Jun

22

Insiders Exiting Market

Filed Under Intellectual Honesty 

Executives at U.S. companies are taking advantage of the biggest stock-market rally in 71 years to sell their shares at the fastest pace since credit markets started to seize up two years ago. (emphasis mine)

The data about employment, overcapacity, too many homes on the market, too much corporate welfare and too many jobs in the FIRE economy without producing anything of value point to deep, structural problems that cannot be solved or eliminated without pain.

This pain will come in the form of job losses and restructuring since it is only a matter of time before we cannot simply roll over our debt and expect perpetually rising asset prices.

It seems to me this March rally has been based on speculation of recovery rather than *tangible improvements* in the actual economy.  It looks like a lot of insiders feel the same way.

I called this site Inthon since it comes from the phrase Intellectual Honesty.  There are plenty of reasons to believe that this market has legs and there are plenty of reason to believe that this market is toast.  I’ve found it helpful to read the strongest, most opinionated sides of an argument before making up my mind.

Politics and increasingly, economics, are a confidence game.  The pieces of green paper in your wallet are only worth something since the person who accepts those pieces of paper has confidence in the fact that they have value.  When a system relies on confidence, it is imperative to those in power that the facade of confidence be maintained.

As Buddha has said

Believe nothing, no matter where you read it, or who said it, no matter if I have said it, unless it agrees with your own reason and your own common sense.

Thanks for reading.

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Comments

One Response to “Insiders Exiting Market”

  1. JosefinoNo Gravatar on November 21st, 2014 10:47 am

    Also eagerly await the new Taleb book hoeewvr if antifragile is about gaining strength from stressors, it corresponds to classic crisis theory which allows for (good) change and opportunity to come of out the crisis. Don’t think evolution is a good example but say being made redundant and being able to move onto something new and in the end better (not that that is everyone’s experience unfortunately) but at least the opportunity can be provided this way.

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