According to Money News, billionaires are dumping US stocks despite the 6.5% rally this month. Most notable among the billionaires who are selling are Warren Buffet, the Oracle of Omaha, and George Soros, who sold more than a million shares vested in JP Morgan Chase, Citigroup and Goldman Sachs. Some individuals, like Robert Wiedemer in the article, have predicted a massive contraction in the market. While individuals have rushed to swat Wiedemer statement down, the fact that billionaires are selling their shares gives his statement some weight. I for one am a bit angry.
I am angry specifically at one of the billionaires mentioned. These two men have been the most notable business supporters of the actions of our government since 2007 or so. When the Troubled Asset Relief Program was initiated, Soros went on record saying we needed $ 700 billion rather than the $ 350 billion passed. Warren Buffet even voiced support for a second stimulus package. Now, after years of printing money by the FED and government support of industries, after all the profits have been made, men like Buffet and Soros are taking their profits. When one billionaire alone isn't indicative of anything larger, however, when many act in concordance it signifies something, that something is an imminent market correction; at the very least a major dip in the stock market. What they will do after is obvious, they will buy back those indices, companies and industries at pennies on the dollar. They have profited from the government propping up the economy, and they will profit when the government can no longer hide the systemic imbalances that we have.
So enjoy your government benefits like Obamaphones and easy credit because when the bill finally comes due the government is going to collect, on behalf of Mr. Buffet and Mr. Soros. I needn't point out to anyone else that Buffet and Soros are acting perfectly in line with how rich progressives typically act.