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1 Scene 1 Time: The Present Location: New York City Place: a coffee shop. Three men are sitting at a table. Their names are Dave, Ralph and Saul. DAVE Everything stinks! RALPH You’re right. SAUL Right about what? DAVE That everything stinks. SAUL You’re not saying any...
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2 DAVE Cut the clichés. I can do without the clichés. I’m being serious. SAUL Nobody said you weren’t. RALPH That’s right. I would never dismiss anything you say, even if I heard it a million times before. DAVE This time I’m serious. I can’t sleep at night. SAUL That’s normal...
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3 RALPH I know that. I was just trying to make a point. DAVE I’m suffering and all you guys can do is talk poetry. Who cares about poetry? SAUL Now, don’t go making remarks that later on you may regret. DAVE At this stage of my life I can say what ever I want without worrying about ...
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4 DAVE I can’t help but feel despair. I’m old, and nobody seems to care. I can live or die. It won’t matter. RALPH I’ve feeling a little bit out of sorts myself. I can’t quite put my finger on the cause however. SAUL Maybe you need to be pre -occupied with some activity. You know, something...
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5 SAUL Not everybody is cut out to go to college. DAVE Listen to you. Such an elitist. Boy, are you stuck up. SAUL Why do you say that? I just made a comment. DAVE If you think you’re something special because you’re a college professor, well let me assure you, you are not. S...
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6 RALPH I could have gone to college, but instead got drafted into the army. DAVE At least you served your country. SAUL That’s right. Did I ever thank you for your service? DAVE Aw, stop patronizing the guy. Okay? RALPH I’m not offended. Thanks mean nothing anyway. I didn’t e...
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7 DAVE On what basis? You were never Boy Scout and lord only knows you never served in the military. SAUL How do you know that? DAVE You’re a professor! Professor don’t do things like join the Boy Scouts or go into the military. SAUL Now you’re stereotyping me. RALPH Stop stere...
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8 DAVE Army. Just like you. Oh, this pain in my head. SAUL Maybe you need to relax. Where were you stationed? DAVE Upstate New York. SAUL Where upstate? DAVE You know, upstate. Look, could you drop the subject? My head hurts. SAUL You brought it up. RALPH You su...
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9 DAVE I think it was Fort Belton. SAUL You think? You don’t know? DAVE Hey! I said Fort Belton. My head is beginning to spin. SAUL No need to try to bite my head off. DAVE I don’t want to bite your head off. I’m having enough problems with my own head. RALPH You’re n...
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10 SAUL So true. Sometimes I don’t know if there is anyone I can really trust. DAVE Trust whom? RALPH I trusted my platoon sergeant. He was a good guy. SAUL Where were you stationed? RALPH Germany. DAVE Germany? How come you weren’t sent to Vietnam? RALPH I don’t...
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11 DAVE I did? SAUL Yes, you did. Don’t you remember? DAVE When did I bring that up? SAUL Just a few minutes ago. You said you were stationed at Fort Belton, Kentucky. DAVE Kentucky? I’ve been to Churchill Downs, if that’s what you mean. RALPH Dave, come on. Don’t you r...
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12 DAVE Said like a true shirker. SAUL I tried to enlist but was rejected. RALPH So that’s why you became a professor? SAUL Not exactly. It was a little more complicated than that. DAVE How come you went to college and became a professor while I went to college and became a...
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13 DAVE When I was in college I saw lots of profs coming on to the female students. I bet all those ladies got straight A’s. SAUL You have such a filthy mind. DAVE Hey, I’m not passing judgement. I w ould have done the same too. Me: I struck out like crazy. The girls wouldn’ t give me th...
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14 DAVE Now you’re insulting my intelligence. You had to do something to get nookie, or maybe you swung another way? SAUL I had a girlfriend. We even talked about getting married. RALPH But you didn’t. it was all talk. DAVE All talk? So what? You had all the ladies you wanted, so why...
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15 RALPH I didn’t say that. DAVE But you meant it. SAUL No, he did not. RALPH Hey, speak for yourself, not for me. Okay? SAUL Now, you’re touchy too? RALPH When you do that, I feel put down. Just because I’m a blue collar guy doesn’t mean I don’t have a brain. SAUL...
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16 RALPH And you shut your trap too. I’m beginning to get fed up with the two of you. DAVE Then why don’t you get up and leave? RALPH I’ll leave when I’m good and ready. SAUL We came here to have a pleasant chat. So, let’s have a pleasant chat. DAVE I thought that’s what we w...
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17 DAVE Yeah, we’re fine. What about you? EMILY I’m fine too. Thanks for asking. RALPH You know, I’m hungry. DAVE What’s your name, babe? EMILY Emily: how about you? DAVE I’m Dave, and my two pals here are Ralph and Saul. RALPH Hi ya. SAUL Hello, young la...
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18 RALPH Well, don’t think too long. She can’t be standing here all day. DAVE Will you get off my case? RALPH I’m not on your case. SAUL My dear, maybe you should come back in a little while. We need more time. EMILY Maybe I will DAVE Wait a minute, doll. Don’t leave y...
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19 EMILY I’ll come back in a few minutes. ( Emily exits .) DAVE Now you see what you’ve done? You ruined it for me. All of a sudden I got this buzzing sound in my head. SAUL You okay? DAVE I’m okay. It should pass. SAUL Okay, but let’s get one thing straight: I’m not ruining ...
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20 DAVE Who cares about Emily? RALPH Just because she’s a waitress doesn’t mean she shouldn’t be treated nicely. DAVE What is this? You have the hots for her? RALPH No. I just don’t want to give her a hard time, that’s all. DAVE You definitely do have the hots for her. Right,...
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21 RALPH What about you? DAVE What about me? RALPH You like her too? DAVE Of course, I do. What do you take me for? A queer? There it goes again. That buzzing sound. RALPH You have no chance with her. DAVE Listen, Ralph. If I wanted to I could always swing a date wit...
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22 DAVE What the hell do the Jews have to do with anything? RALPH I was just joking. No need to get so worked up. DAVE No need to bring up Jews. Next thing you’ll be telling me is that I’m Jewish, or gay, or a black man. Who cares? For all I know you’re some left -wing Jewish freak who wan...
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23 RALPH He was doing his job. DAVE By torturing you? SAUL The army tortures soldiers? RALPH He doesn’t know what he’s talking about. DAVE I sure do know what I’m talking about. SAUL Too bad you don’t want to talk about it. DAVE Who said that? SAUL I th...
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24 SAUL I didn’t say anything. DAVE The less you say, the better. SAUL Now, I have to limit what I say? RALPH My, you are bossy. DAVE I’m just letting you know how I feel about things. RALPH You sound like my drill sergeant. DAVE Yeah. Sergeant Dave. SAUL ...
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25 DAVE What I did for a living was a job, and I hated it. That’s what made it a job, hating it. SAUL I loved my job. DAVE Of course you did. Easy work, great pay, fantastic fringe benefits. SAUL It wasn’t fun and games. DAVE Reading all those term papers had to be really rou...
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26 SAUL You know, you are really starting to annoy me. DAVE Oh, did I offend you? I’m so sorry. RALPH Dave, did something happen to you to get you in such a bad mood? DAVE Let me tell you … Emily enters with the food. She serves the food to Saul and Ralph. EMILY Sorry for in...
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27 EMILY I have no time for games. I have other tables to serve. DAVE Wait a minute, doll. What’s the rush? Why can’t we be friends? EMILY What kind of friends? DAVE Good friends, or must I spell out w hat I mean? RALPH Don’t listen to him. He’s all talk. DAVE That’s ri...
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28 EMILY Yes, I am. SAUL How sad. EMILY What do you mean by that? SAUL Please don’t misunderstand. I’m very happy for you. DAVE What he’s trying to say is that he has the hots for you. SAUL I never said that. DAVE But you thought it. You see, I can read minds. ...
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29 EMILY My, you do have a dirty mind. DAVE Not as dirty as his. RALPH When do you get off from work? EMILY At midnight. RALPH Do you need anyone to escort you home? EMILY No, my husband meets me. DAVE Come on. Are you really married? I don’t see a ring on your ...
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30 SAUL Why, thank you, my dear. I like you too. RALPH It looks like you’ve made a new friend. SAUL So it has. DAVE Don’t you have to get back to work? EMILY I’m still waiting to take your order. DAVE Don’t rush me. ( pause ) I’ll have whole wheat toast with jelly and...
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31 EMILY My, you certainly are a forceful one. ( Emily exits .) DAVE Now I’m really pissed off at you. Are you trying to give me a hard time or what? SAUL What did I do? DAVE You showed me up in front of the dame. RALPH What are you talking about? SAUL I did no such thin...
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32 RALPH If you can’t level with your friends, then with whom can you level? SAUL Well stated, my dear boy. Are you certain you never went to college? RALPH Fooled you, right? SAUL More like pleasantly surprised me. DAVE You fooled me. RALPH I can only fool one person a...
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33 DAVE Where’s that coming from? SAUL I have the distinct feeling that you are jealous that Emily likes me. DAVE You can have her. She was only being polite anyway. She’s angling for a bigger tip. RALPH Nothing wrong with a lady being nice to a man. DAVE I didn’t say that a...
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34 SAUL You know, Ralph, maybe you should change the subject. RALPH He said his head was hurting and I suggested he see a doctor. What’s wrong with that? SAUL Sometimes even the most innocent comments can be misinterpreted. nuts. DAVE Stop with your game playing already. You gu...
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35 RALPH Sure. Why not? Most women are married, so why not her? DAVE I think you have your eye on her too. RALPH Maybe I do, and if she’s married, what do I care? Makes things much simpler. SAUL Until you get caught. RALPH But until then, it could make the experience much mor...
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36 RALPH Take an a spirin. Now, what other things have you been thinking about? SAUL Yes, Dave, what other things? DAVE Things. Not the stupid crap you guys are talking about. Let’s go on to something else. SAUL You’re right. Let’s talk about something else. DAVE Now you’re mak...
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37 SAUL No. But every so often I would take note of one of my students, but nothing more than that. DAVE You never asked them to meet you after class? You know, for a conference. SAUL Sure, I did that, but only to discuss homework assignments and similar business. DAVE You dirty fi...
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38 DAVE You guys make it sound like I committed a capital offense. What are you guys trying to do to me? Make my headache worse? SAUL Improve your speech. RALPH You know, in the army I had a buddy of mine who could not put together a coherent sentence longer than six words. Yet, they made ...
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39 DAVE No, I’m not. My cell phone tells me when to go to sleep and when to wake up. It never stops. It drills messages through my skull. RALPH Dave, just to change the topic. How did you like serving in the army? DAVE I told you not to mention that subject, so please don’t. I don’t want t...
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40 So, I went to one of my provider’s stores and asked them to transfer the data from my old phone to new device. They flat -out told me that they couldn’t do it and told me to call tech support. I went back to my apartment and from there called tech support and asked them to transfer the data from my old ...
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41 SAUL I care. DAVE Yeah, but you’re not my cell phone provider. They need to care, and they don’t. SAUL Dave, anyone who owns a smartphone has had the exact same experience. It generates a feeling that I call Post Technical Distress Syndrome , or PTD S. RALPH PTDS? I like it. Is t...
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42 RALPH Sooner or later you’re going to find out. SAUL My friend: do not despair. Things can’t be that bad. DAVE That’s easy for you to say. You’re not me and your head isn’t about to explode. SAUL We all have our crosses to bear. DAVE Now you’re sounding like a priest. That...
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43 SAUL You’re being a bit selfish. DAVE Listen to you. That’s like the pot calling the kettle black. I was all set to make a move on Emily when you barged your way in and ruined it for me. Emily enters. EMILY Here you are: what you ordered. (Emily places the whole what toast and tea on ...
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44 SAUL You remembered my name. For that you will get an extra special tip. EMILY How about you? Ready to dig in? DAVE Yeah. I can’t wait. EMILY Wow. Why so down? DAVE Don’t ask. RALPH She just did DAVE I know she did. SAUL Dave’s cell phone service compan...
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45 DAVE I don’t know. People lie about a lot of stuff for a lot of different reasons. EMILY Look, I don’t know who you are, and how you can take it upon yourself to talk to me that way. SAUL Sometimes a man will sound nasty to cover up the way he really feels. DAVE More pseudo- psyc...
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46 DAVE Wait! Don’t leave yet. I may want to order something else. EMILY Well, make it snappy. I spent enough time here already. I have other customers to serve. DAVE Could you please bring over the menu? EMILY The menu is right in front of you. DAVE So, it is. SAUL Ho...
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47 RALPH No, Actually I’m a retired heavy -duty equipment operator. EMILY Really? Wow? That sounds cool. You operated bulldozers and cranes? RALPH That’s right. Worked all over the world on construction jobs. EMILY The only place I’ve ever been was St. Louis, Missouri, when I was a k...
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48 DAVE You’re doing more than just making conversation. Something’s going on here. I see how the two of you look at each other. SAUL If I’ve done anything to upset you, please accept my apology. I really want for us to be friends. EMILY Well, fellows, I need to be getting back to work. Oh...
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49 DAVE Because that’s what she was doing. Talking. ( Pause) Wow, my head is beginning to hurt. RALPH Take some Motrin. That may help. DAVE I’ll dope myself up while you get laid. RALPH What about me? DAVE I only swing one way, pal, and not in your direction. For all I care ...
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50 DAVE I do know why. Because people stink. That’s why. SAUL Does that include Emily? DAVE Maybe it does. RALPH And maybe it doesn’t. I think you really have the hots for her, pal. DAVE Maybe I do. It’s all part of the courtship ritual. But whenever I begin thinking about a ...
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51 SAUL But she’s been nicer to me. DAVE But being nice is not the same as being turned on. When the female is ready to accept the male, she lets him know. RALPH So, you think that this is all part of an instinctual process? DAVE That’s right. She’s testing us out. Notice how she s...
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52 SAUL He’s indicting an entire group of people. That’s not fair. DAVE May not be fair but it’s the truth, and truth trumps fairness in my book. RALPH You wrote a book? DAVE Very funny, pal. That’s just an expression. You know that. Don’t you? RALPH Hey, I was just playing wi...
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53 SAUL Maybe I could introduce you to my sister. RALPH You have a sister? DAVE Since when did you have a sister? You never mentioned her to us. SAUL I never had any need to mention it. DAVE I don’t know about meeting your sister. The idea of it gives me a queasy feeling. ...
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54 DAVE I better stop talking about Emily. RALPH Don’t worry about it, Dave. Emily’s actually more interested in Saul than you. DAVE No way, but the chiming is getting louder. RALPH That cell phone stuff really screwed up your head. DAVE How do you know that? Are you a shrink...
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55 SAUL You’re worse than my students. DAVE So, what are you saying? That I’m some kind of spoiled brat? SAUL You and your bell ringing. You’re nothing but a malingerer. DAVE No, I’m not. Please believe me. RALPH Prove it. DAVE How? I feel like my brain is being torn ...
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56 DAVE I will not allow you to test me. SAUL What do the letters MOS stand for, Ralph? RALPH Military Occupational Specialty. DAVE And what do the letters FU stand for? RALPH You know the answer to that question. SAUL Don’t they mean fine underwear? RALPH No. G...
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57 SAUL You say that with such contempt. Do we upset you that much? DAVE Don’t take it personally. I’m in pain. I mean what do you want from me? SAUL I want us to be friends. DAVE Look, Saul. Your name is Saul, right? I’m just trying to polite but it’s hard to do when my brain feels...
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58 RALPH What happened to the earthlings? SAUL They kept laughing. RALPH Did they survive? SAUL I don’t know. I guess I’ll have to write a sequel. DAVE Why don’t you do just that. RALPH And be quick about it because I can’t wait to find out what happens. Sounds like ...
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59 DAVE By my smashing your head against a wall to get you to shut up and take me seriously. That’s how. RALPH I don’t like that ending. DAVE Too bad. RALPH No need to be so hostile. SAUL Ralph, Dave is pulling your leg. DAVE You stay out of this. This is between me a...
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60 SAUL You were airborne? RALPH That’s right. Made about fifteen jump s. DAVE I could never understand why anyone would want to jump out of a moving airplane. RALPH Well, I wasn’t doing it for fun. SAUL That’s right. It was part of your military service. DAVE Stop yo...
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61 Emily enters. EMILY Hey, you guys hardly touched your food. RALPH Hey, you’re right. I guess we we’re too busy talking. EMILY If you want, I can wrap it up for you. We’ll be closing soon. DAVE To tell you the truth, I didn’t have much of an appetite. RALPH Then why did...
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62 RALPH And doing a swell job too. SAUL I second that. EMILY You gents are way too kind. DAVE But you are more than just a waitress. You are a messenger of hope, inspired by your presence. Now, if the pain in my head would only ease up. EMILY I also have a hope: that you g...
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63 RALPH Don’t listen to him. He had a rough day today. EMILY That’s too bad. But no need to take it out on me. SAUL Young lady, you are too pretty for anyone to take anything out on you. DAVE That’s right, Saul. Play up to her while I’m ready to go bonkers. SAUL I’m just b...
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64 DAVE And gets you nauseous. As for you, young lady, please stop wasting time and go out with him. I can’t take much more of this. EMILY I told you gents that I was married and that my husband would be meeting me after work. RALPH If you weren’t married, I’d take you out right now. ...
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65 DAVE Collecting benefits. That’s living the American dream. I guess the three of us are living a dream. In my case, a bad dream. I know that my cell phone has something to do with this horrible noise in my head. SAUL That’s a bit of a stretch. DAVE You’d be singing a different tune if i...
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66 DAVE We should have gone there earlier. RALPH Better late than never. That’s what I say. DAVE How original. SAUL But so true. DAVE Truth. Boy does it suck. Guys, I have to leave now. Emily enters. EMILY Here’s your check and three doggie bags. DAVE It’s o...
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67 EMILY And take care of yourselves too. I really hope to see you here again. DAVE You will. ( Cell phone rings .) Excuse me. ( Dave takes out his cell phone.) I got an emergency message, marked urgent. Right now I’m feeling calm. I’m in no mood for bad news. SAUL You better see what it s...
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68 SAUL Get a grip, man! It’s not as bad as it seems. DAVE (hysterical ) No. It is worse! Emily, if I said anything to offend you, I’m sorry. Maybe I brought this upon myself because of the things I said to you. I should have come right out and said that I wanted to get it on with you. There. Now...
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69 DAVE What check? What are you talking about? RALPH You know. The bill. You said you were going to pay the bill. DAVE Where am I? Who are you guys? Why am I alive? RALPH I hope you’re not trying to weasel your way out of paying the bill. SAUL I don’t think he’s faking it. I ...
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70 Scene 2 Time: The following day Place: The office of Dr. Leo Kepperman. Seated in the office are Dave and Dr. Kepperman. DAVE Where am I? KEPPERMAN You are in the office of Doctor Leo Kepperman located in the inpatient psychiatric service of City Medical Center. I’m Doctor Kepperman. ...
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71 KEPPERMAN You came to us in a completely psychotic state. We gave you some anti-psychotic medications to stabilize you. Now let’s continue. DAVE No. I’m leaving. I want no part of you or your crummy hospital. KEPPERMAN I’m afraid that’s out of the question. Under law, we can hold you her...
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72 DAVE Minneapolis, Minnesota, or Biloxi, Mississippi, or Brooklyn, New York. One of those places. Occupation. I’m retired, I think. What kind of work did you do? KEPPERMAN DAVE KEPPERMAN DAVE I was a caseworker for the city department of social welfare services,...
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73 KEPPERMAN I’m just asking if you served in the military. DAVE I said I don’t want to discuss it. Go on to something else. KEPPERMAN All right. Were you ever hospitalized? DAVE Why are you asking me all these questions? KEPPERMAN This is part of the initial assessment proce...
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74 DAVE Then cut the crap. You kidnapped me to force me to re -program my phone. Well I won’t do it. My phone is evil and you are evil. I want out of here, now! KEPPERMAN This is not the cell phone company and I am not a cell phone employee. DAVE Stop pulling the wool over my eyes. You te...
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75 DAVE Okay. Let me show you. ( Dave reaches into his pocket .) Where is it? KEPPERMAN Where’s what? DAVE My cell phone, or should I say, my device? KEPPERMAN The hospital took your personal belongings and placed then in storage. Don’t worry. They are secured. You took my...
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76 KEPPERMAN What did they ruin? DAVE My chances for getting it on with her. She liked me more than she liked them, and they didn’t like that, so they did everything they could to make me look bad. KEPPERMAN According to our records, it was your friends who called the ambulance. DAVE ...
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77 DAVE Whatever you say. I won’t waste my time arguing with you. KEPPERMAN What happened to bring you here? DAVE If I tell you, will you let me go? KEPPERMAN That all depends. DAVE Conditions. More conditions. I bet you’re reprograming my phone right now to slam me down and ...
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78 DAVE That’s what they all say. You must be Russian. Are you Russian? Every day I hear on the news how the Russians are trying to infiltrat e and take over. Admit it. You are Russian. KEPPERMAN No, I am not Russian. DAVE Well, listen, Boris, your ruse won’t work with me. I’m not for sale...
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79 KEPPERMAN What do you think? DAVE You tell me. Maybe I should pull down my pants and let you check for yourself. KEPPERMAN No. That is not necessary. DAVE You’re not interested. I don’t blame you. What I have doesn’t work anymore anyway. I haven’t used it in years. KEPPERMAN...
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80 DAVE Then you should understand exactly what I’m talking about. Women hate us. They torment us with their seductive clothes and manipulations all meant to drive us crazy. KEPPERMAN Do you have any particular woman in mind? DAVE Yes, I do, but how do I know I can trust you? KEPPERMA...
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81 DAVE Your denial means nothing. You are a KGB operative who has infiltrated into my country and maybe my brain. Who else is working with you? Saul? Ralph? Emily? Are they part of your gang? Next thing, you’ll be forcing me to eat borscht. Personally I prefer pastrami but it’s bad for my cholesterol le...
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82 KEPPERMAN I didn’t accuse you of any wrong doing. DAVE But others have, and I don’t like it. I was played the fool. I met her online. Then we exchanged text messages for a few months. Soon her image, and that of her darling little daughter, such a cute little thing, became embedded in my brain. ...
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My cellphone kept telling me, “Don’t do it. Don’t do it.” Plus, my phone wasn’t
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83 KEPPERMAN How did you deal with it? DAVE By watching sports on television, especially professional football games. The noise from my television set put me to sleep within minutes. Every night. Without fail. How’s your head feel now? Like mush. I’ll give you a sedative. KEPP...
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84 Scene 3 Time: Three months later Place: The same restaurant as in scene 1. Saul, Ralph and Dave are seated at the same table. Dave is about seventy- five pounds heavier. SAUL It’s good to have you back. We missed you. RALPH Yeah. You gave us quite a scare. It was touch and go there fo...
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85 SAUL Well, you were saying some bizarre things and getting agitated. DAVE All I remember is that we were talking and the next thing I’m in the hospital talking to a shrink. By the way, does that waitress still work here? RALPH You mean Emily? DAVE Yeah. Emily. I thought of her f...
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86 DAVE That’s right. I’m wrong. You’re right. Maybe I made a mistake coming back here. RALPH Please don’t be that way. You’re with friends. EMILY Yes, you are. DAVE You’re my friend too? EMILY Of course. DAVE Don’t patronize me. ( pause ) Ooh. The pain in my head. It’...
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87 Scene 4 Time: Later that evening. Place: An office in a government building located in Washington, D.C. On stage are Saul, Ralph and Emily. SAUL The agency wants to know how Dave is progressing. Any comments? RALPH It’s too soon to tell. We have to give it more time. The agency really ...
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88 SAUL No. I was a part of the screening team. We exercised great care in selecting the right subject, and Dave met all the qualifications. He was retired military, was a combat veteran, had flown spy missions, had no blemishes on his record, no criminal history, and no record of serious physical or em...
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89 EMILY But what about freewill? SAUL It will be abolished. Freewill is what got us humans into trouble in the first place. It is just another term for licentiousness. Over and over again throughout history it has brought us to the brink of destruction. To save humanity, we must act now to eli m...
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90 RALPH So the public is in on this? SAUL No. Our project is top secret. Officially FAIR’s mission is to coordinate and monitor all publicly funded scientific research. However, its secret mission is to provide bureaucratic cover, logistical support and most importantly an unimpeded stream of fund...
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91 SAUL So they did, but with one important difference. They lacked the technological capability, and the imagination, to systematically restructure human thought. Instead, they relied on brute force to break down resistance and impose their will. We will not have to resort to such barbaric and disruptiv...
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92 EMILY I hope it doesn’t come to that. RALPH We all hope that. SAUL When we signed on to this project, we all took an oath of absolute fidelity to the program. Don’t forget that. The agency informed each of us upfront about the purpose of this project and what it would entail. The time f...
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93 Scene 5 Time: Same as scene 4 Place: Dave’s apartment. Dave is alone. He is talking to his cell phone. DAVE I know you’re inside there, my little friend. No need to hide. I won’t hurt you. I couldn’t hurt you. We’re buddies. I don’t hate you anymore. I just wish you wouldn’t be so quick wit...
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FEBRUARY 2021 1 The Structural and Cyclical Case For U.S. Real Estate Debt Highlights • The U.S. commercial and multifamily real estate debt market is a massive investible universe with hundreds of billions of dollars’ worth of mortgages originated annually. • Real estate debt exposure historically has provided a ...
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BARINGS INSIGHTS FEBRUARY 2021 2 Commercial and multifamily real estate debt (CRE debt) has been part of the U.S. investment universe and institutional portfolios for many decades. However, over the past two market cycles the asset class has attracted growing interest as yields across most fixed income markets ha...
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BARINGS INSIGHTS FEBRUARY 2021 3 The continued growth of the CRE debt market masks important changes in the roles and risk appetite of key debt capital sources due to post-GFC banking and financial regulatory reforms. Prior to the GFC, bank lending and commercial mortgage-backed securities (CMBS) issuance drove o...
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BARINGS INSIGHTS FEBRUARY 2021 4 2. THE POTENTIAL FOR STABLE AND ATTRACTIVE ABSOLUTE AND RISK-ADJUSTED RETURNS The second reason for allocating capital to private CRE debt is performance. Historical performance data is limited for most structured segments of the debt market, but the robust data set for senior mort...
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BARINGS INSIGHTS JULY 2020 53. POTENTIALLY POWERFUL DIVERSIFICATION BENEFITS CRE debt’s competitive risk-adjusted returns are especially attractive for their potential portfolio diversification benefits, the third pillar underpinning the traditional case for the asset class. Historically, total return correlation...