[Bank of Korea Implements Won Devaluation... Exchange Rate Adjusted from 800 to 850 KRW per Dollar] [Foreign Currency Shortage Resurfaces, “Collapse-by-Dollar” Theory Returns... Predictions of ‘Currency Crisis’ Within Three Years. Government Announces Plan to Increase Dollar Reserves to $40 Billion] “Huh? Korean newspaper? What are you reading today?” Seo Ji-yeon leaned forward and blinked her clear eyes as she asked. “Something interesting came up.” I had intended for this, but perhaps the secondary financial companies were more sensitive due to their smaller scale. I thought they wouldn’t respond until around June this year, but they jumped sooner. There had been some grumbling from these institutions about a dollar shortage, but it wasn’t urgent just yet. South Korea was operating under a peg system—essentially, a fixed exchange rate. No matter what the market price of the dollar was, the Bank of Korea was obligated to exchange $1 for exactly 850 won. “They’ve gotten competent after all.” “Competent...? Um, by your standards, Miss?” Not knowing the Korean economic history of my previous life, Ji-yeon tilted her head in confusion. From her perspective, the current Bank of Korea probably still looked incompetent. But compared to Miss Yoo Ha-yeon, anyone would look incompetent. Thanks to the survival of capable bureaucrats who would’ve otherwise died in the bombing, this version of Korea had managed to endure a little—no, significantly better. Most of them had since retired, but the knowledge they had passed down and the institutional memory had made the economic foundations much more solid. “No, even objectively speaking. Compared to other East Asian countries... like Thailand or Malaysia, this is way better.” Because they endured well, there’s still plenty left for me to squeeze dry before collapse—and recovery will be easier afterward too. It’s a good thing. If Korea collapses completely, I take a huge loss too. “...Hmm. Weren’t you trying to bring Korea down though?” “Oh my, what makes you think that?” “Well... I mean, just looking at what you’ve been doing. The yen devaluation, high U.S. interest rates, on top of the dotcom bubble... Didn’t you even say you planted bombs in financial institutions back when Japan’s bubble burst?” Smart girl. As expected of my loyal hound. I grabbed Ji-yeon’s loosely tied necktie and pulled. Seo Ji-yeon collapsed into my arms, her legs flailing. “Ji-yeon, don’t say reckless things like that. How could I bring down an entire country? I’m not that powerful yet. I don’t even have that much money.” “...Isn’t $40 billion plenty of money?” “That’s not my money. That’s Alpha Fund’s. And besides, LTCM’s assets were all leveraged, and even they didn’t have $40 billion—they had $140 billion.” Alpha Fund’s AUM ranks about third in the world. Before LTCM surged up the ranks, we used to be second. Of course, considering LTCM’s naturally low base returns from bond arbitrage, we’re probably still functionally second. “But your fund has the highest returns. If you overlook the lack of U.S. connections, the sketchy internal structure, the incomprehensible investment logic and the opacity of your capital flow... you could still rise to number one right now....” “Are you mocking me right now? Those are things I can’t fix.” Our fund has the best returns, yet suspiciously low trust. If Ha Yeong-il hadn’t personally destroyed the Madoff Fund, we’d be constantly accused of being a Ponzi scheme. No—actually, people still say it. “Aaagh! Ngh, I’m sorry.” Didn’t look that sorry though. “A nation is no different from a giant corporation with tens of millions of employees. Sure, it’s wildly inefficient to call it a corporation, but you can’t ignore its sheer scale.” What I hold as an advantage is information, organizational control, and the aggressive liquidity unique to hedge funds. “I want to rule Korea for a long time—not ruin it. You know viruses that kill their host too fast don’t last, right?” Patience, and precision, are key. At least until the time comes. “Hmm... so we need to increase our scale too?” “Exactly. Not just me—Wall Street as a whole isn’t that massive yet either. Its growth rate is on another level as the heart of global finance, but the fact that it’s still growing means it hasn’t hit max scale yet.” “When ❖ Nоvеl𝚒ght ❖ (Exclusive on Nоvеl𝚒ght) do you think that time will come?” I paused, gauging the American political landscape. Just how much money had we poured into lobbying? How many joint ventures did I grit my teeth through with Wall Street players I didn’t even want to speak to? Still... the end of that lobbying effort was finally in sight. The trigger for the dotcom bubble was the very piece of legislation I’d longed for. [Gramm-Leach-Bliley Act Enacted — A Victory for Wall Street] [Glass-Steagall Repealed After 63 Years! Lobbyists Shatter FDR’s Legacy] [Investment and Commercial Banking Integration Approved... “Ten Years of Financial Frenzy Ahead,” Experts Predict] [The Broken Legacy of Morgan Splits Like a Hydra! Both JP Morgan and Morgan Stanley Show Expansionist Moves... Chase Approaches JP Morgan] The headlines read like victory drums. Even I, having come from the future, couldn’t help but nod. The Gramm-Leach-Bliley Act. A bit of a mouthful, but the core idea was simple: Investment banks and commercial banks can now operate as one. It meant massive banks could now form financial holding companies, using depositors’ money for risky investments. Had this law not passed—even with the subprime mortgage boom and the real estate bubble—it’s said the global financial crisis might never have happened. Ha Yeong-il clicked his tongue. “We’re not a bank, are we? Ugh, it twists my stomach to think about how Morgan must be popping champagne like mad right now.” “Oh, come on. Partners should support each other.” “...Not even a child would believe that. How long have I been working with you, Miss, and you say something like that?” “It’s a joke. A joke. Thanks to all our lobbying efforts, we did get some nice perks, right?” He frowned, clearly unimpressed. “More like we paid to be included in the mainstream. Sure, our fund’s credit rating went up, and we drew in more capital... but the return on investment still feels disappointing.” Fair enough. This law basically handed wings to the banks. Didn’t JP Morgan say they were merging with Chase soon? Chase’s asset size is about $170 billion. That’s four times what Alpha Fund has, and $30 billion more than the heavily leveraged LTCM. Morgan has a little over $300 billion in assets. And they’re not even the only behemoth like that—there are several. This repeal was the final chain holding them back. Now they’d double in size. And now these greed-blinded monsters running investment banks were diving into the dotcom bubble. Just imagining it was dizzying. Wall Street was in festival mode. “Hahaha! Cheers! To the new era of Wall Street!” “To the endless prosperity of Morgan!” Top-shelf champagne flowed like water, and the sound of clinking glasses echoed through the banquet hall. Investment bank executives, faces flushed, slapped each other’s backs in euphoria. Mountains of artery-clogging gourmet food crowded the tables. Lifting their wine glasses, they smiled in celebration. “Marvelous! Haha, I’ve never felt a boom this electrifying in my life! Long live Pax Americana!” Laughter burst out around him. “Hmph, the wine’s pretty good tonight. But I guess nothing would taste bad on a historic day . That said, with a toast like that, are we talking JP Morgan or Morgan Stanley?” Someone chided in jest. The man shrugged and chuckled. “Who cares? Can’t exactly use their full names—soon they’ll just be JP Morgan Chase anyway.” Another round of laughter erupted. For the first time in ages, the banks of Wall Street had moved in unison for a shared goal. It gave them a deep sense of kinship and satisfaction. For decades, through generations, they had endured the shackles of regulation—Glass-Steagall had robbed them of countless opportunities. In Europe, banks could gamble with client funds, while in the U.S., that one line in the law kept money rotting in vaults. Absurd. Such a law no longer suited the mighty, prosperous America. “I do respect FDR, but that law belonged to another era. The Great Depression was a different world from today’s America.” People around him nodded naturally. Money had to move. Idle capital was a sin—that was a near-religious belief on Wall Street. Prepare for risk? Why should America bother? There was no longer any danger ahead for American banks! Financial engineering had advanced at breakneck speed, and another industrial revolution was brewing. No one doubted America’s prosperity. The internet and high-tech industries were growing at an unbelievable rate. “Truly, the 21st century is shaping up to be terrifying—in a good way. Haha, maybe now I understand why old Warren Buffett refuses to invest in IT. Even we’re barely keeping up with the internet boom—imagine how a man his age must feel.” One of the younger vice presidents chuckled, shaking his head. “Hey now, show some respect. He’s still a living legend on Wall Street. Sure, maybe he’s falling behind the trends a bit, but he hasn’t retired. Keep it respectful in public.” The director tried to scold him, but even his tone carried a subtle disdain, as if Buffett’s conservative philosophy was already obsolete. A folded business paper on the table bore the headline: [Warren Buffett: “I Never Invest in Companies I Don’t Understand” — His Unwavering Distrust of IT Firms] [‘Then Learn,’ Say Angry Shareholders... Berkshire Stock Keeps Falling]