- advertisements -
The data must be wrong!
So people MUST BE saving money!!
Consumer's dollar buys less = must spend more dollars to bring home the bacon.
'House brand' cheap Checker Auto quarts of oil that used to go for under $1 are now $4.50.
Two things that shouldn't ever go in an car. Cheap oil and cheap women
Now the good stuff Mobile 1 is about $8 a quart.
Holy fuck! Glad I picked up that 5 quart jug at Walmart last fall for $21.
But at those prices I'll be shifting back to ZMax treatment with cheap oil when it's time for a change. It's a reasonable substitute.
"Two things that shouldn't ever go in an car. Cheap oil and cheap women"
However, both options always leave more money for cheap beer. It's a win-win-win situation!
Retard! Purchasing power drops when yields increase. Demand for dollars, but tangibles also get more expensive. OIL GOLD FOOD Go back to Your law school in Texarcana! Bitch!
Who the hell goes to law school in texarkana?
Consumers forced to use savings for essentials that have gone up a lot in price (and far more than the fake inflation numbers)
they did not mention the decline in personal savings on the idiot channel. Must have just missed it. They always tell the truth.
Of course The Blowhorn's job is to tell retail traders, the few left out there, to place their buy orders!
With regards to retail traders, have you noticed that Gorilla Trades has been back advertising (OLD ads , by the way) again? I'm assuming they are aimed at retailers (would a Pro use this stuff?), and could be one sign of a top.
Trade tippers, are into a new batch of suckers trying to enter the market. Old ads are new to the newbees.
Behavioural Economics is the order of the Day. Juice the E/S to new recovery highs and then watch the Wealth Effect influence spending. Rinse and Repeat.
North America is an economy dominated by paper-hangers and manipulation. "Tail wagging dog" involves focusing on the stock market first and corporate earnings and growth second. This travesty will have dire outcomes when production shortages arise because CEO's no longer have to worry about selling products as long as their share prices are rising thanks to the Fed.
one "totally expected" item that rarely gets mentioned -well with nukes and wars- it is less urgent..but
millions of baby boomers would presumably be de-leveraging out of equities and into fixed assets and Money markets - adding selling volume.
baby boomers would presumabley be tapping savings in retirement..this lowering saving rates..
yet stocks see buying on any dip
I am confused no doubt.
Looks like the Japan and MENA crisis is over.
EWJ green, EGPT green, gold stocks getting crushed pre-market.
Oil prices are down, probably see more strength in retail names again today.
Gold/silver options expiry today... big beat down from the ee... Blythe wears black, with whips and chains, on expiry...
Oil prices down because aircraft carriers up...
Nominal strength in retail... inflation adjusted?
with costs of living rising and incomes dropping...who can save?
Remember what Churchill said once: I trust only the statistics I forged!
People are spending more at the gas pumps.
What, job amrket is doing great. Companies are hiring and paying well. More Fast food restaurant jobs available. Yippe, road to recovery. Trillion dollars later nothing many we need several trillions to ensure we are deeper in debt. Find a tall tree and short rope for the lawmakers and the Bankers.
The 5-6% the increase reflects basic food increases. I'm bullish on meat, grain and corn.
"I'm bullish on meat"
Ahhh, subtle humor, I love it! I'm guessing most would miss the implied pun:
"I'm bullish on beef, grain, and corn".
Looks like we have an "alert" in Northern Alabama...
Thanks for the link. Had not seen this one before.
Amazing to see people buying TZOO and PCLN again pre-market after these stocks have had huge runs already.
I wouldn't touch these stocks, but Wall St. just loves these tech screamers with outlandish P/E ratios.
Trillions in printed-up fiat liquidity have to go somewhere.
what earnings? dividends, no way? The street is addicted to growth....tech has got it.
They should breakout savings rates for bottom 90%, top 10% and top 1% to get a better pic of true state of saving.
I imagine a huge % of that savings is coming from top 10%.
There is a large segment of the population that lives completely on sustenance payments from the government... These people have limited means in which to save and, if they do save via traditional channels, then it causes significant red flags to arise... needless to say, any increase in savings MUST come from the remainder of the population... I'm not sure a detailed analysis of the various socio-economic classes is necessary given we already know the answer...
Will be another interesting week! Hedgies pushing down oil only to load up some more
No "bad news" in the MSM on MENA/Japan
Calm before the storm?
From Art Cashin this morning:
Dorothy And Alice Yield Center Stage To Scarlett – The stock market rose for thethird day in a row Friday and for the sixth of the last seven sessions. The old adage isthat bull markets climb a wall of worry. This recent upswing has determined to storma rampart of concerns rather than simply scale a wall of worry.
Geo-political problems of every type from finance to radioactivity filled up the front pages of every prominent paper aroundthe globe. But, like Scarlett O’Hara in Gone With The Wind, stocks simply shrugged and said – “I’ll worry about that tomorrow”.
The clearest example may have come in the final ninety minutes of trading Friday. Rumors circulated that reactor #1 in the stricken nuclear plant in Japan had shifted into full meltdown mode. The rumors suggested there might even be a full 50 mile shutout zone around the reactor possible shutting down scores of factories permanently.
The market shrugged and gave up a point or two of its rally. Several traders suggested that this hinted you no longer seek safety in the dollar; you seek safety in the Dow. The theory (if I got it correctly) is that you skip the dollar since the Fed seems intent on driving it lower. But, you buy a big burly Dow stock which is situated in a politically stable country (relatively speaking) and who will benefit from that Fed weakened dollar.
"Several traders suggested that this hinted you no longer seek safety in the dollar; you seek safety in the Dow. "
What this tells me is we are really, really fucked. It also tells me only the dumbest people are still trading equities...
We can bypass the dollar because the Fed promised no companies will ever go bust - riskless trading is here.
The impoverishment of what little remains of the American Middle Class is proceeding right on schedule.
Doh! They are buying iPad 2's.
Nice! Bloomberg is calling it a spending spree. MSM is so lost. How is it a spending spree when you are paying more to get less. Oh wait! I think inflation might cause a result like that.
Biggest bunch of pom pom waving cheerleaders in the MSM ever. Really I just call them all whores now.
Once again the public lacks the critical thinking skills and piling up crap in their garage. Stupid Dumb Fucks in the USA and breeding more idiots.
When they refer to savings does that mean bullshit 0.25% interrest passbook savings? (For which we are taxed on the interest?) I think savings might be a bit higher if they count in ZHers who are stocking away gold and silver.
Is there such a critter these days? I haven't had a passbook in, well, a very long time.
the big nugget, personal income declined notably from a revised 1.2% to 0.3%...the only rise in incomes was the guvMINT and services.
Howz that QE thing working out for ya Benny? Guess that weak dollar didn't help much.My bet is the services that grew were FIRE from all that freshly minted trading money.
One has to wonder if a QE3 can keep it going or will anyone wise up.
Some good comments by Rickards on QE2, also his comments on the jabs between him and zerohedge.
ZH'ers are the only ones that will be getting real returns.
When the pigs try to get at yea
Spend it like its hot
A lower savings rate is a great sign! We need people to spend spend spend and take out more loans This is exactly what the fed has wanted. I am loving it that the america haters are disappointed that we havent collapsed yet. America will still be wealthy and economically powerful long after most america haters on this site are long dead. USA! USA! USA!
Yup debt is wealth. Otherwise, banks wouldn't be able to list a loan to a subprime borrower as an asset, right?
The low interest rates paid on savings accounts are designed to force greedy people to take on more risk - hence they wade into the DOW and S&P to get sheared regularly. Some people mistake the lower rates as a push to get the common folks to take on more leverage. That is not exactly true - if the banks had to make loans to survive (vice acting as PD's), then you would see lower underwriting standards. The fact is that they can "sit on cash" and still make more money, they just have to figure out how to do an end-around on the prop trading rules now.
The one result they had not foreseen was the larger demand for PM's that folks seeking higher (and more stable) yields created. That is "revenue" they could not wring out of them in the bond or equity markets. I'm sure that it will be addressed in the future.
Money into pocket: down. Money out of pocket: up.
Real economy down, paper economy up. Every data point is confirming.
The market is almost at the same height it attained prior to the "Greatest Collapse since the Great Depression".
If QE is so great, why hasn't the FED attempted this before?
Who needs a bear market anymore?
You cannot make this shit up!
ugh, so depressing!
Tips: tips [ at ] zerohedge.com
General: info [ at ] zerohedge.com
Legal: legal [ at ] zerohedge.com
Advertising: ads [ at ] zerohedge.com
Abuse/Complaints: abuse [ at ] zerohedge.com
Advertise With Us
Make sure to read our "How To [Read/Tip Off] Zero Hedge Without Attracting The Interest Of [Human Resources/The Treasury/Black Helicopters]" Guide
How to report offensive comments
Notice on Racial Discrimination.