Buy real property and companies that hold lots of undeveloped land... Lonnie Courtney Clay
On Wednesday, May 22, 2013 12:56:05 AM UTC-7, archytas wrote: > > 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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