"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.
The
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.
Wrong.
This is not the
distorted face,
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
organizations.
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?