In Washington, at the Federal Reserve, there was concern. They were closer to the seat of government power, and had insider information from the Treasury Department on how the mechanics of the Trade Reform Act would run, and it was clear that there would be a temporary shortage of automobiles until Detroit geared up its lines somewhat. Until the American companies could take up the slack, there would be the classic situation of too much money chasing too few cars. That meant an inflationary blip, and so later in the day the Fed would announce a quarter-point increase in the discount rate—just a temporary one, they told people, off the record and not for attribution. The Board of Governors of the Federal Reserve, however, viewed the entire development as good in the long term. It would too myopic on their part, but then that condition was worldwide at the moment.

Even before that decision was made, other men were discussing the long term as well. It required the largest hot tub in the bathhouse, which was then closed for the evening to its other well-heeled customers. The regular staff was dismissed. The clients would be served by personal assistants who, it turned out, kept their distance as well. In fact, even the normal ablutions were dispensed with. After the most cursory of greetings, the men removed their jackets and ties and sat around on the floor, unwilling to waste time with the usual preliminaries.

"It will be even worse tomorrow," a banker noted. That was all he had to say.

Yamata looked around the room. It was all he could do not to laugh. The signs had been clear as much as five years before, when the first major auto company had quietly discontinued its lifetime-employment policy. The free ride of Japanese business had actually ended then, for those who had the wit to pay attention. The rest of them had thought all the reverses to be merely temporary "irregularities," their favorite term for it, but their myopia had worked entirely in Yamata's favor. The shock value of what was happening now was his best friend. Disappointingly, but not surprisingly, only a handful of those in the room had seen it for what it was. In the main, those were Yamata-san's closest allies.

Which was not to say that he or they had been immune to the adversity that had taken the national unemployment rate to almost 5 percent, merely that they had mitigated their damage by carefully considered measures. Those measures were enough, however, to make their originators appear to be models of perspicacity.