Olympic Gymnastics Arena came into view.
So did the crowds gathered around it.
“Pull over.”
Chief Ma and I got out of the car.
People were carrying all kinds of merchandise in their hands.
“Let's go.”
Passing the lines of fans, I headed toward the staff entrance.
“President, welcome.”
The security guard recognized me and bowed.
“You've been working hard. It's alright if I go in, right?”
“Of course. Please proceed.”
The guards respectfully stepped aside.
After walking down a long hallway, I knocked on the waiting room door.
Permission came almost immediately.
The moment I stepped inside, a familiar voice greeted me.
“Oppa!”
Cheon Jiyoung spotted me while getting her makeup done and immediately jumped to her feet.
“Ah! Unnie, if you stand up—”
Ignoring the stylist's protests, she marched over and grabbed both my hands.
“Do you know how hard it is to see your face these days?”
We were both busy.
We talked occasionally on the phone, but it had been a long time since we'd seen each other in person.
“Yeah. You look pretty busy yourself.”
Jiyoung immediately glared at me.
“You're saying that like it's my fault. I still made time to visit Grandma in Busan all the time. You're the one who never came because you were busy.”
I smiled awkwardly and started toward the sofa before noticing Junho standing nearby.
“You got here early, Junho.”
“Yes, Uncle.”
“Unnie, sit back down. You still have makeup to finish.”
“Ah, sorry. Oppa, let me finish first.”
I nodded.
Jiyoung returned to the mirror.
Walking over to Junho, I rested a hand on his shoulder.
“How's life in Seoul?”
“It's good.”
“Not lonely living by yourself?”
“Not really. I've lived alone before. I'm fine.”
A surprisingly mature answer.
I nodded and sat beside him.
“How's school?”
“Good. The professors are great, and I like my classmates.”
He genuinely looked happy.
Then again, Junho had always spent most of his time studying alone back in Busan.
If he didn't enjoy spending time with people his own age now, that would have been stranger.
“You and Jiyoung seem pretty close.”
Junho scratched the back of his head shyly.
“She comes down to Busan pretty often, so we got close. She told me I absolutely had to come today too.”
“That's right! Junho and I are close!”
Jiyoung whipped her head around to join the conversation.
The makeup artist immediately smacked her on the back.
“Ah! Unnie!”
“What? You're hitting me now?”
Most of Jiyoung's staff had worked with her for years.
Watching the two bicker like sisters made me smile.
Leaving them to continue the makeup session, I turned back to Junho.
“Do your friends know? People your age practically worship Jiyoung, don't they?”
“They do. But nobody knows.”
“Why not tell them?”
“What's the point? They'll just ask me to introduce them. I don't really want attention.”
There was something oddly detached about his attitude.
I ruffled his hair.
“Well, it's your choice. But I hope you live like someone your age.”
“Am I a kid or something?”
“What are you talking about? Of course you are.”
Jiyoung spoke through the mirror.
“There are things you can only do at your age. Go to department gatherings. Meet girls.”
“Girls?”
“Oh? Why that reaction? Don't tell me you've never gone to a single mixer. They must've invited you at the beginning of the semester.”
“I turned them all down.”
“That's so boring.”
I laughed while listening to them.
“Jiyoung's right. Enjoy yourself a little. Once you graduate, you probably won't have time anymore.”
“Alright. I'll try.”
At that moment, the door opened.
A woman walked inside.
“Oh? Muhyuk, you're here?”
“It's been a while, President Kim.”
“It really has. Why has it been so long?”
She was the agency president Jiyoung had personally recruited.
Jiyoung had a dream.
She wanted to start with a one-person agency and eventually build one of the biggest entertainment companies in the industry.
Kim Haneul was exactly the kind of talent needed for that vision.
The personnel originally dispatched from Chunha Group had mostly withdrawn by now.
The agency was staffed almost entirely by people personally selected by Jiyoung and President Kim.
The combination of Jiyoung's enormous capital and the experience of two veterans from major entertainment companies was producing remarkable results.
“You're going to eat, right, Jiyoung?”
“Huh? No. You know I don't eat before performances. Why?”
“Because I'm worried. You're going to do encore after encore again. At least eat something first. I already told them to order your favorite sushi.”
Jiyoung hesitated.
“Just eat. You're so skinny you'll blow away before you finish singing.”
“What? Oppa!”
President Kim burst out laughing.
“Jiyoung really becomes a child whenever she's around you, Mr. Muhyuk.”
“What? Unnie! What are you saying—”
Before Jiyoung could protest, someone knocked.
President Kim opened the door slightly.
“Oh? Jisoo.”
The door opened wider.
Cheon Jisoo stepped inside and froze when she saw me.
“Muhyuk's here too.”
“It's been a while.”
After dismantling Ilseong Group, I had cut ties with almost everyone in the Cheon family except Jiyoung.
I had sent Cheon Jiwon to prison for attempted stock manipulation, but beyond that, I'd completely erased them from my life.
“If you're uncomfortable, I'll leave.”
I glanced at Jiyoung after hearing Jisoo's words.
She looked trapped between the two of us.
“Don't worry about it. I was about to leave anyway.”
“Huh? Oppa! You're not staying for the concert?”
“I am. I invited someone.”
“A woman?”
“I invited Eva. She looks completely overwhelmed these days.”
“Ah. That's all? I thought—”
As I stood up, Junho rose with me.
“You stay. Eat with Jiyoung.”
“Ah, yes, Uncle...”
“See you next time.”
Jisoo was still standing near the entrance.
As I passed her, she suddenly spoke.
“Cheon Jiwon got out.”
I stopped.
“So?”
“Nothing. Just hoping he doesn't start causing trouble again.”
The bitterness on her face revealed just how much she'd suffered.
“I don't care. Whatever that bastard does isn't my concern.”
I walked past her and left the room.
Closing the door behind me, I turned to Chief Ma.
“Where's Eva?”
“She says she's already here. She went ahead to her seat.”
“Really? Early for once. Let's go.”
Eva was sitting in the very front row.
“Eva.”
“Boss!”
She was dressed casually and wearing only light makeup.
She was even holding Jiyoung merchandise.
“What is that? It doesn't suit you.”
“Why not? If I don't enjoy things now, when will I? I've been so busy lately I feel like I'm dying.”
Seeing her excited, I nodded and sat beside her.
“Fair enough. You probably won't have this kind of free time later. Enjoy yourself today.”
Eva grinned brightly.
We didn't discuss a single work-related topic while waiting for the concert.
A little later, Junho joined us.
Soon, the concert began.
But neither Eva nor I got to watch it until the end.
* * *
Reporters and camera crews packed a conference room at the Federal Reserve headquarters in Washington, D.C.
Moments later, Federal Reserve Chairman Ben Bernanke stepped up to the podium. ƒrēewebnovel.com
After adjusting the microphone, he began speaking.
“I am aware of the concerns regarding Bear Stearns' liquidity situation. I would like to take this opportunity to make something very clear.”
He paused and looked around at the reporters.
“Bear Stearns currently plays an important role in the financial markets, and the Federal Reserve is treating this situation with the utmost seriousness. However, I want to state clearly that there is no need to worry about the possibility of Bear Stearns failing. We are discussing every necessary measure, and Bear Stearns will not go bankrupt.”
A murmur spread through the room.
One reporter raised a hand.
“Chairman, can you explain specifically what measures are being taken?”
“The U.S. Treasury and the Federal Reserve are in close communication with Bear Stearns. We are discussing liquidity support measures and—”
Bernanke spent considerable time explaining the various discussions taking place to prevent a liquidity crisis.
Most reporters nodded along.
A few remained skeptical.
“Even so, some experts are warning that Bear Stearns' condition could worsen. What is your response?”
Bernanke answered firmly with a single sentence.
“It's not like that. It's safe.”
That's not going to happen.
It will be safe.
That was what he said.
However, contrary to his confident statement, all three major credit rating agencies downgraded Bear Stearns later that same day.
Moody's assigned a B3 rating.
S&P lowered it to B-.
Fitch gave it a B.
Their actions poured gasoline onto growing fears that Bear Stearns was heading toward bankruptcy.
