[Chapter 702: The Price Butcher]
George Soros only had a scant understanding of the Leo Wanta situation. Even so, he found it hard to believe.
As for Alan Greenspan, while he knew more about the situation, his insight was essentially limited to the monetary aspects. One thing he was sure of was that it involved a hefty sum of money, which was currently just sitting idle in Swiss banks.
As the head of the Federal Reserve, he certainly grasped the market conditions. It was this understanding that left him in disbelief. The money printing machines were running at full capacity, yet somehow there was still a shortage of funds in the market. What the hell had this jerk entangled himself in? No wonder he fled; if it were me, I'd probably have to run too.
We wouldn't talk about how he made his money, but hey, have you paid your taxes, big guy? William White was certainly audacious; I wonder if he dared to evade taxes.
At their level, they surely understood the weight of the situation. Money spent without a care was just an illusion, no matter how much there was.
...
William White had similar thoughts; he was more concerned about where that money was heading. It was manageable if someone held on to it for a while, but inflation would soon halt, and once that money hit the market again, it was game over -- time to scoop up gold.
"Sir, isn't this price way too low?"
"Too low? Tom, haven't you learned anything about economics? Inventory holds no value; if it can't be sold, we should just destroy it."
"Ahem, well, sir, there shouldn't be any inventory left; it'll be snatched right up."
William White slashed the price of old models of phones to $199, which genuinely surprised Tom.
"Tom, those European factories are having clearance sales, right? I'll lend them a hand and see if they follow suit."
The U.S. economy made an unexpected U-turn by the end of the year. Many speculated that if this turnaround had happened just a bit earlier, there was no way the Elephant would have lost. In reality, George Bush Sr. had merely lost a smidge.
With economic recovery, unemployment rates dropped significantly. Aside from the Bush family, it seemed like everyone else was about to enjoy a great year ahead.
If William White didn't seize this opportunity to offload inventory, he'd really be a fool. He had already recouped his earnings; selling off this inventory meant pure profit.
William White believed that phones and game consoles would be snatched up in no time. Of course, those toys would sell well too. As for whether the European folks would be in a frenzy, that wasn't his concern.
He thought, "Damn, we've already started developing the PS4 over here, while these PS2 units in the warehouse are just sitting there? $99? If nobody buys them, we might as well toss in some game cartridges for free."
"Sir, how about buying a hundred game cartridges and throwing in a PS2?"
"Yep, but this promotion will only last for an hour; if they snag it, they'll just be lucky."
"Uh, sir, I need a ton of security; something is bound to happen. Oh, and we need police -- lots of police." Tom was sweating bullets at the thought of the old electronics flying off the shelves.
"Go find Tanner; I've already arranged it. The police can start taking appointments right away."
William White's tearful fire sale certainly had its purpose. Raising funds wasn't his primary goal. His main objective was to lower others' expectations. When they saw your business thriving, others would want to jump in too.
William White understood that more than a couple of companies intended to dive in. However, given the high entry point and significant investment in this industry, if they couldn't sense the risks during their market research,
Ha! Congratulations, once they noticed, not only would competitors emerge from Europe, but those looking to jump in from the States would seize the chance too.
Phones were different from game consoles; honestly, the difficulty of producing digital mobile phones was less than that of analog ones.
It was easy to grasp -- could those knockoff factory products really not be used?
What a joke; this was quick money.
...
"Oh my God, is this nuts?"
"Yes, sir, we're starting the ads now. Ahem, the ad says not a single piece will remain."
The bigwig at Morgan Stanley started sweating bullets; mobile communications was a gigantic cash cow, and that was already a given. But with such a massive promotional push, was he planning on skipping next year altogether?
"Take a look at those funding plans; any that intend to invest in phones should be sent back for reevaluation. And about the providers, finalize those deals fast."
Even with old models, the phone functions hadn't changed. With this move, the number of users was bound to skyrocket.
$200? Honestly, anyone could afford that.
"Sir, if this keeps up, the number of mobile subscribers is really going to reach hundreds of millions. Can't he slug along and sell slowly?"
"Heh, I don't know. But one thing's for sure, the richest man is clearing out his inventory now. If they don't plan on coming in but want to start a price war, they're better off staying out of this industry."
...
William White, who refused to back down in the boardroom, was under significant pressure. Without prior performance backing him up, it wouldn't have passed the board at all.
The Gorman family wasn't too pleased; their business philosophy clashed with William White's. However, he wasn't reckless; since he had supported the Gorman family in the Starlink Plan, they should reciprocate his goodwill.
At the end of the day, the phone business was an independently listed entity. If they were genuinely unhappy, couldn't they just sell their shares? The company's profit didn't really matter; stock prices were what truly tested their level.
The reason Black Friday is called that is a story in itself. If you didn't sell well on that day, then there wouldn't be much hope for the following year.
Given they were seeing economic recovery, why would William White not realize it? Clearly, the richest man had faith in the U.S. economy. This time wouldn't simply be a rebound; it was gearing up for a real turnaround.
Once he wrapped things up here, William White slipped away. Bush Jr. was feeling a bit down lately; he should be comforted by his good buddy.
...
"George, are you heading back to Texas? I plan to leave tomorrow; if you are going back, I can have them pick you up first."
"No need, I'll get to Los Angeles tonight. Shouldn't you be preparing a party?"
"Come on, throwing a party's easy, but the timing isn't right. You know, whenever I move, the paparazzi are all around."
"Sigh, I am feeling low, I'll plan to drink heavily once before getting sober."
"Alright, alright, I'll arrange it; we'll just reserve the whole place. By the way, what's your flight number? I'll send someone to pick you up."
For Bush Jr., this setback might not be a bad thing after all. If one never encountered setbacks, how would they ever succeed?
Tsk tsk, renting out a place wasn't exactly fun either. The best scenario would have been to own a venue. He really didn't care much for the nightclubs in Los Angeles. If you wanted to talk interesting, London had its charm. It was hard to understand why that sharply dressed chap by day transformed into someone else entirely come nightfall.
*****
https://www.patreon.com/Sayonara816.