In September and October of '90, what was the economic situation of Neon?

The fire is cooking oil, and everyone is covering the lid.

The first to have problems is the securities industry, because their earnings are closely related to the stock market.

Then the first stock market crash in January of the year was followed by another sharp drop in September.

Two consecutive real injuries of tens of thousands of points, no matter how big a securities company is, it is impossible to be unscathed.

Among them, the Ministry of Finance has even played a role in adding fuel to the fire.

That's right, the Ministry of Finance also has to take the blame.

Because they were the ones who guided the securities industry to invent the highly illegal financial product of "business special gold".

Enterprises entrust their own funds to securities companies to carry out various stock market and financial operations.

And the securities company claims to be absolutely profitable and will not lose money.

This part of the capital is the "business special gold", but as long as it is a product circulating in the financial market, where there will be a saying that there is no loss.

The stock market plummeted twice, and the tens of trillions of funds raised by industrial companies lost everything!

The amount of these losses is evenly distributed to the heads of major securities companies, and they all start at least 200 billion yen!

So have these problems come out?

No! Because the Ministry of Finance hinted to securities companies, "the annual accounts of the business special fund can be handled flexibly." ”

In short, it is to tell everyone that it is time for the final accounts in March.

You can use "financial management skills" to deal with the loss of the operating special fund, and do not record it in the account books and make it public.

What is this operation???

Cheat!!!

Yes, you read that right, the Ministry of Finance is hinting at financial fraud by major securities companies, and it is also officially recognized financial fraud!

Therefore, the tradition of various counterfeiting in small days does not come from the people, but from the official lineage.

So why has the Nikkei fallen below 20,000 points, and no securities companies have gone bankrupt?

It is because these losses have not been announced to the public that many industrial companies, as the entrusting party, do not even know that they have lost most of their funds.

It can be said that the Ministry of Finance has allowed the loss of money caused by the negligence of industrial companies, securities companies, and banks, leaving the contradiction to the future.

Why did the Ministry of Finance do this? Fear of responsibility is one thing.

In addition, at this time, there was a common credo within the Ministry of Finance, "that is, Japan must not be the one that triggered the Great Depression in the world!" ”

Moreover, in order to settle the accounts, it also dominates the lending of banks to securities companies.

This is equivalent to saying: even if you borrow money, companies and enterprises must use "financial management skills" to eliminate account losses!

This is the case in the securities industry, but what about the banks?

The bank's biggest asset is the various land mortgages based on the "land standard".

In other words, the land is the wealth of the bank, because it has given out hundreds of billions of yen in loans against the land.

At the same time, in order to cooperate with the "financial management skills" of the Ministry of Finance, it has also provided a foundation for the "special operating funds" of the securities industry's losses.

The fundamentals of the two major markets, the stock market and the property market, are now tied to the banks alone.

Therefore, it is conceivable that the Ministry of Finance will strictly guard against the various financial scandals discovered by Hayama about major banks.

However, contrary to expectations, the reporters who ran too fast had already disseminated this information to the major media groups in Neon.

Does the neon government have control over media conglomerates in the country? Some do, some don't.

Neon capitalism is a bit strange, but people in the media industry are very adamant about their principles.

Even government scandals are not wrong, let alone financial scandals in banks.

The Yomiuri Shimbun, the Asahi Shimbun, the Mainichi Shimbun, and the Nikkei Shimbun all covered this at great length.

The flaming Ministry of Finance wanted to divert the public's attention, so it asked the Tokyo Shimbun to shift the focus of its coverage to the Extreme Rush.

Even in order to increase the attention of the Ministry of Finance, the Tokyo District Prosecutor's Office has also made efforts to carry out a special search.

On the eighth floor of the Chuo Ward Contract Building, there was a sharp knock on the door of Hiroyuki Ueda's office.

"Your Excellency, Hashimoto-san of the Ministry of Finance would like you to issue an announcement announcing the launch of a public investigation into the Hayama Gokudo rush."

Behind the desk, Hiroyuki Ueda put down the pen in his hand and smiled.

"That's what the Metropolitan Police Department is responsible for, and the responsibility of the Special Search Department is not here.

However, in view of the excessive impact of the matter, under the pressure of public opinion, the Special Investigation Department decided to help the Metropolitan Police Department. ”

"Huh?" The assistant looked at Hiroyuki Ueda in his uniform, and he was a little confused.

"The extreme matter was handed over to the Metropolitan Police Department, but the economic crimes in the financial industry, the Special Investigation Department took over!

Notice, a press conference will be held today to announce the launch of a special investigation into the Yeshan incident! ”

Good guys, this. It's too late for the Ministry of Finance.

You're good enough, I'm going to add another fire.

"What are you doing? Why don't you hurry up? ”

"Hay!" The assistant hurried out again.

Financial crimes, isn't this exactly what the Special Investigation Department is good at?

Hiroyuki Ueda said that in order to maintain a fair and just environment in the neon financial industry, it is incumbent on the Special Search Department!

The major banking and financial events reported by the neon media industry are like a depth charge, which makes everyone dizzy.

However, this was not enough, as the news media reported at 7 a.m., and at 10 p.m. the Tokyo District Prosecutor's Office announced that it would launch an investigation into this series of financial incidents.

As for the Extreme Rush? That's the Metropolitan Police Department's business, and the Tokyo District Prosecutor's Office Special Investigation Division only targets financial crimes.

In addition, some time ago, Fuji Bank's loan fraud incident has not yet been resolved, and this time Yeshan has involved major banks such as Daiichi Bank, Industrial Bank, Yamaichi Securities, and Long-term Credit Bank.

As a result, the Tokyo District Prosecutor's Office announced that it would combine all these financial incidents into a single case for trial and investigation.

The name of the incident in the report was, "The Hayama Incident!" ”

As soon as the press conference of the Special Search Department ended, Nomura Securities' Tabuchi Matsutsu also called Shirakawa Kaede.

He said only one sentence, "The color of the sea has changed." ”

Why did the color of the sea change? Because the tsunami is coming.

For the people of the island country, this is a well-known folk saying.

The public was already shocked by today's newspaper headlines, but now the Tokyo District Prosecutor's Office has publicly stated that it will investigate the incident.

Isn't that true, and those banking scandals in the newspapers are true?

Ordinary people have long had a very bad opinion of banks, because they believe that they are driving up the price of land.

Now this series of financial scandals is caused by banks again, so the people are angry.

Many people held flags at the gate of the Ministry of Finance and demanded an explanation from the Ministry of Finance.

The Deputy Minister of Finance came out sweating profusely and explained that the government is conducting an investigation and will definitely give an explanation to the people.

As for the high housing prices, the Ministry of Finance also said that various measures to restrict real estate that were previously promulgated will come into effect next month.

In January next year, the land tax will also come into effect, all in order to bring down the price of land.

The statement of the Ministry of Finance has just ended, and then the neon property market has dropped!

Since 85, the neon land price, which has been climbing for five years, has ushered in a market decline for the first time!

There was a stock market crash in the past, and then there were restrictions on land by various policies of the Ministry of Finance, plus the current collapse in the banking industry.

Finally, the price of neon land, which has been like a mad cow, began to fall.

In just one morning, the major intermediary companies and real estate companies were still quietly listing and selling land.

When will you run if you don't run at this time? Didn't read the newspapers? Some banks are in debt for trillions.

And next month, the new rules on land transactions will come into effect.

Newly acquired homes are not allowed to be transacted within two years, otherwise a 96% ultra-high transaction tax awaits them.

The land in the hands of the real estate company cannot be traded, so what is the point of making it?

What is the concept of 2%~3% land tax per year?

According to the market price, the land in the hands of most real estate companies is worth trillions or even tens of trillions.

This means that the taxes they will have to pay each year are likely to be in the hundreds of billions of yen.

The point is that a lot of these lands are not yet available for sale, because they have to pay 96% of the tax.

It can only be held in your hands for two years before you are allowed to enter the market.

Who can say what will happen two years from now? Who will pay for the hundreds of billions of yen in taxes in the past two years?

Real estate company? It is better to expect the real estate company to be reliable, than to expect the sow to go up the tree!

So today's "Hayama incident" that overwhelmed the property market has just been reported, and real estate companies are already taking action.

Take advantage of the time when the law has not yet taken effect, so why not run quickly?

The market cannot be controlled, the market is irrational, and the market is also blindly followed.

If there is one in the throw, then there is a second and a third

Under the snowball rolling, the price of neon land is not only falling, but also getting faster and faster!

Prior to September, Neon's land prices were up 56% this year compared to last year.

However, in just one day, the gap narrowed to 42%.

Is that the end of it? No, the avalanche has just begun!

As mentioned earlier, banks lend on a "land-based" basis.

A large part of its assets are on land mortgaged by real estate companies.

Not only that, but many of the assets of private families are also linked to land.

From '86 to '89, Neon relied on the surge in the stock market and property market, bringing in more than 1,400 trillion yen in earnings.

In '89 alone, neon families received as much as 260 trillion yen from the land.

It is precisely because of this terrible profit that the whole people have thrown themselves into this era of fanaticism.

However, these proceeds are all on the land, in other words, they have not yet been realized.

Now that land prices are falling, it means that enterprises, real estate companies, and ordinary personal assets are shrinking.

The value of the land mortgaged to the bank is shrinking, but the loan still exists.

At the beginning, according to the market price of the land, the bank really took out its real money to lend to real estate and individuals.

The financing amount is generally 70% of the guaranteed land price, but bold banks such as Changyin dare to lend at 120% of the land price!

Now the land is not as valuable as it used to be, but the real estate and the bank loans that individuals are saddled with are still there.

In other words, no matter what the land will fall into in the future, this loan is indispensable.

And when the land falls to a certain situation, there may be a wave of supply interruption!

Because people feel that their land is no longer worth the price, but they still need to pay for a high loan.

Of course not! Besides, the reason why the price of land was so high in the first place may be that your bank is playing tricks.

There is Sumitomo in front and Fuji in the back, and this is the best proof of this!

And once there is a supply outage, the worthless land will become the bank's non-performing assets.

Because the loan it gives is real money, but the land it has recovered is worthless.

If the non-performing assets exceed a certain level, the bank will also become insolvent.

What is the end point of insolvency? Go belly up!

Bank bankruptcy?!

Think about the responsibilities of banks now?!

It is supporting securities companies, the stock market, and the property market!

Cascade effect! Pull a hair and move the whole body, that's how the avalanche came about~

However, the situation has not deteriorated to that extent, and both the securities company and the Ministry of Finance are considering countermeasures.

In addition, although the price of land is falling, it is still higher than last year.

Many real estate companies, and even the Ministry of Finance, are still thinking that the price will rise back after the meeting.

After all, no one can predict the market, and the market is unpredictable.

(End of chapter)