The Denouement

A denouement consists of a series of events that follow the climax of a drama. The FT's says the denouement will be painful.

A broken business Plan

We remember reading hundreds of business plans/ prospectuses/ offering memorandums in the 1990's that projected questionable revenue forecasts and zero earnings/ losses for many years ahead. People, company's, bankers and investors stumbled head over heels to buy into the spin...and of course all this hype created the Dot Com, Y2K bubble of 2000-2001. The bigger the loss projections the bigger the premium was accorded to the many companies market value because people thought that meant greater opportunity.

The ten year projected losses by the current congress has never occurred in the history of the world in any shape or form. It is mathematically impossible for the US Dollar to do anything but depreciate with this business plan. The smartest people we know understand this....the fly-by punditry is drinking the Koolaid.

We feel like the wdc, llc is on an endless roadshow....... teleprompter in tow. The campaign is over. How can it be the leadership of the country is flying to work on the Olympics but has only spoken to our largest battlefield leadership once since being in office?

Pulling billions of dollars weekly from the capital markets is an exercise that can only go on for so long...thinking these pieces of fiat currency will be held to maturity....is a dangerous show to watch. Remember how the Dot Com market snapped when the last investor standing tried to run for the door. Interest rates are making an important bottom and will go higher...the debt markets can only be manipulated for so long....as they are too large and are being saturated at the same time. We worked hard to sell bonds 30 years ago to investors......now they are viewed as cash equivalents.

The US Dollar is down 11% year to date. The level of capital at major banks is now at a 73 year high. Hard assets anyone?

The number one "debate" at the G20 meeting was what??? ENERGY related.

Never.... ever..... invest in a money losing business plan.

Danny Boy seen here avoiding any road shows for now.