With Japan's economy, it is not easy for Soros to get what he wants. But this financial crisis in Southeast Asia, no matter which country is unlucky, Japan will suffer losses.
Japan's banking industry is highly developed, and they have an excess of currency. So, they invest in Southeast Asia and other countries. Southeast Asia's financial and real estate industries are developed by Japan.
Isn't this the model that Japan used to rise?
Japan's economy had regressed for 10 years because of the US. Later, Japan decided to invest overseas. Once their domestic economy faces problems, they will take advantage of other countries. They learned this from the US, and Japan can continue to be the leader of Asia's economy.
But they didn't expect that before they could do anything, the economies of those countries would collapse first!
There are many Japanese banks in those countries, and Japanese banks had invested a lot of money in those countries and loaned out a lot of money.
This is a good investment. Those countries' economies are growing rapidly, and Japanese banks can make money from their investments. That's why Japanese banks increase their investments every year.
In the end, Feng Yu, Soros, and the rest worked together to wipe out many countries in Southeast Asia. Those countries' financial markets went into recession, and their currencies depreciated.
It was certain that those countries would suffer a lot of losses, but every single one of them was unlucky, and Japan was implicated.
Since the second half of last year, Japan's banks and securities companies started to go bankrupt. In the past few months, more banks and securities companies had gone bankrupt. This is because many companies in those countries are going bankrupt.
If those companies cannot recover their loans and investments, how can they not go bankrupt?
As for Japanese banks and securities companies, they either went bankrupt or contracted their businesses. This further exacerbated the financial crisis in Southeast Asia, and it could even be said that it affected the whole of Asia.
At this time, Yen is also affected, and it started to fall slowly. But the fall is not significant. At the beginning of this year, Yen had stabilized to 120: 1 against USD. It is slightly lower than 115: 1 last year, but it is still acceptable.
But today, Yen suddenly fell to 124: 1. This is the biggest drop in a single day for a long time!
Japan is alerted. Someone must be attacking the Yen, and the person most likely is Soros!
As they expected, Soros and his men were slowly attacking the Japanese Yen. Even if Soros did not attack Yen, Yen's fall is inevitable. Many of Japan's debts cannot be recovered, and their economy is also affected.
Furthermore, Soros is attacking the Yen. Although it is not as effective as attacking the Indonesian Rupiah, the Yen's fall is a trend.
The fall of the Yen caused those investors in Japan to be alarmed. They did not expect the financial crisis in Southeast Asia to affect Japan.
In addition, Soros has been spreading the news on various media, saying that Japan's economy will collapse again. He is trying to persuade the investors to dump the Yen and exchange it for the stronger USD.
Soros's name was still very well-known, and many people responded to him. Coupled with Soros's actions, it was normal for the Yen to fall.
When Feng Yu heard He Zhaoji's news, he immediately looks at the Yen curve and Japan's stock index. He is sure that it is He Zhaoji's doing!
"Old He, follow our plan and short Yen. Remember, you must do sufficient hedging. This investment must be stable. "Feng Yu reminded.
Feng Yu was afraid that He Zhaoji would be too greedy. If He Zhaoji did not hedge and short Yen, he might lose a lot of money.
Futures could make money quickly, but it was also very fast to lose money.
"Don't worry, Boss. We will be careful."
After hanging up the call with He Zhaoji, Fu Rongqi called. He was discussing with Feng Yu about the strategy to invest in Yen.
Both of them had the same opinion. They will use low leverage to short Yen and at the same time, do some hedging to prevent the sudden rise of Yen.
The last time, they had made a lot of money and had become more conservative. As the saying goes: The more experienced you are, the more timid you are!
… …
"President Norio, our shares had fallen again today."
"I know. You don't have to remind me!" Norio Ohga shouted.
This damn financial crisis had caused many Southeast Asian countries' economies to collapse. Sony's investments in Southeast Asia, especially their factories and subsidiaries, were all affected.
Their production had dropped, and their products were not selling well. Some factories even went bankrupt! Those factories still owe them for the materials they had paid in advance!
Norio Ohga was scratching his head because of this, and his company's shares in Tokyo started to fall.
Of course, it was not only Sony. Many Japanese companies' shares were also falling. Even the entire stock market was falling.
All of them thought they could withstand the financial crisis. Japan's economy had recovered well and should be able to withstand the financial crisis.
But after Japan's banks and securities companies went bankrupt, the credit crisis in Thailand and other countries worsened, and their economies collapsed.
This formed a vicious cycle that inevitably affected Japan's economy.
Although many conglomerates had joined hands to stabilize the stock market and Yen's exchange rate, they failed.
The conglomerates dare not to invest too much. If they could not withstand the financial crisis and invested all their cash, it will affect their companies even more.
Those conglomerates that owned the banks' shares suffered the most. Their bank shares plunged, and their assets shrank a lot. More than 35% of their loans could not be recovered, and many of them had to postpone their payments. Only a few of them could repay their loans normally.
Those foreign currency debts had also caused the conglomerates to suffer heavy losses. They did not expect those countries' currencies to crash so quickly.
Especially this month, those countries' property bubbles had collapsed. Be it Thailand or Singapore, those countries' property prices had started to plummet. Their property market, which had stabilized for almost a year, could no longer be stabilized.
Their property prices had also crashed, causing their economies to collapse further. Japan had suffered more losses because of this.
The conglomerates had wanted to use these countries' economic growth to boost Japan's economy. They could even withdraw their investments one day and cause a country's economy to collapse.
But they did not expect that before they could do anything, Soros had already made his move. They were also implicated and suffered great losses!
… …
"Feng, you had said that once Yen falls, Soros and his men will target Hong Kong or Russia. Should we start preparing?" Kirilenko asked.
"No. We must wait. If the stock market and currencies rise abnormally, that means Soros and his men had made their moves. At that time, we will counterattack and deal a heavy blow to them!"
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