Billionaires Dumping Stocks, Economist Knows Why

These are some big name billionaires, I think they got inside info from TPTB about a market crash in the very near future.

In the latest filing for Buffett’s holding company Berkshire Hathaway, Buffett has been drastically reducing his exposure to stocks that depend on consumer purchasing habits. Berkshire sold roughly 19 million shares of Johnson & Johnson, and reduced his overall stake in “consumer product stocks” by 21%. Berkshire Hathaway also sold its entire stake in California-based computer parts supplier Intel.

Fellow billionaire John Paulson, who made a fortune betting on the subprime mortgage meltdown, is clearing out of U.S. stocks too. During the second quarter of the year, Paulson’s hedge fund, Paulson & Co., dumped 14 million shares of JPMorgan Chase. The fund also dumped its entire position in discount retailer Family Dollar and consumer-goods maker Sara Lee.

It seems strange to me that they are dumping consumer product stocks,family dollar seems like the place where a lot of people will be shopping when the market crashes, because they won`t have much money to be shopping anywhere else. perhaps these guys know that people in FEMA camps won`t be shopping anywhere?

billionaire George Soros recently sold nearly all of his bank stocks, including shares of JPMorgan Chase, Citigroup, and Goldman Sachs. Between the three banks, Soros sold more than a million shares.

What do these guys know that we don`t know?

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

It seems pretty certain that QE3 is going to destroy the economy sooner rather than later.

www.moneynews.com...

reply to post by Tardacus

If theyre dumping Family Dollar stock, they must be expecting a crash of Biblical proportions.

Either people will be so impoverished that they wont be able to afford anything or the dollar will be so incredibly devalued, that the store wont be able to afford its merchandise to then resell it at a reasonable cost.

I suppose they think that the banks will fail again. I cant imagine that Obamney wouldnt bail them out.

It seems this guy is trying to sell his books by scaring the dooty out of people.

Aftershock: Finding fortune in marketing doom

Want to make money in this market? Just predict the market is just going to get much, much worse. At least that's the very profitable tack the writers of a doom-and-gloom tome, Aftershock: Protect Yourself and Profit in the Next Global Financial Meltdown are taking. The three co-authors, brothers David and Robert Wiedemer, and Cindy Spitzer, are raking in a multimillion-dollar payday by advising people to sell their homes now, cash out their life insurance policies, and dump their stocks ahead of what they predict will be 50% unemployment, a 90% stock market crash, and 100% annual inflation.

Perhaps I am wrong but seems to me that they are expecting something close to a war situation.
But then again, we say that everyday here on ATS about most things...

Perhaps they are getting prepared for China claiming their debt.

Originally posted by choppedbrisket
It seems this guy is trying to sell his books by scaring the dooty out of people.

Yes, I definitely have to agree with choppedbrisket on this one. I see the headline of "Billionaires Dumping Stocks..." in some form or another almost every day in CNN's sponsored links section. I've been sucked in by those headlines several times only to find that it links me to NewsMax or MoneyNews, trying to sell me "Aftershock: Finding fortune in marketing doom".

In a nutshell, these guys claim that they predicted the first financial collapse and that you should buy their book if you want to survive the next collapse coming very soon.

Don't get me wrong, I don't necessarily think they are out of line in their projections, but just keep in mind that I've been seeing these same sensational headlines for the same book since last summer. So this headline doesn't mark the start of something new. They consistently write sensational headlines to lead people to a purchase of their book.

Originally posted by Tardacus

What do these guys know that we don`t know?

The CIA/NSA/State Department/Federal Reserve were all telling Mexico to send their people up here and use our info to get credit....use that credit and buy everything they could then flee back to Mexico.

The big agencies artificially boomed the market....but created a financial mess due to the Trillions robbed from America....and tens of millions of Americans who lost their keister after some illegal immigrant robbed him blind with ID theft.

Some 23.5 million illegal immigrants got mortgages, bought and sold the homes between themselves then fled America with TRILLIONS......oopsie starting to give illegals mortgages in 2005 was a BAD idea.

Around 2000 GMAC was giving auto loans to illegals....and they all dropped a little money on $45,000 SUV's then fled the country with them....never paying for them.

Add onto the mess the former Nazi's brought over to America after WWII have been doing things to kill off the German Americans for revenge of us bombing the "FatherLand".....destroyed all the US farmers. Poisoned their kids, the land, the water.

Jewish America sucked all the money they could get as well and actually thought of the idea of giving crazy money to the illegals to keep their own robbing going on another year.....

There's nothing left to rob. Nobody left to kill. America's been divided and all people who've been suspected as a dissident or may cause trouble has been dealt with.

So what are the few remaining who ALL of America's remaining wealth doing? Their fortresses outside of America are built....they will sit over there and watch what unfolds in luxury.


Germany's finally got it's revenge on America.....Japan's going to help the Chinese get revenge. And that's all she wrote of that part of the history book.

QE efforts by the Fed pumps money into the system, wealthy people see what's happening and can leverage that knowledge. QE dilutes the value of money, some evidence is of borrowers pledging an asset to multiple lenders who in turn pledge their lien to other lenders (rehypothetication). This results in phantom assets (Chinese steel inventory that doesn't exist, gold bars owned by many corporations), and commodities that actually exist start getting expensive fast. Expensive fuel, grains, meat, materials hurt the poor and middle class while the wealthy in the loop make bank. QE by the Fed is redistributing wealth, but from poor to wealthy in order to keep the economic gears barely moving. QE is evil, and the wealthy know it.

reply to post by Pervius

Some 23.5 million illegal immigrants got mortgages, bought and sold the homes between themselves then fled America with TRILLIONS......oopsie starting to give illegals mortgages in 2005 was a BAD idea.

Trillions? Come on get a grip on yourself.

If they are all getting zero down loans where does the profit come from?

reply to post by Tardacus


The Real question is what did they re-invest all this money into? Perhaps arms manufacture or metal, some of the corporations responsible for the timely running of the war machine?

Fema camps? There are not enough of these fema camps to house the amount of people everyone thinks will be housed. That in itself is a joke. However, whomever these camps were built for, I'm sure there will be still be over crowding (not that it matters).


It's obvious they're seeing a trend here and are jumping ship before it sinks. I wonder how long it will be until the general populace takes notice? I hope nothing happens and these turds lose out on millions of dollars!

reply to post by Tardacus


If they are selling their shares because they think the dollar will fall, then what are they buying in return??

Gold, silver, platinum??

If you know the demise of the dollar is imminent, you wouldn't cash in stocks for the dollar, No??

Hmmm...what WOULD they re-invest in?...that is the question.

My guess would be...what do poor people always need no matter how poor they are? Food, water, shelter, heat in the winter and fuel if they have a job and a car.

Do not be surprised to see a run on commodities of all types. it is a volatile trading arena, but if you hedge your bets on the things that you KNOW people are going to need, you can cash in and even manipulate the prices....it's been done for years though there is supposed to be barriers in the system that prevent it...they don't.

Originally posted by samkent
reply to post by Pervius

 

Some 23.5 million illegal immigrants got mortgages, bought and sold the homes between themselves then fled America with TRILLIONS......oopsie starting to give illegals mortgages in 2005 was a BAD idea.

Trillions? Come on get a grip on yourself.

If they are all getting zero down loans where does the profit come from?

The banks packaged those loans up and sold them on the market. They got their cut but the various mutual funds and investors who bought up those funds were left holding the bag which eventually resulted in the government (the taxpayers, really) in bailing them out by 'creating' money through the various 'easing' programs which is suckijng the life out of the US dollar.

They got their cut and the bigger banks and investment houses got our money.

We got left holding the bag of crap.

I wonder if this is related to the FEDs charter ending in 2013?

I would imagine that today the political will of the people could not be swayed with the track record of the FED and the political discourse that will follow will be of Biblical proportions!

I don't think today that the people would approve of any politician who would support renewing the FED Charter.....

A political stalemate would not help the FED but a war would be the right tool.....

Them dumping consumer goods stocks makes me think.
This a hint that the public won't be buying much in the future. Devaluation, or inflation?

Originally posted by gladtobehere
reply to post by Tardacus

 

If theyre dumping Family Dollar stock, they must be expecting a crash of Biblical proportions.

Either people will be so impoverished that they wont be able to afford anything or the dollar will be so incredibly devalued, that the store wont be able to afford its merchandise to then resell it at a reasonable cost.

I suppose they think that the banks will fail again. I cant imagine that Obamney wouldnt bail them out.

I do find these moves interesting but I have to nit-pick a bit here... you see, Family Dollar is an excellent buy during an economic downturn. In August 2008 right before the big downturn, Family Dollar was trading around $25. Today, it is up at 64, off of its high of 74. It is a very good time to sell.

reply to post by nydsdan


good point. this might mean that the economy, or they believe that the economy has bottomed.

Originally posted by Tardacus

It’s very likely that these professional investors are aware of specific research that points toward a massive market correction, as much as 90%.

Most startling assertion.

ETA: But this is even more worrisome:

No investors, let alone billionaires, will want to own stocks with falling profit margins and shrinking dividends. So if that’s why Buffett, Paulson, and Soros are dumping stocks, they have decided to cash out early and leave Main Street investors holding the bag.

But Main Street investors don’t have to see their investment and retirement accounts decimated for the second time in five years.

Wiedemer’s video interview also contains a comprehensive blueprint for economic survival that’s really commanding global attention.

Now viewed over 40 million times, it was initially screened for a relatively small, private audience. But the overwhelming amount of feedback from viewers who felt the interview should be widely publicized came with consequences, as various online networks repeatedly shut it down and affiliates refused to house the content.

“People were sitting up and taking notice, and they begged us to make the interview public so they could easily share it,” said Newsmax Financial Publisher Aaron DeHoog.

“Our real concern,” DeHoog added, “is the effect even if only half of Wiedemer’s predictions come true.

“That’s a scary thought for sure. But we want the average American to be prepared, and that is why we will continue to push this video to as many outlets as we can. We want the word to spread.”

Read more: Billionaires Dumping Stocks, Economist Knows Why

That piece deserves a thread all by itself!

reply to post by loam


Ummmm, I now take my last post back...

Just looks like a marketing scam for his book.

These billionaires pulled the government purse strings that stole your money to re-float the banks after the crash so they could sell high.