Wednesday, April 30, 2008

Dead Cat Bounce Economy (Musical Tribute)



Dead I am the rat
Feast upon the cat
Tender is the fur

Dying as you purr

No offense intended to cat lovers. We have one. His name is Tigger and he's quite the actor.

Dead I am the sky
Watching angels cry
While they slowly turn
Conquering the worm


For inflation acts as a gigantic corporate tapeworm. That tapeworm preemptively consumes its requisite daily diet of investment dollars regardless of the health of the host organism. Whatever the level of reported profits (even if nil), more dollars for receivables, inventory and fixed assets are continuously required by the business in order to merely match the unit volume of the previous year. The less prosperous the enterprise, the greater the proportion of available sustenance claimed by the tapeworm. - Warren Buffett, Shareholder Letter - 1981

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