zorro

Roger Altman created a quadratic equation of ratios in financial statements past, a quarter delayed, that was considered prologue for the future of business models led by capable management.

It was a simpler time when interest rates reflected inflation and excess borrowing by governments crowded out funding for industry. The hubris of management could not confess and receive the absolution of central banks underwriting their mistakes at 100 cents on the dollar or a Federal Reserve that would print money with impunity.  

Mr Altman believes that adding debt to cure the destruction of global aggregate demand is a bad idea and probably is if the requirement is to service the debt and actually pay it back, which it is not. 

Today the allocator of capital, intelligent or otherwise, handicaps the pre-revenue promise of science or the judgment of an entitled hedge fund manager deciding which business model deserves reservation in a blank check billion-dollar fund, special acquisition amoeba, that holds nothing but money and a public listing.

The jungle has changed.

To wit a run through the promise of science in the cradle