Chapters (50)
- DEBT OF HONOR
- Acknowledgments
- Prologue
- 1—Alumni
- 2—Fraternity
- 3—Collegium
- 4—Activity
- 5—Complexity Theory
- 6—Looking In, Looking Out
- 7—Catalyst
- 8—Fast-Forwarding
- 9—Power Plays
- 10—Seduction
- 11—Sea Change
- 12—Formalities
- 13—Winds and Tides
- 14—Reflections
- 15—A Damned, Foolish Thing
- 16—Payloads
- 17—Strike One
- 18—Easter Egg
- 19—Strike Two
- 20—Strike Three
- 21—Navy Blue
- 22—The Global Dimension
- 23—Catching Up
- 24—Running in Place
- 25—All the King's Horses
- 26—Catch-up
- 27—Piling On
- 28—Transmissions
- 29—Written Records
- 30—Why Not?
- 31—The How and the What
- 32—Special Report
- 33—Reversal Points
- 34—All Aboard
- 35—Consequences
- 36—Consideration
- 37—Going Deep
- 38—The River Rubicon
- 39—Eyes First
- 40—Foxes and Hounds
- 41—CTF-77
- 42—Lightning Strikes
- 43—Dancing to the Tune
- 44—…from one who knows the score…
- 45—Line of Battle
- 46—Detachment
- 47—Brooms
The reaction on Wall Street was surprising to the unsophisticated. For all its theoretical benefits to the American economy, the Trade Reform Act was now a short-term problem. American corporations too numerous to list depended on Japanese products to some greater or lesser derive, and while American workers and companies could theoretically step in to take up the slack, everyone wondered how serious the TRA provisions wore. If they were permanent, that was one thing, and it would make very good sense for investors to put their money in those firms that were well placed to make up the shortfall of needed products. But what if the government was merely using it as a tool to open Japanese markets and the Japanese acted quickly to concede a few points to mitigate the overall damage? In that case, different companies, poised to place their products on Japanese shelves, were a better investment opportunity. The trick was to identify which corporations were in a position to do both, because one or the other could be a big loser, especially with the initial jump the stock market had taken. Certainly, the dollar would appreciate with respect to the yen, but the technicians on the bond market noted that overseas banks had jumped very fast indeed, buying up U.S. Government securities, paying for them with their yen accounts, and clearly betting on a major shift in values from which a short-term profit was certain to take place.
American stock values actually fell on the uncertainty, which surprised many of those who had their money on "the Street." Those holdings were mainly in mutual-funds accounts, because it was difficult, if not impossible, to keep track of things if you were a small-time holder. It was far safer to let "professionals" manage your money. The result was that there were now more mutual-funds companies than stock issues traded on the New York Stock Exchange, and they were all managed by technicians whose job it was to understand what went on in the most boisterous and least predictable economic marketplace in the world.
The initial slide was just under fifty points before stabilizing, stopped there by public statements from the Big Three auto companies that they were self-sufficient enough, thank you, in most categories of parts to maintain, and even boost, domestic auto production. Despite that, the technicians at the big trading houses scratched their heads and talked things over in their coffee rooms. Do you have any idea how to deal with this? The only reason only half the people asked the question was that it was the job of the other half to listen, shake its collective head, and reply, Hell, no.