Golden Spoon Investor

Cambridge, Massachusetts.

The wide Harvard campus had turned into a winter wonderland, blanketed in white after days of continuous snowfall. Inside the warm research lab, heated by a radiator, Professor Frank, dressed in khakis and a knitted vest, sat at his desk, engrossed in some reading. The desk was cluttered with various materials, books, and handwritten notes, a testament to the professor's long hours spent holed up in his lab during the break.

Knock, knock.

A gentle knock on the door made Professor Frank look up from his reading, adjusting his glasses.

"Come in," he called out.

The door opened to reveal Seok-won, bundled up in a coat and scarf, holding a shopping bag.

"Excuse me," Seok-won greeted.

"Oh, it's you," Professor Frank said, his face lighting up with a smile as he recognized his visitor. He set his glasses down on top of the research papers and stood up.

"When did you return to the States?" Frank asked as he extended his hand.

"I arrived yesterday," Seok-won replied, shaking the professor's hand with a warm smile.

"I expected you back next week, but you returned early," Frank noted.

"I had a lot to prepare before the semester starts, so I hurried back," Seok-won explained.

"Your parents must have been disappointed, but I'm glad to see you back," Frank said kindly.

"Oh, and this is a small gift," Seok-won said, handing the shopping bag to Frank.

"You didn't have to bring anything," Frank said, smiling as he accepted the bag. Opening it, he peeked inside and tilted his head curiously.

"Is this instant coffee? A brand I've never seen before," he remarked.

"Yes. I noticed you drink coffee often, so I brought some for you," Seok-won said.

"Ah, this must be that Korean instant coffee you were talking about," Frank said, his face lighting up with pleasure.

In research labs or workshops, especially in science and engineering fields where all-nighters are common, a coffee pot is almost always present. Frank's lab was no exception, with instant coffee stocked for the quick caffeine boosts needed during long work sessions.

While other beverages were available, the fast-paced nature of research didn't leave much time to leisurely wait for tea to steep. Coffee, with its instant combination of caffeine and sugar, was the perfect fuel to keep one alert and energized during late-night work.

Among the instant coffee varieties, Frank preferred the convenience of mix coffee, which he could quickly stir into a cup of hot water whenever he needed it. Some colleagues, picky about their coffee, would scoff at factory-produced instant mixes, but for Frank, convenience took priority.

As Seok-won had spent more time with Frank, he often found himself sharing coffee with him. However, he noticed a difference—something was missing. The coffee didn't have that sweet, well-balanced flavor that Korean mix coffee had.

'To be honest, it was so bad that I could understand why Americans aren't fond of instant coffee,' Seok-won thought.

During their coffee breaks, he would talk about how delicious Korean mix coffee was, and the thought of it inspired him to bring some as a gift when he returned from Korea.

"I was just about to make myself a cup. Care to join me?" Frank asked.

"Please, let me make it for you," Seok-won offered.

"Haha, no need. You're a guest in my office; I should be the one to serve you," Frank said with a chuckle as he carried the mix coffee to the shelf on one side of the room. Seok-won, already familiar with the space, found a seat on the sofa.

"Hmm, in Korea, the mix is in stick form?" Frank observed, intrigued as he opened the box and pulled out one of the coffee sticks.

Unlike in Korea, where stick-shaped packets were common, in the U.S., square-shaped packets were the norm.

As he prepared the coffee, the electric kettle whistled, signaling that the water was ready. Frank poured the hot water into mugs, stirred the mix with a teaspoon, and returned to the sofa with two mugs in hand.

"Here you go," Frank said, handing one mug to Seok-won.

"Thank you," Seok-won replied, accepting the cup with both hands.

Frank, now seated in his usual spot, relaxed as he savored the aroma of the coffee.

"The aroma is nice. Let's see how it tastes," he said before cautiously taking a sip. His eyes widened in pleasant surprise.

"Mmm! This is unexpectedly rich and delicious. Hard to believe it's instant coffee," Frank said, clearly impressed.

Seok-won smiled, pleased by Frank's reaction.

"I thought you'd like it," he said.

Indeed, the sweet, addictive taste of Korean mix coffee was unparalleled by the American products.

'Now, this is what mix coffee should taste like,' Seok-won thought, recalling how the coffee Frank usually drank could hardly be called coffee.

As Frank continued to savor the coffee, taking several more sips, he finally set the mug down on the table and looked at Seok-won.

"I read the paper you sent me," Frank said.

During his time in Korea, Seok-won had officially joined Professor Frank's research project and had sent him a draft of his work.

"I tried to organize my thoughts and ideas, but I'm not sure if it was up to your standards," Seok-won said modestly.

Frank smiled at the humility.

"Not at all. I can't tell you how many times I found myself marveling at your insights while reading it," Frank replied.

His eyes lit up with excitement as the conversation turned to the research.

"What particularly stood out to me was your assertion that as technology advances, psychological factors will play an increasingly significant role in triggering economic crises," Frank said.

Seeing the expectant look on Frank's face, Seok-won calmly elaborated.

"Exactly. As you know, one of the causes attributed to Black Monday was program trading, which itself was made possible by advances in technology," he explained.

"That's right. Just a decade ago, the term 'program trading' didn't even exist," Frank agreed, nodding.

"As I mentioned in the paper, I believe the impact of technology on finance is only just beginning. In the future, these two fields will merge more deeply and broadly, creating a synergistic effect," Seok-won continued, his tone serious as he spoke.

"This is not a matter of choice but an inevitable trend shaped by the changing times," he added.

"The Third Wave after the Industrial Revolution, as a famous futurist put it," Frank said, referencing a well-known concept.

"That's correct," Seok-won confirmed.

"While there will be many advantages, the risks will also increase. The recent Black Monday is a prime example of this," he said.

"You're saying that as technology advances, the faster dissemination of information will also accelerate the spread of fear and anxiety, making investors' psychology a more critical factor in economic crises than it was in the past?" Frank asked.

"Exactly," Seok-won replied, holding his mug with both hands as he met Frank's gaze.

"To give a simple example, in the past, depositors had to go to the bank in person to withdraw their savings through a teller," he began.

"That's right," Frank confirmed.

"But now, with advancements in technology, depositors can withdraw their savings easily using an ATM without ever interacting with a bank employee," Seok-won continued.

Incidentally, NCR, the company AT&T was trying to acquire, was the top player in the ATM industry.

"As information and communication technology advances further, we'll reach a point where depositors can withdraw their savings from home or the office via the internet," Seok-won predicted.

He stopped short of mentioning the possibility of mobile banking via smartphones, not wanting to sound too far-fetched for the current era.

'Telling them that people will be able to move their savings with a few taps on their phone would make me sound like a lunatic in today's world,' he thought.

As he watched Professor Frank becoming more engrossed in the conversation, Seok-won pressed on.

"These developments make it easier and more convenient for depositors to use banks, but they also make bank runs much faster when things go wrong."

Seok-won's voice dropped to a more somber tone as he continued.

"For example, if a bank faces a problem, the news and information about it can spread rapidly. In the past, depositors would have to line up at the bank to withdraw their money, but now, with ATMs and other means, they could easily withdraw their funds, leading to a so-called digital bank run."

"Ugh," Frank murmured, his face hardening as he imagined the scenario. He involuntarily swallowed hard, feeling the gravity of the situation.

"If that happens, money could drain out so quickly that the bank's vaults would be emptied before regulators even have a chance to respond. The bank would be left defenseless, facing inevitable bankruptcy. This panic could then spread to other banks, leading to a widespread financial crisis," Seok-won concluded.

His confidence stemmed from having witnessed such events unfold firsthand.

'That's exactly how Silicon Valley Bank collapsed before anyone could react,' he thought, recalling the shocking collapse of a major U.S. bank with over $260 billion in assets, which happened in just 36 hours. The event had sent shockwaves around the world, causing widespread fear and concern.

As Professor Frank replayed the scenario in his mind, his face grew stonier. After a moment, he let out a low, contemplative hum.

"When technology and fear combine, the results could indeed be terrifying," Frank mused, swallowing a sigh as he considered the implications.

Meanwhile, Seok-won took a sip of his coffee, now lukewarm and sweeter as it had cooled.

"There's a saying: 'Don't be afraid of maggots and avoid making jang,'" Seok-won said, switching to a more light-hearted tone.

"That's a new one for me. What does it mean?" Frank asked, curious.

"Jang refers to fermented soybean products like doenjang, gochujang, and ganjang," Seok-won explained.

"…" Frank listened intently.

"Before preservatives, managing the fermentation process improperly could result in maggots. These jangs are essential to the Korean diet, so the saying means you can't avoid making them just because you're afraid of maggots. In other words, despite potential obstacles, you must do what needs to be done," Seok-won explained.

"A wise piece of advice. Avoiding challenges just because they're difficult only leads to stagnation," Frank said, nodding in agreement.

"Exactly. Just as it would be foolish to shy away from integrating technology into finance due to fear of its side effects, the smart move would be to recognize the risks and take proactive steps to prevent issues like digital bank runs by implementing safety measures," Seok-won said.

"That's absolutely correct," Frank agreed, nodding fervently.

He then gave Seok-won a lingering, almost hopeful look.

"Are you really not considering graduate school? If you ever change your mind, I'd be more than willing to support you," Frank offered, his voice tinged with a mixture of hope and regret.

Seok-won pretended to take a sip of his coffee to avoid eye contact. 'This guy just won't give up, huh? Still trying to recruit me.'

Not wanting to risk getting roped into graduate school, Seok-won immediately and firmly declined.

"I'm sorry, but no."

His decisiveness left Frank with a wistful expression, though he nodded in understanding.

"That's a real shame. You'd accomplish so much if you entered academia…" Frank sighed, clearly disappointed but resigned.

Though he felt a bit sorry for Frank, Seok-won was adamant—there was no way he'd go down that path.

Afterward, Seok-won spent a good while longer sitting on the research lab's sofa, engaging in a deep and meaningful conversation with Professor Frank about their paper.