Capital Preservation or Capital Appreciation

Did France just pull an error like we did three years ago?

There are FAR too many people thinking I, Me, and Mine vs. Us, We and Ours.

"If you are in a cul-de-sac the only way out is to go backward. Countries clearly living beyond their means must reverse," said the famous economist..."you can't spend more than you take in..you can't live your whole life this way...everybody knows this."

The bear case remains.....42 tax benefits expire at the end of 2012. A lame duck congress will do nothing.....new global "leadership" will engage sometime in 2013.....with their balance sheets in tatters...the longer the lack of leadership remains... the worse the challenges will become....simply compounding math.

We see bids in real estate....not because of low interest rates or a decline in property taxes.....simply because prices have fallen far enough to attract real buyers.....both the high end and low end.

Bloomberg reports...lawyers winding down the Madoff ponzi scheme have now earned $554 million...so far....they will earn even more...investors have been paid back only $330 million...LOL.

Volume continues to fall in all the capital markets....now thought to be half the rates of the market peak in 2008....off 23% in just the past year alone....so far the public has absconded from the equity markets at a record rate/ pace....almost all have (so far) crowded into the bond market....like sheep....record corporate buy backs appear to be bigger than the selling...thus the trading range of many stocks....now years long.....and thus available supply shrinks....as traders give away small fortunes.

As a famous banker said....in Barron's, "There are only three ways to grow, you can buy someone, you can get a new customer, or you can do more with your existing customers."

Danny Boy seen here likes as much appreciation as possible...but knows he has to preserve all of what he has first. He.. like nature is incredibly patient.