Most people think to know how a stock exchange functions. This is error! Here I will prove that not even bank analysts know anything about shares, bonds and governments.
You should learn that the first inventors of analysis of shares at stock exchange are meant to be the US-Americans Benjamin Graham and David Dodd, with their book "Security Analysis" of the year 1934.
However, that idea is utterly wrong: A certain German with name Hermann Zickert was first by writing the book "8 rules in the art of financing", issued in the year 1924 already. And in his book "Analysis of shares by a consultant in economics" of the year 1927, he wrote the first time about a "Price Earnings Ratio". He made - as the very first human - a distinction between earnings paid out in dividends, or kept back as reserves, and he stated that Both must be taken into account, on a long-term basis, and be compared with the costs of the company, to come to a "Cost Income Ratio" and this again must be compared to the price of the shares at stock exchange. So he stated some sort of "Shareholder Value" as early as 1927.
Now comes René Delavy and says, what Graham and Dodd and Zickert have stated, is nothing but poor intellectual junk. Those people may today be assumed to have been "geniuses", when in fact they were dealing with the straw, they had in their brains.
Let's get through all arguments:
1. It is true that one of the major facts to know: What a share should be in true value, is the long-term accumulated and annual profits, in comparisons with the price. And it is important to know, in what connection can be put: Turnover, costs, gross profits, net profits, dividends and long-term development of the prices at stock exchange.
2. It is true that many people became rich with shares, precious metal, real estate and name what you want; even flowers, seeds, maize and animals, including their bellies.
3. It is true that values at stock exchange are, today, one of the most important things in this money casino, which seems to represent alone our world today.
So, I can understand why everybody thinks, that bankers, especially Swiss bankers, are outstanding in consulting and performance, that Warren Buffet and Bill Gates are admired cash-geniuses in speculation, that Graham, Dodd and Zickert seem to be other geniuses, as were Adam Smith, Keynes, Marx, von Hayek, Friedman - and all the rest of "geniuses in economics" during past centuries.
Now, very sorry, all this is nothing but a heap of junk in intelligence and false awareness of reality.
Here the truth about economics and their basics:
1. How long do you think that shareholder values will subsist in a world, where energy and resources come to an end and illusions are the sole matter driving to heaven?
2. How hopeful, vital, essential and viable is a world, where cash, coincidence, shareholders values and stock exchanges are all - and the basics as nature and the future of our children nothing?
3. What about a theory of cheapness, of eternal growth, of value in paper, in a world where any child of ten years can know, that this ends after some time, before the year 2025 has elapsed?
But these are fundamental questions that you, dear Reader, would not accept as true and would anyhow guess that you read here pure intellectual junk. Right you are, and therefore it would be just, if you would go down the drain, together with your shares and your feelings of intellectual superiority.
A. Consulting firms are greatest Skunks in Economics - just as NGOs are Alibis for political VIP
Here we come to the crucial matter: the accounting and consulting firms. They are completely incapable, overvalued, neo-liberalistic and purely profit-oriented. And they get for their "services" hourly rates in astronomic figures, for zero or disastrous results. They "advised" to death big criminal companies like International Overseas, Chrysler-Daimler (loss 26 billion dollars), Enron, Worldcom, thousands of dot.com and companies investing in phone-licences for billions, lost afterwards completely, further victims were scrap-airlines like Swissair and thousands of other firms, worldwide. The damage they arranged count per trillions. Let's name them: Arthur Andersen, said best accounting firm on the globe, got in bankruptcy after Enron paper-shredder affair, McKinsey are nothing else but well-suited bluffers with ties, not only by hunter-strategy with Swissair, recommending accounting and tax tricks with complex theories in masses, also adopted by KPMG and PricewaterhouseCoopers and other big numbers in world's consulting junk. Well, I know about their practices since having been the best accountant and consultant of the world some time ago. But CEOs could not accept my person, certifying the real situation and not being the usual arse-creeper - and so I was dismissed and had to give up, consulting from now on only small firms, lawyers and local accounting firms. Finally I went tired of cheating shareholders and escaped into literature, wanting to have other people take profit of my knowledge and experience. Get this here: Consulting firms confirm in their certified reports, having seen Popes go over water. More of that stuff in one of my next letters.
B. Now we come to the real thing - the investments business, before its downfall
Yes, here we come to the pragmatic details, and you will read something, for free, that not one of those intelligent papers would, be it today or any time in the future, be able to formulate in this world of "experts" that have nothing in their heads, but still make us believe that they "know" everything:
- Shares cannot be valued
Shares are just paper, pretending on it that you may own a part, say one millionth of a big Company. Great! Assume you buy Coca Cola just after a period of a very long increase in values at stock exchange, but short before a fundamental collapse. Considering the future inflation, you would never again see your money. Okay. It could also work the other way round and you steel the money from the losers. This means nothing else but: The whole markets in shares, bonds, treasury bonds etc. are nothing else but one big Casino of Monaco - and always have been. In the long run, almost no company subsisted but went down the drain sooner or later. In between, all made the profits, the other marketers were losing. That's all. More of intelligence and logics can never be found in Stock exchange matters. And considering the final downfall of our society when resources and energy get out, soon, these "securities" are not worth the printed paper.
- Bonds and treasury papers of "guaranteed" security
Never laughed more! Security! USA is bankrupt but China finances the US
- Financial analysis? One great bluff and a total illusion!
Price Earning Ratio? Long-term charts, lines and scales of values? Highest and lowest price during last 52 weeks? Valuation of companies by "experts" of consulting firms? Geniuses in forecast? Expected turnover in next quarter, year, 10 years or 100 years, same of profits, outcasts, shit in brains etc., for being capitalized up to a "real" price, a "truthful" value of shares and bonds? Analysis? From Goldman Sachs, Merrill Lynch, CS or UBS, New York 's and Zurich
Forget it, once for all, dreamers! Remember: Swissair was still assumed to be worthy several billions, when they had already an over-indebtedness over 15 billion Francs. On the other side, ABB shares were once value below 2 Francs due to asbestos-problems, although at those times the operating profits were still over one billion a year - so today the value is 26 Francs. All bubble-items of dot.com matters in the 90-ies went in billions when they had 3 employees and one abzocking CEO or consulting banker, plus turnover less than one million and expected losses simply reaching astronomical figures.
But not one single editor of famous economic Journals, like The Economist, Foreign Affairs, NYT, FAZ, NZZ or Junk of Economics have ever seen coming any disasters - until they happened per thousands, since 1928, and again in years 1999 to 2002 - and at the same time, from the year 1990 onwards, I have been writing my fingers sore, warning all journalistic scrap, mentioned above, from this hype of a mental insanity - believed by 100 percent of those "editing geniuses in economics", in all boulevard-media of Murdoch, Berlusconi - and thousands of other greedy tycoons. Jesus Google, what a funny reality you are believing in, dear Reader! But it becomes worse.
- Hedge funds and other idiocies will end up in all imaginable disasters
The first, Bernie Cornfeld, went down with his Fund of Funds with many billions after the year 1960. Today, we have thousands of Cornfelds. All those hedge fund stupids that believe to trick out "the market", not seeing, that the next collapse at stock exchange will, this time, bury trillions and no longer billions of values and thus be burying the whole stock market under the greatest bluff of all times, exceeding everything in financial disasters ever seen on Earth. Any sort of special "Financing tools" of this sort are bound to blind us about dirty tricks, leading by all means in a final disaster and overall loss of all investments. That's mathematics, and not the junk of "economic" all papers of the world are writing about, the Chief Editors of which have a brain of 5 years' old children.
- Precious metal and other real values - perhaps
Assume that all analysts with shit in brains are right: China and India will grow and grow, become greater than USA , Europe or Russia Russia
- Oil and gas getting out - quicker than our brain works
Well, this is the only stuff of value that in the long run will count, even when all stock exchanges will be gone, down the drain, for ever. But who will finally pay priceless energy? It will be taken by force of armies, be it atomic power of nations or the flow of world's coming army of poverty, on an emptied planet, when we come to the true effects of today's idiocies in philosophies about economics, politics, ecology and culture - and stock exchanges.
C. Conclusions of no value at all
Now, forget anything you ever have learnt at dull schools or right-wing universities of neo-liberalism and globalisation. Copy this article here, pin it to all walls you find, go to dinner and wait for your death. You don't deserve just one of my letters. Not one. It's time I would stop with it. I am writing for crazy people with shit in heads, instead of functioning brains - and don't even get paid for. Now, get lost. I'm fed up of believers, possessing a head full of illusions, whereas any newborn child has more potential intelligence than any analysts at Swiss and US banks, or maniacs at stock exchanges, inclusive their back-licking chief editors of blind economic papers, all over this goddamn world-casino.
How much are you willing to pay me, for this lesson? More than you pay for the useless speeches of Trial-and-Error Greenhorn, Hilarious and Suck Clinton or Killing-fields Henryk M Kissinger - and sooner or later the ones held by Junk-brain Bush? It's time you give your cash to people, knowing some matters about economics, dear Friend. You are broke already this day, just as all hedge and other funds, old age reserves and the nations of USA and China - however, only future will show, how right this prediction was, written here, in the year 2007.
Author of "CHAOS" / "Power x Stupidity = Self destruction" / "Hit-Parade of most stupid politicians on Earth" / "PLADESNIEKANT"
