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Icahn, Soros, Druckenmiller, And Now Zell: The Billionaires Are All Quietly Preparing For The Plunge

Tyler Durden's picture




 

"The stock market is at an all-time, but economic activity is not at an all-time," explains billionaire investor Sam Zell to CNBC this morning, adding that, "every company that's missed has missed on the revenue side, which is a reflection that there's a demand issue; and when you got a demand issue it's hard to imagine the stock market at an all-time high." Zell said he is being very cautious adding to stocks and cutting some positions because "I don't remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people's thinking." Zell also discussed his view on Obama's Fed encouraging disparity and on tax inversions, but concludes, rather ominously, "this is the first time I ever remember where having cash isn't such a terrible thing." Zell's calls should not be shocking following George Soros. Stan Druckenmiller, and Carl Icahn's warnings that there is trouble ahead.

 

Billionaire 1: Sam Zell

On Stocks and reality...

"People have no place else to put their money, and the stock market is getting more than its share. It's very likely that something has to give here."

 

"I don't remember any time in my career where there have been as many wildcards floating out there that have the potential to be very significant and alter people's thinking," he said. "If there's a change in confidence or some international event that changes the dynamics, people could in effect take a different position with reference to the market."

 

"It's almost every company that's missed has missed on the revenue side, which is a reflection that there's a demand issue," he said. "When you got a demand issue it's hard to imagine the stock market at an all-time high."

 

He also lamented about how difficult it is to call a market top. "If you're wrong on when, that's a problem." His answer: "You got to tiptoe ... and find the right balance."

 

"This is the first time I ever remember where having cash isn't such a terrible thing, despite the fact that interest rates are as low as they are," he added.

 

On Obama and inequality...

"Part of the impact of these very, very low interest rates is that we've creating this disparity. The wealthy are benefiting from government policy and the nonwealthy aren't," he continued. "So we have a president who says we've got to fight this disparity and we have a Fed who's encouraging it everyday."

On Tax Inversion...

"This is both legal and accepted. If the government doesn't like the result, change the law," he said. "You have to have a rational tax policy." He said the top tax rate should be changed and the U.S. should not tax worldwide income.

Zell also said it's unfortunate that "this inversion thing has been captured as a political, electioneering item."

Source: CNBC

* * *

Billionaire 2: George Soros

Soros has once again increased his total SPY Put to a new record high of $2.2 billion, or nearly double the previous all time high, and a whopping 17% of his total AUM.

*  *  *

Billionaire 3: Carl Icahn

Ironically, Carl Icahn - poster-child of the leveraged financial engineering that has overtaken US equity markets on the back of Central Bank largesse - told CNBC that he was "very nervous" about US equity markets. Reflecting on Yellen's apparent cluelessness of the consequences of her actions, and fearful of the build of derivative positions, Icahn says he's "worried" because if Yellen does not understand the end-game then "there's no argument - you have to worry about the excesssive printing of money!"

 

*  *  *

Billionaire 4: Stan Druckenmiller

Simply put, Druckenmiller concludes, rather ominously, "I am fearful that today our obsession with what will happen to markets and the economy in the near term is causing us to misjudge the accumulation of much greater long term risks to our economy."

*  *  *

And here the BIS explains broken markets so easily, even a Janet Yellen can get it:

Financial markets have been exuberant over the past year, [...] dancing mainly to the tune of central bank decisions. Volatility in equity, fixed income and foreign exchange markets has sagged to historical lows. Obviously, market participants are pricing in hardly any risks.

Growth has picked up, but long-term prospects are not that bright. Financial markets are euphoric, but progress in strengthening banks’ balance sheets has been uneven and private debt keeps growing. Macroeconomic policy has little room for manoeuvre to deal with any untoward surprises that might be sprung, including a normal recession.

*  *  *

So now we have a quorum of billionaires and the BIS all flashing warning signals which can only mean one thing: stocks are undervalued so buy, buy, buy...

 

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Wed, 09/03/2014 - 18:48 | 5177591 Dead Man Walking
Dead Man Walking's picture

Wed, 09/03/2014 - 19:16 | 5177658 Duffy
Duffy's picture

OT:  http://www.bollyn.com/home/#article_14859

Will no enterprising group of 6-9 former SOps bring this guy in for...questioning?

Wed, 09/03/2014 - 19:59 | 5177742 stormsailor
stormsailor's picture

yeah, go ahead and bet your hard earned on what this group is saying in public.  you'll go full tilt and lose your mind and all your money.

Wed, 09/03/2014 - 20:01 | 5177745 Bangalore Equit...
Bangalore Equity Trader's picture

Buy, sell, buy, sell, buy, sell....

This what I do all day long! I hate it!

Can someone tell me how I can join ISIL? I need a real job.

Wed, 09/03/2014 - 20:27 | 5177827 SilvertonguedAngel
SilvertonguedAngel's picture

Call down CIA in Langley, ask for boogie-mooslim brigade recruiter...

Wed, 09/03/2014 - 20:09 | 5177765 saveUSsavers
saveUSsavers's picture

Zell is carefull being politically correct in his words, and having to DEAL WITH JOE KERNEN, THE BIGGEST ASSHOLE EVER ALLOWED ON TV, Zell did pretty good !

Wed, 09/03/2014 - 21:18 | 5177990 sessinpo
sessinpo's picture

I stll vote Obama the biggest asshole in on TV and probably the world.

Wed, 09/03/2014 - 22:12 | 5178185 bilejones
bilejones's picture

"THE BIGGEST ASSHOLE EVER ALLOWED ON TV"

 

Not while Cramer is alive.

Wed, 09/03/2014 - 20:16 | 5177775 Rockfish
Rockfish's picture

WHat do billionaires think?

If your short SP $2 billion your gona talk doom and gloom. Can't make any money with out a panic. 

then theres

WHat do squirrels think?

I can make it, I can make it. 

Wed, 09/03/2014 - 20:59 | 5177936 SAT 800
SAT 800's picture

You can't talk t he market down; or up. This is childish nonsense. He went short because the probabilities lie in that direction.

Wed, 09/03/2014 - 20:33 | 5177841 Wile-E-Coyote
Wile-E-Coyote's picture

I Just don't quite get it with these old cunts, they can rape the world for as much wealth as they can get but the bastards will die in the end and for what? These bastards have spent billions looking for the secrets of eternal l life, if they ever find it we will be in hell forever.

Wed, 09/03/2014 - 21:14 | 5177975 sessinpo
sessinpo's picture

Wile-E-Coyote    I Just don't quite get it with these old cunts, they can rape the world for as much wealth as they can get but the bastards will die in the end and for what? These bastards have spent billions looking for the secrets of eternal l life, if they ever find it we will be in hell forever.

----

Let me describe to you a frequent situation at my work place. A employee at retirement age decides to keep working. That employee could get by with SS but he/she decides to keep working. Why? Because they have nothing else in life. If they have no work, they have no purpose.

Enter your billionaire. Making those big deals is their purpose. The money is secondary. After all, they already have enough. They are trying to find value in life by remaining relevant to the business world with their big business deals.  It's really simple psychology 101.

Thu, 09/04/2014 - 06:30 | 5178883 matrix2012
matrix2012's picture

@ sessinpo

"Enter your billionaire. Making those big deals is their purpose. The money is secondary. After all, they already have enough. They are trying to find value in life by remaining relevant to the business world with their big business deals.  It's really simple psychology 101."

 

I can't tell about the others, but for SOROS, this old cunt really finds pleasure and excitements in funding and instigating COLOR REVOLUTIONS (aka. regime changes) every where...from Georgia, Tunisia, Egypt, the failed Jasmine, Thailand, plus few other countries that I can't recall atm to the recent one in Ukrainia.

For further reading at SOROS' excitements, just look at GlobalResearch; Land Destroyer etc

 

~~~~~~~~~~~~~~~~~~~~~~~

 

George Soros - Discover the Networks

  • Multi-billionaire funder of leftwing causes and groups
  • Founder of the Open Society Institute
  • The prime mover behind the Democratic "Shadow Party" network

 

INTRODUCING GEORGE SOROS

New York hedge fund manager George Soros is one of the most politically powerful individuals on earth. Since the mid-1980s in particular, he has used his immense influence to help reconfigure the political landscapes of several countries around the world—in some cases playing a key role in toppling regimes that had held the reins of government for years, even decades. Vis à vis the United States, a strong case can be made for the claim that Soros today affects American politics and culture more profoundly that any other living person.

 

Much of Soros's influence derives from his $13 billion personal fortune,1 which is further leveraged by at least another $25 billion in investor assets controlled by his firm, Soros Fund Management.2 An equally significant source of Soros's power, however, is his passionate messianic zeal. Soros views himself as a missionary with something of a divine mandate to transform the world and its institutions into something better—as he sees it.

[...] Read the rest here.
Thu, 09/04/2014 - 17:47 | 5182002 aubreyfarmer
aubreyfarmer's picture
85). "[From]...The days of Spartacus Weishaupt to those of Karl Marx, to those of Trotsky, BelaKuhn, Rosa Luxembourg and Emma Goldman, this worldwide [Jewish] conspiracy...has been steadily growing. This conspiracy played a definitely recognizable role in the tragedy of the French Revolution. It has been the mainspring of every subversive movement during the nineteenth century; and now at last this band of extraordinary personalities from the underworld of the great cities of Europe and America have gripped the Russian people by the hair of their heads, and have become practically the undisputed masters of that enormous empire." (Winston Churchill, Illustrated Sunday Herald, February 8, 1920).

Now they are despoiling America.
Thu, 09/04/2014 - 23:24 | 5183139 billsbest
billsbest's picture

 

I fear not so much the Torah Jews as we should the Zionists who claim to be of the Judaism faith.

 

Judaism is not Zionism
Wed, 09/03/2014 - 21:08 | 5177960 sessinpo
sessinpo's picture

So airing your view on TV is quietly preparing for the plunge? Damnit! Another Zionist conspiracy. When will it all stop? Pretty soon it will be exposed that earth was seeded by aliens that are really Joos!

okay enough of the sarc. Quite frankly, I do not care of the race. I care about character. Just look at our dip shit president. He is no zionist like others proclaim. But he has done as much or more damage to the US and the world as anyone could in just 6 years. Why? Obama has no character and follows a false and flawed ideology. And that has nothing to do with race or zionism.

Wed, 09/03/2014 - 21:49 | 5178121 jomama
jomama's picture

obummer does what he is told.  that is all.

Thu, 09/04/2014 - 05:37 | 5178849 matrix2012
matrix2012's picture

@ sessinpo, following is a good read for refreshment!

 

Six Jewish Companies Control 96% Of The World’s Media

 

The power of lies, deceptions and disinformation as Americans pay the price of collective stupidity.

 

“You know very well, and the stupid Americans know equally well, that we control their government, irrespective of who sits in the White House. You see, I know it and you know it that no American president can be in a position to challenge us even if we do the unthinkable. What can they (Americans) do to us? We control congress, we control the media, we control show biz, and we control everything in America. In America you can criticize God, but you can’t criticize Israel…” ~ Israeli spokeswoman, Tzipora Menache

 

Facts of Jewish Media Control

The largest media conglomerate today is Walt Disney Company, whose chairman and CEO, Michael Eisner, is a Jew. The Disney Empire, headed by a man described by one media analyst as a “control freak”, includes several television production companies (Walt Disney Television, Touchstone Television, Buena Vista Television), its own cable network with 14 million subscribers, and two video production companies. As for feature films, the Walt Disney Picture Group, headed by Joe Roth (also a Jew), includes Touchstone Pictures, Hollywood Pictures, and Caravan Pictures. Disney also owns Miramax Films, run by the Weinstein brothers. When the Disney Company was run by the Gentile Disney family prior to its takeover by Eisner in 1984, it epitomized wholesome, family entertainment. While it still holds the rights to Snow White, under Eisner, the company has expanded into the production of graphic sex and violence. In addition, it has 225 affiliated stations in the United States and is part owner of several European TV companies. ABC’s cable subsidiary, ESPN, is headed by president and CEO Steven Bornstein, a Jew.

Read the rest at  here.

Wed, 09/03/2014 - 21:38 | 5178076 uno
uno's picture

massive selloff in stocks = herd muppets into overpriced bonds; then repeat process again

Wed, 09/03/2014 - 21:43 | 5178095 insanelysane
insanelysane's picture

There is no top, there can't be.

Wed, 09/03/2014 - 22:25 | 5178220 metaStable
metaStable's picture

Assuming one were to hedge against the "plunge" from limited trading platforms like a brokerage account, how would one go about it? BEARX used to be a good hedge at one point for a drop in dow.

Recommendations?

Wed, 09/03/2014 - 22:31 | 5178233 daedon
daedon's picture

Didn't the stock markets in Austria, Hungary and Germany hit high after high after high in the early 20s ?  So, is the stock market really at an all time high or is it the dollar that's at an all time low ?

Wed, 09/03/2014 - 22:30 | 5178238 jomama
jomama's picture

that dude looks like he should be on the planet of the apes.

Wed, 09/03/2014 - 22:57 | 5178314 barre-de-rire
barre-de-rire's picture

timeline question.

 

santa claus 100k ppl  ebola infected.

over exp line  ....what money can do if you cant buy anylonger cos nobody produce anything...

 

ho, i forgot, finance is no moree on real economy. my bad.

 

they should add ebola to sp500....

 

fuck that, tic tac tic tac , it is triggered.

Wed, 09/03/2014 - 23:02 | 5178329 arby63
arby63's picture

These sucks are all wearing Depends. Who cares anymore. We are living on borrowed fiat.

The fit and prepared will be fine. The reset will take a few years to complete.

Wed, 09/03/2014 - 23:05 | 5178345 sidiji
sidiji's picture

they made their money taking risks when they were in their 30's, now they're all doddering 80 year olds afraid to lose what they've got...they should have the decency to go off somewhere and die.

Wed, 09/03/2014 - 23:53 | 5178475 sandiegoman
sandiegoman's picture

Sure is a lot of hatred on ZH tonight. Haters gotta hate.

Thu, 09/04/2014 - 05:34 | 5178847 Comte d'herblay
Comte d'herblay's picture

Haters gotta H A T E a lotta hate cuz there's so much more to hate. 

On the other knuckles is: L O V E

Thu, 09/04/2014 - 00:33 | 5178573 walküre
walküre's picture

Keep in mind folks, rich guys lose money too. They just lose alot more than the not-so rich

Billionaire Sam Zell:

"This is the first time I ever remember where having cash isn't such a terrible thing, despite the fact that interest rates are as low as they are," he added.

Assuming the guy is honest about his position but maybe he's just talking down gold and silver to buy more of it.

When there's too much debt in the system, the typical course of action is massive wealth destruction via debt defaults and a potential full on reset.

IMHO Sam Zell should be very concerned being overexposed in cash or cash equivalents. Defaults and haircuts are looming everywhere. There is absolutely no other way to solve the problems going forward.

Budgets and liabilities will be cut back drastically. The haircuts will either come in form of debt defaults or the printers will get switched into hyperdrive to afford the debt servicing.

Zell et al are not immune to a reaping.

Thu, 09/04/2014 - 00:46 | 5178592 juan323
juan323's picture

It takes them a significant time to go liquid, but if I was anyone on this blog - let the market do the talking. How much distribution has there been? Don't say the "market can't go higher" - it can. The NASDAQ can make an all-time new high. Even if the Federal Reserve and other central banks are priming the pump, the market will still give signals before a drop. 

Thu, 09/04/2014 - 01:56 | 5178687 dolbiere
dolbiere's picture

yep, the sentiment picture is getting scarier but i still can't get over the flatline chart of the s&p/fed reserves ratio posted here a couple days ago. imo, it said it all.

Thu, 09/04/2014 - 02:04 | 5178696 Rock On Roger
Rock On Roger's picture

Troll On

The newz sux

Bankster war and all

 

So this guy plays a good tune:

 

https://www.youtube.com/watch?v=ZUxp2MWB2Pw

Thu, 09/04/2014 - 02:09 | 5178701 Rock On Roger
Rock On Roger's picture

Should've posted this one first. It's better.

 

https://www.youtube.com/watch?v=rVArnDs3qac

Thu, 09/04/2014 - 03:07 | 5178744 falga
falga's picture

so much cash on side-lines, this market going much higher. Fasten seatbelts and watch all the commodity money also move into equities...

Thu, 09/04/2014 - 06:16 | 5178870 CHX
CHX's picture

Retailers, hop aboard!

Thu, 09/04/2014 - 06:35 | 5178889 AdvancingTime
AdvancingTime's picture

These guys all see the huge growth in inequality. Those who look closely understand that it is not the 1% at the top stealing the icing off the cake, but the much smaller .1% or .01% that are skewing the numbers and overreaching.

I contend the biggest problem is the massive growth in crony capitalism and corruption in Washington. Much of this can be attributed to the ability of those in control "changing the rules" and positioning themselves to benefit at every corner. In our busy and complex world we have found it impossible to watch all the moving parts. More on why this will cause a collapse in the article below.

http://brucewilds.blogspot.com/2014/05/how-empires-collapse.html

Thu, 09/04/2014 - 06:47 | 5178903 Chippewa Partners
Chippewa Partners's picture

Sellers are in hiding until the BABA deal.

Unlike GOOG they won't dutch auction.   Far too much vig at stake to let this baby drop.

 

Thu, 09/04/2014 - 06:51 | 5178906 bk1037
bk1037's picture

There is nothing structurally different in the US economy fundamentally than the way things stood in 2009 or 2010. We hear time and again on here how unemployment is not what the government says it is (which I agree with teh challenge). But ZH is postulating nothing new than the same alamist views since the Great Recession began. The market should have fallen in 2009 further, in 2010, in 2011, but didn't. I don't expect a rampage but i don't expect a bear market rout now, as honestly the moey needs to invest somewhere. I think the rich are trying to mamipulate things to their favor with an article like this, much like they always do.

As long as comapnies abuse the labor laws, hiring contractors, temp help and outsourcing instead of middle or upper middle class employees which is how it stood in the 80s and 90s, there will not be full healing in the economy. I fully endorse all crackdowns on business that use these circumventions to dodge paying social security and healthcare. I was sympathetic to business in 2009 even though I was one of the casualties of the Great Recession. I do not support what they are doing now. Even at the cost of more job loss and perhaps business loss, business needs to be shown they can not just circumvent labor laws ongoing. The Great Recession only provided cover to the multinationals to trim their payrolls, outsource where they could, drop to part time where they could to dodge Obamacare, and who benedits? The assholes running these companies and to some extent the investors, who supposedly see an improve retained earnings not being paid out to American workers, as they did at one time. The dupliocity of many of these companies sicken me, and I am glad I am dowe with it.

 

Thu, 09/04/2014 - 06:57 | 5178915 bk1037
bk1037's picture

Testing

Thu, 09/04/2014 - 07:22 | 5178948 kenezen
kenezen's picture

ZEll's one of the best!

PLANES stolen in Libya no reporting! Big commercial aircraft! NO REPORTING! (9/11) days away NO REPORTING?

Thu, 09/04/2014 - 08:53 | 5179283 d edwards
d edwards's picture

I hear there's going to be a new ME airline: AIR ISIL.

 

Trouble is they only sell one-way tickets.

 

 

Thu, 09/04/2014 - 08:31 | 5179171 GordonX
GordonX's picture

anyone who listens to Zero Hedge is stupid AND poor.

S&P 500

March 9, 2009 - 666

September 4, 2014 - 2,000 + Dividends

WHERE are all of those scumbags like Rosenberg, SHILLing, Roubini, Taleb, MAULdin, HUSSman, Whitney, Grantham, Prechter, Faber, Schiff, Shedlock, Smithers, Davidowitz, Russell, Janjuah, Lakshman, Albert Edwards, Tice hiding????????

 

Thu, 09/04/2014 - 09:02 | 5179329 22winmag
22winmag's picture

I agree.

 

These dudes are bloated tumors on a dying patient. After they are cut off, put them in a jar of formaldehyde for future generations to look at.

Thu, 09/04/2014 - 14:57 | 5181043 Minnalousha
Minnalousha's picture

I see it's time for the 6-month re-run of this story.

Really, ZH. You can set your watch by it.

Thu, 09/04/2014 - 17:11 | 5181825 aubreyfarmer
aubreyfarmer's picture
27). "I fear the Jewish banks with their craftiness and tortuous tricks will entirely control the exuberant riches of America. And use it to systematically corrupt modern civilization. The Jews will not hesitate to plunge the whole of Christendom into wars and chaos that the earth should become their inheritance." (Bismarck)

I pray that when the SHTF that the right people receive the blame they so richly deserve and the consequences thereof.
Thu, 09/04/2014 - 23:05 | 5183107 idontcare
idontcare's picture

Let's make everyone happy here.  A month long plunge resulting in the S&P resetting to about 800 and the Dow going down to about 7500.  All we loser bears who have not believed this rally can recoup our losses. Then (upon the word of some longtime CNBC anchor just like the last time) let the uptrend march back up at warp speed to exceed current levels so the bulk of the population whose futures depend on the health of their 401(k)s can continue to delude themselves that they are wealthy and in control of their own golden destinies.

Fri, 09/05/2014 - 14:08 | 5185605 SmittyinLA
SmittyinLA's picture

It took 900 years for the Roman empire to collapse, all the shorts were burned, and we got way better police state capabilities than the Romans.

 

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