US Equity Markets Look Dangerously Wobbly As Insiders Sell In Record Numbers
by ilene - August 30th, 2009 4:03 pm
More coffee and thoughts on the market and insider selling at Jesse’s Café Américain.
US Equity Markets Look Dangerously Wobbly As Insiders Sell In Record Numbers

"Investors Intelligence’s latest survey of advisory services showed an impressive 51% bullish and a meager 19% bearish…the spread hasn’t been that wide since November 2007." Alan Abelson, Barrons, Aug. 29, 2009
Next week we move into September, the riskiest month of the year for financial markets, with the federals escalating preparations for a flu pandemic, while Congress considers legislation providing a ‘kill switch’ on the Internet for President Obama to use in the event of ‘an emergency.’ There are widespread rumours of a bank holiday lasting one week after a market meltdown begins in the US, during which the banks would be restructured.
Risky times indeed, and those in the best position to know what is happening behind the scenes are hitting the exits in record numbers right now.
As TrimTabs reports in the attached news release, insider selling is reaching record levels, even as more speculators borrow to go long stocks. There are some obvious bubbles already formed in certain insolvent financial stocks like AIG, with disinformation rampant in the Wall Street demimonde.
The Obama Economics and Regulatory Team, in conjunction with the Federal Reserve, have accomplished no serious reform of the fiancial system. They have enabled the type of market inefficiency, soft fraud and price manipulation that is undermining global confidence in the integrity of US markets and financial products. And they have advanced a proposal to consolidate a huge amount of regulatory power under the Federal Reserve, a private banking agency that was at the root of our unfolding financial crisis.
The time has passed when Obama could have pointed to the past mistakes of his predecessors as the fault for our problems. Thanks to Tim Geithner, Barney Frank, and Larry Summers he now owns the financial crisis, and the coverups, policy errors, scandals, conflicts of interest and bailouts that have occurred since he has taken office. His reappointment of Ben Bernanke as Federal Reserve chairman most surely tied a bow on his ownership package for the crisis, which is in danger of becoming his ‘financial New Orleans.’
Wall Street pigs out on public money while the nation suffers. This is not change, this is the same old thing.