"Rien ne va plus"
As long as the shares rose, one could understand it.
Those who bought
the stock hoped that its value
would rise and thus would resell with a profit. But
what has been happening with shares for some
time now, we saw in Figure 6.
Has this fact
possibly deterred the players in the stock
market from putting their money there?
Since in Figure 7 it is not easy to discern what's
going on due to the huge increase of daily invested
capital, let's take a look at Figure 8 which describes
the situation after 2000.
The result is truly incredible.
volume of the invested capital
continued to increase uncontrollably,
completely unaffected by the
fluctuations and finally the collapse
of the Dow-Jones index after 2007.
Although in the chapter: "A serious joke"
we had exactly
predicted the explosive growth of
the available capital, it seems incomprehensible
that in a stock market that is fluctuating severely
more and more money is invested in shares which
are constantly losing their value.
Well, among the
other "brilliant inventions" of our system
there is also the possibility to make a profit on falling shares.
This works as
follows: you go to the stock market and
rather than buying shares, you borrow them. Just like
someone borrows money, you can also borrow shares.
The bank instead
of lending you money, lends you a
number of shares, which you must return after a certain
time and of course pay the resulting interest.
So you borrow the
shares when they are high, you sell
them immediately at this high-price, and as soon as they
fall, you buy them back again cheap and you return
them to the bank.
It's that simple.
― "This is a distorted face of capitalism".
I often hear.
This is not the
this is the true face.
Now there is no
growth to confuse
the picture, we see its true face.
The capitalist isn't
at all interested
in how the money is created which
he considers as justified to rake in
with the only excuse that he already
has too much money.
― Since I have money that I do not need,
I have the right, without any effort, to get more.
― I am not a loan shark who lends money
to some poor soul and later takes the
house he inherited from his grandfather.
I am not involved in dirty business.
― For these jobs, there are the banks.
― Banks are legal, honourable and respectful
You've seen how handsome their buildings appear from
the outside and how palatial are their offices from the inside.
So I bring my spare money to the bank.
The bank will take care to lend it and return it to me with interest.
Who worked for the production of this additional money, or whose
house was auctioned off, I cannot know, and I am not interested.
― And again, if I find the interest rates of
the banks to be too low,
and I'm in a hurry to earn a lot of money in a short time, then
I go to the stock market.
There the money flows like a river.
I've heard that many people have acquired a fortune there.
Who has worked to create these assets, how should I know?
Those who hold them today however possess them legally.
They haven't stolen the money.
They have won it on the stock market.
― Of course, for them to have won, means
that some others have lost.
Well, what can we do?
That's how it is, one wins, the other loses.
It is a matter of talent and luck.
I am talented and have good luck.
The other has none.
Am I to blame?
He shouldn't have put his savings in the stock market.
Did I advise him to do that?
However, the comparison of the diagrams 6 and 8 still raises questions.
It is as if the
financiers who are throwing these astronomical amounts
of Figure 8 in the stock market take no account of Figure 6. Why pay
more and more money to buy shares knowing that tomorrow they will fall?
Is it possible
that they do not know that the
shares have been falling for a long time now?
Did they listen to
the various "gurus"
who said buy, buy now that is cheap?
What do they hope for?
That the shares they have bought will go up?
Where will the extra money they hope to gain come from?
Will the car
company whose shares
they bought, build an even larger
factory to produce still more cars?