It's astonishing when an American country manages to generate pure, hard debt, regardless of size. It can exceed 100% of the property value. Mortgage-backed loans begin to attract attention, and the foundations for a real estate sector collapse start to be noticed. Still, Billy wasn't fazed. He understood that the U.S. debt problem was beginning to show.
The shift in banking—from investment to financing—marked a contradictory change in how banks were run. The repeal of the Glass-Steagall Act of 1933, which had separated commercial banking from investment banking, was a pivotal moment.
On top of that, financial regulators allowed new types of adjustable-rate mortgages (like ARMs) and eased savings and loan regulations. This introduced a real investment risk. By 1999, they excluded financial derivatives like CDSs (Credit Default Swaps) from federal oversight. The intent was purely profit-driven: to encourage the unregulated creation of mortgages and simplify the process for issuing them, leading to the rise of companies born from debt. Once the value surpassed $2 trillion in assets, the state deemed them admissible for federal loans, including the Federal Reserve lending at a 6% annual interest rate. A truly outrageous privilege, enjoyed only by nationals.
Billy requested a billion-dollar loan—an outrageous, ill-timed amount to ask for—but it was granted. Fast, discreet, and easy to obtain thanks to an unprecedented policy that gave him the breathing room to hand the remaining funds over to George for the second movie. Meanwhile, the challenge fell to Jim Gianopulos, who was launching production on The Matrix. Curiously, the entire budget, funded from Billy's pocket, didn't exceed $40 million. But since they were planning to shoot three films back-to-back, they decided not to worry and instead established a fund for the remaining two, which were already underway. Billy was behind all the mega-productions planned for the next five years.
At the same time, a monumental construction was underway in London: a Harry Potter-style castle, a village, a Ministry of Magic, a Quidditch field, the Dursleys' house, the Burrow, Gringotts, and Diagon Alley—every corner brimming with magic.
So far, construction costs stood at £100 million, using the best materials available—concrete, stone, metal, wire, clay, and wood. Every effort was made to align each structure with the vision of a production park. But the errors were significant. The licensing, permits, and paperwork alone were a bureaucratic nightmare—especially near the river, where Billy feared they'd need to send an additional £20 million to ease the burden of developing a designated water zone: a small river flowed in the direction of the construction, and a canal was being used to prevent potential flooding. Sediments were also needed to mitigate landslides. Even with topographic studies, it was complicated. Additionally, a green screen studio and other rooms were planned, forming a massive tourism complex. When the seven main films and five Fantastic Beasts installments wrapped, the surrounding land, purchased at a reasonable price, would allow for profitable expansion.
– Thank your father. – said Billy, now involved in negotiations with the federal government.
– Don't worry, Billy. I'm just a beneficiary. Besides, everyone's paying attention. It seems they have a lot of confidence that you'll repay on time. We have $700 million to play with in the Asia region, but we'll ask for more money—and when we do, we'll double our expected return. – said Raimon.
– Anne knows all this year's investments have already been paid. – said Billy.
– Yeah, and well, Shrek was a hit, just like you always said it would be. And when it surpasses your estimates in the coming days, we'll wipe out last year's debts—they won't matter for taxes anymore—and we'll set up another fiscal shield for next year. – said Raimon. The trick was to take on several loans at the end of the year, reducing income for tax declarations to avoid payments. Then, as movie revenue surged, income would rise again, doubling profits.
– I believe you've got a trip to Thailand. – said Billy.
– On May 10, my father's taking me there to introduce me to the sector. In the meantime, I'll speak with people to set up a confidential deal in the coming days. You'll handle all the logistics—they'll take care of the rest. You have to be strict with timelines and risk management because, as Lomas mentioned, we might soon have a team in charge of all operations. When I return, I'll likely be part of that team too. – said Raimon, his eyes gleaming with the prospect of wealth and his stake in Star Wars. He and a friend were drafting one of the most intense contracts for the game they were preparing to launch in about half a month.
– I feel like nobody can solve these issues without going under the table. – said Billy.
– Yes, and I'm afraid it's tough for everyone, especially if you do something to upset some of those gentlemen. That's why we'll back ourselves with a solid company. In the meantime, we'll use insider information to negotiate lower commission fees… I spoke with Lomas, and he mentioned that as long as the intel is solid, they can avoid certain fees that would otherwise be considered burdensome. – said Raimon, raising his chubby, always-glimmering fingers. Unfortunately, he had just learned of the company's diverging results.
– I recently made a bet too—that the Bulls will win this year and next. Nothing more to say. That's 100 micro-bets across different outlets. – said Billy. With a plan to leverage close documentary analyses, he had copied a well-known one that helped him predict the games. It was a double-down bet with 15 additional possible wagers. Betting $20,000 on a specific outcome was just a token compared to the broader trend he sensed. As the myth began to unravel, various strategies gave life to the risk of betting, often irrelevant, but high-stakes nonetheless. Increasingly risky, outrageous risk.
– Let's cross our fingers, but I hope you don't mess up like last year, when you said they'd take it in five games. – said Raimon, pressing Billy.
– Things don't always go the way we expect, but this time is different. – replied Billy.
...
Anne, on the other hand, received the money, aware that it carried a 6% interest rate. It was simply absurd. The risk demanded multiple layers of support: backing the government, supporting government policies—especially those in the state of Montana—and helping certain politicians with extra favors like campaign donations and opening businesses in Montana.
– What should we do in the coming days? – whispered Anne, completely lost in thought about the extra $10 million, which was supposed to be used to buy land and repair machines, especially for comics.
...