[Chapter 928: Hesitation in Striking the Rat]
The economy was booming, so why bother with shady deals? William White finally understood why Hong Kong loved gangster movies so much. With the economy doing so well, everyone prefers some action and crime stories. Imagining a crisis in such times was almost unthinkable.
"Interest rates increased?"
"Yes, boss, by fifty basis points."
"Damn, 0.5? That's practically encouraging investment!" Soros scoffed. To effectively curb hot money, they'd need to raise it by at least 200 basis points.
"Indeed, boss. The stock market barely reacted, dipping slightly before quickly bouncing back."
"Good, keep watching."
To Soros, Thailand's rate hike was a mere joke. But those guys sensed something was off. That was good; now that they knew it, he could just wait for their mistakes.
"Hesitating to strike the rat because of fear of breaking the vessel." The rat was too close to the vessel; one hesitates to throw lest it damages the vessel. How much more so when a high-ranking minister is near the emperor!
These words came from the Han history book about Jia Yi, who used them to advise Emperor Wen of Han, hoping to curb excessive punishment toward ministers.
By the late Han dynasty, Liu Bei adapted the phrase to justify not killing Cao Cao. Though Guan Yu was loyal, he lacked foresight.
During the chaotic era of warlords vying for power, as a member of the Han imperial clan, Liu Bei most wished for Liu Bian's death. As for the treacherous Cao Cao, if he ceased rebellion, Liu Xuande would stand no chance.
Since Liu Bian ended up under Cao Cao's control, if it had been someone else, Liu Bian would likely have been dead long ago.
Using "hesitating to strike the rat" for Liu Bei was unsuitable -- just a weak excuse. The puppet emperor was not a treasure, and Cao Cao wasn't a rat to be easily eliminated.
Though applying the phrase to Thailand was somewhat a stretch, it was barely appropriate.
They feared repeating past mistakes. Right now, the real estate market had a bubble, and so did the stock market. Anyone with basic financial knowledge recognized this.
Vendors selling stale fish bought stocks; street hustlers sold their sisters to buy funds. Even random taxi drivers claimed to have insider info.
People thought they could profit from stocks and real estate, making college and industry seem pointless. Infrastructure? Meh, it was optional.
The worst part was, Thailand suddenly burst the bubble without hesitation, which went terribly, causing the highest suicide rates globally, not to mention other problems.
"Hey, why only a hundred basis points? This lukewarm approach seems like rushing to your own death."
"Yes, boss. If a crisis erupts, Thailand would be hit first. Traditional agricultural countries have immense difficulties transforming their economies. What's funniest is many economists are using South Korea as an example!"
William White burst out laughing. Many Americans didn't understand South Korea's actual situation, but not these two here.
South Korea tightened credit, causing many old companies to collapse and severe capital shortages. Layoffs and triangular debt were the era's hallmarks.
It was tough; many paid unimaginable prices. One must admit, South Koreans rarely just accepted defeat. Once laid off, if business didn't work, they'd open a small stall or run a taco stand.
When night markets started is unclear, but by 1995 or 1996, even in third-tier cities, street food was everywhere. The tertiary sector boomed rapidly, with openness so aggressive it stunned many.
"South Korea? They dared not push credit tightening to the bursting point but thought their situation was better. Is this what they call overestimating oneself?"
"What? You don't know that phrase? Well, I'll explain later; I still don't fully get it. As you know, idioms are tricky. When my teacher explained a four-character idiom to me, it could fill a whole book."
Filson shook his head helplessly. He had tried learning Chinese, but if it wasn't too hard, he didn't mind picking up more. Spending time with William White made him feel his IQ was being crushed.
William liked reading books from all over the world. Interestingly, he often quoted Chinese rather than Latin, which puzzled Filson--most American writers preferred Latin quotes.
William couldn't explain it well but believed Chinese characters were humanity's most original script.
Okay, some might argue Egyptian hieroglyphics too.
That's not denied; all scripts originated from pictographs. You had a cultural break, but Chinese writing persisted through countless dynastic changes.
No matter how frustrated one was herding sheep, you can't replace writing with sheep bones. If rejected, within ten years, you'd be back out herding sheep on the plains.
"Sir, so I guess we just watch and wait."
"Right. Also, my team found Soros stirring trouble--not only in Thailand, but most Southeast Asian countries got caught in his web. He set up many accounts."
Filson was stunned; he hadn't expected William White's intelligence network to extend so far into Asia. These weren't minor places like Thailand and South Korea.
"Sir, could it be..."
"No. Though Soros studied in the UK, he wouldn't hatch such an elaborate plot."
"Hmm, so Soros has already made his move."
"Not only him. Although exact figures are unclear, a lot of US dollars from suspicious sources have definitely entered the capital market. Many economists say it's hot money, even citing how much flow a single tourist brings to Southeast Asia."
Filson smiled bitterly, unsure what to say. Economists nowadays had lost all shame. Did they not know tourists rarely carry much cash besides traveler's checks and credit cards?
Though Western tourists roam around, most are backpackers staying in hostels with light luggage. Calling them hot money sources was laughable.
Wealthy Americans tend to go skiing in Switzerland, visit castles in Europe, or surf in Australia or Cape Town. They prefer established resort cities.
Sure, some thrill-seekers exist, but their numbers are small; otherwise, there'd be almost nobody left in the US.
Throwing the messy work to Filson, William White cheerfully left the office. Sometimes he wondered if he was off track.
But really, in the eyes of Wall Street giants, he was just a reckless fool.
Once, they all pulled out their little stools, sure William White would be packaged up and sold by his own team. They eagerly awaited his downfall.
One person's continuous success breeds envy, especially when he made money playing games.
Sadly for them, no collapse came. William White only grew bigger. Some now called it "happy management."
Happy my foot--try anyone else, and they'd be chewed to the bone.
*****
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