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Chart Of The Day: The Death Of America's Middle Class

Tyler Durden's picture




 

There is one chart that everyone should see that is part of Reuters' must read special series: The Unequal State of America: Redistributing Up - it is the chart we have said over the past 4 years is the only one that matters for America - that showing the flattening of America's wealth distributon Gaussian curve, aka the plunder and accelerating destruction of America's middle class, at the expense of the poorest and the wealthiest. This is nothing but the inevitable outcome of a co-opted, conflicted and controlled marionette government, which does the bidding of the wealthiest lobby powers (read corporate shareholders and Wall Street), partitioning the bulk of the wealth to the richest, while sending the scraps to the poorest in order to keep itself in power due to the power of the ever poorer, democratic majority. Alas, since there is never a free lunch, and since the Fed does not create wealth but through its currency debasement merely accelerates the transfer of wealth, someone ends up footing the bill? Who? None other than that part of the US population which made the United States of America the greatest country in the world, and is now watching it implode first slowly, then fast.

The chart in question:

How does Reuters frame this ever so critical topic that only impairs the ever more disenfranchised, ever declining middle class, and thus few actually bother discussing:

In the town that launched the War on Poverty 48 years ago, the poor are getting poorer despite the government's help. And the rich are getting richer because of it.

 

The top 5 percent of households in Washington, D.C., made more than $500,000 on average last year, while the bottom 20 percent earned less than $9,500 - a ratio of 54 to 1.

 

That gap is up from 39 to 1 two decades ago. It's wider than in any of the 50 states and all but two major cities. This at a time when income inequality in the United States as a whole has risen to levels last seen in the years before the Great Depression.

 

Americans have just emerged from a close presidential election in which the government's role as a leveling force was fiercely debated. The right argued the state does too much; the left, too little. The issue is now at the center of tense negotiations over whose taxes to raise and what social programs to cut before a Jan. 1 deadline. And the government's role will be paramount again next year if Congress takes up tax reform.

 

The federal government does redistribute wealth down to struggling Americans. But in the years since President Lyndon Johnson took aim at poverty in his first State of the Union address, there has been an increasingly strong crosscurrent: The government is redistributing wealth up, too - especially in the nation's capital.

 

The beneficiaries are not the billionaire financiers and celebrities who
have come to personify income inequality in the 21st century. Yet the
Washington elite are just as much part of the trend, having influenced
laws and decisions that alter the entire country's distribution of
income.

Read more here.

In summary: crony capitalism for the wealthiest, scrappy socialism for the poorest, and everyone else (that soon to be extinct creature known as the middle class) left to fend for themselves.

Some other charts:

 

And:

 

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Tue, 12/18/2012 - 17:25 | 3076094 akak
akak's picture

Nobody tell AnAnonymous about the REAL --- and dying --- American middle class. In his twisted and moronic mind, the American middle class is the "king class", the mattering thing, the epitome of the 'american' hobbo, the crustiest bit of US 'american' citizenism, the parangong of blobbing-uppityness, etc.  Too bad it had its crown stolen a long, long time ago.

Tue, 12/18/2012 - 17:32 | 3076148 centerline
centerline's picture

Shhhh.... that guy is like a rash that won't go away.  He's probably poking pins right now into a pair of Barbie and Ken dolls while chanting "die America, die!"

Tue, 12/18/2012 - 17:44 | 3076203 akak
akak's picture

Is that before or after he woks the dog, forces blame to the exterior, kicks the can and monolizes the speeching means?

Tue, 12/18/2012 - 21:50 | 3077148 TheFourthStooge-ing
TheFourthStooge-ing's picture

centerline said:

Shhhh.... that guy is like a rash that won't go away.

This crisis has confirmed this region of the world on that path and they even managed to get much more than blobbing up.

He's probably poking pins right now into a pair of Barbie and Ken dolls while chanting "die America, die!"

The cavalry was indeed late for one reason: the US has had this song called theft done through a proxy and that proxy was hiding genitalia behind thin air.

Your version could have charm because it would show the total disrespect US citizens had for taking the matter in the hands.

Tue, 12/18/2012 - 21:38 | 3077122 TheFourthStooge-ing
TheFourthStooge-ing's picture

akak said:

Nobody tell AnAnonymous about the REAL --- and dying --- American middle class. In his twisted and moronic mind, the American middle class is the "king class", the mattering thing, the epitome of the 'american' hobbo, the crustiest bit of US 'american' citizenism, the parangong of blobbing-uppityness, etc.

Without the American middle class, the king class of US citizenism, who will farm the poor? Will the current crop of poor go unharvested and, if so, will the fields of extortion simply lie fallow as the unharvested poor wander about them aimlessly?

Too bad it had its crown stolen a long, long time ago.

Smithian economics infracturestructure exploitation is profitable, once one had good King Georges the Third to foot the bill of the can kicking hobbo scheme somehow.

Wonderful world.

All what matters is to be aware of what things.

Tue, 12/18/2012 - 17:21 | 3076099 Peter Pan
Peter Pan's picture

I think the author meant the destruction and plunder of the middle class for the BENEFIT of the lower and higher classes and not AT THE EXPENSE of the higher and lower clases.

Tue, 12/18/2012 - 17:24 | 3076103 F. Bastiat
F. Bastiat's picture

It's called socialism. Despotism couched as altruism.

Look, the ideas of the Constitution have basically been replaced by the superstitions of the Communist Manifesto.  The inevitable result is the destruction of civilization.

Tue, 12/18/2012 - 17:26 | 3076122 cossack55
cossack55's picture

Since it is the TBTF and the TBTJ running it all, would it not be more accurate to label it fascism?

Tue, 12/18/2012 - 17:46 | 3076215 Lord Koos
Lord Koos's picture

Accurate, schmacurrate -- this is Zero Hedge.

Tue, 12/18/2012 - 17:59 | 3076270 alien-IQ
alien-IQ's picture

Forget it...he's on a roll.

"Was it over when the Germans bombed Pearl Harbor? Hell no!!!"
Bluto - Animal House

Tue, 12/18/2012 - 17:24 | 3076109 Catullus
Catullus's picture

Looks to me like there are a greater number of jobs paying over $100k a year. This actually suggests that the middle class are getting paid more. Whereas less than 15% of the population got paid more than $100k, now more than 20%.

If there are 150m people working, that means easily 7 million more people are earning over $100k a year than 20 years ago. And here's a shocker -- those people in the middle tiers 20 years ago, probably migrated up to getting paid more now. That speaks extremely well for upward mobility in this country.

The thing that's really fucked up is that $25k just doesn't go as far anymore because of inflation, but you can thank the Fed and US Treasury "need" to bailout the banks over these past two decades

Tue, 12/18/2012 - 17:31 | 3076135 akak
akak's picture

 

Whereas less than 15% of the population got paid more than $100k, now more than 20% ... that means easily 7 million more people are earning over $100k a year than 20 years ago.

I feel the need to point out that $100,000 today is equivalent, in purchasing power, to around $45,000 20 years ago.  So the fact that less than double the number of people (particularly ignoring population growth in those 20 years) are making $100,000 today compared to then means that in actuality the REAL (not nominal) mean income has fallen, not risen.

Tue, 12/18/2012 - 17:31 | 3076145 SheepDog-One
SheepDog-One's picture

Zactly.

Tue, 12/18/2012 - 17:33 | 3076157 centerline
centerline's picture

Substantially.

Tue, 12/18/2012 - 17:39 | 3076185 Spastica Rex
Spastica Rex's picture

But what did an iPhone cost in 1992?

Tue, 12/18/2012 - 17:44 | 3076202 centerline
centerline's picture

I remember when Plasma TV's first came out they were like $10k.

Anyone have a good plasma tv recipe?

Tue, 12/18/2012 - 18:46 | 3076452 SilverRhino
SilverRhino's picture

No but the fresnel lens in a rear projection TV makes a DAMN good solar furnace. 

Tue, 12/18/2012 - 17:55 | 3076247 akak
akak's picture

 

But what did an iPhone cost in 1992?

I'm not sure, but I can tell you what it costs today (aside from the cash cost): serenity, sanity, and a more civil and more MEANINGFULLY socially-connected society.

Tue, 12/18/2012 - 18:16 | 3076329 cxl9
cxl9's picture

True, the cost of communication was much higher back then, but the amount of drivel was correspondingly lower.

In the beginning, there was the handwritten manuscript. Rich men paid scribes to make copies of books worth copying. Since that was an expensive process, drivel tended to not be reproduced.

Later came the printing press, which dropped the cost of reproduction and made mass communication possible. Drivel expanded.

Then came radio, TV, Internet, Twitter, Facebook. Drivel explodes expontentially as the cost of communication approaches zero.

Eventually the cost of communication will reach zero, and the universe of information will be composed entirely of drivel.

Tue, 12/18/2012 - 18:19 | 3076341 Spastica Rex
Spastica Rex's picture

Yes - SNR is getting pretty dismal.

I was joking.

Tue, 12/18/2012 - 19:13 | 3076590 The Joker
The Joker's picture

All I know is I miss my phone bill from the 90s.

Tue, 12/18/2012 - 18:23 | 3076349 akak
akak's picture

Akak's Law:

The more that is said, the less that is said is worth saying.

Tue, 12/18/2012 - 18:57 | 3076506 Ghordius
Ghordius's picture

n/a: poetry?

Tue, 12/18/2012 - 19:20 | 3076635 Shell Game
Shell Game's picture

laconic

Tue, 12/18/2012 - 18:51 | 3076472 edifice
Tue, 12/18/2012 - 17:38 | 3076176 Catullus
Catullus's picture

Then the bar chart is bullshit because it says adjusted for inflation.

I bet if they brought this back to 1975, it'd be just as "alarming".

Tue, 12/18/2012 - 18:08 | 3076300 blunderdog
blunderdog's picture

USUALLY when you see a chart that claims to be "adjusted for inflation" it refers to the gummit-provided stats, so it's pretty distorted.

(It just occurred to me it'd be interesting to see what everything looks like if you use the Austrian inflation definition--what was total M2 in 1980 vs. today?  Heh.)

Tue, 12/18/2012 - 18:25 | 3076360 Catullus
Catullus's picture

Yeah. I've seen these charts since undergrad labor Economics. I don't think it's real economics. It's more sociology than anything else. They have a lot of data, but not a lot of insights.

Wed, 12/19/2012 - 00:44 | 3077610 mwarden
mwarden's picture

it is also bullshit because it is using household income and making conclusions as if it's per-earner income. divorce rate confounds this data big time.

Wed, 12/19/2012 - 00:46 | 3077612 mwarden
mwarden's picture

the chart is not nominal

Wed, 12/19/2012 - 00:47 | 3077615 Seer
Seer's picture

Do you know how many people think like that person?  And he/she is, by the planet's standards, WEALTHY.  Scary...

This, however, should be kept in mind when any of us feel so inclined to spout off more on emotion than from meaningful information.  We need to keep in mind that things aren't necessarily simple (TPTB rely on the sound-bite world to control us).

Thank you for taking the time to inject rational input.

Wed, 12/19/2012 - 03:31 | 3077753 Catullus
Catullus's picture

Oh balls! I didn't read the article below the chart. This is DC!

Fuck everything I said above. This is because of the rise of parasite class in DC. These are more lobbyists, aides, think tanks, consultants, aging government workforce, contractors and subcontractors. They're all over DC. Check out the suburbs of DC: riches counties in America. This is the result of pigs feeding at the trough.

A quarter of the DC workforce makes more than $100k a year? Seems about right. Is there any real industry or commerce in DC? Nope.

Tue, 12/18/2012 - 17:24 | 3076111 lunaticfringe
lunaticfringe's picture

So they get the marbles now...but guess what? No more fucking marbles left to get.

The elite have killed their golden goose. You gotta leave the bourgeois a little dough to buy your shit. I'll go ya one better. I can end all wars right now. I got the formula. http://thecivillibertarian.blogspot.com/2012/12/when-god-needs-hit-man-h...

Tue, 12/18/2012 - 17:28 | 3076131 SheepDog-One
SheepDog-One's picture

Killed the Golden Goose...now they're ripping apart the carcass wondering where all the eggs went, thats all this is. They'll realize their fukup soon.

Wed, 12/19/2012 - 00:51 | 3077624 Seer
Seer's picture

That's the question that I've been asking for years now.

I just don't see that it's in their interest to have complete control when having most control was sufficient.  The ONLY reason I could see is IF in fact, which I believe the case, that TPTB know the entire economic structure is going to fail (BIG=FAIL).

Not thinking that the extra marbles are going to be worth much to them (as you note it'll probably be an albatross around their necks).

Tue, 12/18/2012 - 17:24 | 3076114 MethodMan
MethodMan's picture

There's some counter-productive serious WTF-age here.

The percentage of people in the lower/middle INCOME brackets is going DOWN and the percentage of those over 100K is going UP. How is that bad? What if all the brackets below 100K go to 0% and the 100K+ go to 100%? That's even better.

Where this fails is that the graph needs to be extended out to 1M ... a "middle class" income starts at 80K for crissake in many areas. Then you see the redistribution to the real "rich" brackets. Lame trying to lump everying in a 100K+ bracket.

Tue, 12/18/2012 - 17:29 | 3076137 SheepDog-One
SheepDog-One's picture

Problem is your $100,000 will soon only buy a few dozen eggs like in Zimbabwe. People want to believe this just goes on no problem, but it doesnt.

Tue, 12/18/2012 - 17:45 | 3076214 MethodMan
MethodMan's picture

Not my point, which is that the bar chart shows something positive: that more people as a percentage are moving into the 100K+ brackets. That is, they moved into higher brackets. So this is not where the real probem is, which is that 250K+ brackets on banking crony and fedgov teat "jobs" have increased on the backs of the real middle class.

Wed, 12/19/2012 - 00:55 | 3077629 Seer
Seer's picture

Do you not understand the REAL function of the middle class?  It's been to PROTECT the upper class from the lower class.  Take some time to ponder which of the two (remaining) classes one would better off being in. (always keep in mind that things change- if you're not one of TPTB now you're sure as hell not ever going to be; and only these people have some sense of security)

Sometimes people get so caught up with the trees that they can't see the forest...

Tue, 12/18/2012 - 17:25 | 3076120 Jack Burton
Jack Burton's picture

Corporate profits are at record levels, even though the US economy went through a financial crisis starting in 2008, a giant housing bubble burst and real unemployment is high.

It appears corporations have found the secret to record profits in an economy in deep trouble. Thais a real feat, no wonder compensation for top executives is sky high!

Tue, 12/18/2012 - 17:39 | 3076179 HD
HD's picture

Fire everyone possible and borrow all the cheap cash you can. Screw capex - just buy back shares and issue special dividends.

Of course when every company does it - margins top out soon enough and all those unemployed/underemployed SOBs can't buy your shit anymore...then what?

Tue, 12/18/2012 - 18:16 | 3076327 alien-IQ
alien-IQ's picture

It's pretty simple really:

1) Break the law for massive profit.

2) Get caught, pay fine equal to 5% of what you profited.

3) Repeat steps one and two Ad infinitum.

Wed, 12/19/2012 - 00:40 | 3077604 mwarden
mwarden's picture

actually, this happens during every recovery

Tue, 12/18/2012 - 17:31 | 3076146 gwar5
gwar5's picture

And the UN just said: "2012 was the best year ever for wealth redistribution."  Yeah, we get it.... full steam ahead for Obama. BHO, our next UN Sec'y General and tba, first President of the New World Order.

 

 

 

Tue, 12/18/2012 - 17:38 | 3076154 Mercury
Mercury's picture

Incentive: get a higher paying job.

Tue, 12/18/2012 - 17:41 | 3076191 Spastica Rex
Spastica Rex's picture

Looks to me like $100K and you're over the hump.

The 1% needs all the support they can get - nobody could expect them to rule the world without support.

Tue, 12/18/2012 - 17:39 | 3076186 pragmatic hobo
pragmatic hobo's picture

thing is ... the whole middle class phenomena was an aberration, an artifact of distortion created by world-war 2.

Tue, 12/18/2012 - 17:39 | 3076188 Seasmoke
Seasmoke's picture

Tie your left arm to a truck going west and tie your right arm to a bus going east and let me know how your middle looks when they arrive at their destination.

Tue, 12/18/2012 - 17:45 | 3076213 Dre4dwolf
Dre4dwolf's picture

Call me when its time to use the pitchforks and torches, otherwise nothing is changing honestly.

Tue, 12/18/2012 - 17:47 | 3076217 Count de Money
Count de Money's picture

One thing that the geniuses at Reuters don't understand: When looking at income, statistics don't count non-cash benefits.

Food Stamps are a non-cash benefit and aren't counted. Medicaid is also not counted in lieu of health insurance premiums. Ditto for a welfare recipient's rent money because that gets paid directly to the landlord. Same for subsidized housing projects.

It says something that the number one health problem among poor people is obesity. 

Tue, 12/18/2012 - 17:59 | 3076265 A. Magnus
A. Magnus's picture

"Food Stamps are a non-cash benefit and aren't counted. "

Neither are unexercised stock options and being able to write off all your personal expenses as business expenses. Just sayin'...

"Ditto for a welfare recipient's rent money because that gets paid directly to the landlord."

Just like Uncle Sam PAYS corporations like GE to be the biggest Pentagon contractor to the tune of $1 billion in tax refunds every year. Either way somebody is paid to be a 'kept' bitch...

Wed, 12/19/2012 - 00:39 | 3077602 mwarden
mwarden's picture

they also don't understand that when you use "household income" as your measurement, with modern households often times having two earners, divorce rates seriously screw with your data and show "income loss" when none has actually occurred. pre-divorce you combine two earners' incomes, and after the divoce you have two separate households each earning a fraction of their previous combined income. no wage loss event has happened here. it's a data skew.

Tue, 12/18/2012 - 17:50 | 3076230 earleflorida
earleflorida's picture

gerrymandering should be rendered unconstitutional! it is not, a true, representation of the intrinsic plurality!

term limits should be on every states electoral ballot... and a constitutional amendment should be voted upon before... if not sooner in the year of our lord-- 2016!

yes, the politicians have their made man in the slot if said laws should pass. but, it is a start? 

 

Tue, 12/18/2012 - 17:51 | 3076234 blunderdog
blunderdog's picture

"Middle Class" has always just been a euphemism for "working class" anyway.

Tue, 12/18/2012 - 17:55 | 3076249 Spastica Rex
Spastica Rex's picture

You're confusing the gentry with the peasantry.

Tue, 12/18/2012 - 18:08 | 3076309 blunderdog
blunderdog's picture

Not at all.  Most of the peasantry have been raised to confuse THEMSELVES with the gentry.  The average $100K working stiff is a VERY far cry from "gentry."

Tue, 12/18/2012 - 18:13 | 3076318 Spastica Rex
Spastica Rex's picture

Oh, hoh, hoh! - Excuse me, I know the peasantry, sir, and someone making $100K is no peasant.

Tue, 12/18/2012 - 18:38 | 3076418 blunderdog
blunderdog's picture

I didn't call the "working classes" peasants, you did.  They certainly ARE NOT "gentry."

If your entire lifestyle is dependent on your earnings from your own labor, you're working-class.  It's pretty simple.

Given that such quaint concepts as "job security" and "pensions" (and even "retirement," to be honest) are being jettisoned, this will become much clearer over the next decade.

Tue, 12/18/2012 - 18:46 | 3076454 Spastica Rex
Spastica Rex's picture

The "working classes" are not the "gentry."

Precisely. Kind of by definition.

You know, "gentry" isn't even a social term that's used these days. I was playing with it to peel off a portion of the "99%" who think they're "working class." I'm of the opinion that the "1% vs 99%" meme is LOL funny. Our new feudal system requires patronage and fealty at many, many different levels.

Tue, 12/18/2012 - 19:02 | 3076519 hooligan2009
hooligan2009's picture

median household income for the US was under $50,000 a year ago and I don't think it's gone up much. I agree that if you work you serf. 

http://usatoday30.usatoday.com/news/nation/story/2011-09-13/census-house...

i am still of the view that the net contribution of tax payers has to increase by 14,000 per household to repay the debt that the people have incurred via mobocracy to gain their lifestyles. i don't care whether thats from benefit cuts, defense cuts or tax increases..its just the maths.

do that for ten years and america will be out of the bottomless pit that goes for being in hock to the chinese, the arabs, the japanese and the german banks.

the spectre of interest taking more than 50% of taxes ought to come a haunting in just five years from today.

Tue, 12/18/2012 - 18:44 | 3076443 Five8Charlie
Five8Charlie's picture

If you are working, you are a peasant. Not gentry.

 

Says I, the peasant.

Tue, 12/18/2012 - 17:57 | 3076255 reader2010
reader2010's picture

Your job skills are superannuated and our slaves in China are much cheaper too.

Tue, 12/18/2012 - 18:17 | 3076330 fig_newton Trader
fig_newton Trader's picture

Hello I have been arguing with a colleague based on the Feds crazy policy. If of course is a Keynesian and thinks its a good idea. To further own him and put him in perspective I would like to really elaborate on what will happen if the fed raises int rates. As I'm fairly new and young I want to get more knowledge on this. Anyone care to provide a little detail about the possible implications of rising int rates for a newbie. Thanks

Tue, 12/18/2012 - 18:28 | 3076378 besnook
besnook's picture

compound interest is an exponential chart. that means that increasing interest payments on the deficit will turn vertical . it could not reach 5% without hte usa defaulting.  the rest of the first world is in the same boat. the solution is to default now with a plan or default later in chaos because the way these things go is things happen slowly then it happens suddenly because the vertical side of the exponential chart explodes in a short time can't be stopped without disaster.

Tue, 12/18/2012 - 18:53 | 3076464 hooligan2009
hooligan2009's picture

two ways you can do this, one is average coupon (which is meaningless when you get large yield swings or highly active fed policy) or use average market yield

substitute either coupon or yield in the statement below:

plot the history of average market yield at fixed calendar dates, say in three year lumps of 30 sep 1996, 30 sep 1999....30 sep 2012 and calculate the volume of treasury debt on issue against this yield. this will give you the weighed average yield of treasury debt on issue and the amount represented by this yield in US$.

forecast the amount of treasury debt on issue subsequent to your forecast of the fiscal deficit and average market yield for further three year calendar dates..30 sep 2015, 30 sep 2018...30 sep 2027.

you can research this yourself using the Fed's databases OR you can find someone to grab Bandk of America Merrll Lynchs all maturity bond index and its Treasury Bill index at each of these dates (I reckon about two weeks work yourself or 2 hours work via a buddy at Merrill's). I think the bond index you neeed is G0V0 and G0L0 for tbills. the good news is that almost anyone who has a Bloomberg can get this data for you using Merrills IND functions.

you must distinguish your case between treasury debt on issue and fed paper on issue.

the case i have set out is for treasury debt, which has been manipulated by the Fed since the GFC.

someone else will no doubt give you a lead on fed paper on issue.

be careful also that you don't confuse Fed Funds with other Federal Agency debt like Freddie Mac and Fannie Mae for which there is a further 4-6 trillion on issue (depending on what assumptions you make about market values).

happy hunting!

for me, I am thinking about whether the inflation is a monetary phenomenom is directly related to the interest rate set by the Fed. I.e. the Fed Interest rate causes inflation.

Tue, 12/18/2012 - 18:17 | 3076332 Lost in the ether
Lost in the ether's picture

I find the chart to be a bit biased. Does a chart exist that includes 100-110, 110-120, 120-130 up to 200k. The chart is lumping mid to upper middle class with the rich. I do find the drop in the 40-80 k range to be disturbing. Who made the gains?

Wed, 12/19/2012 - 00:29 | 3077587 mwarden
mwarden's picture

the chart is showing households (tax units), not jobs. households have had multiple earners since, say, 1970. divorce has also been legal for quite a while, as well. i'll let you figure the rest out.

Tue, 12/18/2012 - 18:25 | 3076361 PGR88
PGR88's picture

Redistribution works best for those doing the redistributing

Tue, 12/18/2012 - 18:36 | 3076409 Spastica Rex
Spastica Rex's picture

A more unequal society is a morally superior one because the deserving are rewarded. The USA is approaching the level of China and Mexico.

 

Tue, 12/18/2012 - 18:44 | 3076446 Flakmeister
Flakmeister's picture

Its all explained by Social Darwinism...

Tue, 12/18/2012 - 18:57 | 3076496 hooligan2009
hooligan2009's picture

there go my animal spirits...i better get a haircut

Tue, 12/18/2012 - 19:02 | 3076529 Spastica Rex
Spastica Rex's picture

Don't despair! With hard work we can someday rise to the level of  Colombia, or even The Central African Republic!

Tue, 12/18/2012 - 19:14 | 3076597 hooligan2009
hooligan2009's picture

i have a new philosophy that i am living by...neither a tax payer nor a beneficiary be!

Tue, 12/18/2012 - 18:41 | 3076424 muppet_master
muppet_master's picture

odummernomics

is RAPING & KILLING the middle class with his stupid kenyan-kenyiasian-printer.....don't worry printer won't last forever..

by the way, somebody sold 999,100 shares AFTER HOURS @ 1721 EST, and SPY dropped to $143.7, down from the close of $145.37, but the next trade was 400 shares and that brought up the price "back to normal" of $145. LOL !!! "back to normal" with a measely 400 shares, never mind the 1mm sell shares.

http://www.nasdaq.com/symbol/spy/after-hours

 

Tue, 12/18/2012 - 18:55 | 3076492 hooligan2009
hooligan2009's picture

perhaps we should switch from a the market value of this $500 billon company is the weighted value of the last trade times shares traded and the number of shares on issue at the previous trade!

Tue, 12/18/2012 - 23:15 | 3077401 PeaceLover
PeaceLover's picture

careful your not supposed to see that.

Rigged(kind of like trusting online gambleing) they shares are to get it inline there isn't anyone on the other side to ask or bid.. it's a late night ajustment.

Night trading and can and will burn you.
You may be the fool they lay it off on.

I trade also but large lots in the AM cash only market.

PL

 

 

Tue, 12/18/2012 - 18:48 | 3076460 icanhasbailout
icanhasbailout's picture

Bullish

Tue, 12/18/2012 - 18:53 | 3076483 hooligan2009
hooligan2009's picture

drink your milk¬!!

Tue, 12/18/2012 - 18:56 | 3076497 Bazza McKenzie
Bazza McKenzie's picture

While the chart is useful info, it does not show what it is purported to do.  It shows growth at the bottom of about 3% of jobs and at the top end (90K+) of about 9%.  So most of that thinning out is the movement of people from mid level incomes to higher incomes.

That is because the chart describes Washington DC, not the US, where the picture would be different.  The chart is actually an illustration of the enrichment of most of those in government and its cronies, not of the hollowing out of the middle class.

Wed, 12/19/2012 - 00:25 | 3077581 mwarden
mwarden's picture

Also it is not showing "jobs". It is showing "households", i.e. tax units. It's an incredibly lazy way of trying to show what they want to show, and as a result it doesn't really show what they want it to show. Households with two earners become two households each with one earner making significantly less. Was there a loss of wages in a job somewhere? No. And yet the data in this scenario is (mis)interpreted as showing just that.

Tue, 12/18/2012 - 18:57 | 3076501 David99
David99's picture

ZH is only doing good job and reporting correctly. Tyler is a real true person though I have never met him. FED+BOE+ECB+BOJ are the biggest manipulators and JPM +GS +20PD's act on their behalf in this Ponzi Casino. It is all rigged Ponzi Casino. JPM & GS do maximum manipulations from London as no regulators are looking what is going on daily. London is the best place to manipulate Ponzi Casino as no regulators as they are watching porno. Manipulations of highest order without any regulations as every one has been purchased and regulators watching porno. In last 10 trading days, Rio Tinto manipulated by +25% gain and regulators watching porno. JPM doing it. It is just Casino and nothing else. Regulators are watching porno, don't know how Rio Tinto is manipulating daily. On LSE, there is no checks and balances and maximum manipulations daily by Rio Tinto. The market is Casino and the biggest manipulated stock is Rio Tinto and JPM is pulling up daily and no regulations for Rio Tinto in London

Tue, 12/18/2012 - 19:20 | 3076633 SilverMoneyBags
SilverMoneyBags's picture

Its more than clear that these policies are doing nothing more than transferring the wealth from the 98% to the 2%. And Democrats claim that they care about the middle class and poor, what a joke. They trick you into thinking your actually getting something from the government but they turn around and take everything from you including the purchasing power of the money they just gave you.

Tue, 12/18/2012 - 19:36 | 3076725 max2205
max2205's picture

Ben also fucked up by not letting the system clear. There are people who made 80k who now demand 120k. These people weren't worth 60k.

The world is fucked up

Tue, 12/18/2012 - 19:50 | 3076778 Optimusprime
Optimusprime's picture

I'm sorry, Tyler, but this is illiterate: "the flattening of America's wealth distributon Gaussian curve, aka the plunder and accelerating destruction of America's middle class, at the expense of the poorest and the wealthiest".

 

Come again?  I assume you mean to say that the the destruction of America's middle class accrues to the benefit not "at the expense" of the poorest and the wealthiest.  Slow down just a bit, take a deep breath, and say what you mean!

 


Tue, 12/18/2012 - 20:22 | 3076890 q99x2
q99x2's picture

I am not giving up my spot in front of the 7/11 for no middle classer.

Tue, 12/18/2012 - 20:33 | 3076939 H E D G E H O G
H E D G E H O G's picture

GOOD TIME TO LOAD UP SOME 5 GRAMMERS, AS IN PAMP SUISSE.

Tue, 12/18/2012 - 20:39 | 3076953 MeBizarro
MeBizarro's picture

Part of this is the rise and importance of federal spending but this is just a microcosm of global trade especially since 2000 and its effect on the developed world.  The US has chosen to follow the 'Anglo' model which has been pretty much an unmitigated disaster for the UK and hasn't worked out too well for the US either if you look at economics statistics since the end of the Cold War. 

The top 15-20% will do pretty well and the rest are going to hustle to largely get by.  If you really cut back the safety net and increase the age of retirement programs enough (say a minimum of 70), we can return to the 'good ole days' when most people either worked until they either dropped dead literally or were too physically/mentally incapable of holding a full-time job.  

Tue, 12/18/2012 - 20:59 | 3077003 rustymason
rustymason's picture

"... or were too physically/mentally incapable of holding a full-time job."

Based on the products and services I've purchased over the last couple of years, I think the new golden era has arrived.

Tue, 12/18/2012 - 20:47 | 3076985 SpykerSpeed
SpykerSpeed's picture

And if you're a recent college grad who can't program a computer to send a manned-rocket into space and back, you're pretty much out of luck.

Tue, 12/18/2012 - 20:51 | 3076991 q99x2
q99x2's picture

GS been shuffling in the client's money all this week. Probably going to be another big spike in the distribution inequality shortly.

Tue, 12/18/2012 - 20:52 | 3076993 rustymason
rustymason's picture

That's what Marxism is all about: concentrating money and control into the filthy hands of a tiny "elite" of Tribal banksters.

Tue, 12/18/2012 - 21:02 | 3077025 blunderdog
blunderdog's picture

It's what we do here in the USA, but it's not what "Marxism is about."  Marx was the guy who first pointed out the phenomenon in such simple terms. 

Wed, 12/19/2012 - 02:27 | 3077721 IridiumRebel
IridiumRebel's picture

Read "World Systems Analysis" by Wallerstein and you will see the economist's wet dream of a theory about Marxism. The problem is that it does not take into account that little thing called HUMAN NATURE. You know? That shit called motivation? Wanting more than what the government affords to give? Yeah.

Wed, 12/19/2012 - 10:13 | 3078240 blunderdog
blunderdog's picture

Marxism and communism aren't synonyms.

Tue, 12/18/2012 - 21:40 | 3077128 Oldwood
Oldwood's picture

You would be correct if there were no competition. If governments allow monopolies to exist, price will be totally defined by demand as supply can be deliberately restricted, but if competition is allowed, excess profits cannot persist. Liberals are always happy to see companies compete but not so much for the employees.

Wed, 12/19/2012 - 00:12 | 3077555 Hohum
Hohum's picture

It seems a lot of you want to return to the heyday of the 1950s.  Wasn't that the decade in which the rich (say top 10% of households) had a GREATER tax burden and GM workers made as much as college professors?  What utopia do you knuckleheads want anyway: the 1890s?  Or some Ayn Rand wet dream?

Wed, 12/19/2012 - 00:18 | 3077564 mwarden
mwarden's picture

Yes, but there is a problem with charts like these: they use tax units (households) and yet interpret it as if it's measuring per-job salaries/wealth. If you have a two-earner household, then you have one tax unit earning $x/yr. If that household then goes through a divorce, splitting the income earners, then you now have two tax units with the same number of people still earning a combined $x/yr. But according to charts like this, income has dropped 50% per household, or everyone fell out of the $x/yr income class (since you now have two tax units each earning far less than $x/yr).

 

At the high end, you are much more likely to have a single-earner household, and even if you didn't, the disparity between the two earners is generally high enough that a divorce does not pull the higher earner out of the bracket he or she was already in.

 

There have been some studies that take this distortion into account and have shown that median incomes have been rising. Rising slowly, yes; but certainly not falling.

Wed, 12/19/2012 - 00:53 | 3077627 jomama
jomama's picture

you mind posting any one of those studies we can read that concludes that?

Wed, 12/19/2012 - 01:03 | 3077640 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Survival of the fattest.

Wed, 12/19/2012 - 01:45 | 3077676 David99
David99's picture

Don't buy any stock at these high levels as crash is coming. FED, BOE, ECB, BOJ are pumping but for how long?

Wed, 12/19/2012 - 02:14 | 3077703 Body of Lies
Body of Lies's picture

The majority of these 100k+ jobs are with the Federal Governement. As we have seen before here at ZH, the Federal employee makes about twice as much as the private sector emplyee, doing the same thing ... and the federal Government has grown substantially since 2008. State government too ... in California, the number of 'pubic servant' has doubled since 2006.

Wed, 12/19/2012 - 02:31 | 3077722 newengland
newengland's picture

The biggest growth of jobs in the U.S. in recent years has been in government, social control; the same freaks who trade liberty for security, and lose both, and deserve neither.

The Dark Knight will fall, by its own hate, an implosion. No surrender.

Wed, 12/19/2012 - 02:26 | 3077720 newengland
newengland's picture

Death. America. Middle. Class. How about this for an example of middle class death:

CIA agent Nancy Lanza breached op. sec., and was trying to run away. Instead, she was shot, and her son is dead.

Police scanners audio and visual reveal two shooters outside the school, running away, and apprehended. Two men. Eye witnesses say the two men wore 'cam trousers and black tops'. 

Nancy Lanza did NOT work at the school. Locals know this, and say this.

The reporting of the killing in CT is rank bull$hit, designed to mask something terrible that suits the corporatists, and AshkeNAZI who are not jewish, yiddish or semite. They are a war tribe, descendants of Genghis Khan, Zionists.

Strange how old and new media don't report that. The death of middle class American values suits some media, owned by the AshkeNAZI.

We will remember, and do not buy the main scream media disinformation and misdirection that a lone gunman and his mommy are solely to blame for killing children in Sandy Hook.

Wed, 12/19/2012 - 03:12 | 3077741 newengland
newengland's picture

According to Reuters (15-12-12), Chief Medical Examiner H. Wayne Carver stated that the gunman in the school shooting used a rifle primarily, and that the victims were shot multiple times from 3 to 11 times.

Since the police claim the rifle was still in the trunk of Adam Lanza's mother's car, how could it have been used as the primary weapon?
Unless of course, there were indeed multiple shooters involved.

And why did Adam Lanza wear a mask and body armor if he intended to kill himself?

Still no more reports of the two assailants who fled the scene, apprehended by the police. Still no more reports of the maroon vehicle that fled the scene.

The middle class are being enslaved and slaughtered, on their knees, rather than standing up for honesty. 

This time, it's personal, Dark Knight, nancy boy.

Wed, 12/19/2012 - 03:20 | 3077745 SanOvaBeach
SanOvaBeach's picture

I did enslave and slaughter them.  Feel good about it.  I won!  Got enough to live the way I want to until I'm 167 yrs. old.  Gotta go!  To buy some guns before they run out.

Wed, 12/19/2012 - 04:27 | 3077771 newengland
newengland's picture

In your dreams, nancy boy. Still living in Mommy's basement?

Wed, 12/19/2012 - 11:37 | 3078675 SanOvaBeach
SanOvaBeach's picture

Nope!  In a house overlooking the ocean on the Liberal Coast.  Paid for I might add.  How you doing, asshole?  Still flipping burgers!

Wed, 12/19/2012 - 03:14 | 3077743 SanOvaBeach
SanOvaBeach's picture

Don't give a fuck!  I became the upper class by fucking the middle class.  Have absolutely no bones about it.  This is capitalism.  Don't like it, move to North Korea.

Wed, 12/19/2012 - 04:31 | 3077775 newengland
newengland's picture

Silly boy, fantacist.

You wouldn't know 'upper class' if it was handed to you on a gold plate. 

Manners maketh man, and your manner is bargain basement coarse.

Wed, 12/19/2012 - 05:22 | 3077812 bunnyswanson
bunnyswanson's picture

The Meek Shall Inherit The Earth, it is said.  I do not know but I can only hope this prediction is true. 

Humility Opens Doors -- Marcellino D'Ambrosio, Ph.D.

Meekness is not weakness. Rather, it is strength under control, power used to build up rather than tear down.

Wed, 12/19/2012 - 06:46 | 3077859 newengland
newengland's picture

'power to build up rather than tear down.'

Nicely said. 

Wed, 12/19/2012 - 11:43 | 3078707 SanOvaBeach
SanOvaBeach's picture

Tear down and make a profit for me, me, me, me, me, me, me.....Brought to you by the Me Generation.

Wed, 12/19/2012 - 11:40 | 3078686 SanOvaBeach
SanOvaBeach's picture

Phd = Piled High Deep.........u really take yourself seriously, don't yea.  Try Eric Hoffer, you'll feel better.

Wed, 12/19/2012 - 08:21 | 3077947 Setarcos
Setarcos's picture

You upper class LOL.

If you were amongst the 1%, sure as hell you would not be posting ludicrous comments in ZH.

Wed, 12/19/2012 - 11:40 | 3078695 SanOvaBeach
SanOvaBeach's picture

Do u shit ice cream?  Upper 10%, moron!

Wed, 12/19/2012 - 11:44 | 3078710 SanOvaBeach
SanOvaBeach's picture

Speak for youself, jack-off!

Wed, 12/19/2012 - 03:43 | 3077761 Salon
Salon's picture

Lol nice reference to Mark Twain.

When he was asked how he went bankrupt Mark Twain answered "first very slowly, then very rapidly."

Wed, 12/19/2012 - 04:26 | 3077770 newengland
newengland's picture

The problem with money whores is that they wind up with whores, political, financial, legal, media,  and weird.

Wed, 12/19/2012 - 11:28 | 3078642 SanOvaBeach
SanOvaBeach's picture

I love being a money whore.  Feels so good!

Wed, 12/19/2012 - 04:38 | 3077783 pcrs
pcrs's picture

These must be the fat tails of the distribution you hear Taleb go on about

Wed, 12/19/2012 - 05:00 | 3077792 ak_khanna
ak_khanna's picture

The middle class is vanishing because the politicians elected by them make rules for the benefit of and work for the real rulers of the world, the top richest 1% of the population and the major contributors to their election fund.

They bail out the bankers and the rich corporatio­­­­­­­­­ns (who should not be in business because of their incompeten­­­­­­­­­ci­e­s­) without even changing their previous management because they fund the election campaigns and also place them in their organisati­­­­­­­­­on­s at exorbitant salaries once they leave office. This class alongwith the rich individual­­­­­­­­­s pay the minimum amount of tax while getting the maximum benefit of the tax collected from the rest of the population in the form of bailouts.

The rest of the population is least of their concerns. The only activity they do is pacify the majority of the population using false statistics and promises of a better future so that they do not lynch them and their masters while they are robbing the taxpayers.

http://www.marketoracle.co.uk/Article35345.html
www.letstalkmoney2012.in

Wed, 12/19/2012 - 05:54 | 3077826 TuesdayBen
TuesdayBen's picture

Been in DC 20 years now. It is all attorneys and contractors living large getting paid with ObamaBucks. General Washington would puke if he saw what has arisen in his wake. He'd insist the city no longer be named for him. He'd probably feel inclined to challenge the disgrace in the White House to a duel on account of the disgrace's disgraceful demeanor and performance.

This town should be known as Fat City. This town is all about paying on Tuesday for a fat meal today. See Obama. See Tuesday Ben Bernanke. See 'fiscal cliff' charade.

The Federal City doesn't serve the average American. The average American serves the Federal City. Pay up, sucka's.

Wed, 12/19/2012 - 06:06 | 3077838 David99
David99's picture

FED is the biggest criminal on this planet.

ZH is only doing good job and reporting correctly. Tyler is a real true person though I have never met him. FED+BOE+ECB+BOJ are the biggest manipulators and JPM +GS +20PD's act on their behalf in this Ponzi Casino. It is all rigged Ponzi Casino. JPM & GS do maximum manipulations from London as no regulators are looking what is going on daily. London is the best place to manipulate Ponzi Casino as no regulators as they are watching porno. Manipulations of highest order without any regulations as every one has been purchased and regulators watching porno. In last 10 trading days, Rio Tinto manipulated by +25% gain and regulators watching porno. JPM doing it. It is just Casino and nothing else. Regulators are watching porno, don't know how Rio Tinto is manipulating daily. On LSE, there is no checks and balances and maximum manipulations daily by Rio Tinto. The market is Casino and the biggest manipulated stock is Rio Tinto and JPM is pulling up daily and no regulations for Rio Tinto in London

Wed, 12/19/2012 - 08:00 | 3077912 Setarcos
Setarcos's picture

OK and maybe, but why do you keep pasting the same comment in different threads?  Especially because it is only semi-literate and does not altogether make sense.

Wed, 12/19/2012 - 07:49 | 3077888 honestann
honestann's picture

As someone who started with nothing ($2000 in savings when I graduated high school, left home and never borrowed a dime thereafter) and made a comfortable life for myself (though maybe only comfortable for someone super-frugal like me), I can say without any doubt that my ability to save was one of the key aspects of my ability to bootstrap myself up from nothing.  True, being very frugal was important, never borrowing was important, working 80~100 hours per week (for myself) for years on end was important, and being intellectually independent was important.  But my insistence on saving was also key, and one could do without some of my other traits given the habit of savings.

But savings is no longer possible in any real sense, because interest rates on savings are much lower than inflation.  Thus savings is a losing game today, whereas it was modestly helpful in the 1980s and 1990s.  Fortunately for me, I switched to saving 100% in gold many years ago, and that "smart choice" very much helped me avoid getting raped by the predators-that-be and predator-class.

Actually, having gone back and read what I wrote above, I am a bit shocked how many wise choices I had to make to achieve what I now consider "the good life" (a "good life" that most people would consider unattractive, not because I don't life in comfortable (and self-sufficient) digs, but because I live so far out in the extreme boonies, which personally I love).

This reflection makes it seem the process of getting ahead in life is now impossible (versus before, when it was merely extremely difficult).  However, to offset this thought, I must also admit I made some bad and questionable decisions too, and suffered serious setbacks in 3 cases when I took on partners who turned out to be ethics-free predators who simply knew how to put on a good show (part of me learning that predators are masters of illusion).

Also important in my case is, I never tried to optimize revenue or get rich.  My goal was to pursue what interested me, and create technological products that I considered cool and personally appealing.  In retrospect I believe this was wise overall, but I definitely took this modus-operandi too far (most people would say "way, way, insanely too far).

I wish my experiences could be a good guide to young folks just getting out of high-school or college today, but quite possibly the environment we live in has changed too much to take my life lessons wholesale.  Yet, I think some of my principles are still valid.  Gads, I'm not nearly old yet, and I'm discussing life lessons?  Shoot me!  :-)

Actually, that makes me realize one point.  If I was young today, I would absolutely get out of the USSA or Europe and move to asia, south-america, or some less obvious niche location.  Where is best for any individual very much depends on their personal dislikes, likes, goals, skills and interests.  But go!  Move to xxxxx (fiji or chile or iceland or mongolia are just 4 potentially great choices), and then my life lessons will probably still work pretty well... if you apply them rigorously.  However, if you're not capable of being honest, alert, frugal, ethical, energetic, dedicated, self-confident individual... better ask someone else, because my life lessons won't work.

The easier and simpler way to get rich is be a dishonest, unethical predator and become part of the government or large corporation.  However, if you do this, please paint an indelible bullseye on your forehead.  The good folks seriously need target practice.

Wed, 12/19/2012 - 11:33 | 3078660 SanOvaBeach
SanOvaBeach's picture

Super-frugal = tight-wad, cheap-ass fuck!  Do you leave tips at resturants?  Probably not.  In my twenties, I ran around with a crowd that included a women that would always say at the beginning of Friday night, "I only have three (3) dollars."  Perhaps I should introduce you to her!  I'm sure you would make fast friends.

Wed, 12/19/2012 - 13:40 | 3079238 honestann
honestann's picture

Of course I leave tips, unless the service royally sucks.  Being frugal absolutely starts with ourselves... saving a few bucks on tips now and then is peanuts compared to what we buy or don't buy for ourselves.

If you ready what I said, you'll notice that what I do buy, I exclusively buy high quality versions, which is not cheap.  As a result, the seller receives more from me that average folks (and gives me something better in return).

I have never purchased or owned a TV, a stereo, a boombox, expensive clothes or shoes (items that cost more than $50), and so forth.  And I don't throw away clothes because they are out of style, I continue to wear them.  I never started to drink alcohol or smoke cigarettes, which saved me how much over 20 years?  I never borrowed money, so I never wasted any money on interest payments.  My cars have all been Hondas, which are reliable and get good mileage, but not fancy or expensive.

I held off buying an airplane for myself for 20 years after I got my pilot license until one existed that only cost $125K brand new, cruises at 285kph, gets 75 miles per gallon at economy speed (240kph), flies up to 4000km+ non-stop on a tank of automobile gasoline, and is totally modern (GPS, autopilot, glass-cockpit, etc).  Of course, I sorta need something like this now, because I live a self-sufficient life in the extreme boonies where no roads go, where there are no humans within 20km, and less than 100 humans within 120km.  So every month or three that's my way to go get supplies I can't produce myself.  And yes, I generally treat myself to a meal at a restaurant when I fly to town (population 500 or so), and leave a 15% tip.

In other words, frugal as I mean it means depriving me, not others.  Though frankly, I don't miss very few items that most people buy but I did not.  I valued the flexibility having savings gave me more that the junk others collected.

I've spent a LOT of money on high-tech equipment like 4-trace 5Gsps oscilloscopes, solidworks software, and so forth, because I needed that equipment to design, develop and implement the products that have been my means of self-support and income over the years.  In this area I have been careful, not purchased things unless I need them, but when I do, I again buy high-quality, high-performance equipment and supplies.

And my point was (as elaborated above), I was able to afford to recently become self-sufficient, and have a few very nice goodies like my airplane and a home in the boonies, largely (but not exclusively) because I was frugal for so many years.  I am so, so, soooooo glad I was.  BTW, frugal == responsible.

Consume it now or consume it later.  The choice is yours.  I'm very, very glad I chose to consume later.

You know what?  I don't think I'm anything like your friend... or you.  I don't cheat anyone, never have, and never will.

Wed, 12/19/2012 - 08:39 | 3077981 Yoann
Yoann's picture

Zerohedge has been cited on marketwatch

check : http://blogs.marketwatch.com/need-to-know/2012/12/19/6-gut-checks-before...

Wed, 12/19/2012 - 09:24 | 3078073 Watauga
Watauga's picture

Who's fault is it?

(1) G.W. Bush

(2) The federal employee

(3) The state employee

(4) The local govt employee

(5) The vast Rothschild conspiracy

(6) The 1%

(7) The vast, right-wing conspiracy

(8) The "elite"

(9) Dick Cheney

(10) Don Rumsfeld

(11) whoever else those who have not met their own expectations want to blame.

Do NOT follow this link or you will be banned from the site!