Money is at the root of all this and has already collapsed. Essentially, all it is supposed to do is facilitate us in getting out of bed to do necessary work. Trillions in bail outs and QE have been supporting asset values - generally of assets held by the rich. Ordinary business that can't steal much tax has been showing low return on capital - and given that audits are carried out by bent accounting firms we have little real idea of what earnings are in price/earnings ratios.
I would guess rich investors reckon a big crash and fire-sale are coming and want to be cash rich in order to snap up the bargains. One has to wonder what "cash" is today given the printing that has been going on. We need a plan B. On 21 May, 16:13, nominal9 <nomin...@yahoo.com> wrote: > Is this related to the pessimistic forecast you made a while back... > Archytas?..... > > http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20... > Billionaires Dumping Stocks, Economist Knows Why > > Monday, 20 May 2013 11:05 AM > > By Newsmax Wires > Share: > > <http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20...> > > <http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20...> > More . . . > A<http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20...> > A<http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20...> | > Email Us <http://www.moneynews.com/Dialogs/EmailUs.aspx> | > Print | > Forward Article <http://www.moneynews.com/Dialogs/ForwardToFriend.aspx> > > - > - > - > > - 1,384 > inShare > > Despite the 6.5% stock market rally over the last three months, a > handful of billionaires are quietly dumping their American stocks . . . and > fast. > > Warren Buffett, who has been a cheerleader for U.S. stocks for quite some > time, is dumping shares at an alarming rate. He recently complained of > “disappointing performance” in dyed-in-the-wool American companies like > Johnson & Johnson, Procter & Gamble, and Kraft Foods. > > 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. > > With 70% of the U.S. economy dependent on consumer spending, Buffett’s > apparent lack of faith in these companies’ future prospects is worrisome. > > Unfortunately Buffett isn’t alone. > > 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. > > Finally, 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. > > So why are these billionaires dumping their shares of U.S. companies? > > After all, the stock market is still in the midst of its historic rally. > Real estate prices have finally leveled off, and for the first time in five > years are actually rising in many locations. And the unemployment rate > seems to have stabilized. > > It’s very likely that these professional investors are aware of specific > research that points toward a massive market correction, as much as 90%. > > One such person publishing this research is Robert Wiedemer, an esteemed > economist and author of the New York Times best-selling book *Aftershock*. > > *Editor’s Note*: *Wiedemer Gives Proof for His Dire Predictions in This > Shocking > Interview*<http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1> > . > > Before you dismiss the possibility of a 90% drop in the stock market as > unrealistic, consider Wiedemer’s credentials. > > In 2006, Wiedemer and a team of economists accurately predicted the > collapse of the U.S. housing market, equity markets, and consumer spending > that almost sank the United States. They published their research in the > book *America’s Bubble Economy*. > > The book quickly grabbed headlines for its accuracy in predicting what many > thought would never happen, and quickly established Wiedemer as a trusted > voice. > > A columnist at Dow Jones said the book was “one of those rare finds that > not only predicted the subprime credit meltdown well in advance, it offered > Main Street investors a winning strategy that helped avoid the forty > percent losses that followed . . .” > > The chief investment strategist at Standard & Poor’s said that Wiedemer’s > track record “demands our attention.” > > And finally, the former CFO of Goldman Sachs said Wiedemer’s “prescience in > (his) first book lends credence to the new warnings. This book deserves our > attention.” > > In the interview for his latest blockbuster *Aftershock*, Wiedemer says the > 90% drop in the stock market is “a worst-case scenario,” and the host > quickly challenged this claim. > > Wiedemer calmly laid out a clear explanation of why a large drop of some > sort is a virtual certainty. > > It starts with the reckless strategy of the Federal Reserve to print a > massive amount of money out of thin air in an attempt to stimulate the > economy. > > “These funds haven’t made it into the markets and the economy yet. But it > is a mathematical certainty that once the dam breaks, and this money passes > through the reserves and hits the markets, inflation will surge,” said > Wiedemer. > > “Once you hit 10% inflation, 10-year Treasury bonds lose about half their > value. And by 20%, any value is all but gone. Interest rates will increase > dramatically at this point, and that will cause real estate values to > collapse. And the stock market will collapse as a consequence of these > other problems.” > > *See the Proof: **Get the Full Interview by Clicking Here > Now*<http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1> > . > > And this is where Wiedemer explains why Buffett, Paulson, and Soros could > be dumping U.S. stocks: > > “Companies will be spending more money on borrowing costs than business > expansion costs. That means lower profit margins, lower dividends, and less > hiring. Plus, more layoffs.” > > 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.” > > *Editor’s Note*: *For a limited time, Newsmax is showing the Wiedemer > interview and supplying viewers with copies of the new, updated Aftershock > book including the final, unpublished chapter. Go here to view it > now.*<http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1> > > <http://w3.newsmax.com/a/aftershockb/video47b.cfm?promo_code=110D8-1> > > © 2013 Moneynews. All rights reserved. > Share: > > <http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20...> > > <http://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20...> > More . . . > Email Us <http://www.moneynews.com/Dialogs/EmailUs.aspx> | > Print | > Forward Article <http://www.moneynews.com/Dialogs/ForwardToFriend.aspx> > > Read Latest Breaking News from > Newsmax.comhttp://www.moneynews.com/MKTNews/billionaires-dump-economist-stock/20... > Urgent: Should Obamacare Be Repealed? Vote Here > Now!<http://www.moneynews.com/surveys/ObamaPoliciesMN/Should-Congress-Repe...> -- You received this message because you are subscribed to the Google Groups "Epistemology" group. 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