posted on Oct, 1 2012 @ 11:59 AM
reply to post by Tardacus
Quite frankly, they know what's going to be happening in the future because they're in "the club". These people planned this, they are profiting
from it, they know when they're pulling the plug and resetting the system and they plan to walk away with as much as possible.
It's corruption, insider trading, financial terrorism...
There are more than a few reasons to dump stock in retail. It might be that they are expecting demand to plummet when the economy really tanks (after
the election) but it could also be that they know something about that company that exposes them to greater risk.
For example, you might think that a cheap retailer like the one mentioned would do well when people have no money, but maybe they have far too much
property, or maybe their supply lines are weak and likely to collapse if the market goes.
Retailers that supply extremely low priced items have driven down the cost of those products to the lowest they can, meaning their suppliers are
extremely vulnerable to collapse. If a $1 shop has salt and pepper shakers for $1, they are buying them from a supplier for less (probably less than
.50) and the manufacturer/supplier is barely making a profit on that product. One little shift in the markets and consumer confidence could collapse
that manufacturer or supplier, and the retailer then has nothing to sell.
Then imagine that same situation over hundreds of thousands of products...
We know what's coming. We'll see the election, then we'll watch the collapse as prices soar and tax increases, spending is cut and the €
collapses. America is months away from a sh*t storm IMO.