[Chapter 837: "Hey, Sir, Can You Lend a Hand?"]
If William White hadn't displayed such resilience, he probably wouldn't have bounced back after the dot-com bubble burst.
What was even more comical was that, with bruises on their faces, folks still believed they could take off again. It was hard to say how many people truly believed in their success, but the numbers weren't insignificant.
William understood the issues surrounding the economy and decided not to concern himself with them any longer. He told them, "Feel free to insist that the economy will recover, but first, answer my two questions."
When the boss spoke, his team was quick on their feet. Even with consulting firms helping out, they were running around like crazy over the past few days.
"Sir, are you available right now?"
Looking at the restless William, someone could only smile wryly. Calling this late must mean something serious was brewing. It was understood: waking up the boss in the middle of the night to use the bathroom was simply asking for trouble.
"Hold on a minute; I need to wash my face."
"Sure thing, Sir."
"While I'm at it, you two wait for me and keep this position."
"Ugh, I'm heading back to bed. Honey, it's the middle of the night; take care of yourself."
"I'm perfectly fine. Remember, you're helping me snag Suzuki first."
As they watched the hurriedly retreating figure, two women exchanged glances and couldn't help but smile. This stubborn man often acted like a child.
"Ahem, Filson, what's going on?"
"Sir, I hate to bother you, but Mexico just unexpectedly devalued their currency. It went from under 3.5 to just under 4."
"Good grief, that's nearly a 14% drop! Have they lost their minds? This will certainly trigger international speculators to short sell."
"Yes, they chose to do this in the dead of night to avoid letting the situation spiral out of control."
"In the dead of night? Hahaha, that saying doesn't quite apply here. It's about making sure the workers don't sleep in if the boss crows like a rooster, not about robbing anyone."
"Ahem, a bit too complex; it looks like learning English isn't easy."
"You're doing great. So, let's stick to the plan. Unfortunately, they don't really have much cash left. By the way, there will definitely be a follow-up on this; short-sell the indices in America and Europe with maximum positions."
"Got it, Sir. We're ready to go, and we can start right away."
"Go ahead and seize the opportunity. Maybe we can collect a little extra bonus by year-end, hehe, that should be the way."
The Mexicans clearly underestimated their actions, which did little to stop international speculators from exiting.
A 14% loss triggered stop-loss orders for many funds. Moreover, sneaking around in the dead of night only exacerbated investor panic.
"What's wrong with those idiots? Why are they saying all this now? Where were they before?"
"Mr. President, if we don't save them, there could be disastrous consequences. Friends at the World Bank have warned me that in the worst-case scenario, inflation could exceed 50%."
Clinton didn't buy Greenspan's words. If they understood the stakes, the World Bank should have stepped in to help. By the way, where was the International Monetary Fund during all this?
"Alan, how much funding are we looking at?"
"$50 billion--there's no way around that. Even if we act immediately, they'll face catastrophic losses."
"$50 billion? Good grief, I'm not Mexican; why should I feel obligated to aid on such a scale? Besides, how will they repay it? Oil prices have plummeted; no bank is going to take that risk. And Alan, those big investors will not approve. They'd rather see me stumble."
Greenspan was rendered speechless; he had indeed made things quite difficult for himself. He had lost control over Congress.
Ahem, the next scene was familiar to Greenspan. It would likely involve everyone pulling each other down. This was shaping up to be a big problem.
Currency exchange rates weren't like stocks; generally, fluctuations stayed within 1%.
Why were currency futures allowed such high leverage? It was because the variations were typically small. Well, those betting on price increases would have hit a wall. A 14% drop meant they'd be out of the game as soon as trading started.
"Sir, is White Fund short selling?"
"Clarify what exactly they're short selling?" Soros looked frustrated. If it weren't for outside interference, he would have already pocketed millions.
"Sir, everything--America, Europe, Asia; they're short selling all indices, including those in America."
"Wait, aren't they just focused on pesos and other currencies?"
"Yes, but it's a minor part when considering their actions. They're clearly bearish on the economy next year."
"Damn these shadows of greed! How much do we have as positions?"
"They're using modest funds--just a couple of hundred million. However, they're leveraging it to the max."
Regardless of Soros's resolve, it wasn't much use. William White was a force to be reckoned with, and if Soros tried to maneuver in the opposite direction, he'd be in hot water.
Greenspan was spot on; the old guard wasn't holding up. Their suggestions were met with ridicule and scrutiny from the heavyweights.
What? Would there be an influx of refugees crossing borders?
"Are you kidding me? Just send them back. Besides, isn't proper population control supposed to boost manufacturing?"
"Sir, the meeting at Harvard has concluded. The Mexican representatives are in tears. They simply can't face this situation."
"Expected. Let the Harvard folks know that the situation has escalated. I think that might unify them."
"Sir, the Dow dropped 0.9%; this level is about right. We shouldn't have major issues."
"Alright, let's focus on Europe. Ah, that leverage is exhilarating; one fluctuation can mean hundreds of thousands."
"Sir, that's not exactly a great idea."
"Hahaha, just kidding! Have we heard anything from Soros yet?"
"We've noticed they're also short selling. However, they haven't made any significant moves yet. Also, they haven't given up on shorting the peso."
"Ugh, our neighbor is done for. It's the classic case of the neighbor's misfortune benefiting us."
Filson looked conflicted; it seemed he had been quite polite when looking for a profit. This current display of sympathy felt rather disingenuous.
"Ahem, Sir, they'll eventually be saved. If only three or five thousand escape, that's one thing, but if it's three to five hundred thousand, it's unimaginable."
"Filson, that's not quite right. They'll be saved because Mexico meets their conditions. Ultimately, Mexico is a key oil-producing area."
"The only viable cash-generating industry is oil; if they lose that, they really are finished. To me, this free trade zone debate is insignificant, but they'd agree to it. Politicians will do anything as long as it doesn't affect their term. Nothing is unexchangeable."
Filson hoped to hear more, but William White didn't elaborate further. He certainly had an interest in mining rights in those regions, but ultimately, they would present a huge headache.
The U.S. was probably facing its past mistakes. After bending over backward, their greed was still getting the better of them. With agriculture gone, industry was just a fantasy. The minimal tourism industry had its earnings mostly taken by hotel conglomerates.
The only remaining industry was detergent production. Well, if the U.S. loved it so much, then they might as well ramp up production.
*****
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