whonovel Chapter 561: CH562
Chapter 561: CH562
Late at night.
Dressed in comfortable pants and a soft cream-colored cashmere turtleneck, Seok-won stood with his arms crossed, watching CNN on a large television.
The broadcast was airing a live scene from Austin, Texas, where George W. Bush, confirmed as the 43rd President of the United States, was giving his victory speech before the state legislature.
[… I know the American people want to move forward toward reconciliation, unity, and a better future. There has been much conflict and division, but this is the moment we must seize and bring ourselves together. Though bitter feelings remain, as our ancestors once did, we will rise from a divided house and stand united again under our great Star-Spangled Banner!]
As state lawmakers and spectators rose to their feet, giving thunderous applause, the phone on the table began vibrating.
Seeing the caller ID, he answered. Landon's voice came through.
[Are you watching Governor—no, President-elect Bush's speech?]
With one hand slipped casually into his pocket, Seok-won replied in a calm tone.
"I'm watching it now on CNN."
[When the Supreme Court ruled Florida's manual recount unconstitutional and the Democrats reacted by refusing to accept the election results, I thought the turmoil would continue well into next year. I never imagined things would flip this dramatically in just a single day.]
"The American public has been exhausted after more than a month of political brawling. And with the market plunging without a bottom in sight, public sentiment has turned sharply negative. At some point, they simply couldn't ignore it anymore."
[Exactly. This isn't the last election—they need the voters again next time. If they lose public support now, it could have serious consequences in the midterms two years from now. They couldn't afford to take that risk.]
Seok-won picked up the remote, turned down the volume, and settled into the soft sofa.
"Even if they're stuck in a lame-duck phase and practically powerless, the Democrats are still the party in charge right now. If they kept rejecting the election results and the Republicans blamed them for paralyzing the government and letting the stock market crash, they'd risk losing the administration and tanking their approval ratings—a worst-case scenario."
[You're absolutely right.]
"And most importantly, once the Supreme Court ruled in Bush's favor, the Democrats lost any justification to keep fighting."
[I agree. And stepping back at this point probably works to their advantage for whatever they plan next.]
Seok-won guessed that it was a strategic move aimed at a future presidential run, but he also knew the opposing candidate would withdraw from politics for about a year after the defeat, attempt a comeback, and ultimately fade back into obscurity. There was no need to say it out loud.
"How's the market reacting?"
[At first, when the opposing candidate officially conceded, investors were unsure. But once President-elect Bush declared victory and announced plans to strengthen the military and push tax cuts, the market hit bottom and is now rebounding sharply.]
With the phone pressed to his ear, Seok-won nodded as if he had expected it.
"As I said before, the government and Congress have been hands-off for too long. Now that people expect them to step in and support the market, stocks will probably jump for a while. But unless the underlying problem is fixed—big tech companies still aren't making money—the rebound won't last. It'll fall again soon. So make sure we're prepared for that moment."
Landon didn't doubt him for a second. Seok-won's predictions had never been wrong, almost as if he were seeing the future.
[I'll take care of it.]
His voice brightened as he continued,
[After we closed out all the index futures and put options, we bought up stocks just like you instructed. Looks like we'll make another nice profit during this rebound.]
A faint smile formed on Seok-won's lips.
"Let me repeat it again. This rebound won't last more than a month at best, so keep the bat short. Don't get greedy."
[Understood.]
Then Landon added, as if something just came to mind,
[The big investment banks and financial institutions that flew all the way to Korea to settle their option contracts and pay out eighty percent of the agreed amount… I bet they're pounding the floor in regret now that the index is rebounding.]
His tone made it clear he was enjoying the thought.
With a shrug, Seok-won replied with almost annoying nonchalance,
"They weren't forced. They wanted to close the contracts themselves. If they regret it, who can they blame?"
[Hahaha. That's true.]
After chatting a little longer, they ended the call.
Seok-won looked back at the screen where President-elect Bush was stepping off the podium, shaking hands with members of the state legislature after finishing his speech.
"It's time to collect the returns from my election investments."
A sharp grin spread across his face.
***
At the same time.
The chairman's office at Bear Stearns headquarters in Midtown Manhattan was filled with shock and disbelief.
When Chairman Fuller arrived at work that morning, he hadn't been in a bad mood.
Paying the Eldorado Fund two billion dollars—eighty percent of the agreed amount—to terminate the option contract had been painful, yes, but the Nasdaq and the other major U.S. indices were still sliding downward afterward.
And when the Supreme Court ruled Florida's manual recount unconstitutional, the Democrats erupted in anger, showing no signs of accepting the results and only worsening the political turmoil. That had actually eased his mind.
With the situation deteriorating, the research department even projected that the Nasdaq might fall below two thousand before year-end. Fuller felt relieved that he had hurried to settle the option contract.
The stock market crash had caused huge losses, but he had managed to unload the firm's entire position. Bear Stearns still stood, and from here on, all that remained was to manage the situation and recover what they'd lost.
Of course, the board and shareholders would criticize him for the damage done. But it wasn't as if Bear Stearns alone had collapsed—the entire market had crashed, and most Wall Street investors had taken massive hits. He could deflect part of the blame.
But shortly after the market opened that morning, the Democrats suddenly announced they would accept the election results—and Fuller froze on the spot.
"What… what is this…?"
His eyes shook violently as he stared at the breaking news flashing across the Bloomberg terminal.
And of course—
The three major indices, which had been steadily declining just moments earlier, hit bottom and began to rebound sharply as if someone had flipped a switch.
With the political risk suddenly resolved, investors expected the government and Congress to introduce stimulus measures, preventing the market from falling further.
But the problem was this: he had paid a premium to close the option contract early—only for the market to rebound almost immediately afterward.
Fuller's face twisted, and a harsh curse burst from his mouth.
"Damn it!"
If he had simply left the option contract in place, this rebound would have greatly reduced his losses.
But because he lacked the patience to wait just a few more days, he had closed it early—locking in the full loss.
The decision he believed was the best had instantly turned into the very worst, and Fuller's face flushed a furious red as rage exploded inside him.
"Why now, of all times!"
Chairman Fuller slammed his fist on the desk and shouted.
If the Nasdaq had broken below two thousand, kept falling through the end of the year, and only rebounded in January after the election results were finalized, it wouldn't have mattered at all.
No—he would have celebrated. He would have seen it as a chance to recover the losses.
Veins bulged across Fuller's forehead as his whole body trembled.
"Damn it… I closed the option contract at the exact moment of maximum loss?"
The sheer absurdity of it made anger surge through him like wildfire.
"If I'd waited just a week—no, even four days—I wouldn't have had to hand over hundreds of millions more to Chairman Park! Damn it!"
"Arghhh!"
Fuller shouted wildly and pounded on the desk again.
His bloodshot eyes were filled with fury and despair directed at no one but himself—for making such a stupid decision.
And he wasn't alone. The big Wall Street investment banks and financial institutions that had signed option contracts with the Eldorado Fund couldn't fully enjoy the rebound that came after the steep market drop either.
***
The snow that had been falling throughout the morning finally stopped, revealing a clear sky. On the tarmac of Gimpo Airport stood a Gulfstream IV private jet painted in two-tone colors.
Dressed in a crisp white shirt, Seok-won sat in one of the jet's spacious seats, speaking on the phone with Governor Bush—now officially the President-elect.
"Let me congratulate you once again on your return to the White House."
[The Electoral College still has to vote, so nothing is officially confirmed yet.]
In the United States, citizens in all fifty states plus Washington, D.C. elected members of the Electoral College, and the 538 electors then cast the formal votes that officially determined the president.
"The Electoral College vote is practically a formality. All that's left is to prepare for the inauguration."
Bush burst into laughter at that.
[Haha! Well, that's true.]
His tone softened as he continued.
[I won this election thanks to you. I truly appreciate it.]
"It was your passion and your vision for the future that earned the American people's support, not anything I did."
[No, that's not so. Your help was invaluable, not only during the campaign but also when we were clashing with the Democrats over the recount issue.]
"I'm glad to hear that."
[I'll never forget what you did for me.]
A deeper smile spread across Seok-won's lips.
"Your words alone are more than enough."
[When you come to the United States, don't forget to come see me.]
"You'll be busy with the transition. Will it really be alright?"
[No matter how busy I am, I'll make time to see you. Don't worry about that.]
Bush's voice carried warmth and familiarity.
Seeing that Bush was treating him exactly the way he'd intended—as someone special—Seok-won smiled with clear satisfaction.
"I understand. I'll make sure to visit you."
Having a close relationship with the man who would soon become president of the most powerful nation in the world would be an enormous asset for Seok-won as well.
At that moment, President-elect Bush suddenly added, as if something had just come to mind:
[Ah, and about Magnequench, the company you mentioned. We discussed it internally. We've concluded that handing everything over to China is far too risky.]
A spark flickered in Seok-won's eyes.
Magnequench was the first company in the world to develop and produce rare-earth permanent magnets—neodymium magnets—an essential component in advanced equipment and military weapons.
[The sale of the company to a Chinese consortium has already been completed, so we can't undo that. But citing national security, we've decided to prohibit the relocation of the neodymium magnet manufacturing plant from Indiana to China.]
"You've made the right decision."
The United States had once been the world's leading producer of rare earths.
But the mining and refining processes produced severe environmental pollution. Environmental groups pushed back, lawsuits piled up, regulations tightened, and the industry gradually shrank.
China seized that opportunity immediately.
While the U.S. and other Western nations backed away from rare-earth production for environmental reasons, China poured massive subsidies into the sector and aggressively expanded mining and manufacturing at the national level.
The result was catastrophic environmental damage, but the Chinese government didn't care in the slightest.
Because of this, the rare-earth supremacy the U.S. had abandoned fell into China's hands. A few years later, that decision would become a threat not just to the United States but to the entire world.
Magnequench was one of the key companies that helped China secure this rare-earth dominance.
As Seok-won considered this, President-elect Bush continued, sounding slightly regretful.
[I have another engagement, so I'll have to end the call here.]
"I'll contact you again once I'm in the States."
[Make sure you do.]
After emphasizing it once more, President-elect Bush hung up.
Setting down his phone, Seok-won stroked his chin and murmured,
"Since they won't be able to tear down the production line in the Indiana plant and move it to China, the Chinese government's plan to secure rare-earth dominance is going to hit a major roadblock."
TL/n -
Magnequench is a global leader in advanced magnetic materials, best known for its neodymium-iron-boron (NdFeB) powders and magnets, which are critical in industries ranging from automotive to defense. It also has a controversial history tied to U.S.–China industrial competition.