In fact, many institutions were well aware of the false prosperity and irrationality of the Japanese market, but they did not know when the market would turn, so they held their cash and waited, hoping the market would soon give them a signal.
In this situation, some tools for shorting the Japanese market became very popular, especially the stock index put options launched by companies like Stanley and Goodman, which were in high demand worldwide. As a result, more American investment banks joined in, and the forces betting against the Japanese market gradually grew, attracting more and more capital.
These investment products, which were not listed on any exchange, were essentially betting agreements. Both parties would bet on future market trends, and the final outcome would be settled according to the terms of the contract.
For Japan's insurance industry, they needed new investment products to hedge risks. For major investment banks, designing these products could significantly increase their sales revenue. This seemed to be a win-win situation, but it was actually built on a fragile foundation: the volatility of the underlying assets had to be within a controllable range. In other words, the volatility of Japan's capital market could not be too severe.
Japan, as a defeated country in World War II, was occupied for a period after the war and later revised its constitution to strictly curb militarism, even limiting its own military to a role of protecting the homeland. Therefore, Japan often found itself at a disadvantage in international political negotiations.
Many island nations have a peculiar psychology distinctly different from that of continental nations. For example, South Korea exhibits a notable mix of arrogance and inferiority. In Japan, there is a clear duality in culture: they love beauty and war, respect etiquette and are combative, embrace the new and cling to the old, and are obedient yet rebellious. An American scholar vividly described this national character as "Chrysanthemum and the Sword."
This duality is also evident in national policies. Whenever Japan felt superior in Asia, it would actively seek to "leave Asia and join Europe." However, when it faced setbacks in Europe and America, it would often adopt a condescending attitude toward emerging Asian countries and regions, acting as a "big brother" to "educate" them.
In the 1980s and 1990s, Japan's economy was booming, and its confidence was soaring. For a time, even the United States felt that Japan was a serious threat to its global dominance. This sentiment was widespread in American academic and business circles and directly influenced the formulation of U.S. foreign policy.
Starting with the Plaza Accord in 1985, some of the old capitalist countries in Europe and America continuously set obstacles for the newly rising powers, such as forcing the appreciation of the yen and the mark, coordinating international policies to adjust interest rates in the U.S., Japan, and Germany, and making new resolutions in the Bank for International Settlements to restrict Japanese super banks with international operations.
The Japanese Ministry of Finance was well aware of these situations, but due to Japan's weak political position and the urgent measures it had taken previously, it could only offer subtle hints. Previously, to support U.S. Treasury bonds, the Ministry of Finance would often give a slight nudge to major institutions over the phone, a typical administrative hint. Japanese companies and institutions, under this subtle administrative intervention, had no choice but to buy U.S. Treasury bonds, even during U.S. elections, when the business community was forced to pledge not to sell U.S. Treasury bonds even after the election, leading to the U.S. media dubbing the Ministry of Finance as "MOF (Ministry of Finance) is Bush's campaign money bag."
Under the influence of low interest rates and the appreciation of the yen, the Japanese market experienced rapid growth for several years, particularly in the stock market and real estate. The growth in these two sectors reinforced each other, gradually forming a massive bubble.
Not everyone could see through this bubble, especially Japanese entrepreneurs, who even believed that the Japanese stock market had a special energy that set it apart from most other markets. However, they forgot that the rules of the game were set by the West, and there was no samurai spirit in the capital markets.
Most astute investors recognized the risks in the Japanese stock market and tried to short it, but the momentum of the market's rise was too strong. The entire country was immersed in a huge wealth myth, and in an era where everyone was making money, no one thought about what the future might hold.
Those who warned of a capital bubble were not welcome, and even they themselves were writing sensational predictions while sending their pensions into the stock market.
However, Zhong Shi knew that everything was an illusion, and he even knew the exact date of the burst.
The consequences of this were a decade-long economic stagnation in Japan. When the bubble burst, countless companies went bankrupt, banks were restructured, salaried workers lost their jobs, and the real estate market collapsed. Japan lost its ability to compete with the United States.
Later, the Japanese reflected deeply and wrote many articles and books. One influential work linked the bursting of the bubble to World War II, calling it a "financial defeat."
...
While many international financiers were plotting, Zhong Shi and Liao Chengde were also in a huge mess. At the kidnapping scene, there were signs of gunfire, and according to the police report, the weapons used were extremely powerful and strictly controlled, not even the British forces in Hong Kong had many of them.
This made the situation more complicated.
Originally, it was just a simple kidnapping case, but the kidnappers did not succeed, and one of them died in a terrifying manner, which could not have been caused by an ordinary .38 caliber gun.
The case was immediately transferred from the kidnapping unit to the Organized Crime and Triad Bureau (O), and it even caught the attention of a Deputy Commissioner of Police.
The Hong Kong police force has many departments. Some, like the Mobile Unit, Rapid Response Unit, and Special Tactical Squad, wear uniforms, while others, like the Criminal Investigation Department (CID) and the Organized Crime and Triad Bureau (O), do not.
Before reporting to the police, Liao Chengde had instructed his people to say nothing when they entered the police station and to wait for a lawyer before making any statements. His family had a long-standing relationship with a well-known law firm in Hong Kong, so they were familiar with such procedures. As for the kidnappers, no one would care about them.
Liao Xiaohua, who had been unconscious for most of the night, was taken to the hospital, and Zhong Yi, who was clearly in a state of shock, was also sent there. An ordinary person would find it hard to accept such a shock, and Zhong Yi might need to see a psychologist in the future.
In a somewhat shabby interview room, accompanied by a lawyer, Zhong Shi recounted the events, of course, after being guided by the lawyer. There was nothing to hide; even if he told everything, the mercenaries and the people they carried were already far from Hong Kong.
In the end, under the intervention of some powerful figures in the Hong Kong government, the assassination attempt was quietly dropped. These powerful figures knew what was going on, and the matter involved a silent understanding between major powers. If one side leaked it to the public, the other side would deny it.
For such high-level negotiations, even the Commissioner of Police had no choice but to follow orders.
Due to the significance of the matter, the media did not get much information. The information they received from the police was that some gang members had planned a kidnapping, holding a local businessman surnamed Liao and his family and friends for about 10 hours. The police successfully solved the case, and one kidnapper was killed by the police. Two of the hostages were frightened and sent to the hospital for treatment, while the others were rescued unharmed.
Although the information was brief, the gossipy journalists still managed to dig up Liao Chengde and Liao Xiaohua. For a while, there were even journalists camping outside the hospital where Liao Xiaohua was admitted, and his past scandals were rehashed.
The journalists completely ignored the main characters. Zhong Yi quietly returned to his residence in Shallow Water Bay, where he would receive private psychological counseling and stay out of the spotlight.
Zhong Shi, after reserving some cash, quietly returned to the mainland. It was not yet time for the final showdown, and there was no need for him to stay. The property acquisition could only be entrusted to his agent, and no one could afford to be in the public eye at this stage.
On the third day of Liao Xiaohua's hospitalization, a large number of journalists suddenly arrived at the hospital, which surprised the hospital staff, wondering if a big celebrity had been admitted.
While the irrelevant people were still puzzled, a very ordinary taxi arrived, and the waiting journalists swarmed around it, blocking the car doors. Flashbulbs went off continuously, and after a while, a beautiful face appeared from the taxi.
"It's Miss Liu!"
"Movie star Miss Liu Meiling, why is she here? Isn't she dating a young actor from TVB?"
"Didn't you know? She must have hooked up with a rich young man!"
...
Journalists, being the most gossipy and perceptive people, quickly figured out the whole story. Many thought that the front page of tomorrow's newspapers was a sure thing.
"Dear journalists, I'm really sorry. I'm here to visit a good friend. Please wait until I finish my visit before asking any questions. Thank you for your cooperation."
Miss Liu, wearing large sunglasses, spoke softly, her voice sweet and fragrant, making the male journalists drool and hurriedly clear a path for her.
Under the watchful eyes of the crowd, Miss Liu Meiling gracefully entered the hospital's inpatient department.
"This actress, using someone else's fame to create a scandal, and she even used me!" In the fifth-floor ward, Liao Xiaohua, watching through the glass, was furious. He was originally a victim, but he was being used by others. He did not naively believe that the actress was really there to visit him.
Seeing Liu Meiling enter the hospital, Liao Xiaohua threw himself onto the bed, thinking maliciously, "One day, I'll have someone take care of her!" (The success of this book today is entirely due to the strong support of all the readers. Thank you all! The author will continue to work hard and hopes to gain more support from readers!)