Early September 1929
The New York Dow Jones Index hit its highest level ever recorded. America was enjoying a period of prosperity, and most people believed stock prices—and the economy—would rise forever.
"Another sell order from Richard Investment. He's been net selling since last month."
In a brokerage firm's trading room, employees exchanged casual conversation.
"He's placing small buy orders too, but since August, the sells have clearly dominated. He must be really cautious."
At the time, there were a few who warned that the stock market was overheating. But nearly everyone had become used to ten years of uninterrupted growth. Few could imagine the markets suddenly turning downward.
Whenever Richard Investment placed a sell order, others followed suit, causing temporary drops. However, the market interpreted these dips as buying opportunities, and investors rushed in to "buy the dip," quickly pushing prices back up again.
But Richard Investment's sell orders gradually increased. And just as steadily, the NY Dow began to decline—as if following every move Richard made.
Late September 1929
Britain raised its official discount rate.
This triggered capital flows from America to Britain, accelerating the downturn in stock prices.
Early October 1929
Within just over a month from early September's peak, stock prices had fallen by 17%. A vague sense of unease spread among investors. Yet many held on, hoping for a rebound rather than cutting their losses—desperate to protect even a little profit or minimize damage.
"Massive buy orders from Richard Investment! They're buying almost every major stock!"
Wall Street immediately regained its momentum. If Richard Investment was going all-in on buying, then surely stocks would rise again. Those who held through the drop felt vindicated and relieved.
Within a week, the NY Dow recovered half of the losses since September 3rd—in a sharp, sudden rally. Some short sellers lost everything in the surge.
As the market calmed down once more, fate was already closing in.
Thursday, October 24, 1929
"A massive sell-off from Richard Investment? What the hell is going on? They're dumping nearly all their holdings—and even short-selling?"
※ Short-selling refers to selling shares you don't actually own, with the intention of buying them back later at a lower price to profit from falling prices. While profitable during declines, excessive short-selling can artificially depress prices beyond economic fundamentals. For this reason, many countries impose restrictions on it. In fact, after this crash, the U.S. introduced new regulations on short-selling.
From the start of trading that morning, Richard Investment flooded the market with sell orders. Prices fell, but many investors saw it as a buying opportunity and stepped in. Volume surged—but on the surface, the market appeared balanced.
However, at 10:25 AM, the tide turned. Buying interest began to wane.
By 10:45 AM, General Motors' stock took a severe plunge. One by one, other stocks followed. By 11 AM, the market was in full freefall.
"This is bad—really bad! Cut your positions! Sell everything!"
Panic engulfed Wall Street like a boiling cauldron.
And then, the Twelve Sages moved into action.
"This is worse than we expected. We never thought it would turn into a full-scale sell-off."
This collapse marked humanity's first encounter with a financial catastrophe born from the evolution of capitalism. No one was truly prepared for it.
"We'll have to prop up the blue-chip stocks. It pains me to use our own money, but we have no choice. Get Rockefeller and Rothschild on board too. This isn't the time for internal squabbles."
By midday, stocks like U.S. Steel and others began to recover slightly. Seeing this, the market breathed a small sigh of relief.
"That's right. That's the only way to go, Twelve Sages. You must feel bitter spending your own money. But now comes the real battle ahead!"
In a small office within a rundown building in Wall Street, Ikeda Masanobu smiled grimly. Real-time data from his agents inside the exchange streamed in constantly.
"Place sell orders for U.S. Steel and General Motors! Push it to the limit! Don't hold back!"
And so, Ikeda launched concentrated attacks on any strong-performing blue-chip stocks that showed signs of recovery. There was no room for hesitation anymore. A life-or-death economic battle was underway between the Twelve Sages and Ikeda.
Friday, October 25
Throughout the morning, minor fluctuations occurred. At first glance, the market seemed calm—nothing like yesterday's panic. And by the close, the market had risen two points.
Saturday, October 26
Trading remained relatively stable throughout the day. Despite slight fluctuations, the market closed down two points.
Though the surface appeared calm, beneath it raged an intense struggle.
Stock prices barely moved, but trade volumes reached extraordinary levels. On one side: Richard Investment, selling aggressively across the board. On the other: the Twelve Sages, buying relentlessly. Every cent of movement meant massive gains or losses. Neither side could afford to retreat—it was now a war to the finish.
At the time, President Hoover issued a statement:
"The fundamental business of the country—the production and distribution of goods—is sound and prosperous."
He urged investors not to panic.
Analysts chimed in:
"The crash of the 24th has stabilized. It won't harm corporate activity."
Newspapers published these columns widely.
Even industrial sectors released reassuring statements.
U.S. Steel President Farrell criticized pessimists:
"There is no doubt that the steel industry remains healthy across all indicators—production rates, pricing, and inventory levels are sound."
His words aimed to stabilize the situation.
News of Black Thursday didn't appear in newspapers nationwide until Sunday the 27th. Though radio existed at the time, most information still came through print media—which inevitably lagged behind real-time events.
And this delay would lead to further tragedy.
Thank you for reading Chapter 61.
How will the battle with the Twelve Sages play out?
I've changed the title to "Black Thursday" to distinguish this crash from the broader Great Depression.
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