392 Tsukimotoan Depression

The **392 Tsukimotoan Depression** began on 7 March 392 when all ten major private banks in Tsukimoto announced that they would be closing indefinitely. This announcement caused widespread chaos as large crowds attempted to forcefully enter various banks to withdraw money. Within the following two weeks, sixteen of the top twenty largest companies in Tsukimoto filed for bankruptcy, leaving huge sectors of the population unemployed. It was the largest financial disaster in the history of Tsukimoto, and it directly led to a period of political, economic, and social instability that would ultimately culminate in the Tsukimotoan Civil War.

## Events of the Depression

During the first month of the depression, huge demonstrations occurred across the country demanding President Jeon Do-hyun to resign and for Congress to be dissolved. The Constitutional Democracy Party, the main opposition in Congress, held large rallies in Ikeda and Niihama where they called on their supporters to demand an emergency snap election. President Jeon and the incumbent ruling coalition, which included the Solidarity Party, the Frontier Party, and the Minority Interest Party, refused to dissolve Congress and call a snap election, likely knowing that they would suffer massively in the ensuing election if they chose to do so. By the start of April, public sentiment towards the current government was openly hostile and protesters had become increasingly violent in their demonstrations. On April 5th, Prime Minister Shōgo Kobayashi of Shingō cancelled a state visit to Tsukimoto after being informed that the Tsukimotoan Capitol Building and the Presidential Residence had been fully blockaded by protesters.

On 11 April 392, several bombs were detonated at the base of the Capitol Building, causing sections of the building which contained actively-debating members of Congress to collapse. The Tsukimotoan Capitol Bombing led to the deaths of nearly half of all members of Congress, including President Jeon and most of his cabinet. It was soon discovered that the attack had been perpetrated by a religious, anti-government militia known as the Voices of Righteousness. The remaining members of Congress held an unprecedented emergency meeting where they elected Han Yong-jin as president. Throughout Han's presidency, members of Congress agreed to temporarily renounce party ties and operate in a non-partisan manner. President Han, who had been a member of the Constitutional Democracy Party, announced the formation of a non-partisan war cabinet that would serve until a new Congress could be safely elected by the people.

## Causes

The 392 Tsukimotoan Depression is widely cited as having occurred due to the government's weak response to the 391 Tōkai Recession. Solidarity Party President Cho Han-Gyeol placed the blame for the recession solely on banks' unregulated lending practices and highly speculative trading within the Tsukimotoan stock exchange. Consequently, President Cho's government refused to offer financial aid packages to these banks and other large corporations, a move that was initially supported by a large portion of the public who also held these institutions responsible for the recession. As the recession progressed, however, unemployment rose drastically and the national economy showed no signs of recovering, thus leading President Cho to resign. President Jeon, Cho's successor who was also from the Solidarity Party, authorized several major economic bailouts of banks and corporations that had suffered from the recession; however, pressure from the public and the anti-corporate wing of the Solidarity Party pressured Jeon's administration to cease financial aid packages after only two months.

Roughly one month after all government aid packages were ceased, the depression began and all ten major private banks in the country closed. Within the following two weeks, sixteen of the top twenty largest companies in Tsukimoto filed for bankruptcy, leaving huge sectors of the population unemployed.