Ransom Read Online Free PDF Page B

the debt. He leveraged his assets by borrowing to buy more assets.
    The second big hit was harder than the first, and nearly twice the amount. And after the third hit, as the market plummeted, even Allan began to look worried. The assets he had borrowed against were worth nothing suddenly and all he had left was debt. What came after that was a swan dive so staggering that the entire dot-com world went with it. Within six months almost everything Allan had made had gone up in smoke, and stocks that had been worth two hundred dollars were worth pennies. The implication to the Barneses was disastrous, to say the least.
    Complaining bitterly about it, he sold the yacht and the plane, while assuring Fernanda and himself that he would buy them back again, or better ones, within a year, when the market turned around again, but of course it didn't. It wasn't just that he was losing what they had, the investments he had made were literally imploding, creating colossal debt as all his high-risk investments fell like a house of cards. By year's end, he was staring at a debt almost as enormous as his sudden fortune. And just as she hadn't when he made the windfall on the first company, Fernanda didn't fully grasp the implications of what was happening, because he explained almost nothing to her. He was constantly stressed, always on the phone, traveling from one end of the world to another, and shouting at her when he got home. Overnight, he became a madman. He was absolutely, totally panicked, and with good reason.
    All she knew before Christmas the year before was that he was several hundred million in debt, and most of his stock was worth nothing. She knew that much, but she had no idea what he was going to do to fix it, or how desperate their situation was becoming. And miraculously, he had made many investments in the name of anonymous partnerships and “letterbox” corporations, which were set up without his name being publicly disclosed. As a result, the world he did business in had not yet caught on to how disastrous his situation was, and he didn't want anyone to know. He concealed it as much out of pride as because he didn't want people to be nervous about doing business with him. He was beginning to feel as though he was surrounded by the stench of failure, just as he had once worn the perfume of victory. Fear was suddenly in the air all around him, as Fernanda silently panicked, wanting to support him emotionally, but desperately afraid of what was going to happen to them and their children. She was urging him to sell the house in London, the co-op in New York, and the condo in Hawaii, when he left for Mexico right after Christmas. He went there to make a deal with a group of men, and told her before he left that if it worked out, it would recoup nearly all their losses. Before he left, she suggested they sell the house in the city and move back to Palo Alto, and he told her she was being ridiculous. He assured her that everything was going to turn around again very quickly, and not to worry. But the deal in Mexico didn't happen.
    He had been there for two days, when there was suddenly another catastrophe in his financial life. Three major companies fell like thatched huts within a week, and took two of Allan's largest investments with them. In a word, they were ruined. He sounded hoarse when he called her from his hotel room late one night. He had been negotiating for hours, but it was all bluff. He had nothing left to negotiate with, or trade. He started crying as she listened to him, and Fernanda assured him that it made no difference to her, she loved him anyway. That didn't console him. For Allan, it was about defeat and victory, climbing Everest and falling off again, and having to start at the beginning. He had just turned forty weeks before, and the success that had meant everything to him for four years was suddenly over. He was, in his own eyes at least, a total failure. And nothing she said seemed to console him.