The Big Dogs On Wall Street Are Starting To Get Very Nervous

TEC ^ | 2-23-2013 | Michael Snyder

[blam]

Another View:

Sorry Bears, We're In A Secular Bull Market

[Venturer]

A friend of mine told me he sold everything he had right after Obama’s SOTU address. My tax lady said she wasn’t putting any more money in the bank, even if she has to bury it in the back yard.

[upchuck]

Bump!

If you’re thinking about raising cash, this link might interest you:

http://www.dollartimes.com/calculators/how-long-will-your-savings-last.htm

[SnuffaBolshevik]

CNBC said it's time for me to buy, buy, buy!

Now where's that Home Equity Loan checkbook?

[ken5050]

It’s important to realize that by selling stock, the tax hit is about 30% of the gain ( federal and state)if notg higher. Thus, this means that sellers are happily taking a 30%+ haircut just in order to get out of stocks..or, to put it another way, they are anticipating a DECLINE of MORE than 30%

[apoliticalone]

Where do you get interest rates of 5% on savings? Bernanke and his WS pals and his puppets in Congress and WH are forcing those Americans that have lived responsibly, without debt, to pay the price for the irresponsibility and corruption of the greed of the NY bankster thieves and others that thrive on the desire to enhance usury.

[OneWingedShark]

It’s important to realize that by selling stock, the tax hit is about 30% of the gain ( federal and state)if notg higher. Thus, this means that sellers are happily taking a 30%+ haircut just in order to get out of stocks..or, to put it another way, they are anticipating a DECLINE of MORE than 30%

When you put it like that: Wow.

[Cold Heart]

“Nobody should panic right now”
I always get in on the tail end of the panic. I think I’ll go ahead and panic now ahead of the pack:)

[familyop]

"Why are some of the biggest names in the corporate world unloading stock like there is no tomorrow, and why are some of the most prominent investors on Wall Street loudly warning about the possibility of a market crash?"

Maybe because the shorters want to crunch oil down sooner this year by spewing more employees to file for unemployment? ...maybe chase more investments into funny money bonds? Popcorn's still cheap enough, BTW.

[carlo3b]

If it gets started with a a fast but relatively short fall and doesn’t bounce back quickly, were in for a catastrophe.. A dead-cat bounce! We could loss as much as 35%, in the first wave, followed by a steep recession and an additional crash..

I and many too many others missed the last one in 08, but caught the March 6th bounce to recover all of my losses.. It started this way, and I don’t believe in miracles enough to catch the next wave.. I’m more than reticent, I’m out.. jus sayn’

[familyop]

We know that the main issue behind the stock market, BTW, is that of the automatic spending cuts (AKA “sequester”). Not so much of a real issue, but made big by special interests, IMO.

[Georgia Girl 2]

Its never too early to panic.

[darth]

Soooo,

Taxes going up w/ Obamacare and the recent deal
High gas prices sucking consumers dry
Debt bubbles in student loans and can-he-fog-a-mirror auto loans
Avalanche of business-killing regulations spewing forth
Europe looks puny
China bubbles bubbling

Gold in backwardation?

http://www.zerohedge.com/news/2013-02-22/gold-and-potential-dollar-endgame-part-3-backwardation-and-gold

That happens when futures buyers don’t think the counterparties will actually deliver the gold.

FRiends, get yur guns, gold, and grub ready

[eyedigress]

Why is the market going up if corporations are unloading stock?

[blam]

"Why is the market going up if corporations are unloading stock?"

Good question.

Someone will be along in a minute with an answer then we'll both know.

[Freedom_Is_Not_Free]

But you have to pay the 30% tax eventually anyway. And the more you make, the more tax you have to pay. So you either pay that 30% tax now or you pay it later.

So no, it does not mean you expect a 30% decline in the market. That is false.

[Ditter]

read later

[NonLinear]

It’s important to realize that by selling stock, the tax hit is about 30% of the gain ( federal and state)if notg higher. Thus, this means that sellers are happily taking a 30%+ haircut just in order to get out of stocks..or, to put it another way, they are anticipating a DECLINE of MORE than 30%

OK, the idea is good, but the math is bad. If you bought the stock for zero dollars (you got it for FREE) and sold it for market value, then your math works.

However, if you bought the stock and now it has gone up, as many have, 10%, and you sell it, then you are taxed on 30% of the 10% gain. So they are anticipating a DECLINE of 3% or more on that example stock.

Put in more succinct form, they expect the decline (D) to be more that 30% of the GAINS (G) that they have realized over the term of their holdings.
D = 0.30 G
NOT
D = 30% P (where P = PRICE of the stock)

Bear in mind (no pun intended) that if D > G then you are losing money, and not because of taxes, just because the stock is worth less than you paid for it. I believe that the recent gains WILL be wiped out, so I'm not criticizing the intent nor the sentiment, only the math.

[eyedigress]

FYI, many large companies are expanding. That bottom line won’t be seen for a couple of years. Holding capital is very dangerous. Strictly a Carolina’s perspective.