Is The U.S. The "Cleanest Dirty Shirt" Or Just Kidding Itself?

Tyler Durden's picture

The following chart is perhaps the best glimpse of the excessively optimistic 'hope' relative to the rest of the world that US equity markets (and their extrapolators analysts) currently possess. Since the start of 2012, analysts, guided by both macro uncertainty and company expectations, have crushed 2013 EPS expectations across all global markets - well nearly all...

So far US EPS has held up relative to the Resof the World...


How do you think investors in Japan felt when all of a sudden 'expectations' were slashed - as opposed to a gradual slide that everyone has been pricing in? coming to a US equity market near you soon...


It would seem that the rest of the world is expecting 2013 to be a little more difficult than they did at the beginning of 2012... the US analysts, however, not so much...


Charts: Morgan Stanley

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khakuda's picture

I'm as pessimisstic as anyone when it comes to bad fiscal and monetary policy and broken political systems globally.  Government policies have been the problem here and abroad and the bad policies continue and seem to get worse by the day as TPTB double down.  Excessive leverage in the financial system, unsound money, expanding sovereign debt, expanding government, you name it, all need to get purged at some point.  Hopefully, things get bad enough soon that they do and we get back on the right track.

I am still optimistic I will live long enough to see the day when once the policies reveal themselves to be an utter failure, maybe we'll get back to the limited government that allows for people to get back to being curious, solving problems, innovating, inventiing and making life better for others.  Humans are ingenious and can do amazing things when they are free to.  The US founders figured out the secret sauce but the bureaucrats running the show today seem to have lost the recipe.  For now.

mkkby's picture

Good job regurgitating your training, little sheep.  Let me guess, God will make it all work out in the end.  Or mommy.

khakuda's picture

You missed the point entirely.  We are on a path where it looks to gets much worse and probably fall apart before it can get better.  Free markets outperform socialism and central planning, that was the point.

If ZH gets shut down and free speech gets banned, then you may have a point, and we're fucked.  But as long as guys like you can keep blabbing freely and making even stupid points, there is hope.

Tommy Gunner's picture

The point (that you are missing) is this:

There are 7 billion people on the planet - and that is increasing exponetially. 

We live on a planet of limited resources - we have reached the End of CHEAP oil (if you doubt it then why are we now extracting oil from tar sands from from fracking when not long ago both were economically unfeasible due to high costs)

Oil is only the beginng - there will be no fish left in the oceans within a generation - as for other resources, the low hanging fruit is disappearing which means the cost to extract increases which puts a massive drag on global growth... which ultimately means endless recession giving way to endless Depression ... which will result in massive riots which will result in martial law then totalitarian regimes the world over


Refer to the law of economics - supply and demand - chasing scarce resources.... what do these lead to?  Of course war.

Now make the resources even MORE scarce - what does that lead to?  War.  And to the 0.1% hoarding what is left and saying 'fuck you bitch - I have a private army - I am taking what is left' 

Fuck your free markets - they will not save you. Hoping and praying will not save you (in case you didn't realize it - there is no god)


If you want a vision of the future, imagine a boot stamping on a human face - forever.   George Orwel

bilejones's picture

There are 7 billion people on the planet - and that is increasing exponetially.


No, it's not.

Tommy Gunner's picture

You'll need to live till 1000

TradingTroll's picture

Uranium Laced Fukushima Sushi and Cesium Chowder should be good for -1bn people. there will be lots of inedible fish.