It's Official: Worst. Recovery. EVER

Tyler Durden's picture

If there was any debate whether the Fed's policies have helped the economy or just the market (and specifically the Bernanke-targeted Russell 2000), the following two charts will end any and all debate. As the following chart from the St Louis Fed shows, as of the just completed quarter, US GDP "growth" since the "recovery" is now the worst in US history, having just dipped below the heretofore lowest on record.

A slightly prettier version of the same chart created by JPM's Michael Cembalest, is presented below:

 

But fear not: it is only the worst recovery ever for anyone unlucky enough to still rely on such Old Normal concepts as the "economy" to feed, clothe and provide shelter for themselves.

For those lucky 1% of the US population whose entire wealth is in financial assets (and who once again managed to avoid a tax hike on carried interest or any actual financial assets), times have almost never been so good.

Well, it's not the biggest surge in the market since the economic trough in history, but it is close. Which as Bernanke admitted some time ago (when discussing the level of the Russell 2000), is the only thing that actually matters to the Fed.

Yet oddly enough, the trickle down from the trillions in excess wealth created for those who hold financial assets, as a result of daily POMOs pumping some $85 billion, and soon more, into the stock market each month, has yet to materialize.

Oh well: just keep on doing more of what you are doing Uncle Ben, and if possible destroy the US economy even more than you already have - at this point, at least on a relative basis, you can't destroy it more.

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prains's picture

There was a recovery ?????????????????

vic and blood's picture

I hear the Romans called war bellum because it wasn't pretty. In the same spirit, we call a decline, a recovery. There is nothing new under the sun. I am certain that we will notice many other parallels with the Roman Empire. Hannibal ad portas!

STG5IVE's picture

You've got a great website.  You should compile all those stats into a daily digest for anyone who would be interested in subscribing.  I know I would.  You could probably even earn a little bit of revenue from it through ad sales.

STG5IVE's picture

http://www.dailyjobcuts.com

 

You've got a great website.  You should compile all those stats into a daily digest for anyone who would be interested in subscribing.  I know I would.  You could probably even earn a little bit of revenue from it through ad sales.

goldenbuddha454's picture

I'd like to see Bernanke standing on an aircraft carrier announcing "today is the official end of POMO Combat operations in the U.S.".

goldenbuddha454's picture

I'd like to see Bernanke standing on an aircraft carrier announcing "today is the official end of POMO Combat operations in the U.S.".

mayhem_korner's picture

 

 

Actually, you only need a pocketful of 16...er 20...er 25 platinum coins.

madcows's picture

What's her last name? I'll look it up.
 You know, I don't really recall. Starts with an S! Let's see. Swim? Swammi? Slippy? Slappy? Swenson? Swanson?
Maybe it's on the briefcase.
Oh, yeah! It's right here.
Samsonite! I was way off! I knew it started with an S, though.

Buck Johnson's picture

LOLOLOLOLOL, your dead on dead on.

SilverFish's picture

Ya know Lloyd, just when I think you couldn't possibly be any dumber, you go and say something like this.

 

 

AND TOTALLY REDEEM YOURSELF!!

Thomas's picture

Sorry for a quick thread jump: Am I the only guy on the planet who thinks that Ray Dalio just rung a damned bell by going on various media outlets promoting "equity-like returns in bonds" simply by using leverage? Sounds like the bond bubble has been declared official and in the end game. 

economics9698's picture

I am thinking 8-10 months left to go.

BandGap's picture

Why?

It could happen any day. I'm thinking it might be days or weeks given the levels the market is at right now.

eclectic syncretist's picture

My guess is the SP500 cracks 1600 on QE4EVA and looks like it's heading to the moon, and instead starts a looooooonnnng trip back down the mountain.

Chuck Norris's picture

Sounds like the heyday in real estate.

Florida condos.  Pre construction, nothing down, no payments for two years. 

Since it always goes up, you can't lose. 

Don't worry about the payments. Just flip your contract before they're due for a handsome profit.

A Nanny Moose's picture

Using debt to buy debt. What could possibly go wrong?

ArkansasAngie's picture

Without the bailouts of AIG, Buffet would be in chapter 7 bankruptcy and $50 billion or so poorer.  Let's start at the top ... you might not even have to go after the bottom after you've collected all those bad debts.

LongSoupLine's picture

Nothing will stop these assholes from fucking printing their way to SPX 1500...not even the harshest of realities.

Fuck you Bernanke, Congress and all fucking corrupt regulators. Eat shit.

Thomas's picture

Hunsader just Tweeted that somebody carpet bombed the markets with 5000 eminis

Joe moneybags's picture

5000 eminis?  What's that, about 5 minutes worth of volume?

DaveyJones's picture

one of the better technical analyses

centerline's picture

1500 is a key level.  There might be a little sideways action here, but I don't think it will last long before we see some sparks flying one way or the other.  Keep in mind that if we rally big from here, we will be in completely uncharted waters.

If your a gambling soul, step on up.  The vix is begging for some straight-up, balls-to-the-wall options plays.

Sudden Debt's picture

You can try... but I have to warn you... customer support only speaks Chinese...

BandGap's picture

Nothing like reaching those all important milestones.

 

 

rotagen's picture

It'll all be OK once we accept our new eastern leadership and chinaman wages.

 

http://theeconomiccollapseblog.com/archives/does-china-plan-to-establish...

Ham-bone's picture

Worst economic recovery

Greatest equity recovery

Greatest (worst?) debt incurred to acheive said crap recovery and fabulous equity recovery.

Plus now I'm getting taunted by my friends for buying PM's instead of equities...this sure feels like a market top as bears are dead, everybody sure Fed will never let market down...even I've given up hedging or worrying bout a market downturn (not invested but certainly not taking any insurance). 

A new downleg now and the printing would likely get pretty impressive, even for Ben.

Big Corked Boots's picture

Recovery? What recovery?     FORWARD!

Shevva's picture

I see this on every thread but it's arse about face, it should be Bernanke is fucking YOU.

Squeal piggy, Squeal.

 

Oh and don’t worry about the 1%ers in all this : http://www.dailymail.co.uk/tvshowbiz/article-2267333/Sir-Richard-Branson...

reTARD's picture

<---------- You mean I don't get a prize? ;-)

toady's picture

Exactly.

The US is still in a depression / recession, so how could the 'recovery' be anything but bad?

WhiskeyTangoFoxtrot's picture

Right. And expect to see a lot more of this type of behavior: Brawl erupts at food stamp office.

NotApplicable's picture

Oh SNAP!

Desperate times are coming.

Which, of course, will be used as a mandate for "gun control."

Seer's picture

(paraphrasing the famous quote from A League of Their Own) "Recession?  There's no recession in the US!"

Dr. No's picture

Why would anyone on this site believe the St. Louis Fed with regard to this report?  The St. Louis Fed's adjusted monetary base report showes flat money in 2012, yet everyone here calims Ben is priniting away on QEx.

babylon15's picture

You seem to think that other countries aren't printing money, and that such policies have no effect on our economy.  Federal Reserve quantitative easing *was* sterilized for most of 2012, but quantitative easing undertaken by the Europea Central Bank and Japan was unsterilized.  So, their money supplies did increase and some people in those countries fled debasement by buying equity in other countries, hence, S&P 500 goes up.

Dr. No's picture

Dont begin to presume I think...wait...

 

Anyway, my only comment is this site trusts some Fed reports, but discredits others.

Seer's picture

Yes, but the focus tends to be on the dissenters, as it should be.  You have to watch the BBC documentary on Spain's meltdown to get a better understanding of an dissenting "insider's" frustrations in warning folks.  Yes, there are a lot of folks on the outside opposing what the majority in the Fed are doing, but it's the insiders who are dissenting that give us the best view.

Theta_Burn's picture

Worst Recovery Ever...

Stop it, your ruining my BLS report buzz...

mayhem_korner's picture

Yet oddly enough, the trickle down from the trillions in excess wealth created for those who hold financial assets, as a result of daily POMOs pumping some $85 billion, and soon more, into the stock market each month, has yet to materialize.

 

The materialization of that trickle down will not be pretty...unless you're into $9 loaves of bread.

ArkansasAngie's picture

Tricle down criminal charges sounds pretty good to me.  I'm not interested in going after the small fry.  Dynamite their dad gum glass ceiling.