Full Retard Fiat Monopoly Money

Some moronic German with too much printed monopoly money in his pocket has decided to pay nine times revenue for Business Insider – LINK.  Nine paper dollars for every paper dollar of revenue!!   It brings to mind the infamous picture of the German woman using her marks to fuel her furnace:

GermanMarksFor those who don’t know, Business Insider is the comic book version of “Wall Street News For Dummies.”   If you didn’t know that it was a serious attempt at “inside Wall Street reporting,” you would have thought that it was the business section of The Onion.

Paying 9x times sales for BI has got to be one of the most retarded business deals I’ve ever witnessed.  Especially since BI’s revenues are primarily derived from advertising.  Who in their right mind would pay anything for a quirky, nich-focused business dependent on ad revenues when Wall Street business activity is declining quickly and the world is on the cusp of the greatest economic depression in history?   Clearly Axel Springer was born with a silver spoon in his mouth and decided he needed to unload some of his pocket change.

Kudos to Henry Blodget, one of Business Insider’s founders, who has managed to bamboozle the business world again.  Recall he was Merrill Lynch’s internet stock “analyst” during the tech bubble years and made his fame as Amazon’s chief snake-oil salesman.  It should come as no surprise, of course, that Jeff Bezos is a 3% holder of Business Insider stock.

The earnings of the companies in the S&P 500 contracted about 1% year over year in the first half of 2015.  I expect an even bigger contraction in the 2nd half.  Typically, a shrewd businessman would not pay any multiple of revenues for a business with contracting earnings.  An even more shrewd businessman would likely balk at paying a measurable discount to revenues for Business Insider.

This deal is nothing more than direct evidence that QE has done nothing other than trigger the biggest misappropriation of capital in history.  But with ZIRP, capital free to privileged borrowers in the U.S.  Worse, with NIRP all over the EU, spoiled mush-brains like Springer can actually get paid to borrow money in euros.

This is going to end very badly.  As Carl Icahn said earlier today, “it’s not a question of if, it’s a question of when.”

8 thoughts on “Full Retard Fiat Monopoly Money

  1. It is called buying the top. The smart money always sells to
    the dreamers who think they are genius’s buying a great deal/
    price. I witness it everyday trading markets.

  2. Dave, forgive deviating too much from the subject of this post but what is your take on the Icahn video? Maybe you’ll be coming up with a post but it sure seems like a CYA. He didn’t seem to mind feeding at the Fed trough earlier.

    1. I’ll write about that later when i have chance. If Icahn is saying “adios” to the market,
      people should pay heed. That dude is the smartest investor out there and has been the best
      at gaming the system.

  3. Speaking of NIRP, if and/or when it makes its way to this side of the pond, how does one (aside from holding physical PMs) profit by it? Will the banks actually pay me to borrow? Can I take out a big ass loan and grow wealthy? Or will the value of money be eroding so quickly at that point that there’s no staying ahead?

  4. Business Insider Is Now Under the Control of a Global Elitist Organization

    Headquartered in Berlin, Germany, the company is active in more than 40 countries with subsidiaries, joint ventures, and licenses.

    Mathias Döpfner CEO of Axel Springer SE attended this year’s Bilderberg conference.

    Philip Zelikow, who was the executive director of the 9/11 Commission, currently serves as an Axel Springer Fellow at the American Academy.

    Some suspect the globalist media conglomerate has strong ties to US intelligence agencies.


  5. Dave,

    I really enjoy your work. I was reading a previous post and one of the coments linked to an authour and journalist by the of Christopher Story. Who’s real name is Edward Harle. I searched the book on line and this is what I came across. It start with the quote from one of the comments from your site the other day.

    “Well respected financial journalist Edward Harle (aka Christopher Story) testified before the UK Parliament shortly before his death that ALL derivatives were fraudulent and originated within the bowels of US Intelligence agencies decades ago as a means of destabilizing the global financial system.”
    So I search for the book and find it here ( see below ).


    But look at the cost !

    So I search Christopher Story and find out his real name was Edward Harle, a journalist from Britain. And then I find this.


    And I follow the link provided above and embedded in the link is this.


    So as I have suspected. Our leader’s are part of a criminal gang. Not sure if this helps or not but it is interesting.

  6. This is a payoff, pure and simple. When you see companies that are just mouthpieces of propaganda getting bought out at huge prices, its not due to valuation. The buyers can just print more money. Look at newspapers, bleeding red ink – but they get bought, to have that established channel to disseminate your propaganda.

Leave a Reply

Your email address will not be published. Required fields are marked *

Time limit is exhausted. Please reload CAPTCHA.