Even Goldman Admits Its Spin On The PMI Collapse Makes No Sense

Tyler Durden's picture

You have to feel bad for Wall Street's eCONomists: suddenly their 2011 record bonus is in the hands of some very angry German taxpayers. But they sure provide for some good humor. Here is Goldman with spin du jour #2, which even it admits makes no sense:

The Chicago purchasing managers' index fell to 56.6 in May from 67.6 previously. The 11-point drop was the fourth largest in the index's history (which begins in 1967). All of the sub-components of the index except for inventories declined during the month. Drops in the production and new orders components were especially steep. While all the components remain consistent with growth in the region's manufacturing sector, the sharp reversal indicates a substantially slowing in activity-similar to the message from the other regional manufacturing surveys. Our simulations suggest that supply chain problems in the auto sector resulting from the events in Japan should have their largest effect on the Chicago index. We therefore think a portion of the decline reflects this temporary shock. That being said, the rise in the inventory component looks somewhat at odds with this explanation. We are holding our forecasts for the national ISM at 56.5 (Consensus: 57.6).

And we are holding our forecast for QE3 to be well underway by the end of 2011.

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GoatETF's picture

Bill Oh Reallllyyy would be so proud, we're on the verge of a No Spin Zone.

Dolemite's picture


Top in place after today?

Oil, equities, and eur/usd looking like it

http://deadcatbouncing.blogspot.com/

Harlequin001's picture

It's an excuse, not an 'explanation'...

Rainman's picture

What to do when all the channels get stuffed, Mr. Squid ??

Franken_Stein's picture

 

We call in the Army corps of engineers.

 

Cash_is_Trash's picture

This can't be, Barry said we're on the path of recovery and look, McDonald's just hired 70,000 people. (!)

House of cards baby, bitchezz

sabra1's picture

where do you think they get their meat from? did anyone see hank lately?

Franken_Stein's picture

 

Does anybody know why Rhodium is up 8.69 % today ?

Everybody pile into Rhodium, follow me, pussies !

Apmex sells it by the flask.

 

slaughterer's picture

Rhodium popped on news of increasing industrial demand.  BMW was the one who reported increase use for rhodium this morning

LRC Fan's picture

Lol.  Economic data is probably improving, then again all the data has been shitty, so we might be wrong but maybe we're right after all. 

DaveyJones's picture

things are "somewhat at odds" with other things

rajc's picture

Transitory bitches. ..it was the weather too  many god damn tornadoes.

Cynthia's picture

Neil Young found something good to say about hurricanes:

http://www.youtube.com/watch?v=Obfci1CIqq8&feature=related

I imagine he would say the same thing about tornadoes. I wouldn't expect anything less from the man who's widely known as the Godfather of Grunge.

Id fight Gandhi's picture

But I don't want qe3. Is there any way it can be stopped? Can congress or somebody do something for main st America instead of helping the wall St crooks all the time?

Pepe's picture

Congress and the ones you call Wall St. crooks work for the same corporation. So, the answer is no. It cannot be stopped

SheepDog-One's picture

DANG you know things are about to get wild when GS admits their own spin is nonsensical bullshit! 'Target- Still stable'....LOL!

Hey anything to keep the CNBC viewing 401K Bathrobe Brigades placated a bit longer.

BC6's picture

And /tears for the GS 1.3B Libya loss or trying to do God's work.

Cognitive Dissonance's picture

That being said, the rise in the inventory component looks somewhat at odds with this explanation.

Sounds like a cognitive dissonance to me. But what do I know. They are the experts.

Cdad's picture

Brother Cog,

You know that you love government cheese....and big brother.

Cognitive Dissonance's picture

LOL

Brother Cdad,

I'm running a little low from the long holiday weekend. Burgers just aren't burgers without government cheese. Could you send some over with my next "Making Work Pay" refundable tax rebate.

BTW I prefer 'sharp', but I'll take what I can get.

 

SheepDog-One's picture

Makes one helluva grilled cheese I hear! I can hardly wait for my blocks of Gubment cheeze.

Cdad's picture

Sure thing brother Cog...just as soon as Tyler updates this thread with the link to sign up for food stamps.  I'm not a "member" yet, and I'm too stupid a sheep to figure out where to go to get my freebies.

But I do so love big brother.

Cognitive Dissonance's picture

Looks like I would need to sell my Vespa scooter to qualify.

http://www.fns.usda.gov/snap/applicant_recipients/eligibility.htm

 

Households may have $2,000 in countable resources, such as a bank account, or $3000 in countable resources if at least one person is age 60 or older, or is disabled.  However, certain resources are NOT counted, such as a home and lot, the resources of people who receive Supplemental Security Income (SSI), the resources of people who receive Temporary Assistance for Needy Families (TANF, formerly AFDC), and most retirement (pension) plans.

 

Below is a picture of the wife and I looking for work last week. We normally stand on street corners with a cardboard sign that says "Will work for SNAP" but we got tired of the banstas pissing on us while we napped.

SheepDog-One's picture

Yep, and the 'experts' are paid by the biggest manipulator criminals on earth. 

DaveyJones's picture

aren't they the same people?

Caviar Emptor's picture

We attribute a portion of the decline we missed to the unexpectedly reasonable temperatures in the US. 

Franken_Stein's picture

 

We are dealing with ANALysts here who shower us with their crappy ANALyses day in and day out.

 

RobotTrader's picture

The faster the economy deteriorates....

The higher the XRT goes.  Was just a few cents of punching through to 52-week highs this morning.

And the more we exceed the debt ceiling, the faster investors pile into Treasuries.  I watched the 5-yr. yield drop nearly 5 bp in one hour this morning.

SheepDog-One's picture

'Economic deterioration'? What, how can that be? 

Only 2 weeks ago you said 'The market is not pricing in QE3, it is pricing in a rubust consumer driven recovery'

 

LongBalls's picture

If the market was not pricing in QE3 before, it is now. MSNBC reported $5 gasoline is possible by end of summer. Is it all that demand? I for one rush out to buy all the $5 gasoline I can afford. The pin is starting to apply pressure to the dollar bubble.

SheepDog-One's picture

Problem is people cant pay higher prices with everyone broke and on Gubment cheeze. Prices have to go higher, but cant go higher. This should be interesting to watch lay out. Theres going to be some kind of ultra violent blowoff.

Smiddywesson's picture

We need more green technologies to capture gas from lactos intolerant people on government cheese.

earnyermoney's picture

If prices can not go higher then you have scarcity as produces refuse to produce goods at a loss.

Caviar Emptor's picture


The faster the economy deteriorates....

The higher the XRT goes.  

And yet somehow, I still feel empty and unfulfilled.....like a little kid getting sick eating too much sugar...

We need to see stars! I want IPOs that rise 500% in a day! I want a 'new paradigm'! I want 'killer apps'! XRT, yoga outfits and running shoes....that's dull

SheepDog-One's picture

I want $15 rice burrito stocks!

Silverhog's picture

Ben's Frankenstein of a recovery is now behaving just as it should, Totally Dysfunctional.

SheepDog-One's picture

FrankenBen monster now down in the village tearing down houses and mangling the people... 'Said a give' needed but will also kill FrankenBen.

Its funny...the entire world today has already been totaly explained in Mel Brooks movies!

Caviar Emptor's picture

Don't forget the touching moment where The Monster is soothed and charmed by the innocent little girl: Greece! 

After this interlude it's back to tearing things apart in the PIIGS village: "gnnnnnnah!"

Silverhog's picture

Timmy said the brain was from Abby Normal!

mayhem_korner's picture

I think it was from the scarecrow...

Shitters_Full's picture

Bernanke is insisting that it was the brain of Hans Delbruck.

The Heart's picture

And now for a commercial break please.

In Japan 80% of the people do not trust the govt information and how they are handling this disaster. The majority are not happy at all as the cover up continues.

“The poll conducted by Fuji Television Network also found that nearly 85 percent of respondents said the utility that operates the stricken Fukushima Dai-ichi nuclear plant is dealing with the crisis poorly."

http://www.forbes.com/feeds/ap/2011/05/30/general-as-japan-earthquake-po...

So does anyone have a guess as to what a poll in the US would say?

5% Think radiation is good for you.
5% Think there is no problem in Japan.
20% Know nothing.
70% Don’t care

People must get really jiggity and start inundating the US govt and those other places that were doing the animations with questions of why they are covering up the truth and WHY THEY ARE DOING NOTHING TO PROTECT THE PEOPLE OF AMERICA and other countries. People should demand the truth from them.

Please start writing, calling, and e-mailing those agencies that are supposed to protect the people. Same with your congress critters and senate toads. Call them, fax them, write letters, and email them all. Make as much noise as you can. Demand the truth. It is downright CRIMINAL for this COVER-UP to continue. This is a disaster that is far beyond comparison to anything else and it is getting worse every day.

Also, how many of you signed this petition and passed it on:

http://petitions.criirad.org/?For-a-total-transparency-on-the

Abitdodgie's picture

You are missing one point the Governments don't care about you ,me ,or anyone else but themselves . As long as they can make it to September all is good

mayhem_korner's picture

Please start writing, calling, and e-mailing those agencies that are supposed to protect the people.

Why go to the source of the problems to solve them?

In the course of human events...