be that disaster was lurking in the same bushes that smelled so sweet? The mental battle was exhausting.
Mark thought: Why am I fighting against the inevitable? This policy change is going to go through and if we play the devil’s advocate, we lose.
“Maybe you should just forget about my suggestion and go with your instincts.” Mark poured himself another cup of coffee before measuring his friends’ reactions.
Mark saw disbelief written all over Steve’s face. Denise seemed relieved, but a shadow quickly passed across her features and stole that notion.
“Derivatives may have merit, but they may also be time bombs. Could you please be clearer about why we should feel secure?”
Mark nodded and launched into his explanation.
“It works this way: our bank agrees to pay a dealer a fixed rate for Treasury bills with the return based on a floating rate: the T-bill rate minus a percentage.
“ If rates rise, the bank’s margin will still decline but not as badly as it would without the swap.
“ We aren’t eliminating all risk, just managing its outer limits. The bank is, in essence, Aristotle’s olive-press owners.”
Realizing that he had failed to convince his friends, Mark opened his briefcase to retrieve the notes he had written the night before.
Maybe he had been too quick to take the word of his sources. How did he know that some of them might not be biased?
‘If only someone could tell me what to do , ’ H e thought, miserably. ‘I wish prophets existed in the 20th century!’
***
At that moment, the older Mark suddenly found himself looking into Zachri’s face.
“I... I thought I was with Steve and Denise. Where are they?”
“Let me explain why you’ve re-emerged into 2007. Young banker Mark is struggling with two distinct options: follow one’s conscience or take the fast road to wealth.
“ Since he wants both, he’s looking for justification for doing well on the terms laid down by his boss.”
“Zachri, you nailed it. That decision was even harder than making my mind up whether to marry Peg. But I found a third way; by introducing derivatives into the proposal.
“ Since they were an unknown quantity, I certainly could have been pleading for some assurance. Is that what you’re offering?”
“ No, Mark, I could never tell you which choice to make. I can only give you the truth about specific factors. The truth may influence your decision but it doesn’t disrupt you r free will.”
“All right, I’ll try to frame my questions so you CAN help me. First, are derivative contracts a rational solution or a bogus justification for the risks of deregulation?”
“It could be either. Many things that are created for a good purpose are corrupted. Consider Agent Orange.
“ You know how it was used in the Vietnam War but that wasn’t the inventor’s intent. The mixture of two herbicides was meant to speed the growth of soybeans in regions with a short growing season.”
“That’s a horrible comparison! So, you’re saying that the proper use of derivatives reduces financing risk . I was right!
“ Here’s my second question, one that’s haunted me for years. If I had not supported Jim, how would it have altered my future? Would I have been fired and maybe changed my mind about marrying Peg? If I hadn’t married her, would I still have become a father? If I didn’t have a son to push me into that matchmaking service, would I still have met Janie?”
“It wouldn’t have changed what was meant to be, Mark. You were meant to be a father to Martin and you were meant to meet Janie. A different route wouldn’t have altered that. They are your reality.”
“Zachri, how do you know so much about me? Do angels maintain some kind of celestial database to keep track of their subjects? ”
“I’m not an angel. I never said I was. But I am a spirit , sent by your Maker, and I’ve been assigned to you.”
“Assigned to me for how
Mark thought: Why am I fighting against the inevitable? This policy change is going to go through and if we play the devil’s advocate, we lose.
“Maybe you should just forget about my suggestion and go with your instincts.” Mark poured himself another cup of coffee before measuring his friends’ reactions.
Mark saw disbelief written all over Steve’s face. Denise seemed relieved, but a shadow quickly passed across her features and stole that notion.
“Derivatives may have merit, but they may also be time bombs. Could you please be clearer about why we should feel secure?”
Mark nodded and launched into his explanation.
“It works this way: our bank agrees to pay a dealer a fixed rate for Treasury bills with the return based on a floating rate: the T-bill rate minus a percentage.
“ If rates rise, the bank’s margin will still decline but not as badly as it would without the swap.
“ We aren’t eliminating all risk, just managing its outer limits. The bank is, in essence, Aristotle’s olive-press owners.”
Realizing that he had failed to convince his friends, Mark opened his briefcase to retrieve the notes he had written the night before.
Maybe he had been too quick to take the word of his sources. How did he know that some of them might not be biased?
‘If only someone could tell me what to do , ’ H e thought, miserably. ‘I wish prophets existed in the 20th century!’
***
At that moment, the older Mark suddenly found himself looking into Zachri’s face.
“I... I thought I was with Steve and Denise. Where are they?”
“Let me explain why you’ve re-emerged into 2007. Young banker Mark is struggling with two distinct options: follow one’s conscience or take the fast road to wealth.
“ Since he wants both, he’s looking for justification for doing well on the terms laid down by his boss.”
“Zachri, you nailed it. That decision was even harder than making my mind up whether to marry Peg. But I found a third way; by introducing derivatives into the proposal.
“ Since they were an unknown quantity, I certainly could have been pleading for some assurance. Is that what you’re offering?”
“ No, Mark, I could never tell you which choice to make. I can only give you the truth about specific factors. The truth may influence your decision but it doesn’t disrupt you r free will.”
“All right, I’ll try to frame my questions so you CAN help me. First, are derivative contracts a rational solution or a bogus justification for the risks of deregulation?”
“It could be either. Many things that are created for a good purpose are corrupted. Consider Agent Orange.
“ You know how it was used in the Vietnam War but that wasn’t the inventor’s intent. The mixture of two herbicides was meant to speed the growth of soybeans in regions with a short growing season.”
“That’s a horrible comparison! So, you’re saying that the proper use of derivatives reduces financing risk . I was right!
“ Here’s my second question, one that’s haunted me for years. If I had not supported Jim, how would it have altered my future? Would I have been fired and maybe changed my mind about marrying Peg? If I hadn’t married her, would I still have become a father? If I didn’t have a son to push me into that matchmaking service, would I still have met Janie?”
“It wouldn’t have changed what was meant to be, Mark. You were meant to be a father to Martin and you were meant to meet Janie. A different route wouldn’t have altered that. They are your reality.”
“Zachri, how do you know so much about me? Do angels maintain some kind of celestial database to keep track of their subjects? ”
“I’m not an angel. I never said I was. But I am a spirit , sent by your Maker, and I’ve been assigned to you.”
“Assigned to me for how
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