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When Americans Can't Afford A Dollar

Tyler Durden's picture





 

Today's market moving news (or at least what should be market moving news) comes from hyper discounter extraordinaire, Family Dollar, whose stock is getting clobbered on what is merely the latest downward outlook revision (because as much as the Fed would like, reality, and cash flows, still do matter). Yet, while earnings not only for the $0.99 store but for the entire S&P will be atrocious something that apparently only selling copious amounts of VIX and buying up the ES in hopes of lifting all sinking boats can fix, it is the comments on the conference call that are most disturbing. To wit:

  • FAMILY DOLLAR QTR DISCRETIONARY SALES SLOWED MORE THAN EXPECTED
  • FAMILY DOLLAR SEES NEAR TERM CHALLENGES IN DISCRETIONARY ITEMS
  • FAMILY DOLLAR SEES 2Q GROSS MARGIN PRESSURE MORE VS 1Q
  • FAMILY DOLLAR SEES 1H13 MORE CHALLENGING THAN EXPECTED
  • FAMILY DOLLAR QTR AVG DISCRETIONARY INVENTORY PER STORE DOWN
  • FAMILY DOLLAR SAYS BUSINESS CLIMATE REMAINS UNCERTAIN

In any other universe, when Americans can't afford a dollar, literally, on purchases, this may be cause for alarm. But not in this one: here, courtesy of Bernanke's central planning, all shall be well. After all: instead of buying "stuff", America's 50 million food stamp recipients should just buy AAPL stock, and retire happily in a few short months if not weeks.

Worst case, they can always convert their stocks into fruity paraphernalia.

 


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Thu, 01/03/2013 - 11:43 | Link to Comment Lost Wages
Lost Wages's picture

I bought six candles at Dollar General the other day. Sorry Family Dollar.

Thu, 01/03/2013 - 11:48 | Link to Comment lakecity55
lakecity55's picture

I got you beat. I found half a box in a dumpster.

 

Thu, 01/03/2013 - 12:06 | Link to Comment francis_sawyer
francis_sawyer's picture

I made some out of rendered tallow...

Thu, 01/03/2013 - 12:25 | Link to Comment Bendromeda Strain
Bendromeda Strain's picture

Anyone we know?

Thu, 01/03/2013 - 12:38 | Link to Comment pods
pods's picture

No one who will be missed.

Thu, 01/03/2013 - 13:32 | Link to Comment formadesika3
formadesika3's picture

cellulite works well.

Thu, 01/03/2013 - 12:46 | Link to Comment Cortez the Killer
Cortez the Killer's picture

I made a lampshade out of your Mom's diseased flesh

feel better now?

Thu, 01/03/2013 - 14:01 | Link to Comment pods
pods's picture

Okay, who brought the cool kid?

pods

Thu, 01/03/2013 - 12:18 | Link to Comment Freddie
Freddie's picture

Maybe they should start selling ammo.  Like .22.

Thu, 01/03/2013 - 12:54 | Link to Comment JeffB
JeffB's picture

One at a time.

Thu, 01/03/2013 - 12:31 | Link to Comment Harbanger
Harbanger's picture

I wonder how long before we start seeing copper cables, pipes, bolts and manhole covers missing? You need to own commodities bitches!

Thu, 01/03/2013 - 12:42 | Link to Comment blindchicken
blindchicken's picture

Here in Germany, nearly every day local newspapers report about stolen cables (often from building or railway sites), rain gutters, and everything copper even from graveyards. 'Rich country' does not mean everyone is rich ..

 

Thu, 01/03/2013 - 13:00 | Link to Comment JeffB
JeffB's picture

One of my clients had a rental home that was burglarized recently while her friend living there was away. They tore the furnace apart to steal the copper coils. The police said it looked like professionals who knew what they were doing as they did it quite efficiently and were in and out of there in a flash.

We've had others who have had copper gutters stolen and even pipes ripped out of a basement while they were on vacation which caused a lot of water damage to boot.

Thu, 01/03/2013 - 13:04 | Link to Comment Stuntgirl
Stuntgirl's picture

That's being going on in Spain for the last 5 years...

Towns out of power cause the entire power line got stolen for miles.

Newly-built ghost towns needing security personnel because the waterpipes and electric cable get ripped out. Now the builders don't even pay for the security.

In my street in Madrid, every day, Eastern Europe dudes ripping appliances apart, to extract the copper. The little kids have nimble fingers.

 

Thu, 01/03/2013 - 13:41 | Link to Comment TPTB_r_TBTF
TPTB_r_TBTF's picture

For Germany this is a Win-Win:

 

  • The Rumänians resell the metal in country so these resources are not lost to the local economy.
  • The Rumänians send the Euros back to SE Europe, so the families there can buy Made in Germany.

 

definitely a  Win-Win for all Keynesians involved.

 

Edit:  ummm...?! The Germans will be more inclined to buy insurance!

Disclosure: long FRG Insurers

Thu, 01/03/2013 - 12:43 | Link to Comment trav777
trav777's picture

this sort of stuff already happens in black dominated areas

Thu, 01/03/2013 - 13:00 | Link to Comment toady
toady's picture

Don't forget the Hispanics. The Phoenix metro area was getting hammered by these sorts of activities until they had a major bolt-everything-down campaign last year.

Still, about once a month you hear all the brass urns where stolen from a cemetery, or someone stole a metal statue out of a front yard, only to find it in several pieces at several recyclers.

And, of course, every spring, we find foreclosed homes with the AC units and copper stripped.

Thu, 01/03/2013 - 13:01 | Link to Comment Meatballs
Meatballs's picture

Don't kid yourself- manhole covers, storm grates, large generators attached outside, copper from empty houses- right here in lily white rural Connecticut. Don't be such a racist...

Thu, 01/03/2013 - 13:15 | Link to Comment trav777
trav777's picture

it doesn't ONLY happen where I said it happens; it is merely substantially MORE COMMON.

You people seem to be incapable of conceptualizing more than a binary outcome model

Thu, 01/03/2013 - 13:19 | Link to Comment Meatballs
Meatballs's picture

'You people?' Ooooh, I am humbled by your brilliance. Not. 

I've got your binary outcome model right here.

Thu, 01/03/2013 - 15:43 | Link to Comment toady
toady's picture

Love the 'you people', so old school!

Most folks hid it with 'they' & 'them'.

Thu, 01/03/2013 - 13:05 | Link to Comment DaveyJones
DaveyJones's picture

That's funny I work in the system and see plenty of poor white boys stealing stuff. Like Tyler, I even see rich boys stealing to support their addiction

Thu, 01/03/2013 - 14:43 | Link to Comment MsCreant
MsCreant's picture

You have not seen anyone trying to prosecute a banker for his or her theft have you?

Thu, 01/03/2013 - 15:01 | Link to Comment gmrpeabody
gmrpeabody's picture

Well played...

 

Thu, 01/03/2013 - 15:31 | Link to Comment DaveyJones
DaveyJones's picture

no, sadly MsC when you own the courthouse, you rarely visit.

Thu, 01/03/2013 - 12:46 | Link to Comment pods
pods's picture

As of now at least a couple a year are barbecued trying to steal the windings of transformers.

pods

Thu, 01/03/2013 - 13:12 | Link to Comment kridkrid
kridkrid's picture

One case of that right down the street from me. It wasn't reported that way, but I wonder.

Thu, 01/03/2013 - 13:27 | Link to Comment trav777
trav777's picture

this is contraction...scavenging.  Things in existence favored over promises

Thu, 01/03/2013 - 15:40 | Link to Comment FrankDrakman
FrankDrakman's picture

Even here in the relatively affluent Great White North, you can see the old telephone junction boxes by the street ripped open and gutted. The telco doesn't care, as they went fibre in our area years ago.

Relatives in the Philippines report some people were making a profit shipping 40-gal containers of Phil. Pesos offshore to be melted down for their copper and zinc. That was a few years ago, though.

Fri, 01/04/2013 - 10:28 | Link to Comment Orange Pekoe
Orange Pekoe's picture

That's why those phone boxes look junked. They are gutted everywhere. I've been wondering that forever, thanks.

Thu, 01/03/2013 - 12:13 | Link to Comment El Oregonian
El Oregonian's picture

How many candles are needed to be officially in mourning?

Thu, 01/03/2013 - 11:46 | Link to Comment Cdad
Cdad's picture

I thought history was not supposed to ever repeat?  Ummm...this is 2008 redux...almost to a "T". 

Switching to monthly charts...

Thu, 01/03/2013 - 11:52 | Link to Comment vast-dom
vast-dom's picture

this has nothing to do with 2008. moar qe trumps charts, time, space and physics.

Thu, 01/03/2013 - 11:54 | Link to Comment Cdad
Cdad's picture

Time, space, physics...but not one single dollar?

Thu, 01/03/2013 - 11:57 | Link to Comment vast-dom
vast-dom's picture

dollar is quantum. quantum like shrödinger's cat. like quantum easing.

Thu, 01/03/2013 - 12:01 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Yes, a game of trust and CONfidence.  America has never had to deal with such a crisis before.  That sure is a lot of paper promises you've got there, this should get interesting.

Thu, 01/03/2013 - 11:44 | Link to Comment tooriskytoinvest
tooriskytoinvest's picture

We Could Be In An Endless Financial Crisis And Markets Are To Implode AGAIN As Government No Longer Can Delay The Inevitable Catastrophe

http://investmentwatchblog.com/we-could-be-in-an-endless-financial-crisi...

Thu, 01/03/2013 - 11:53 | Link to Comment adr
adr's picture

When the government becomes the family using one credit card to pay another, I think you can call it an endless financial crisis.

Thu, 01/03/2013 - 11:45 | Link to Comment TheDarkKnight
TheDarkKnight's picture

My neighbor said he had these shiny yellow metals that could get him all the fiat he wanted. I haven't seen him in a while now that I think of it..

Thu, 01/03/2013 - 12:07 | Link to Comment francis_sawyer
francis_sawyer's picture

check the bottom of the lake...

Thu, 01/03/2013 - 11:46 | Link to Comment fonzannoon
fonzannoon's picture

Yet we send 85 bil every month to the banks to drown people in more debt. There is no consequences, apparently, to printing money, but we won't break up that 85 bil and send each person a check. Nah.

Thu, 01/03/2013 - 11:49 | Link to Comment TheDarkKnight
TheDarkKnight's picture

You can't send the sheep checks, they're too stupid to know what the hell to do with it. Only the masters are smart enough to know how to spend it

 

/sarc

Thu, 01/03/2013 - 12:23 | Link to Comment ZeroPoint
ZeroPoint's picture

The danger is that the sheep pay off their debts and buy real assets. 'The masters' can't have that.

Thu, 01/03/2013 - 17:01 | Link to Comment Dr. Sandi
Dr. Sandi's picture

That'll never be a problem as long as the bedroom still needs a big screen plasma and Kayla needs a BMW to get to high school.

Thu, 01/03/2013 - 11:50 | Link to Comment TerminalDebt
TerminalDebt's picture

It's not printing, its "balance sheet expansion".

What do you think this is? Zimbabwe?

Thu, 01/03/2013 - 11:52 | Link to Comment a growing concern
a growing concern's picture

That would be $3400 annually for every person in the US. I guarantee that would have a much more positive impact on our economy than giving it to JPM and those fucks. So clearly it isn't about the economy but about giving a sweet reacharound for one's bankster friends.

Thu, 01/03/2013 - 12:24 | Link to Comment busted by the b...
busted by the bailout's picture

We can't do that because it's re-distribution of wealth, aka socialism. 

But bailing out banks is OK, that's capitalism.

Thu, 01/03/2013 - 14:23 | Link to Comment Central Bankster
Central Bankster's picture

Wrong. Bailing out the banks is fascism. Capitalism does not exist in the USA. 

Thu, 01/03/2013 - 12:28 | Link to Comment Vagabond
Vagabond's picture

Or more than 80k annually for every "officially unemployed" person.

Thu, 01/03/2013 - 12:50 | Link to Comment michael_engineer
michael_engineer's picture

Sending out checks would tend to try and increase flow of resource stocks from resource stockpiles. If resource stockpiles are constrained and unable to support additional flow then an alternative is to institute austerity by whatever means available such as by fiscal cliff or fiscal crises of any of the current flavors making the rounds at all levels of government and finance.

Thu, 01/03/2013 - 13:07 | Link to Comment Anusocracy
Anusocracy's picture

Remember, everything that the FED and the government does is for the benefit of every American.

If the Elite and the government happen to benefit more, that's just coincidental.

Thu, 01/03/2013 - 13:14 | Link to Comment michael_engineer
michael_engineer's picture

That's an interesting handle you got there. Amused me as much as your comment did.

Thu, 01/03/2013 - 22:49 | Link to Comment Anusocracy
Anusocracy's picture

Thanks.

I thought about using Parasitocracy

Thu, 01/03/2013 - 11:47 | Link to Comment Shizzmoney
Shizzmoney's picture

The thing is, the markets CAN'T implode.......because if they do, the oligarchs (I think) finally lose their grip on society.....especially in America, because we are prideful as we are crazy.

That's why the fudges numbers, the can kicking, the "do-just-enough" attitude by leaders on both sides of the isle (especially the Democrats).

You can only clog your ears and say, "It's gonna be OK!!!!!!111" over and over for so long.

Thu, 01/03/2013 - 11:48 | Link to Comment spanish inquisition
spanish inquisition's picture

Totalitarianism or Bust!

Thu, 01/03/2013 - 11:47 | Link to Comment youngman
youngman's picture

Obama by not telling the truth thru the government numbers....BLS numbers and such...is doing a great job of lowering the lower bars for this country...we will have a third world lower class of people that will add nothing to the economy...in fact they will be an anchor to it...sure they will vote for the Democrats....but will bea taker all their lives...again the 47% will be the 55%...the takers vs the producers...they will win.....until the producers quit

Thu, 01/03/2013 - 13:02 | Link to Comment Bananamerican
Bananamerican's picture

"we will have a third world lower class of people that will add nothing to the economy...in fact they will be an anchor to it...sure they will vote for the Democrats...."

too late.....and they're called "diversity-voters" not "anchors" 

Thu, 01/03/2013 - 11:47 | Link to Comment JiminGA
JiminGA's picture

Interesting.  Dollar General and Variety Wholesalers's various stores are having record sales and profits, and DG is growing like crazy.

Thu, 01/03/2013 - 11:51 | Link to Comment adr
adr's picture

Don't confuse growth with painting the tape and leveraging bullshit for better stock options for executives. I've got about 10 Dollar General stores within 15 miles of me. They all look like morgues.

You really think Five Below is actually growing? If you count accounting fraud as growth, well then yes they are.

Thu, 01/03/2013 - 12:23 | Link to Comment Freddie
Freddie's picture

+1

I don't even go to those $1.00 places anymore or Lowes or Staples or anywhere. Pretty much it is food only and I am not hurtin like many other people. 

I drive past a Family Dollar on a daily basis and it is dead.  Many restaurants are dead.  A few catering to wealthier old people are still doing okay.

Thu, 01/03/2013 - 13:25 | Link to Comment Anusocracy
Anusocracy's picture

It makes more sense to shop at Aldis than Family Dollar.

The pricing and quality are better.

Thu, 01/03/2013 - 11:47 | Link to Comment SHEEPFUKKER
SHEEPFUKKER's picture

What's a dollar? I forget. 

Thu, 01/03/2013 - 13:02 | Link to Comment L_Conquistador
L_Conquistador's picture

Look in the gutter.  You'll see some paper rectangles among the pennies, used chewing gum, cigarette buts and other stuff not worth bending over to pick up.

Thu, 01/03/2013 - 11:47 | Link to Comment azzhatter
azzhatter's picture

True story, I was in a dollar tree store this weekend. I buy cleaning supplies and stuff there all the time. There was a guy and his daughter checking out in front of me. He had 4 items($1 a piece for all items). He was counting out maybe $3.50 of it in nickels, dimes and pennies. My first reaction was to give him a couple of dollars to speed things along but I didn't.  There is a lot of desperation out there folks and the Charlatan occupant of the white house is off in Hawaii planning our next ass raping

Thu, 01/03/2013 - 12:15 | Link to Comment tnquake
tnquake's picture

A friend of mine, who is a general contractor, used to retar the roofs on General Dollar stores. The manager of a store in Memphis told him that they had a 30% shrinkage at the store. She said it did not change much with an armed guard, so they let him go. Price of doing business in some areas.

Thu, 01/03/2013 - 12:58 | Link to Comment BlueCollaredOne
BlueCollaredOne's picture

That's because it was most likely the employees.  

I worked part time at Best Buy while in high school.  The man in charge of loss prevention was caught trying to steal 25k worth of computers.  It was most likely not his first time stealing, but simply the first time getting caught.  

If you've ever waited tables you will also see how bad employees rob their employer.  Between the giving away and consumption of free drinks, free meals, and the amount of steaks/seafood that walk out the back door, it is amazing more restaurant owners don't have cameras throughout the place.  

Thu, 01/03/2013 - 17:03 | Link to Comment Dr. Sandi
Dr. Sandi's picture

If there were cameras inside restaurant kitchens, nobody would eat the lobster bisque.

Thu, 01/03/2013 - 12:27 | Link to Comment Freddie
Freddie's picture

Memphis = ObamaLand.  I would not want to be near Memphis when s**t falls apart. When people steal/shoftlift that much at a Dollar General then you know things are bad.

I went in a cell phone store is a very nice neighborhood in a very nice  and safe town.  They have an armed guard during the day with guy employees and fairly upscale clientele.  At night when there were two girls working no guard.

Thu, 01/03/2013 - 12:52 | Link to Comment LFMayor
LFMayor's picture

Memphis = Memphrica

Thu, 01/03/2013 - 13:32 | Link to Comment pursueliberty
pursueliberty's picture

Only rivaled by st. louis in this part of the country.  I've been to some bad areas in Memphis and I thank the .gov for giving me the right to be equal in the firearms department.

It is funny to see the white flight that took place in memphis and then moved to north miss.  I read recently that due to the failure of inner city memphis schools they wanted to consolidate white schools.  Somebody could make a fortune buying the land north of memphis if that ever happened.

Thu, 01/03/2013 - 12:50 | Link to Comment Chupacabra-322
Chupacabra-322's picture

2 azzhatter,

I would of given him a couple of bucks.  Perhaps some of those nickels and dimes would have been pre 1964 Silver and pre 1982 copper pennies. 

Thu, 01/03/2013 - 13:18 | Link to Comment azzhatter
azzhatter's picture

I thought about that after I got home

Thu, 01/03/2013 - 13:06 | Link to Comment Meatballs
Meatballs's picture

Let's not forget the charlatans in Congress, eh? All spending and 'laws' originate where? A lot of you seem to forget that it's a club and we ain't in it. It truly is boiling down to us against (all) of them.

Thu, 01/03/2013 - 14:21 | Link to Comment smlbizman
smlbizman's picture

i have started responding to people that mention the cost of things...for instance my wife just bought a desk calendar...she said it was 4 dollars last year and 12 this year...i told her that with 2 '64 qtrs and a '64 dime you could have bought it for 60 cents, so thats not bad.....it seems easier for them to digest than all the technical qe etc. ...it helps if you carry a couple with you, the visual helps them out...

Thu, 01/03/2013 - 11:48 | Link to Comment Nothing To See Here
Nothing To See Here's picture

A real dollar costs 31,03 federal reserve notes as of right now... No surprise that more and more americans can't afford it.

Thu, 01/03/2013 - 12:14 | Link to Comment rwe2late
rwe2late's picture

 Nor perhaps can dollar stores continue to profit if they maintain a $1 price for their items. The margin is getting squeezed.

I have noticed several local "dollar stores" are no longer strictly dollar stores, but have raised their prices for many if not most of their goods.

 

Thu, 01/03/2013 - 12:30 | Link to Comment Vagabond
Vagabond's picture

We'll see the $5 store soon enough.

Thu, 01/03/2013 - 13:23 | Link to Comment Bollixed
Bollixed's picture

When I was a kid we had what they called "Five and Dime" stores. Now that kind of verbage is just drug lingo.

Thu, 01/03/2013 - 15:50 | Link to Comment FrankDrakman
FrankDrakman's picture

I remember the "5 and Dime". If you think about, in 50 years, this has gone up to $1, or inflation of 20x. But, if you look at goods only, we've actually had deflation over the last 50 years (services, government and the MIC not included). So, the actual inflation rate, due to FRN printing, is much higher than 20x; probably closer to 40x. 4000% in 50 years is about 18% per year!

Thu, 01/03/2013 - 13:11 | Link to Comment L_Conquistador
L_Conquistador's picture

I've noticed that they used to have a couple of aisles of food, but now they only have 1/2 an aisle of food items for $1.

Thu, 01/03/2013 - 11:48 | Link to Comment busted by the b...
busted by the bailout's picture

They beg in other third world countries, why not here?

or

Maybe people just don't like Family Dollar anymore.

Thu, 01/03/2013 - 12:06 | Link to Comment Things that go bump
Things that go bump's picture

People do beg here.  There is always a raggedy guy or gal at the freeway exits by the mall.  They always hold up signs claiming to be homeless vets, anything will help. 

Thu, 01/03/2013 - 12:27 | Link to Comment busted by the b...
busted by the bailout's picture

Yes, that's my point -- we are becoming as poor as a third world country.

Thu, 01/03/2013 - 11:49 | Link to Comment adr
adr's picture

Well if that is a beggar in Pittsburgh, you can be sure she gets into a nice white Escalade and drives home to The Hill to celebrate her take with EBT lobster and steak.

Thu, 01/03/2013 - 12:07 | Link to Comment Mad Mohel
Mad Mohel's picture

Notice he has a nice iFuck running from his front pocket to his ears. Even has the volume control on the wire, the lucky "bum".

Thu, 01/03/2013 - 12:13 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

She?  It's a woman?

Thu, 01/03/2013 - 11:49 | Link to Comment SamAdams
SamAdams's picture

Clearly bullish. With unemployment a low 7.6%, confidence encourages purchase of high dollar goods. /s

Thu, 01/03/2013 - 11:50 | Link to Comment IvyMike
IvyMike's picture

The "dollar" stores mostly sell junk. Even poor people are realizing that now.

Thu, 01/03/2013 - 11:55 | Link to Comment duo
duo's picture

like knockoff toothpaste with dangerous levels of fluoride?

Thu, 01/03/2013 - 12:41 | Link to Comment donkshover
donkshover's picture

I bought a sunscreen lip balm  in Las Vegas from one of these stores- thought I was getting  a deal!  the balm tube inside  was only 1/5 the lengthof the tube it came in- screw that!

Thu, 01/03/2013 - 12:12 | Link to Comment UGrev
UGrev's picture

mostly..however, I picked up some of the new flourescent lamps there (x4=$4.00). That was 3 years ago. took two years for one of them to finally shit the bed as i left it on all the time in my driveway lamp post. I don't ever turn my driveway light off, even during the day. I have my reasons, but mostly it's defiance. Anyway. 2 of those 4 bulbs are still operational after 3 years of use. One over my door, and one at the garage door. The driveway lamp replacement has been going strong since March 2012. 

In short.. they are just as good as the 12 dollar GE's you get at lowes or home depot. 

Thu, 01/03/2013 - 12:40 | Link to Comment duo
duo's picture

same China sweatshop made both bulbs.

 

Thu, 01/03/2013 - 13:07 | Link to Comment Bananamerican
Bananamerican's picture

i bought two sponge floor mops to clean off some mold in a back room...they both broke within minutes, at the handle and at the water press...cheapest plastic I've seen yet.

The Chinese make things that "appear" to be the purported product, in exchange for things that "appear" to be valuable currency.....

in the history of human trading, how fuckt up is zat?

Thu, 01/03/2013 - 13:23 | Link to Comment valley chick
valley chick's picture

as much as I dread going in these cheap ass stores...I will drag myself in to buy Golden Harvest (Ball) canning jars and lids that are made in the US.  Other than that could care less what is in the store.

Thu, 01/03/2013 - 12:45 | Link to Comment azzhatter
azzhatter's picture

I agree but stuff like dishwashing soap, paper towels for the garage, grease rags, sponges I will gladly stop in and buy for a buck a piece. The dollar tree store near my house is clean and neat. But I have noticed more and more items that are over a dollar

Thu, 01/03/2013 - 11:52 | Link to Comment NoDebt
NoDebt's picture

No, no, no.  People are becoming MORE wealthy and can now step up to WalMart and Target.  It's a GOOD thing.

Only thing the dollar stores are good for is to stand outside, yell "get a job" and throw over-rip tomatoes at the people going in and out while having a light repast of champagne and caviar.  At least that's what I do with the kids on the weekend.

Thu, 01/03/2013 - 12:07 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

Thanks for that, it resulted in a hearty chortle!

Thu, 01/03/2013 - 12:39 | Link to Comment jcaz
jcaz's picture

LOL-  nice job on the "Cramer Point of View"!

Thu, 01/03/2013 - 11:50 | Link to Comment Flounder
Flounder's picture

FDO clientele may have switched to Whole Foods.  http://cashandcaviar.com/blog/?p=15952

 

Thu, 01/03/2013 - 11:53 | Link to Comment tango
tango's picture

Silly me.  I thought chicken was SUPPOSED to be priced like steak and that all veggies were SUPPOSED to cost twice as much for being "organic".  (How can ginger, a root that grows naturally, be anything other than organic?)  I need the EBT for the incredible cheese and olive selections at Whole Foods.

Thu, 01/03/2013 - 11:50 | Link to Comment tango
tango's picture

Discretionary income is being squeezed from every avenue - phones, cable, web, soaring health care and food, high gas, taxes...the amazing thing is that we still have money left to spend on any discretionary items.  Truly, this is the European way - no discretionary income to speak of.  

Of course, as Tyler has noted several times, the current setup supplements low income folks enough to live a good lifestyle.  My peeve all along has been that politicians imply that those without an education, skill or experience should enjoy the living standards of those who do.   If that's the case, why in the hell try at all?

Thu, 01/03/2013 - 11:58 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Wonder if things would change if our "representatives" enjoyed the same standard of living as their constituents?  Let ME say it one more time;  Nothing changes until the supply lines break.  Only then will you see compensation go to those who are actually worth a shit and know how to actually create things of REAL VALUE.  History is very clear on this point.

Thu, 01/03/2013 - 12:20 | Link to Comment centerline
centerline's picture

And the supply lines will break the moment cash flow stops (or is insufficient in value or quanitity to keep things running).  Given the complexity of modern society, various supply chains can be broken in many critical places.  Getting harder and harder to keep the plates spinning.  And the irony is the mathematics which suggest spending cuts will fix the problem!  lol.

Thu, 01/03/2013 - 12:27 | Link to Comment LawsofPhysics
LawsofPhysics's picture

What is "velocity" these days anyway?

Thu, 01/03/2013 - 12:31 | Link to Comment centerline
centerline's picture

Have a feeling it is going to get really interesting sooner rather than later.  Some shock and awe coming up.

Thu, 01/03/2013 - 11:50 | Link to Comment Iconomissed
Iconomissed's picture

Welcome to the Dollar Store where everything's $2.00.

Thu, 01/03/2013 - 11:55 | Link to Comment GMadScientist
GMadScientist's picture

Better there than "The Gold Store" (we'll buy your scrap....even your momma's dentures, they got gold in em).

Talk about some immoral stuff to pull on your fellow man just because you have info asymmetry.

Thu, 01/03/2013 - 11:51 | Link to Comment in-Credible Banker
in-Credible Banker's picture

Schiff radio is a must listen today.  One of the things he pointed out was - the ENTIRE tax increase from the Cliff deal is about to be pissed away in the Sandy relief bill, to be voted on tomorrow. 

Deficits headed to 1.5 trill or higher, starting this year.  The dude is AWESOME as always.....

 

 

Thu, 01/03/2013 - 11:52 | Link to Comment Agent P
Agent P's picture

"Hey buddy, can you spare an iTunes gift card?"

Thu, 01/03/2013 - 11:52 | Link to Comment GMadScientist
GMadScientist's picture

Hate the game, not the playa!

(still think that gentlemen is an entrepreneurial health remedy salesman and "tax resister")

Anyone have good estimates on how much of the American economy is under the table?

I bet there's another "hockeystick" hiding there!

Thu, 01/03/2013 - 12:09 | Link to Comment adr
adr's picture

Actually not that much. I mean there may be a few billion in baby sitting and yard work money paid out to young kids. Cities have pretty much figured out ways to prevent any under the table maintenance work from being done. Massive penalties for not getting permits. Then you have the corporations that have made doing under the table work for family and friends a crime.

I tried to get my neighbor, who works for a heating company, to fix my furnace. I was going to pay him $200 cash since he only gets about $20 out of the money from a service call. I even bought the part I needed online for $80. The heating company wanted $750 for the repair when I got a quote from them.

My neighbor wouldn't do it because he said he wouldn't risk his job to do work under the table. I wanted to save over $400, and I wanted to give my neighbor $200 for two hours worth of work. Instead both lost because I got a repair manual online and did the work myself.

Don't get me started on the prescription bullshit with doctors now. A doctor can't even write a prescription for his own son anymore. He has to take his own family to a different practice and pay the fee to get medicine for them.

Everything is this country is set up to gang rape your wallet into submission. I think mine has a nightingale complex, it likes getting raped now.

Thu, 01/03/2013 - 13:53 | Link to Comment Winston of Oceania
Winston of Oceania's picture

Well let me tell you I am being FORCED to change my entire business due to casual competition. Formerly a lawn service business I now have to expand into light construction as I am competing with everyone from disability frauds to retired public employees (read law enforcement). Wake the f up.

Thu, 01/03/2013 - 11:54 | Link to Comment LawsofPhysics
LawsofPhysics's picture

"Among households with incomes between $500,000 and $1 million, taxes would go up by an average of $14,812…."

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14K ain't shit when you are collecting close to a million dollars.  Well, I guess I can thank our CONgress for that.  Depending on the margins, that capital will be re-invested in the wages of my employees and our infrastructure.  Good luck to everyone else.

Thu, 01/03/2013 - 12:00 | Link to Comment GMadScientist
GMadScientist's picture

Seems an odd decision in the face of marginal tax rates, but okay.

 

 

Thu, 01/03/2013 - 12:05 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Equipment and employees both wear out.  If you can't depend on either, you go out of business, period.  Taxation and inflation are both forms of theft.  But at least with taxes, I can track where the money is spent.  I am not a paper-pusher.  I have REAL input costs because I deliver a real fucking product.  Remind me, what are commodities compared to 5, 10, 15, years ago? Your statement is more applicable to those who's business is nothing but pushing paper bullshit, fuck them.

Thu, 01/03/2013 - 12:14 | Link to Comment adr
adr's picture

My business is barely hanging on. I do welcome the destruction of the Japanese currency though. Since I buy one of my main components from Japan, the Yen dropping will make up for some of the rising input costs from Obama's great regime.

My margin has shrunk from 40% to around 10% over the past five years. We can't raise our price on consumers because they simply won't buy. REAL BUSINESS SURE IS FUN!!!

I wish I could have no revenue, and no business plan and get bought for a billion dollars because my company is "social".

You can't have a real economy when paper pushing becomes the most profitable activity in the system.

Fuck the fuckers with fuckidty fucking shit.

Thu, 01/03/2013 - 12:27 | Link to Comment centerline
centerline's picture

Same here, between a rock and hard place on razor thin margins now.  Really isn't any room to give at this point - else we will be forced to downsize again, reduce compensation/benefits, etc.

Thu, 01/03/2013 - 12:16 | Link to Comment MiltonFriedmans...
MiltonFriedmansNightmare's picture

If you earn $500,000, you take home roughly 250,000.  That's roughly a 6% hit.

Add on the Obamacare taxes and it's not inconsequential.

Thu, 01/03/2013 - 12:21 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Being in agriculture and familiar with thousands of years of human history, essential commodities are all that matter to me (this is my only input and output).  You are talking about paper promises that won't mean shit when the supply lines finally break.  Inconsequential indeed.

Thu, 01/03/2013 - 11:56 | Link to Comment GMadScientist
GMadScientist's picture

You know, there is an opportunity cost of gasoline to get one's broke ass to the Dollar Store...

Thu, 01/03/2013 - 12:31 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Or the cost of a Taxi.  One of the applicants for my Section 8 housing showed up in a Taxi and a very nice cell phone.  Dressed to the hilt of course.

Thu, 01/03/2013 - 13:02 | Link to Comment GMadScientist
GMadScientist's picture

I'm sorry the taste of $30B government titty is so sour for you.

 

Thu, 01/03/2013 - 11:56 | Link to Comment RSDallas
RSDallas's picture

Are we not sure that the economy maybe a lot better (not withstanding if it is real or not real, lasting or not lasting) than what is being reported and therefore their would be shopper went to Target and WalMart instead?

Thu, 01/03/2013 - 12:20 | Link to Comment adr
adr's picture

no.

I sell to Walmart and Target. Nomatter what bullshit they put out. Holiday 2012 was terrible, the worst since 2009.

Absolutely nothing moved unless it was put 50% off. It was really insane. If a video game was put at $29.99 instead of $59.99, it sold out and none of the $60 games were even touched. Less than 20% of the Christmas decorations sold before Christmas. Every consumer knew they would go to 50% off after Christmas, the day the 50% sign went up, everything sold.

The best day of the year was not Black Friday. It was the first Saturday of Dec. Hmmm, what could have caused that. Oh yeah, the last welfare checks before Christmas filled up the EBT cards the day before.

Thu, 01/03/2013 - 11:57 | Link to Comment lolmao500
lolmao500's picture

Well they can afford guns but not dollar stores.

Thu, 01/03/2013 - 12:04 | Link to Comment Mad Mohel
Mad Mohel's picture

I bought some cans of dog food from there last month. You'd be surprised with enough ketchup it's actually delicious.

Thu, 01/03/2013 - 12:28 | Link to Comment donkshover
donkshover's picture

And you are getting your vegetables!

Thu, 01/03/2013 - 12:04 | Link to Comment SheepDog-One
SheepDog-One's picture

Aaaaaand...CUT! Thats a wrap for today, once again propped up futures to make it stick all day, all news over thats where we close, wait till tomorrow once again.

Thu, 01/03/2013 - 12:05 | Link to Comment MajorWoody
MajorWoody's picture

The last thing we should do is raise the taxes on the rich.  I mean 15% tax on your stock dividends???  Ghastly I tell you.  Millionairs paying less percent of tax than middle income 50ker's?  Well that's fair, they make the jobs for us, right?  All you self employed small business guys are millionaires right? So it won't even make a dent if we raise taxes on the rich, is what they want us to argue over.  But is it right for people of means, money, to pay less tax than poorer folk? Time for golf at the club now, tata.

Thu, 01/03/2013 - 12:12 | Link to Comment IridiumRebel
IridiumRebel's picture

Their taxes went up. What is your point? Is huffpo down right now or did you decide to pick a fight? Start with spelling. If you are going to come here with a talking point memo argument, you must spell correctly. All taxes will go up including yours. What is the point of you coming here to pick a fight? I suggest you reload the page, read my post and then engage. I will gladly converse with you. 

Thu, 01/03/2013 - 13:06 | Link to Comment Dr. Engali
Dr. Engali's picture

Oh boo f--ing hooh. Cry me a river. We will never have a "fair" tax in this country unless we move to a flat or consumption tax.

Thu, 01/03/2013 - 12:06 | Link to Comment youngman
youngman's picture

I predict a loss of good full time jobs of 4 million...and a gain of part time jobs of 2 million....the lowering of the bar...

Thu, 01/03/2013 - 12:08 | Link to Comment q99x2
q99x2's picture

The price of a bag of heroin in NYC is still $10--the same as 30 years ago.

Who needs dollar stores with deals like that.

Thu, 01/03/2013 - 12:26 | Link to Comment Clint Liquor
Clint Liquor's picture

It appears that 40 years and a couple of trillion in spending on the War on Drugs has been able to acheive the maintence of pricing.

Thu, 01/03/2013 - 13:06 | Link to Comment GMadScientist
GMadScientist's picture

There's more than one path to price inflation...this is not the heroin of Lou Reed and Keith Richards you're shooting anymore.

 

Thu, 01/03/2013 - 13:41 | Link to Comment Winston of Oceania
Winston of Oceania's picture

Yes and now hot dogs are more expensive due to the increase of fillers in drugs...

Thu, 01/03/2013 - 13:19 | Link to Comment azzhatter
azzhatter's picture

I think Bernanke includes that in CPI

Thu, 01/03/2013 - 13:56 | Link to Comment the grateful un...
the grateful unemployed's picture

according to his h(eroin)edonics, if heroin is too expensive the user will switch to Meth which is much cheaper (like chicken for beef), therefore there is no inflation (whatever happens before the last statement, the final phrase is a constant)

Thu, 01/03/2013 - 12:08 | Link to Comment lovemesomeZH
lovemesomeZH's picture

This may or may not matter, but Family Dollar is not a dollar store. the author is confusing the Dollar Tree, where everything is one dollar. Family Dollar can be expensive on some items.

 

Thu, 01/03/2013 - 12:15 | Link to Comment Zer0head
Zer0head's picture

wa'da'ya mean they got Gravy Train at 2 for $1

http://www.circularhub.com/flyers/familydollar-circular?type=1&locale=en...!/flyers/familydollar-circular?flyer_run_id=4202

 

http://d2e0sxz09bo7k2.cloudfront.net/flyer_items/3728512/1356634229/plus...

Thu, 01/03/2013 - 12:10 | Link to Comment Gypsyducks
Gypsyducks's picture

At least we have a perpetual bid in the ES from the PPT.... which is nice.

Thu, 01/03/2013 - 12:25 | Link to Comment 10mm
10mm's picture

Family dollar,dollar general are not dollar stores.The Dollar Store is a dollar store.Dollar TREE

Thu, 01/03/2013 - 12:21 | Link to Comment Cultural Capital
Cultural Capital's picture

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Thu, 01/03/2013 - 12:26 | Link to Comment adr
adr's picture

uh, in the Unted States Ghettos it is just called shoppin

My wife who was never exposed to the ways of the ghetto asked me once, "Why do black guys walk around with the tags on their clothing?"

I said because they went shoppin, they stole the stuff. Then they go to another mall or TJ Maxx to return the stuff for store credit after they wear it for a few days. She told me I was crazy. Then she asked a black guy she worked with, and he told her the exact same thing.

Thu, 01/03/2013 - 12:22 | Link to Comment donkshover
donkshover's picture

"Office of Homeland Dependency"   quit yo bitchin and join us.

Thu, 01/03/2013 - 12:32 | Link to Comment orangegeek
orangegeek's picture

Nothing is left untouched by government hands.

 

Yesterday's jump in SP500 on government raising taxes is the most bizarre move to date.  When markets get this emotional/irrational, watch out below.

 

http://bullandbearmash.com/chart/sp500-hourly-shows-todays-jump-of-36-po...

 

Q4 results to help to confirm these numbers - which they probably won't.  When consumers have their savings confiscated by higher taxes, spending drops - not a good thing for the private sector.

Thu, 01/03/2013 - 12:42 | Link to Comment the grateful un...
the grateful unemployed's picture

notice the one group which didn't cartch a break in the negotiations was payroll taxes. lets guess they know the jobs number is about to take off and they can solve the deficit on the back of underpaid workers. and the labor force is quickly becoming a special interest group (smaller than the unemployed) with no leverage, no unions left with any clout. some of these people will realize they would be better off in China, but China won't have them (Americans have too many crazy ideas about individual freedom)

Thu, 01/03/2013 - 12:35 | Link to Comment the grateful un...
the grateful unemployed's picture

 the dollar stores live off the overcapacity in the global economy. the day may be here when the shipping containers from China no longer arrive. its a great business model, Ninety Nine Cent stores opened an outlet in Beverly Hills. the rich like their bargains too.

if China can no longer afford U.S. (cheap consumer goods) then the U.S. economy will take off, and Bernanke will be scrambling to get those dollars back into the helicopter. inflation will outrun wages (as American replacement jobs for those manufacturing jobs in China will be at a comparable pay level)

but its also possible that the dollar stores have run into transportation issues (fuel costs and inventory managment - Walmart beats them all, the dolalr stores only live off what Walmart doesn't want) Walmart has overbuilt, and that could change too, as they close stores and stop construction of new ones.

consider FiDO's trouble to be a sign of change in the old global economy. if China can't play the multinationals will move back to the US, (if only the US gov would give them some incentive to bring jobs here - part of that midnight 70B in tax breaks they snuck in with the fiscall cliff deal,  included one for mulltinationals who make their money overseas) or its back to Mexico and the maquiladoras.

Thu, 01/03/2013 - 12:36 | Link to Comment Sutton
Sutton's picture

"My policies have enabled the Family Dollar shopper to move up the ladder to Lord&Taylor and Saks"

BenSBernanke

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