While the geniuses debate about what will bring down Mr. Market, the one true ‘tell’ stares us all in the face.

LAWYERS!

For the most part…lawyers create no value to the system. Sorry lawyers…zilch.

They share three documents that they took a secret oath on in college to guard with their lives. These three freaking documents have led to bazillions in charges and nothing but more lawsuits and patent issues and mindless paperwork.

Don’t get me wrong, we need them. I need them. When you need them, get the best.

Back to the ‘Tell’.

In boom times like this, lawyers fees creep up. They are on fire in the big cities, trust me. Lawyers have NEVER, NEVER had a boom like this in their fees. The bankers are in their momentum mode and the lawyers are circling around the bankers like vultures. Picking at files (like the ‘Penske’ file), scavenging on dealflow.

Mergers RARELY create value. The synergies always look good on paper, but the human synergoes rarely materialize.

The legal fees can never be gotten back. A sunk cost in a merger time gone wild. This is a cost that adds up and a cost that is out of control.