Well seen in the first quarter of the year 2000

It is likely that, for the decisive issues at times themselves to the General conditions, the stock market, provided you carefully observe the movements and do not superimpose his own expectations, can play its role of barometer. But first, and most importantly, its own excesses (where was the barometer) that it is futile to correct, by the force of things. Well seen in the first quarter of the year 2000. Successively, U.S. markets lighthouses (and their suite, almost all other financial centers of the world) then boarded at summits, such as to better falling back.

A very few exceptions, the major players in the boom and the huge stock market crash of modern, and times were also the largest profiteers and often the leaders of the game, not understood, or not wanted to understand, that it was a reversal of the trend. Specifically, total and the heaviest consequences blindness manifested among company bosses of companies such as those that are listed on the Nasdaq, to date not yet recovered from his misadventure. During the twelve to fifteen months after the severe warning to the markets, the stars of the rating, the head of Telecom and the companies of "", made their most important investment in the exorbitant prices. J2M and Michel Bon (Jean-Marie Messier), two former large State do speak of French clerk. The "Harvardiens" of America and elsewhere were not better. It took a Bouygues for not taking seriously the astronomical price (copied to the London market) requested by the Minister of Finance of the time, Laurent Fabius, in a call for tenders concerning concessions of frequencies related to the mobile phone networks!

For the uninitiated who have not yet been affected, or converted by the miracles of financial alchemy spread to the big day (but also occult), the more disconcerting is that these bad business to counterculture are still found as trophies, while chipped, at the balance sheets of the CAC 40 companies (to cite only the Paris stock exchange). They are... to their respective assets as a "goodwill", and this despite the serious downward adjustments ("impairments") to which it has well required. The privilege the most important is the manager of a group Predator (all other bonuses and Golden, parachutes therefrom) is the benefit of the doubt in principle petition: the positive response to the problem is assumed to be acquired. If, during an operation of "merger and acquisition", where the rule is that the more skilful devours the more industrious, said manager buys the company coveted at a price higher than its book value, this gap is not a priori for issue: would it not be the price premiums corresponding to a coveted Impatiens and a hubris The Greek word "hubris" by the Anglo-Americans expressed perfectly this. On the contrary, goodwill (it is now its official name), is by definition considered to be the expression of a "goodwill" ("goodwill"). No, the man (or woman) infallible is not left to abuse by the ambition of the project! He (or she) has purchased expensive because its job is to dare to acquire Gold Award which is potentially very expensive. By chance, do you not know the concept of "synergy"

In summary, the market, including its regulators, have no questions to ask on the market. The current accounting reform finally endorsed his truth. The "fair value" undeniable, it is the most recent rating. On a continuous market, it changes from one moment to another. Precisely!

Remains, however, the ability to query the stock market. This is what has made the France Bank in its newsletter for the month of August. "In its" Focus"", she asked the question: "the behaviour of investment is firms 'normal'". Is already not so evil, even if it did not respond. Clear, the ex-institut of emission wondered why major groups Americans and Europeans, as the CAC 40 to the France, so rich in liquid assets on their balance sheet, invest relatively so little.

To illuminate this question, it should be, it seems, to ask another. These liquidity have in return, liabilities, equity, i.e. actually permanent resources (capital) or even which is obviously the case of loans These loans are more and more sophisticated forms. Some of them are "hybrid" nature, sometimes regarded as a loan in the long term, sometimes considered a quasi-equity (by new accounting). Can you imagine a world in effect a new world, from the current errors , where liquidity would be a surplus of capital of businesses on their capital (investment in machinery and equipment, patents, etc.) In short, is the right to wait for a world where companies have again a working capital fund, fruit of the contributions of their shareholders Why the working capital fund would not, implicitly or (better) specifically, to a Fund of wages (the "wage fund", which dreamed Peter Drucker) (1).

A positive link be established between the scholarship, now destructive jobs, between the capital market and of labour. But instead of soliciting shareholders to finance more growth and, therefore, more hiring, companies to redeem their shares. They provide liquidity to their shareholders to be able to participate to other bubbles, if they exist. Welcome in any case the Bank of France for implicitly drew attention to the character in "abnormal" behavior of large enterprises. They no longer know what to do of their accumulated liquidity through often management competent, too clever of the risk-taking (cash flow). This abundance does arises not, among other causes, a formidable pressure exerted on subcontracting SMEs We buy their supplies at prices tablets maximum and settled with long delays.