[Chapter 503: The Art of Self-Destruction]
Economists might be impressive in their field, but they all share a common flaw: they think too small.
Just analyzing the data from Japan's economy is pointless -- didn't you see how greedy the eyes of those in America were?
A competent economist, if he cannot master history, will only achieve average results.
Given Japan's background, a simple economic crisis might not be enough to bring them down. However, if Americans added insult to injury, the situation would be quite different.
The ones delivering the final blow were Morgan Stanley and Goldman Sachs.
William White found it impossible to get a slice of the pie, which was unavoidable. After all, the two biggest short-sellers in Japan were Morgan Stanley and Goldman Sachs. They were not only shorting the Nikkei index in Japan but also other financial markets on a massive scale -- so great and high-profile that it left people speechless.
At this moment, the repercussions of fully opening the financial sector finally became apparent.
American conglomerates could wreak havoc at will, but Japan could not afford to do so. If a systemic risk emerged in their financial markets, they would be in real trouble.
Unfortunately, hundreds of billions of dollars in bailout funds were quickly depleted by international speculators. The frantic plunge in stock prices couldn't be stopped.
At this point, the most effective measure was to limit short-selling mechanisms. They should ban naked short-selling or prohibit shorting financial stocks altogether. In an extreme case, they could restrict short-selling index stocks.
Sadly, there were no restrictions at all.
"Filson, it's been three days. What's going on? Are the Japanese still sleeping?"
"Sir, I've heard a rumor that the Japanese consulted Goldman Sachs for advice."
William White was stunned. He did not expect something so absurd could happen. Goldman Sachs was acting like a bandit.
"Geez, this kind of self-destructive behavior is genuinely creative. Alas, I doubt they'll have too many chips."
"Sir, do you want us ..."
"If their chips aren't significant, we might as well watch from the sidelines. They can rob Japan as much as they like, but I still have business there."
"Got it, sir. I'll look into that."
Trying to join in on short-selling wasn't that simple. If one planned to throw in thirty to fifty million just to make a point, that was no big deal. Morgan Stanley and Goldman Sachs would surely accept it, even if the leverage was high.
But when it came to units in the billions, that was shocking. Adding a bit of leverage made it even scarier.
The information Filson gathered did not satisfy him, but that was fine. This gang of scoundrels was too greedy; there was no fun in working with them.
"Sir, Soros you wanted me to keep an eye on is very active right now."
"Ha! That guy is quite something. But he's just a front-man, and since he's popped up, it's better if we don't stir the pot."
Filson could roughly understand William White's thoughts. The boss had already made a lot this time and shouldn't take any risks.
...
"William, the Apache are ready for you, but it's the stripped-down version, and it's cheap."
"Geez, I might as well buy a Black Hawk; at least it's decent quality. A stripped-down version? It won't be taken down by an AK-47, will it? Honestly, this thing can't hold a candle to the KA-50."
"Hahaha, with everything so complicated, do you think the French will let you off easy?"
"Yeah, you've got a point. Those scoundrels."
"Alright, enough of that. Are you really thinking of going back into oil?"
"Ha! When have I ever lied to you? Honestly, I'm swimming in cash and just don't know how to spend it."
The voice on the other end, Bush Jr., was almost fainting. This guy was infuriating. His family's oil company was nearly bleeding money.
..
"Sir, Panasonic and MCA just signed a preliminary agreement for six billion dollars, bundled up with Universal Pictures and the record company. Oh, and there's also the cable network."
"Gee, are they aiming to create a second NBC? Just don't know if Japan has that capability."
William White was not worried about Universal; they were nowhere near the same caliber as Columbia. The tricks Universal played were purely for the Japanese.
Hollywood stood strong due to intrinsic factors. The Japanese film companies couldn't even compete against Hong Kong. And they expected to challenge Hollywood?
Ha! They'd only end up with battered heads.
"Sir, Time Warner, Columbia, Universal Studios, and Fox aren't small players. We still need to be proactive."
"Interesting, the only traditional Hollywood company left seems to be Paramount. This summer looks lively. Keep an eye on those blockbusters -- movies aren't so crucial right now; we need to stabilize TV ratings first."
...
Having taken over NBC for a while, Barry Diller finally found himself a worthy opponent. Sometimes, having a powerful boss wasn't necessarily a good thing.
"Barry, it is better to pursue the enemy with all the remaining strength. You need to apply pressure on the production teams; they not only need to improve public TV but also continue to expand subscriber bases for pay channels."
"Don't worry, Mr. White. I'll make sure of everything."
"Good, I'll be watching."
...
Since it wasn't a scenario of one company being dominant, they had to suppress the competition. While the American film market was large, it certainly couldn't accommodate that many giants.
Except for Fox, the others were well-equipped and ready to test William White's resilience. If he could be the top dog, the others surely could too.
William White realized that Fox had support from Morgan Stanley, and they weren't weak either. When it came to overall strength, that old player might be the hardest to tackle.
It seemed that Disney's blockbusters needed to kick off as well. One White Films couldn't compete against a pack of hungry wolves.
Universal was not worth courting, and Panasonic was too reckless to last long. Columbia was worth a shot; if discussions went well, a co-production could even be on the table.
As for Time Warner and Paramount?
They needed time to observe. Paramount might be busy securing its own interests and wouldn't provoke trouble.
Time Warner?
Haha, it was all about watching how they performed.
Having sorted out his thoughts, William White no longer felt worried. After Filson's comment, he felt overwhelmed. He could choose to ignore a single opponent. Now, it seemed he only had that Australian scoundrel and perhaps Time Warner to deal with.
*****
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