Rhythm and Ray: A DJ’s Journey

[Chapter 90: All In is also a Kind of Wisdom]

"It's like a stock, short selling or something like that?" Ryan wasn't quite sure how to describe it. The idea had first come to him while he was house-hunting with Taylor. It was obvious there were significant issues with subprime mortgage approvals, yet the entire industry chain -- rating agencies, investment banks, and even real estate agents -- ignored the problems, all for short-term profit.

"Kid, that's about the same as throwing your money into the water. You might not believe in yourself, but you have to trust the rating agencies. There are experts in math and finance there; you're just a... high school student, and you even failed a grade," Taylor's dad said with a slight smile.

'It was actually a leave of absence to return to school... I didn't know much about financial math, but I understood human nature.'

Seeing that Ryan seemed serious, Taylor's dad started advising him: "House prices have been rising for thirty years. Congress, the president, and the Federal Reserve won't just sit back and watch real estate prices fall; they believe prices are still undervalued, and their potential hasn't been fully tapped."

"So you mean..." Ryan pondered.

"I want to invest more."

"Alright, maybe I won't be able to dissuade you, and maybe you need to learn a lesson. You think you can bet on a drop in house prices? There's this exciting security called CDS, credit default swaps. In short, after banks issue real estate loans, they purchase insurance to avoid large-scale defaults. The CDS is linked to that insurance, so if what you say happens, you could stand to earn dozens of times your investment."

How much?

A million, multiplied several times over...

That was thrilling!

"But, if the drop in house prices you talk about doesn't happen, and people don't default, then not only do you gain nothing, you lose all that money; what do you think? This is a game for the brave; do you want to join?" Taylor's dad remarked casually.

He deliberately chose the highest risk investment to make Ryan reconsider.

"Dad, who tells people to invest like this?" Taylor immediately complained.

"Exactly, finance isn't child's play; it's a battlefield where real money is at stake. You need to seriously think this through," Taylor's dad nodded, assuming Ryan's interest was just a whim. Young people write a few songs, finally become popular, and suddenly feel invincible; everyone goes through this phase.

"Since the risk is so high..." Ryan switched tracks, "I want to put alll of my cash in!"

"Ryan... is that really a good idea?" Taylor chuckled, "I know you make money easily, but..."

She left it hanging.

"Not just me, Taylor, you should also consider investing some," Ryan added.

"We're not ready for her to get involved in any investment," Taylor's mom quickly responded.

"Ryan, you absolutely cannot put all your money in!" Taylor's dad warned firmly this time.

After intense persuasion from Taylor's parents, Ryan was only allowed to invest $100,000 in CDS, with Taylor's dad helping him make the purchase.

...

Ryan didn't say anything, but as soon as he left Taylor's house, he contacted the investment manager at his bank.

"Yes, CDS, get me some of that. How much do I have in my account... then let's use eighty percent of it," Ryan instructed.

If this money had been earned through his own hard work, Ryan wouldn't have done that. But now, even if he lost it all, as long as he continued performing his four songs and making nightclub appearances, he could still make a million next year. That was his confidence in investing.

Maybe there wasn't much difference between a million and two million, but the difference between two million and tens of millions was a huge leap.

Under certain specific circumstances, going all in was also a form of wisdom.

...

"What do you need money for? Are you in some kind of trouble?" Trey asked curiously about Ryan's plans.

"How much do you have saved up?" Ryan replied.

"Not much, my dad's health..." Trey seemed a bit overwhelmed.

"How little is not much?" Ryan pressed on.

"What exactly are you trying to do? Ryan, you can't possibly... let me see your arms." Trey immediately raised a hand to check Ryan's arms and sighed in relief when she found no needle marks.

"Wait, did you go to Atlantic City or Las Vegas?" she suddenly recalled.

"I went to Las Vegas, but it was just for a performance." Sensing that Trey would never invest, Ryan looked over at Daddario, who was sitting diagonally across from him.

"Don't look at me; my pockets are cleaner than my face," Daddario immediately shook her head.

Actually, she had saved some money while being around Ryan these past few months, but her financial situation hadn't been great before.

...

After saying goodbye to Trey, Daddario drove Ryan home in the Navigator that Taylor had previously gifted him.

"By the way, I haven't asked you about the audition results?" Ryan suddenly remembered.

"Don't even ask," Daddario replied, sounding frustrated, obviously having yet again failed the audition.

That made Ryan feel relieved. As Daddario was leaving, he thought about how hard it would be to find another stunning assistant like her. "Why do you insist on being an actress?" Ryan asked unexpectedly.

"Because it's all I know how to do, and it's all I want to do."

"What about your family? What do they think?"

"They... don't have much of an opinion," Daddario hesitated before answering.

Ryan sensed there was more to it, so he probed further: "What do your parents do?"

"My mom was a prosecutor in New York; now she's a lawyer, and my dad is... the head of the anti-terrorism unit at the NYPD," Daddario slowly revealed.

Ryan never imagined her parents would be so prominent, and her grandfather had even been a congressman in Connecticut for twelve years.

Then Daddario shared how she was fifteen when she made her TV debut, dropping out of high school to pursue a career as a professional actress. Her family had been skeptical of her decision, leading to a heated argument, and she hadn't returned home in two years.

"You really are stubborn," Ryan shook his head.

...

Before long, they arrived at the apartment building. Normally, Ryan would head straight upstairs, and Daddario would park the car before returning to her own place. However, today Daddario seemed a bit different.

"Can I come up with you?" she asked.

"Is this another one of Taylor's assignments?"

Daddario parked the car, then turned to Ryan and said, "It has nothing to do with her."

Ryan shrugged, realizing Daddario had something on her mind.

Once they were back in the apartment, Daddario looked around Ryan's room and noticed a few pictures of Taylor on his nightstand.

"She put these here and even asked me to say goodnight to the photos every night," Ryan chuckled.

"She's quite something, but I can tell she really cares about you," Daddario remarked.

But in her mind, it was a completely different story: 'But she got it all wrong!'

Having spent time with Ryan, she knew him well enough -- he was the type who appeared one way in front of people and completely different behind their backs, a lecher, shameless, not fond of protection, and a liar when it came to women!

"What do you want to drink?" Ryan asked as he went towards the fridge.

"I'll get it myself," Daddario insisted.

"What are you afraid of? I'm not going to drug you."

"Well, either way, if I don't react, won't you be bored?" Daddario flicked her hair playfully, giving Ryan a fleeting glance that left him with thoughts of a husky.

Then she stood up and pulled two cans of Dr. Pepper from the fridge, sitting on the couch while kicking off her shoes, curling her legs up, before patting the seat beside her for Ryan to join her.

Ryan bypassed her and sat on the opposite couch.

"Just say what you want; I need to get up early tomorrow," Ryan commented.

He planned to catch the Olympic Games opening ceremony.

Daddario looked around and remarked, "It's so hot in here," as she fanned herself with her shirt collar.

Even Taylor knew to use some drinks to lighten the atmosphere; Ryan couldn't bother with small talk. He got straight to the point, "Do you want me to help you find an opportunity?"

Daddario shyly nodded. She was truly out of options and resorted to this last-ditch effort.

"Come here," Ryan beckoned her.

Daddario instantly approached him. As she got closer, Ryan noticed her breathing was rapid, suggesting she had been struggling with her thoughts for a while.

When Ryan reached out his hand, Daddario nervously closed her eyes.

But instead of the expected "hands on," when she opened her eyes, she found that he had disappeared.

What a strange guy, Daddario thought.

In her imagination, Ryan would definitely give in. After all, he must have stolen glances at her at least twenty times throughout the day. There's no way he could be all desire and no guts!

Daddario leaned back against the sofa, sinking deeply into thought...

*****

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