Yamata could have said, "I warned you," except that he hadn't, even after his own investment counselors, Americans in this particular instance, had examined the very same deal and warned him off in the strongest terms. Instead he nodded thoughtfully. "Clearly you could not have anticipated that, especially after all the assurances you were given, and the wonderfully fair terms you gave in return. It would appear, my friends, that proper business ethics are lost on them." He looked around the table to collect the nods his observation had earned. "Matsuda-san, what reasonable man could say that you were in any way at fault?"

"Many would," he answered, rather courageously, all thought.

"Not I, my friend. Who among us is more honorable, more sagacious? Who among us has served his corporation more diligently?" Raizo Yamata shook his head sorrowfully.

"Of greater concern, my friends, is that a similar fate could await us all," a banker announced quietly, meaning that his bank held the paper on Matsuda's real-estate holdings both in Japan and America, and that the failure of this conglomerate would reduce his reserves to dangerous levels. The problem was that even though he could survive the corporate failure in both real uiul theoretical terms, it required only the perception that his reserves were weaker than they actually were to bring his institution down, and that idea could appear in a newspaper merely through the misunderstanding of a single reporter. The consequences of such a misguided report, or rumor, could begin a run on the bank, and make real what was not. Certainly the money withdrawn would then be deposited elsewhere—there was too much to go under mattresses, after all—in which case it would be lent back by a fellow corporate banker to safeguard his colleague's position, but a second-order crisis, which was quite possible, could bring everything crashing down.

What went unsaid, and for that matter largely unthought, was that the men in this room had brought the crisis upon themselves through ill-considered dealings. It was a crucial blindspot that all shared—or nearly all, Yamata

told himself.

"The basic problem is that our country's economic foundation rests not on rock, but on sand," Yamata began, speaking rather like a philosopher. "As weak and foolish as the Americans are, fortune has given them things which we lack. As a result, however clever our people are, we are always at a disadvantage." He had said all of this before, but now, for the first time, they were listening, and it required all of his self-control not to gloat. Rather he dialed back his level of rhetoric even more than he had in previous discourses. He looked over to one of them, who had always disagreed with him before.