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Uh oh. Indication Big Bidness insiders' selling off stock may mean double dip in Great Recession --

aka Depression for the unemployed.

From Mark Hulbert at MarketWatch:

Corporate insiders evidently believe that the stock market’s rally will soon run out of steam.

That’s because they recently have been selling the shares of their companies’ stock at a pace last seen since early 2007. Need I remind you that this was just a few short months before the Great Recession began?

Insiders, of course, are a company’s officers, directors and largest shareholders. They are required by law to almost immediately report to the SEC whenever they have bought or sold shares of their companies’ stock.

Vickers Weekly Insider Report is a service that analyzes the insider data, calculating each week a ratio of the number of shares that insiders have sold that week to the number that they have bought. Over the last four decades, according to Vickers, this ratio has averaged between 2 and 2.5 to 1. As a result, the firm considers any reading above 2.5-to-1 to be bearish, since it indicates an above-average pace of selling on the part of insiders.

You better be sitting down before reading what this sell-to-buy ratio was this past week: 7.07-to-1. In other words, corporate insiders on balance are selling more than seven shares for every one that they are buying.

The last time this ratio was this high was the week ending Feb. 14, 2007, almost four years ago.

Well, leading indicator? They see that revenues will continue to fall and demand as well? Or...?

Via Commenter #7, allen, at FDL post, Professor Cowen Explains Why We Are Helpless Against the Rich.

Comments

Submitted by jawbone on

vast majority of workers, does that mean...what?

David Dayen at FDL links to this article by Alan Blinder on income inequality.

I can't access the article (anyone who can feel free to add important bits), so go the Dayen link to read what he has there.

Blinder lays out the lack of actual income increases over the last 35 years (the last days of the Ford administration through today):

Real average hourly earnings (excluding fringe benefits) now stand roughly at 1974 levels. Yes, that’s right, no real increase in over 35 years.

This is an opinion piece, but he opens by saying that it's time for the haves to understand what the have nots are going through.

Just an aberration for the WSJ?

Submitted by lambert on

Big Bidness, Big Money, Big Food, Big Media... And it has the great merit of being true!