When World Finance CRASH started

When World Finance Clash started -
Reason: Stock Exchanges were and are JUNK

World-wide, this text was published on May 31, 2007, just when World Finance Crash started. Each sentence is still valid, word by word, and today, you can learn even better whereto the voyage will go in the coming years. And here now this text of May 2007 - "Why Stock Exchanges are Junk":

Most people think to know how the functions are at STOCK EXCHANGES. This is error! Here, I will prove that not even bank or governmental analysts know anything about shares, bonds, finance systems and useless governmental controls.

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 Rene Delavy and pretends since 1975: "What Graham and Dodd and Zickert have stated, is nothing but poor intellectual junk. Those people may today be assumed as having been high "geniuses", when in fact they were dealing with the straw, they had in their brains." - Now the proofs:

A. Let's get through all of their 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. This cash reality seems to represent alone our world, today.

Yes, I may be able to understand why everybody thinks, that bankers, especially Wall Street and Swiss bankers, are outstanding in consulting and performance, get the clue about Cornfeld, Soros, Warren Buffet and Bill Gates being admired cash-geniuses in speculation, when being idiots destabilizing to our detriment nations and huge companies. In view of those new VIP and in this odd comparison, Graham, Dodd and Zickert seem to be real and honest geniuses, as so seemed to be Machiavelli, Adam Smith, Keynes, Marx, von Hayek, Friedman, Popper, Greenspan - and all the rest of "heroes in economics" during past centuries, down to foreseeable and ultimate collapses to come ---

Now, very sorry, all this is nothing but a heap of junk in intelligence and false awareness of reality.

B. 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.

C. 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. 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.

D.  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 at all

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 national "guaranteed" security?

Never laughed more! Security! USA is bankrupt but China finances the US deficits with junk bonds, better known as US Treasury Bonds, of a state that can pay back its huge debts only by further increasing the nation's indebtedness. And this counts already today, considering all debts, including bubble at stock exchange, real estate, chapter 11, leasing and mortgages, national, states and cities debts, including all private, old age and health care debts, to an amount, where each US-American owes one million Dollars to the rest of this world. And this is true for almost any state in this casino-world, where guarantees of nations are less than fake. Values? Are you crazy, dear Reader? A nation in bankruptcy can never again serve his debts, not better than any private company could do - or a broke father trying to nourish his family. That's high accounting, friends, of which not one analyst on this world understands one percent of its total science - and can therefore not measure the real extent of all future dangers. Jesus, believe me: The average genius is duller than your little daughter's dog.

- Financial analysis? Rating Agencies? 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's Bank Mafia? Nothing else but obscure billions-fusions and wealth destructions in funds, insurances and your portfolio - initial acts followed by deflowering and final cash-losing anti-fusions. Past showed this and future will show!

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.

E. Useless Newspapers and TV news - in matters of ECONOMICS

But not one single editor of famous economic Journals, like The Economist, Foreign Affairs, NYT, FAZ, Monde, Stampa, Pais, Pravda, NZZ - in fact all departments in media spreading Junk about Economics and Foreign Affairs, none of those Masters of the Universe, creeping in the ass of Bonus-Abzockers, have ever seen coming any economic disasters before doom-day - until they happened per thousands, since 1929, 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 want believing in, dear Reader! The experts after the collapse will be the first to show up again in those worthless papers, to explain us their own blindness and stupidity. But in papers of "Value", there is worse than shares, bonds and State Junk.

F. Hedge funds, trash mortgages - 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. Give poor adults wishes to fulfil, give them houses and big cars using up the rest-oil of the planet, let them dream the dirty American Dream on cost of Chinese workers- and the orthodox Wall Street Bank advisers will make tumble economy to HELL.

G. Other Ideas, better than above JUNK beliefs

 - 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. What a stupidity? The cheapness of those countries must end up in a huge collapse. Because they can't keep up workers and peasants to work for nothing. Because others will not allow to be challenged to death. And Russia, with its reserves under the ground, is anyway the potentially richest nation on Earth. So, all is a huge casino of wrong expectations, a house of cards, falling in pieces any day. But gold, platinum, palladium, silver and all the rest are going out soon, if eternal growth would be true as valid theorem, and so those metals should be valued hundred times higher than they are today.

- Oil and gas getting out - quicker than our brains can think

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.

H. Craziness about Tax credits to consumers in USA, Germany and other Dreamers

In the catastrophe of crashing markets, USA and Germany and other crazy governments have the splendid idea of giving some low TAX CREDITS for increasing or re-starting consumerism in USA or Germany alone. What a stupidity! Never people will understand that the State or a Nation is the folks itself. This means: Any Tax credit is increasing national and thus folks' indebtedness, interest charges in future becoming priceless and leaving costs of present adults to own children - and thus being marked as Criminals of States of the worst kind. Wake up, dear blind Mickey Mouse, dear Zottel Berlin Bear. In the CHAOS you risk to become even more brainless.

CONCLUSIONS of no value at all - comparable to usual JUNK delivered at stock exchanges

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 Henry 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.

Rene Delavy, Berlin and Bournemouth

Author of "CHAOS" / "Power x Stupidity = Self destruction" / "Hit-Parade of most stupid politicians on Earth" / "PLADESNIEKANT" / "Limits and future tragedy of US President Obama" / "Al Gore - Inconvenient truth Swindle" etc.