The Economy: "Massive Increase In Insider Selling"

“The so-called 'Green Shoots' have been trampled by people walking to their Unemployment Insurance Offices to collect jobless claims in order to pay their bills. The so-called 'Green Shoots' have been trampled been people walking (or running) away from their homes as they are being foreclosed. The so-called 'Green Shoots' will continue to suffer from most water and nutrients heading to the Elite Gardens, diverted from those on Main Street. The so-called 'Green Shoots' have been killed off by a stubborn frost from the USEconomy. A prevailing sentiment and motivation has sadly and perversely entered into the public and financial sectors, with clear deceptive intention.

The so-called "Financial Elite", doing what they do best...

The stretch of the data, the desperate misinterpretation of the data, the false facade painted atop a US economy, such deceptions cannot stand even the most gentle taste tests and sanity checks. Then again, Wall Street and the USGovt (victim of the financial Coup d'Etat) must promote a positive sentiment in order to reinvigorate confidence. After all, the USDollar-based system depends upon trust and confidence, since no gold backs the financial foundation and debt permeates every crevice. Heck, not even much industry backs the USEconomy, the famed financially engineered miracle gone awry. The principal characteristic of a body that is bankrupt, deeply mired in debt, and must sustain itself by selling debt securities to foreigners is deception. One must struggle mightily to find much of any honesty in USGovt finance or US bank system accounting, economic statistics, or establishment of future prospects.

What is the motive for intentionally permitting phony accounting with FASB rule reversals? What is the motive for chronic direct accounting fraud with 'Credit Value Adjustments' in balance sheet updates that reinforce profits in earnings statements? That wondrous device is invaluable. Banks like Citigroup should have written down certain major credit losses. But instead, since they claimed they could purchase them back for much lower value, they booked them as gains! Asset losses are being booked as gains, incredibly, right under the corrupted noses of the Securities & Exchange Commission, which has authority to slam such practices, reject submitted 10Q filings, to impose fines, and to prosecute for fraud. However, the SEC is part of the Wall Street syndicate, recognized increasingly as a sprawling criminal enterprise. It even owns the US Congress, a surprising admission by a standing US Senator. Surely, the system needs a little juiced confidence after a dismal few months. Surely, the US Treasury wishes that foreign buyers of debt securities maintain a positive view toward ongoing support of the US locomotive, even if it is riding over the cliff. Surely, the US public needs to see some beneficial news in its pension and mutual funds, after months of drubbings. Another very real motive is to provide insiders, the executives, who authorize the often phony accounting and highly fallacious earnings reports, a good price for their INSIDER SELLING.

Here is a brief passage from a Bloomberg article dated April 24th on the subject of rapidly rising Insider Selling: "While the Standard & Poor's 500 Index climbed 28% from a 12-year low on March 9, CEOs, directors and senior officers at US companies sold $353 million of equities this month, or 8.3 times more than they bought, data compiled by Washington Service, a Bethesda Maryland based research firm, show. That is a warning sign, because insiders usually have more information about their companies' prospects than anyone else, according to William Stone at PNC Financial Services Group Inc. 'They should know more than outsiders would, so you could take it as a signal that there is something wrong if they are selling,' said Stone, chief investment strategist at PNC's wealth management unit, which oversees $110 billion in Philadelphia. 'Whether it is a sustainable rebound is still in question. I would prefer they were buying.'

Insiders from New York Stock Exchange listed companies sold $8.32 worth of stock for every dollar bought in the first three weeks of April, according to Washington Service, which analyzes stock transactions of corporate insiders for more than 500 institutional clients. That is the fastest rate of selling since October 2007, when US stocks peaked and the 17-month bear market that wiped out more than half the market value of US companies began. The $42.5 million in insider purchases through April 20 would represent the smallest amount for a full month since July 1992, data going back more than 20 years show. That drop preceded a 2.4% slide in the S&P 500 in August 1992." One might expect history to repeat itself, namely a severe stock decline soon to come! A peak in stocks might be forming, just like October 2007."

Jim Willie, http://www.321gold.com/editorials/willie/willie051509.html

These hogs surely love their trough, don't they? What trough? The one YOU are paying for...