Chapter 891 – Powell Funeral
Wall Street.
The center of world finance.
Although it always attracts public attention.
Snap!
Snap! Snap!
It is becoming a hot topic in a slightly different sense.
The camera shutter explodes non-stop.
“What is that?”
“What the hell!!”
“No, on this Wall Street…”
It’s absurd.
It is a unique performance that stops passers-by.
‘How much does land cost here?’
It is the most central street in Manhattan, the most expensive place in the world.
It costs hundreds of thousands of dollars per square meter, not even per pyeong.
It is difficult to even purchase it in the first place.
Ordinary people cannot even dream.
In a land full of gold.
—————————–±
『Jerome Hayden Powell』
1953. 02. 04
2023. 03. 13
Worst Fed Chairman of all time
±——————————————–
A gravestone is erected.
It is also a grave of a living person.
“Mahavanya Paramita Heart Sutra!”
A funeral is also being held.
Monk.
Touch the prayer beads and recite Buddhist scriptures.
It’s exotic to Americans.
It is not unreasonable to misunderstand that it is a performance.
“What festival is taking place?”
“It’s not a festival, it’s a funeral.”
It’s amazing.
Oriental style cabinet.
To be exact, they are performing an ancestral rite.
Percussion!
I bow.
I give it to you twice.
To a stranger, it seems polite.
“If you want to participate, just bow twice here.”
“Oh! Oriental culture.”
“I did. What does this mean?”
“It is a courtesy to the dead.”
“”?!!””
Not so.
It is a serious position.
Everyone must know.
The purpose of this tombstone.
The reason why a funeral is held in the middle of Wall Street.
“It says Jerome Powell…”
“Is Powell dead?”
“If something like that happened, there’s no way I wouldn’t know.”
Passersby are shocked.
Powell.
He is the 16th Chairman of the Federal Reserve System.
Did he die like that?
This is an issue that could turn not only the United States but the entire world upside down.
“It’s not that Powell is biologically dead. It’s that Powell as Federal Reserve Chairman is dead.”
A decent incident.
It is happening.
The official explains directly.
I am an employee of CW Securities.
This funeral can be said to be a kind of satire.
“”As Chairman of the Federal Reserve?!””
“That is why we are commemorating Chairman Powell, who is now a ghost of the past.”
It showed omnipotent influence.
One word from Powell can turn the market upside down.
Hello.
Stimulates PTSD in market participants.
No, people all over the world are struggling with high interest rates.
“We at CW Securities believe that with this BTFP, Powell has lost his reason for existing.”
That doesn’t make sense.
I will ignore Powell.
It’s nonsense that I don’t understand even after hearing it.
If it was said out of resentment, I would at least understand it.
It is an investment company that manages astronomical amounts of money.
“BTFP?”
“What is BTFP…”
“You mean the relief measures being implemented in the wake of SVB’s bankruptcy this time?”
I have no choice but to listen.
Securities industry insiders seem to know, but the public is confused.
One thing is certain.
CW Securities.
How do you view Federal Reserve Chairman Powell?
“Paul Volker, who is in heaven, come out!”
Summons contrasting characters.
They are performing a performance that literally summons them.
Percussion!
Wooden coffin.
The lid bursts open.
The onlookers are sure to be surprised.
He is a familiar person.
I know your face.
This is especially true if you are an economist.
“One thing I did well as chairman of the Federal Reserve was maintaining a high interest rate policy. But who can tarnish my achievements?”
Paul Volcker is called the most hardline Federal Reserve Chairman of all time.
A crazy high interest rate of 21.5%.
─8.6% inflation and the story of Paul Volcker
1. The Vietnam War incurred enormous costs
2. Print money and give up the gold standard
3. Super inflation
4. Paul Volker takes the mound
5. Interest rate 11.5%→21.5%
6. The economy is shattered, and the unemployment rate exceeds 10%
7. Intimidation not only in politics but also in the private sector
8. Hold on while carrying a pistol for self-defense
9. Inflation under control and long-term boom
10. America became what it is
└(Respect Chicken Corn)
└Some say that without Paul Volcker, America would not be what it is today
└Fuck you man
└It is said that the high interest rates in the United States at this time were the main cause of the collapse of the Soviet Union.
I pushed ahead without giving in.
He showed that he was not swayed by the political world.
He is also the person who created the current ‘Fed’ image.
Looks like Paul Volker.
“You Biden, you Powell, you Yellen!”
“”Wrong! I was wrong!””
It can’t be shown.
It is a performance criticizing Powell.
People wearing masks.
He plays his role and makes people laugh.
Snap!
Snap! Snap!
Onlookers flock.
Reporters cannot be left out either.
Such an eye-catching sight.
“What on earth is this?”
“Is Biden funny?”
“You’re a Trump supporter!”
There are bound to be some people who don’t like it.
It is also politically sensitive.
A voice of criticism.
It just has no meaning.
This small land of gold dust.
“Umm…, You know what the citizens are saying.”
It is strictly personal property.
It is worth noting that the police who arrived were in trouble.
There is no legal basis.
It is the owner’s freedom to decide what to do with private property.
“No matter what, it won’t work!”
“They even built Powell’s tomb!”
“Well, it’s not like Mr. Powell is actually buried…”
You wouldn’t know if a real body was buried.
It is no different from a simple tombstone.
It is street performance art.
Since it is your own property, you are free from liability.
“We cannot interfere with what is going on private property. Please understand.”
Above all, Lee Chan-wook.
He is one of the most famous investors on Wall Street.
There is an enormous amount of money.
This is a world where having a lot of money is superior.
‘I don’t want to see blood if I step out in the wrong direction.’
It is something that no amount of public power can touch.
It has a certain status.
“Paul Volker, who is in heaven, come out!”
Paul Volcker, who is summoned periodically, turns Wall Street upside down.
* * *
Trauma by country.
It is the same as the IMF in Korea and the deposit blockade in Japan.
‘The subprime mortgage crisis.’
The bankruptcy of Lehman Brothers was the starting point.
The world economy was shaken.
“Our country suffered little damage. We made a lot of money through exports to China, which was on the rise at the time.”
“There are many people who don’t know about the incident itself.”
It was an incredibly big event.
The influence continues to this day.
The Federal Reserve purchases MBS.
So that Americans can buy a house with a fixed interest rate.
‘If you touch the wrong detonator, even the United States, the world’s most powerful country, can be shaken. It was an incident that imprinted that in my mind.’
So I am very careful.
I am traumatized by the bank going bankrupt.
Korean Newspaper− “U.S. Government agrees to fully guarantee deposits at Silicon Valley Bank”
Fact News− 「U.S. Treasury Secretary Yellen: “There is no bailout for the bankruptcy of Silicon Valley Bank”」
Series of articles.
This is why it should not be taken lightly.
The fact that the response came out very quickly.
“It can be said that the trauma of American politicians has been exposed.”
“Is it that big?”
“Okay.”
This is why you need to know the history and culture of that country.
The same event looks completely different.
‘Political bastards.’
I will do anything to prevent serial bankruptcies.
It’s no different from revealing one’s true intentions.
“You didn’t save the bank, did you? Isn’t there still a risk that the bank will go bankrupt again?”
“No.”
“?”
“Change your thinking. What does it matter if the bank fails?”
Provides depositor protection.
In other words, it blocks the chain of events from happening.
There is no risk of it developing into a system risk.
Even in the worst case, it ends in bank failure.
“They even went so far as to tell BTFP not to go bankrupt. This is just to throw away money.”
The stock market is normalizing.
The fact is that America is getting healthier.
‘It’s not just that.’
Bank Term Funding Program.
It is abbreviated as BTFP.
This is the biggest problem.
This is the turning point where the Federal Reserve lost its function.
“I thought the Fed had a deep understanding of the current situation.”
“You didn’t take one thing into consideration.”
“What?”
“Human greed.”
Reasons for bankruptcy of Silicon Valley Bank.
This is because the value of the bonds they held fell.
I will keep it as collateral.
We will provide liquidity for immediate use.
At first glance, it seems like a relief measure.
“What are the banks going to do when they get that much money?”
Thank you, Yeonjun!
I will think of it as my second life and never make a mistake again.
This can’t be happening.
Just like Silicon Valley Bank did right before it went bankrupt.
“They will try to make money. For reference, it was the same at Lehman Brothers.”
“Ah…”
“Okay.”
Bankruptcy of Lehman Brothers.
It is known because of real estate.
That is only half the truth.
‘Actually, I tried to pay for it, but I failed.’
I went all-in on crude oil futures.
With the support money sent by the government and industry.
Even if you fail, you still get your money’s worth.
If you win, the bonus will be huge.
Moral hazard has reached its peak.
What if you hadn’t done that?
The company did not fail, and the financial crisis did not occur.
“You cannot properly understand this financial market if you do not take into account how much the people in the financial sector are thieves.”
The moment you let go of ‘responsibility’, you can do anything.
The Fed loosened the reins.
Human greed.
It is one thing that does not change even as time passes and technology develops.
“Are you saying that money will flow back into the stock market?”
“It’s a risk-free investment, but I can’t resist it.”
“Wow, I can’t believe it…”
Sora probably doesn’t know.
I haven’t really experienced the darkness of this industry yet.
You have to experience it.
The difference between knowing through knowledge and seeing and hearing directly is the difference between heaven and earth.
