Chapter 152: Untrustworthy

Words : 1250 Updated : Oct 4th, 2025

Don't tell me the stock market is all just virtual assets, because that's really not the case. Securities investments commonly used leverage. Even the most conservative investors would mortgage their stocks. Money obtained from the bank could be used to buy more stocks, and more aggressive investors would once again mortgage them. The mainstream approach was to use personal cash to buy mutual funds, then mortgage those to the bank to get more money to have fun with. If the stocks rose, everyone would be happy, and the bank would give you additional loans. But if the stock prices fell, you had to be ready to face the consequences. As a standard blue-chip, Big Blue was often bought like a mutual fund. A 10% drop wasn't too big of a problem, but if it kept dropping, many people would be in trouble. Do you think it can't drop that much? Well, you might be right, but the problem was that stocks had been declining for the past few years, and they were far from their peak. According to Wall Street fund managers, if the drop expanded to 5%, banks would require clients to increase their collateral. Usually, securities collateralized were about 85%, but for those with particularly outstanding credit, it might be 90%. Banks had been recalling funds for a while, and if the downturn couldn't be controlled, many shareholders would be in big trouble. These were only the problems of ordinary shareholders. The institutions had very high leverage, and these guys were naturally furious. Big Blue's attitude towards microcomputers had been criticized by shareholders, but this time, they finally began to take this growing market seriously. Expanding business naturally meant new profit growth avenues. This seemed like great news, but no one expected the institutions planning to sell at high prices to end up catching a bullet collectively. IBM's temporary board meeting was like a battlefield, with constant accusations and curses. "Can anyone tell me what's going on with that Microsoft? Was there any behind-the-scenes operation? And what about that Lotus software -- who decided to ditch the White system, and what was the purpose? That company is just a software company. Don't tell me there's a conflict of interest." A group of shareholders clamored, almost flipping the conference table. Big Blue's board had never seen such chaos. The shareholders' accusations were varied, but the core idea was clear: why weren't you choosing the most reliable or the most famous? What kind of process was this? That was a tough question to answer. You couldn't just say that you got along well with Bill's mom. If you said that, there'd be no point in having the meeting. ... Ignoring their heated battle, Lotus Company was quite happy. Though they hadn't sold much software, they at least had a decent start. After all, Big Blue was a big company. Its foundation couldn't be compared to Apple. It was true that sales hadn't met expectations, but the absolute numbers weren't small. Since IBM PC had been on sale for over a week, and sales were okay, Lotus had ramped up software production. They hadn't anticipated White Software missing the deadline, and now the prepared software clearly wasn't enough. Just when they were high and mighty, White Software suddenly shipped their products, almost the entire series including the Office suite. "Darn it!" Seeing the date on the package, Big Blue and Lotus saw red. You had obviously finished production at the end of March, yet you claimed it would take another six months. Yeah, I lied to you, so what? What're you gonna do, bite me? The shocking part was that installing the Office suite made the IBM PC run smoothly. Even if it didn't solve all the issues, it patched up quite a few. Are you kidding me? Once again, Lotus got a beating. This time, they were helpless. Their software just couldn't work, and it made no sense whatsoever. Was it not their fault? Was it the operating system's fault? Are you messing with me? Why does White Software work fine? The operating system is from Microsoft, not White. Hurry up, return it. The guys still fighting in the board meeting went crazy when they learned this news. The reason for their anger was simple: it was intentional to cause drastic stock price fluctuations. They finally understood who William White was. In this world, there are no "what ifs." The loss here was simply massive. Supposedly, for confidentiality reasons, White Software's operating software was delayed? Haha, they had it all along and knew the system's flaws inside and out. But they didn't tell you, so you go ahead and study with the software. Rest assured, it wouldn't be easy; a tiny change could crash the system. Microsoft had its share of trouble as well. Their patches were tricky to apply, and what about the computers with White's office suite? ... This soap opera in the IT world amazed Hollywood directors, giving them quite the lesson. Who knew things could be this interesting? Arrogant Steve Jobs was back with his PR onslaught, mocking IBM as a regular feature. Of course, he didn't forget to call and complain. William White knew very well that this guy liked to gain advantage and act naive. Given the current situation, it wasn't bad at all. If he couldn't take advantage of it, he'd be letting William White's good intentions go to waste. "Boss, we've got a $1.5 billion loan from Japan." "Tsk, that's quite a hassle." "Boss, the yen is expected to appreciate, and they do have their reservations." "Haha, of course, I know about the appreciation expectations. Otherwise, why not borrow in dollars instead?" "Plus, with domestic securities-backed loans, we now have $2.5 billion." "Mm, first pay the agreed $2 billion, then get a $1 billion loan with NBC shares and another $500 million with shares from other companies. Tell those investment banks, if the interest rates are too high, I'll just go get a loan in Europe." "Alright, boss, they might compromise." William White quickly secured the first set of funds, leaving the consortia at a loss. Their sweet dreams wouldn't come true. If they didn't act fast, these loans would disappear without a trace. When you're able to pay, the bank is eager for you to take a loan. They have to pay interest on their deposits, and without these interest margins, closing down would be the only option. In the end, investment banks weren't optimistic about William White's acquisitions. They actually had safer financing methods, though this sense of security was relative. As for why they lent him the money, it was simple: his ability to pay was reliable. That said, if things went south, the Japanese consortium couldn't compete. The American regulatory bodies always play favorites, and that's common knowledge. This IT industry battle showed Wall Street the strength of White Software. Although it was still a long way from Big Blue, it still held its ground in specific fields. They were sure Big Blue would change their strategy. It's okay to get egg on your face once, but if it keeps happening, that's downright embarrassing. ***** https://www.patreon.com/Sayonara816.

Chapter 152: Untrustworthy

Comments (0)