(FORTUNE Magazine) – MONEY & MARKETS/Cover Story 48 THE BIGGEST LOONIEST DEAL EVER It brought the excessive Eighties to an absurdly fitting end. Robert Campeau's history of nervous breakdowns and volatile behavior was well known to the lenders who financed his ill-conceived takeover binge -- one resulting in a financial megabomb that was barely built before it was detonated by a business that had to deliver and didn't. So why did the lenders give him all that money? by Carol J. Loomis

MONEY & MARKETS 76 HARD LESSONS FROM THE DEBT DECADE Borrowers are rediscovering the dangers of optimistic forecasts, unforeseen events, and lenders who turn against them. by John J. Curran

MANAGING 82 HOW BILL GATES KEEPS THE MAGIC GOING Microsoft's billionaire is a hot manager too. He has solved the classic problem: After a big hit, what do you do for an encore? by Brenton Schlender

85 WINDOWS: WILL THE THIRD TIME BE THE CHARM?

CORPORATE PERFORMANCE 91 KINDER, GENTLER TAKEOVER ARTISTS Aiming to refashion the furniture industry, Masco saw its earnings drop. But its style of friendly acquisition may suit the Nineties. by Ronald Henkoff

93 COMPANIES TO WATCH Family-run NCH has every reason to boast about its maintenance businesses. by Ret Autry

Also: Gorman-Rupp, American Film Technologies, and Devcon International.

COMPENSATION 94 THE GREAT CEO PAY SWEEPSTAKES Had a terrific year? You could earn a mint -- or a pittance. Top bosses often aren't paid according to performance. Startling new evidence says maybe that doesn't make a difference. by Graef S. Crystal

LOOKING AHEAD 104 AIRPORT 2000 -- A HORROR STORY? You know all about delayed flights, gridlocked runways, crowded terminals. You haven't seen anything yet. Airports have not kept pace with passenger volume and will have a hard time catching up. Only a burst of building on a grand scale can head off more trouble. by Kenneth Labich

110 MAN VS. THE AIRPORT RENTAL CAR

JAPAN 112 MEET YOUR NEW JAPANESE LANDLORD Thousands of Japanese are longing for the kind of wide-open spaces they cannot get at home. And as long as land in Tokyo costs $160 a square inch -- $17,000 for a piece as big as this page -- real estate investors will keep buying in the U.S., where everything looks cheap. by Susan Moffat

INNOVATION 118 PRODUCTS TO WATCH Eastman Kodak's new motion analyzer, reverse-dictionary software, the perfect gift for Father's Day, and more. by Frederick H. Katayama

EXECUTIVE LIFE 120 WHERE THE CEOs WENT TO COLLEGE A FORTUNE survey of the nation's top bosses shows that the Ivies and Big Ten schools rank high -- and that the Ivy League's dominance is, if anything, increasing. But wait! Little Johnny or Janie may want to consider Washington & Lee or Davidson. by Susan Caminiti

DEPARTMENTS 1 EDITOR'S DESK 6 INDEX 8 NEWS/TRENDS College campuses heat up, homeowners as economic indicators, more European CEOs face the ax, another Hunt in trouble, and more.

23 FORTUNE FORECAST Stop biting your nails. Some industries are hurting, but the expansion continues overall, and the business mood is undaunted. by Vivian Brownstein

27 PERSONAL INVESTING Stocks, bonds, or cash? FORTUNE provides the latest answers to the basic question of asset allocation. by Andrew Evan Serwer

Also: Unearthing profits at Phelps Dodge, the tightwad way to tank up on Treasuries, and Portfolio Talk with Seth Klarman of Baupost Group.

44 LETTERS TO FORTUNE

125 FORTUNE PEOPLE A pizza pasha plans a cathedral, Christie Hefner dresses up her stock, Honda's new boss has fun with cars, and more. by Mark M. Colodny

126 ON THE RISE

129 OFFICE HOURS How good bosses take steps to make sure they hear more than just what their sycophantic underlings think they want to hear. by Walter Kiechel III

133 KEEPING UP Waiting for Mr. Right, Princess Charming at Price Waterhouse, and more. by Daniel Seligman

ABOVE: Robert Campeau and his wife, Ilse, at their home in Toronto, photographed by Peter Sibbald. - COVER: Alex Quesada (Matrix) photographed Campeau at the Waldorf-Astoria Hotel in New York City in 1988.