A friend sends word of two signs that the worst of recent times may not be behind us.
First from the PRNewswire, TrimTabs reports that:
“…selling by corporate insiders in August has surged to $6.1 billion, the highest amount since May 2008. The ratio of insider selling to insider buying hit 30.6, the highest level since TrimTabs began tracking the data in 2004.”
Said Charles Biderman, CEO of TrimTabs:
“The best-informed market participants are sending a clear signal that the party on Wall Street is going to end soon…Investors who think the U.S. economy is recovering are going to get a big shock this fall…Companies and corporate insiders are signaling that the economy is in much worse shape than conventional wisdom believes.”
And then from Steel Guru:
Auto Cast Inc has filed for bankruptcy after its bank, Huntington National Bank, called in its loans.
In a filing in US Bankruptcy Court in Grand Rapids, Mr Carl Homrich CEO of Auto Cast Inc said that “The filing was driven by one factor, an aggressive position from Huntington National Bank. Today’s credit market has resulted in Huntington National Bank cutting off credit line and demanding unconditional personal guarantees from the owners for 100% of all indebtedness.”
How many more companies will face an aggressive position from bankers and how many more bankers will assume an aggressive position?