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Thread: Billionaires Dumping Stocks, Economist Knows Why

  1. #1

    Exclamation Billionaires Dumping Stocks, Economist Knows Why

    Billionaires Dumping Stocks, Economist Knows Why

    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.

    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.

    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.

    Read Latest Breaking News from Newsmax.com http://www.moneynews.com/MKTNews/bil...#ixzz2T3Bg7buN
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    http://www.moneynews.com/MKTNews/bil...source=taboola
    "A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington



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  3. #2
    Yeah, yeah, the sky is falling!!
    Give it a rest already.

  4. #3
    Quote Originally Posted by BAllen View Post
    Yeah, yeah, the sky is falling!!
    Give it a rest already.
    You do not find it alarming how fast the markets are rising ? I do not know what to make of it .

  5. #4
    I would think some profit taking here would be a good strategy ....

  6. #5
    Quote Originally Posted by BAllen View Post
    Yeah, yeah, the sky is falling!!
    Give it a rest already.
    Or if the shoe-shine boy says the sky is the limit, and Apple is a buy, maybe he's right! Leverage to the max, we'll all be Zimbabwe trillionaires!!!
    "A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington

  7. #6
    Article is from August 29, 2012.
    "Government is not the solution to our problem; government is the problem."
    Ronald Reagan, 1981

  8. #7
    Quote Originally Posted by enoch150 View Post
    Article is from August 29, 2012.
    Yes, indeed.

    hxxp://www.moneynews.com/Outbrain/billionaires-dump-economist-stock/2012/08/29/id/450265


    A bit Deceptive.
    ----

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    Inspired by US Rep. Ron Paul of Texas, this site is dedicated to facilitating grassroots initiatives that aim to restore a sovereign limited constitutional Republic based on the rule of law, states' rights and individual rights. We seek to enshrine the original intent of our Founders to foster respect for private property, seek justice, provide opportunity, and to secure individual liberty for ourselves and our posterity.

  9. #8
    Looks like Paulson became disinterested in Family Dollar about the time it began to interest me , he probably saved an 8% drop this yr.



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  11. #9
    It was inaccurate back then. Buffet hasn't been dumping stocks. Neither were any of the others mentioned in the article. I researched this the last time it was posted but don't have the links at the moment. This is not really an article but an advertisement for a book by Robert Wiedemer made to look like one.

    Links in the "article" take you to his site.
    Last edited by Zippyjuan; 05-13-2013 at 11:32 AM.

  12. #10
    Quote Originally Posted by Zippyjuan View Post
    It was inaccurate back then. Buffet hasn't been dumping stocks. Neither were any of the others mentioned in the article. I researched this the last time it was posted but don't have the links at the moment. This is not really an article but an advertisement for a book by Robert Wiedemer made to look like one.
    Yeah , I have not seen stock dumping then , or now , although , now I would not be suprised if a bit did happen.

  13. #11

    Gulag Chief:
    "Article 58-1a, twenty five years... What did you get it for?"
    Gulag Prisoner: "For nothing at all."
    Gulag Chief: "You're lying... The sentence for nothing at all is 10 years"



  14. #12
    Quote Originally Posted by enoch150 View Post
    Article is from August 29, 2012.
    The link says that, but the article has Sunday's timestamp:

    Billionaires Dumping Stocks, Economist Knows Why

    Sunday, 12 May 2013 01:24 PM

    By Newsmax Wires
    "A free people ought not only to be armed and disciplined, but they should have sufficient arms and ammunition to maintain a status of independence from any who might attempt to abuse them, which would include their own government." George Washington

  15. #13
    It is a press release advertisement- not an article. It has been republished many times. One can find all kinds of dates it was published.
    Last edited by Zippyjuan; 05-13-2013 at 11:45 AM.

  16. #14
    Quote Originally Posted by AmericasLastHope View Post
    The link says that, but the article has Sunday's timestamp:
    It's a 2012 article.
    ----

    Ron Paul Forum's Mission Statement:

    Inspired by US Rep. Ron Paul of Texas, this site is dedicated to facilitating grassroots initiatives that aim to restore a sovereign limited constitutional Republic based on the rule of law, states' rights and individual rights. We seek to enshrine the original intent of our Founders to foster respect for private property, seek justice, provide opportunity, and to secure individual liberty for ourselves and our posterity.

  17. #15
    http://www.csmonitor.com/Business/Th...scaremongering

    A few times a week, I’ll hear from a reader who’s really worried about imminent economic collapse. They’ll usually send me a video or a link of some sort in which some economist is talking about how the stock market is about to lose almost all of its value or something similar.

    One example of this I’ve seen three times in the last few days is this article from moneynews.com, in which economist Robert Wiedemer is proclaiming that the stock market is on the verge of a 90% loss in value. His evidence for this is that some large-scale investors appear to have sold some blue chip stocks in recent days.

    Here’s the truth about any article you read or video you see from someone who is announcing such economic doom: they’re either trying to sell you something or they’re trying to make a profit for themselves.

    For example, in that article, the only links a person can find are links either to videos of Wiedemer promoting his book Aftershock or direct links to an order page so you can buy that book for yourself. Furthermore, if you look at his Amazon page, you can see that he’s been selling books that talk about financial apocalypse for the last decade.

    If you dig into the background of the vast majority of articles that talk about extreme financial doom, you’ll almost always find someone trying to sell either some of their own content or trying to sell you some kind of investment.

    Why do they do this?

    It’s simple: fear is a great salesman. If they can convince you that something bad is coming and that they have the antidote for it, you’re very likely to buy that antidote. If the bad thing never happens, it’s not a big deal – they’ve still made the sale.

  18. #16
    Pay attention, kiddies....

    Calvo contends, “The big hedge funds and big private equity are buying all the real estate right now. . . . So, when they start dumping, they will be dumping to those buyers who will be getting money for free from the government. It has all the characteristics of a pump and dump scheme.” Calvo claims, “No money down loans are up nearly 20%.” Calvo predicts, “It will be bigger than the last one because it will be a bursting of multi-bubbles–not just the housing bubble, but the bubble in U.S. Treasuries. It will take out the real estate bubble. They will both go down together.” Calvo contends, “You have a mad scramble for hard assets globally. It’s not just gold. Sovereign wealth funds are buying real estate like crazy.”
    Last edited by Natural Citizen; 05-13-2013 at 12:56 PM.



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  20. #17
    I guess he would know.
    http://www.tampabay.com/news/politic...cs-say/1027956

    Radio host and Florida House candidate Fabian Calvo is slumlord, critics say

    CLEARWATER — While campaigning for the state House of Representatives, property owner and radio host Fabian Calvo has touted his skill in running a $20 million real estate company that spans the state.

    "I am a successful small-businessman who believes state government should be run like a business," Calvo wrote in campaign literature. "This is the type of leadership that is needed in Tallahassee, leadership from the small business world, people that have created jobs, paid payrolls, balanced budgets."

    Renters and former property managers of Calvo say that's precisely his problem. He's a slumlord, they say, alleging he fails to pay his debts and lets property degrade into disrepair. Two ex-employees are taking him to court.

    Calvo, whose company Calvo Management International owns 500 apartments and houses nearly 1,000 tenants across six counties, said the criticism is a baseless attempt at slander or blackmail.

    "It's just like any other business. There are always going to be people who are disgruntled," said Calvo, 31. "The reality is, I've made a commitment to these people."

    • • •

    Cindy Salo was hired by Calvo as the manager of Crystal Palm Apartments in Crystal River last year. She served as the on-site operator of the 40-unit complex, signing leases, collecting rent and coordinating repairs.

    But the apartments, she said, were falling apart. Doors and walls rotted. Stoves, fans and refrigerators broke. Central heat and air-conditioning stopped working for months.

    Salo said attempts at repair were stifled by Calvo, who delayed paying contractors until months after their work. Others weren't paid at all. One cleaner who was never paid threatened to protest outside the complex.

    "He's late with all the vendors and he's late with the people who work for him," Salo said. "He can't pay, but he wants everyone to do the work for him."

    Residents at Crystal Palm say the problems have lasted for years.

    The sink in Rose Mastin's two-bedroom unit leaked for months, flooding her bathroom. A glass window fell on Cortney Carmichael's 3-year-old daughter. Bad wiring ruined their electronics. The locks on their front doors fell out.

    Every month, they pleaded for help.

    "Fabian's problem is he won't release the money," Mastin said. "He knows about all these problems."

    Salo summed up her frustrations in a Feb. 24 e-mail to Calvo, who continued to demand new leases. She told him she had just lost two tenants — one because of a hole in the shower wall and another because of a lack of heat during a hard freeze.

    "You promised them their doors, windows & heat would be taken care of … but nothing's been done. The estimates I've sent go unnoticed," she wrote. "After a year, they're still waiting."

    Calvo, who said he has spent tens of thousands of dollars this year on upkeep, kept his reply brief: "Your e-mail is completely out of step and out of line," he wrote. "Thanks for telling me how you really feel."

    Days later, Salo was fired.

    Salo has filed a lawsuit in Citrus County against Calvo, his company and the complex in an attempt to recoup what she says is more than $4,000 in unpaid expenses and bonuses. Mediation set for last week was postponed until next month.

    Calvo said Salo's claims are lies. He said she didn't account for payments already given to her, and that leasing bonuses she expected were reversed when the tenants left before six months.

    Jim Wedemeier, who worked as a property manager for Crystal Palm and Julian Villas in Leesburg, also plans to sue Calvo in Lake County. Expenses Calvo owed to Wedemeier and contractors, he said, were almost always paid late.

    Calvo's response? "I'm a small business," Wedemeier recalled. "I don't have the money."

    Calvo said he fired Wedemeier when his job performance faltered after his son died in a car accident last year. Wedemeier said Calvo posted an ad to replace him on Craigslist the day of his son's death.

    "His excuse was, 'I have to look out for myself,' " Wedemeier said. " 'I don't know how you're going to respond.' "
    A small business without the money? See next post where it is reported he buys and sells $100 million in real estate a year.
    Last edited by Zippyjuan; 05-13-2013 at 01:18 PM.

  21. #18
    http://usawatchdog.com/massive-forec...-fabian-calvo/

    He said it was supposed to collapse in November. Sounds like he is trying to drive prices down so he can buy more.

    Massive Foreclosures after Election-Fabian Calvo

    Fabian Calvo buys and sells a $100 million worth of distressed mortgage debt and property a year. He says, “We haven’t even scratched the surface of being at the bottom of the housing market.” Calvo runs a company called TheNoteHouse.us and predicts, “. . . massive default and massive foreclosures after the election.”
    Calvo thinks there is an even bigger financial meltdown on the not-so-distant horizon, and it “. . . will center around the repudiation of the dollar as the world’s reserve currency” and that food and fuel prices could “triple.”
    Fearmongering for fun and profit?
    Last edited by Zippyjuan; 05-13-2013 at 01:17 PM.

  22. #19
    Quote Originally Posted by AmericasLastHope
    The link says that, but the article has Sunday's timestamp:

    Billionaires Dumping Stocks, Economist Knows Why

    Sunday, 12 May 2013 01:24 PM

    By Newsmax Wires
    Frankrep looked at the web link, I didn't. I knew I'd seen it before, but didn't remember how old it was. So I highlighted some text and searched google for it. Then I used a custom date search to get rid of all of the recent links. The earliest two were August 29, 2012.

    Here's one from the original source, with the 8/29/12 date still printed at the top of the article:

    http://www.moneynews.com/PrintTemplate?nodeid=450265

    and here's a copy somebody made on the same day, and which also has an 8/29/12 date printed at the top of the article:

    http://spotlightoncorruption.wordpre...arren-buffett/

    Notice that if you click on the "source" in that second article, it takes you to the article on moneynews.com... with a 5/13/13 date printed in the article, but with the 8/29/12 still in the web address. Yesterday it said 5/12/13.

    The date at the top changes to exactly 24 hours ago, to the minute, from whenever you click the link.
    Last edited by enoch150; 05-14-2013 at 03:14 AM.
    "Government is not the solution to our problem; government is the problem."
    Ronald Reagan, 1981

  23. #20
    Quote Originally Posted by Zippyjuan View Post
    http://usawatchdog.com/massive-forec...-fabian-calvo/

    He said it was supposed to collapse in November. Sounds like he is trying to drive prices down so he can buy more.





    Fearmongering for fun and profit?
    Exactly!



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