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The Stock Market Is Back To December 2007 Levels; Here Is What Isn't

Tyler Durden's picture




 

This past week, America's premier financial comedy channel, which lately specializes in such "epic financial journalism" as the real billionaire hedge husbands of New York (because sagging Nielsen ratings are always a direct corollary of central market planning) wasted no time in advising its few remaining viewers that the market, which soared past 1,500, has now regained levels last seen before the start of the recession in December 2007. Sadly, this is the only thing that has been regained. Below we present some things that have not been regained since the last time the S&P 500 was at 1500.

First, as the chart below shows, the S&P is indeed above 1500 for the first time since December 2007.

Unfortunately for the economy, which has ceased to correlate to the stock market courtesy of the Federal Reserve, the stock market and the underlying fundementals, in this case jobs, are now completely independent. The chart below shows that while the stock market may be at its pre-recession levels, the employment situation has only managed to recoup half the total lost jobs, and with 4 million jobs still to go before all the jobs lost are recovered, it is very likely that not even by the end of Obama's second term will the economy have regained all the lost jobs since December 2007.

The chart above assumes that the job picture is static. It isn't. Because while America was losing jobs, its population was growing - there is now a staggering 16 million difference between the number of jobs lost and the increase in the US population.

Naturally, the BLS has an explanation for the above chart. It wants the world to believe that while the US population was increasing by some 200K each month, this was offset by the surge of people not in the labor force - orange line below - which has increased by a record 9.6 million people in the past 5 years, or some 160K each month. The implication is that over the past 5 years, the US labor force - blue line below - increased by a tiny 1.6 million: a number designed with one thing in mind: to show a declining US unemployment rate. Because had the the Labor participation rate kept up with the US population, the US unemployment rate now would be about 11%: not quite as politically palatable as an unemployment rate below 8% for an incumbent president.

The punditry is well aware of the oddity above, so the explanation that the "consensus" has come up with is that during what we already showed is the worst recovery in US history, the baby boomers, whose savings and interest income is virtually nil, can't wait to retire and are doing so in droves.

Great. There is, however, one small problem with this explanation - it is only the Americans aged 55-69, or those who are supposed to be scrambling to retire, who have seen gains in the nubmer of jobs. As the gray line in the chart below shows, since December 2007 it is only the old age cohort of US workers that has seen a pick up in employment, as some 5 million jobs have gone to US workers aged 55 and older.

To all those other American workers aged 55 and young? Sorry: the number of jobs lost since December 2007 in the 16-54 age group cohort is a stunning 8 million!

So to summarize: since December 2007:

  • The stock market is now green
  • US population : +12 million
  • US workers who have left the labor force: +9.6 million
  • US civilan labor force: +1.6 million
  • Jobs for Americans aged 55 and above: +5 million

That's the good news. The bad:

  • Total jobs: -4 million
  • Jobs for workers aged 16-54: -8 million

So who is driving this amazing stock market, and only stock market recovery: it is obviously not the workers which are still below 2007 levels, nor is it the actual economy, which as we showed previously, has "recovered" at the worst pace in US history:

Who is it? Here is the answer:

 

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Sat, 01/26/2013 - 16:49 | 3188049 nope-1004
nope-1004's picture

He tooker jerb!

Impotent bankster running the show is the reason why this ain't working.  Printing does not create employment..... duh.

 

Sat, 01/26/2013 - 16:58 | 3188071 Pure Evil
Pure Evil's picture

So, exactly where are these 16 million new people coming from?

And, who will be paying their share under Obamacare?

Sun, 01/27/2013 - 09:56 | 3188949 CVfriendship
CVfriendship's picture

Paying is such a strong word....I would say printing for Obamacare.

Sun, 01/27/2013 - 12:41 | 3189103 Remington IV
Remington IV's picture

You'll be paying for Obamacare's moochers.... didn't you read the memo

Sat, 01/26/2013 - 17:11 | 3188093 westboundnup
westboundnup's picture

IT'S . . . IT'S A COOKBOOK!

Sat, 01/26/2013 - 17:17 | 3188102 RSBriggs
RSBriggs's picture

+1 for the "Serving Humanity" reference.

Sat, 01/26/2013 - 17:23 | 3188113 resurger
resurger's picture

It creates wealth for wallstreet and jobs for harvard & princton graduates.

add the PHD jewies to the list. 

Sat, 01/26/2013 - 21:39 | 3188516 mfoste1
mfoste1's picture

if this isnt clssic contrrin cll i dont know wht is

http://www.tmz.com/2013/01/26/vanilla-ice-real-estate-tips-video/

Sat, 01/26/2013 - 21:57 | 3188536 Midas
Midas's picture

Yo, word to your mother.

Sat, 01/26/2013 - 16:47 | 3188051 PhattyBuoy
PhattyBuoy's picture

fub

Sat, 01/26/2013 - 16:47 | 3188052 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

CNBC would never let the facts get in the way of good story.

Sat, 01/26/2013 - 19:35 | 3188328 azzhatter
azzhatter's picture

Kudlow had that arrogant fucktwit Don Luskin on Friday night. Luskin practically pulled his dick out and rubbed one off to the new highs in the market

Sun, 01/27/2013 - 12:44 | 3189107 Remington IV
Remington IV's picture

did you cover your short yet ?

Sat, 01/26/2013 - 16:50 | 3188059 SmoothCoolSmoke
SmoothCoolSmoke's picture

MSM is certainly onboard with the 'improving economy' theme.  Friday night Brian Williams' lead story was the the improving economy.  The "proof"?

The housing pick-up and, THE STOCK MARKETS ARE NEAR ALL TIME HIGHS.

Bernankie must have popped a boner over that report.

 

Sat, 01/26/2013 - 17:05 | 3188081 knukles
knukles's picture

Mrs. K had that on and as I was listening hoping for some reality in the day's electronic mind control, Brian started on about that .... even saying that with stocks going so high it's prima facse evidence of a boomer.
Mrs K rolled her eyes and shook her head. 
So I sidled back into my hole and tuned back into The Hedge....

These people are criminal in their abrogation of responsibly presenting factual trustworthy information.

Sat, 01/26/2013 - 19:32 | 3188321 azzhatter
azzhatter's picture

All time highs- like = to 2000 levels. Meanwhile cost of living has gone up 40%

Sat, 01/26/2013 - 16:50 | 3188060 CheapBastard
CheapBastard's picture

Shanghai index never budged...still 60% off its highs.

Sat, 01/26/2013 - 19:33 | 3188322 azzhatter
azzhatter's picture

When I lived in China Shanghai was around 6,000

Sat, 01/26/2013 - 16:51 | 3188061 max2205
max2205's picture

I guess all those 50 yr olds 4 years ago are glad to get one of those 55 year old group jobs....at 50% less pay

 

Way to wait it out...

Sat, 01/26/2013 - 16:52 | 3188063 Yen Cross
Yen Cross's picture

 These boom bust cycles keep getting shorter and shorter and  shorter.  Keep filling the balloon, ponzi Central Banksters<>

Sat, 01/26/2013 - 16:58 | 3188073 Atomizer
Atomizer's picture

 

 

CNBS pundits will be spanking their magic 8 ball for tea leave theories on price discovery.. Shake me, shake, shake, shake 

  • Signs point to yes.
  • Yes.
  • Reply hazy, try again.
  • Without a doubt.
  • My sources say no.
  • As I see it, yes.
  • You may rely on it.
  • Concentrate and ask again.
  • Outlook not so good.
  • It is decidedly so.
  • Better not tell you now.
  • Very doubtful.
  • Yes - definitely.
  • It is certain.
  • Cannot predict now.
  • Most likely.
  • Ask again later.
  • My reply is no.
  • Outlook good.
  • Don't count on it.
Sat, 01/26/2013 - 17:12 | 3188094 knukles
knukles's picture

And don't forget the stand by classics;

 

 

  • leggo jus leggo
  • eat my shorts
  • you gotta be fucking kidding me
  • says who?
  • say what?
  • say what again?
  • Hmmmm that is one mighty fine burger
  • No, I'm a long fucking way from just OK
  • whatever
  • can I go now?
  • I tought you were paying?
  • titless... she couldn't report her way out of a D cup
  • whaddya mean you don't take EBT's for liquor
  • dat rayzzizt
  • who's yo momma?
  • it's Rapunzel's fault, over there
Sat, 01/26/2013 - 17:01 | 3188075 jbvtme
jbvtme's picture

these pedophile reptiod corporates drew another mulligan.

Sat, 01/26/2013 - 17:00 | 3188077 dlfield
dlfield's picture

Clintonesque unemployment reporting...

Sat, 01/26/2013 - 17:05 | 3188082 cpzimmon
cpzimmon's picture

If you have ZH, why watch the MSM or television unless you're addicted to the pay per view adult sites.

Sat, 01/26/2013 - 17:07 | 3188086 jplotinus
jplotinus's picture

I have said the 1st post-industrial nation to guarantee a job for all citizens wins in this the 21st century. The UK is thought to be considering this. The USA is not.

Sat, 01/26/2013 - 17:14 | 3188097 knukles
knukles's picture

post-industrial.... so quaint

like licking stamps....

Sat, 01/26/2013 - 18:23 | 3188194 vintageyz
vintageyz's picture

Apparently the UK is also considering what it is like to hop into a triple dip depression.

Sat, 01/26/2013 - 17:08 | 3188090 Seasmoke
Seasmoke's picture

so drop another 8 million jobs and we should be over 2200

Sat, 01/26/2013 - 17:10 | 3188091 PAWNMAN
PAWNMAN's picture

Maybe, if they had a single objective voice other than Rick Santelli more people would tune in. Giving airtime to people like Jim Cramer and his ilk may of worked pre tech bubble. Not so much with a cynical public burned one too many times by the pump and dumpers they parade out day after day. I watch it stricly for amusement.

Sat, 01/26/2013 - 19:37 | 3188329 azzhatter
azzhatter's picture

I keep hoping to see Cramer have a stroke on live TV and put an end to this jizzbag

Sun, 01/27/2013 - 12:53 | 3189125 Tijuana Donkey Show
Tijuana Donkey Show's picture

Heart attack. You might not notice the stroke, but the big freeze would be killer to watch. "Based on this, I'm long Lipator, gasp, and short McDonalds." Imagine what his deathbed confession would be like.....

Sat, 01/26/2013 - 17:12 | 3188096 Michelle
Michelle's picture

Here's what's really happening: Junior is too lazy to look for work and Mommy and Daddy are more than willing to take on 2 or 3 jobs so Junior has unlimited free time to "do his own thing".

Sat, 01/26/2013 - 17:44 | 3188136 GoodMorningMr.V...
GoodMorningMr.VanRumpoy...'s picture

Now for some reality.

Volunteer at a homeless shelter or a foodbank sometime.

You would be shocked the percentage of "Juniors" doing there own thing lining up for soup and stale crackers or living in the streets.

https://www.nytimes.com/2012/12/19/us/since-recession-more-young-america...

Sat, 01/26/2013 - 17:45 | 3188138 kaiserhoff
kaiserhoff's picture

Not just Junior.  I see plenty of Baby Mommas who have no interest in work, but know every fucking welfare benefit this side of Beijing.

Sun, 01/27/2013 - 12:45 | 3189112 Remington IV
Remington IV's picture

you mean ...

 

47,000,000 food stamps
17,000,000 welfare
8,000,000 section 8 housing

Obama's moochers

Sat, 01/26/2013 - 17:15 | 3188099 StoleYourMoney
StoleYourMoney's picture

Bull markets coincide with strong economic growth & improving fundamentals. This market is more of a bullshit market that has neither. 

Sat, 01/26/2013 - 17:17 | 3188100 resurger
resurger's picture

Remission

Sat, 01/26/2013 - 17:18 | 3188103 falak pema
falak pema's picture

the illusion of riches in a sea of debt. Their only hope is to dilute the debt in controlled monetary fiat devaluation that will lead to uncontrolled hyper inflation and then deflation. 

What you sow...but in the meantime it'll grow, grow, grow the beanstalk. 

Their only true salvation is cheap energy, what has fueled this hubris for fifty years. That's the real economy, cheap oil.

But it doesn't belong to them and why should those guys get paid in this fiat bonanza of greenbacks and euro quacks? 

There is a limit to all surrogate situations to empires gone mad.

That is the time line of the past. 

Sat, 01/26/2013 - 17:19 | 3188106 socalbeach
socalbeach's picture

Re the Ackman vs Icahn confrontation, here is Ackman's presentation:

334 page pdf file

Haven't finished reading it, but so far it looks like Ackman is right, and he's doing potential victims a favor by publicizing it.

Sat, 01/26/2013 - 17:19 | 3188107 Sudden Debt
Sudden Debt's picture

and if we are talking cycles, the economy subtracts every 6 years.
Every six years, there's some for of a crisis. sometimes small, sometimes big.

2007 + 6 = 2013

en todays year of our lord is = 2013

Sat, 01/26/2013 - 17:58 | 3188139 kaiserhoff
kaiserhoff's picture

Mein godt.  All that energy and SD can cypher as well:)

 

Where have all the titties gone:(   

Inquiring minds want to know.

Sat, 01/26/2013 - 21:50 | 3188531 donsluck
donsluck's picture

Your lord. I really don't understand that stuff.

Sat, 01/26/2013 - 17:52 | 3188108 LongSoupLine
LongSoupLine's picture

It's a fucking printing ponzi endorsed by the US fucking Congress and all regulators. Fuck all of them to Hell. Fuckers.

Sat, 01/26/2013 - 17:23 | 3188111 yogibear
yogibear's picture

Bubble Bernanke and the Fed are determined to fix everything by debasing the currency.

Already see that inflation has trickled through. 

Krugman claims inflation is tame yet his newspaper, the NY Times, raised their prices 132%. The US government stats claim only a 32% rise in prices in newspapers and magazine.

In many instances  the price remains the same and the package or quantity shrinks. Stealthy inflation.

We are already seeing notices from insurers where heath care is set to double in the next year in preparation for Obamacare.

This past year and a half commuter train fares has almost doubled. 

As people are dropping off of long-term unemployment insurance there will be many pissed off hungry people out there ready to riot unless Obama puts them on Social Security Disability Insurance or  welfare. 

 

 

 

Sat, 01/26/2013 - 17:31 | 3188122 socalbeach
socalbeach's picture

What dunces down-arrowed your post ?

Sat, 01/26/2013 - 21:51 | 3188532 mess nonster
mess nonster's picture

The dour, downcast deflationists, the ones who have no sesnse of humor.

Sun, 01/27/2013 - 12:57 | 3189130 Tijuana Donkey Show
Tijuana Donkey Show's picture

GOVT agents out to control the masses. 

Sat, 01/26/2013 - 17:26 | 3188118 firstdivision
firstdivision's picture

You left off stagnate wages which have lagged pretty badly.

Sat, 01/26/2013 - 17:26 | 3188120 knukles
knukles's picture

BTW, just for some comparisons....

From approx year end 2007 to year end 2012, try on the following...

 

Commodities    -12%
Long CA munis    2%
Long treasuries  36%
TIPS                 17%
Gold                105%
S&P   just about zero

Sat, 01/26/2013 - 17:38 | 3188128 yogibear
yogibear's picture

The Average price of a gallon of gas has edged up.

Now that people have switched to more fuel efficient autos governments want to start taxing by the mile.

Notice the price of coke?

The size of coffee

The Incredible Shrinking Sugar Bag

http://www.thedailybeast.com/articles/2012/11/15/the-incredible-shrinkin...

 

Sat, 01/26/2013 - 21:53 | 3188533 mess nonster
mess nonster's picture

I quit doing coke in the 80's. Oh, you meant the kind you DRINK!

Sat, 01/26/2013 - 17:47 | 3188131 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Real GDP:  $13,206 B >>> $13,653 B    +$0.447 B

National Debt:  $9,229 B >>> $16,433 B   +$7,204 B

 

The "power" of leverage or the diminishing marginal productivity of debt?

Sat, 01/26/2013 - 17:43 | 3188132 Yen Cross
Yen Cross's picture

 Knuckles, you are a fantastic reservoir of knowledge. I've shifted some aspects of my investment profile, based on your ideas. It's a pleasure to have people like yourself, take the time to educate the underlings. I would really enjoy  meeting you at a Z/H get together.

 Individuals think they know everything, only to be pleasantly surprised that they don't. ;-) Keep those excellent ideas coming.

Sat, 01/26/2013 - 17:52 | 3188146 knukles
knukles's picture

Thank you, YC.  That's very kind and appreciated. 

Sat, 01/26/2013 - 20:38 | 3188412 IridiumRebel
IridiumRebel's picture

I am underling who has been edumacated......thanks boys. 

Sat, 01/26/2013 - 17:38 | 3188126 cognus
cognus's picture

This is a worthy article.  Kudos.

will pass this one around.  I'm confident that proponents of Left/Right politik will pay absolutely no attention... however the 3% of Americans that are awake will if we can just route the link to them.

Sat, 01/26/2013 - 19:37 | 3188325 RockyRacoon
RockyRacoon's picture

You're kidding, right?  I can just see them now... turning the head left to right at the graphs, hoping that by tilting their heads the brain cells will align just right to allow them to comprehend the graphs.   You'd be amazed at how few folk out there could tell you what the graphs with more than one line indicate.  Beyond that, there are even fewer who understand why there are axes on them, or how to use them.  Put one on each side and you've then got total confusion.  I've seen evidence of same.

Sat, 01/26/2013 - 22:18 | 3188534 mess nonster
mess nonster's picture

The axes are for- so you can chop all the extra extraneous lines to pieces and then glue them on to the S&P line so it looks more manly.

Sat, 01/26/2013 - 17:40 | 3188129 ejmoosa
ejmoosa's picture

Why are you looking for a corelation between jobs and the SP 500?  There isn't one.

Thereis, however, a very high corelation between the rate of profit growth and the rate of job growth.  

Unfortunately, the powers that be are doing every thing they can to destroy profits in this country.

So, things are NOT going to get better any time in the near future.

Sat, 01/26/2013 - 20:25 | 3188395 Tyler Durden
Tyler Durden's picture

There is zero correlation between jobs and profits, as one has to factor in productivity. There is, however, a very high inverse correlation between jobs and wages as discussed in "The Trade Off To Record Corporate Profits: Your Miserable Salary"

Profits go up when the fat can and is cut. However, even corporate profits peaked some time ago and are now declining on a Y/Y basis:

Finally corporate sales growth has also peaked, and unless capex spending picks up there will be no topline growth. The topic of Capex being one of the first casualties of Bernanke's central planning was discussed extensively last year, most extensively here.

Sat, 01/26/2013 - 21:13 | 3188473 ebworthen
ebworthen's picture

Thanks for that Tyler(s).

All one needs to do is enter the real world and look for career employment with a livable wage to know that employment is in the shitter.

Or, look at any brick and mortar retailer putting in "self-checkout" registers; doing their best to eliminate employees.

Sun, 01/27/2013 - 01:02 | 3188737 bunnyswanson
bunnyswanson's picture

Medical editing and IT industry is being of course being outsourced like water through a sieve. 

AAMT (American Association of Medical Transcriptions/Editors) personally went to India, opened up warehouse-like settings, created work areas including schools for instruction, cafeteria, transportation, sleeping arrangements (bunkbeds), brought in the computer supplies and began training them in order to make huge profits (not save the medical facilities money, but to make more profit themselves). 

Fast forward a decade, and one now finds that the Indians have received financing to create their own companies and underbid the US companies to the point the US companies must sell (merge) to the Indian companies. 

Tax revenue is lost, no longer customers on Main Street, once productive but now idle highly-shilled individuals have to scramble to find work.  Rather, they go on foodstamps and unemployment and cost the nation even more.  Not to mention the enormous stress one experiences while unemployed.

1,073 people viewed this job opening.

THANK YOU - WE ARE NOT ACCEPTING ANY MORE APPLICATIONS - ORACLE TRANSCRIPTION - OTI - OTI (Views: 1073, 2012-12-18, 10:09 am)

Sat, 01/26/2013 - 21:57 | 3188537 Yen Cross
Yen Cross's picture

In Facto/ Tyler is correct. If you look at the Clearly pointed out [Exhibit (4.1] Tyler made his arguement perfectly clear.

  Tyler was discussing sector profits, and in fact showed the (%age) of competing sectors relative to (revenue).

  Tyler simply discussed, GAAP, based on Top Line revenue. Tyler told the truth/

Sun, 01/27/2013 - 10:46 | 3188995 NumberNone
NumberNone's picture

Robots.  I've read more articles and seen more television stories lately attributing the business boom but lack of jobs to robots and automation.  I see it firsthand when I leave the airport and see a row of 20+ pay booths that used to have employees but are almost all now 'Credit Card Only' machines.  This is clearly taking money that would have been used to pay low-wage salaries and injecting it right into the wallet of businesses and business owners.

They are now saying that this automation is taking aim at Indian and Chinese workers as US companies will soon be able to bring jobs home from overseas and outsource to a robot that will do it even cheaper. 

Interesting dichotomy starting arise from all of this in terms of, if more and more robots take these jobs..who in the hell are they making 'stuff' for?  The robots certainly are not running out to buy their favorite phablet or $100 pair of tennis shoes.  The geniuses don't know really what humans will do in the world they predict will arise in about 15-20 years where this automation is much more prevelant.  They assume it will be focusing on fighting cancer, reading Chaucer, and solving world peace...because that's clearly what most people in the US are focused on when given the free time and government support to better themselves. 

http://alum.mit.edu/pages/sliceofmit/2013/01/22/60-minutes-robotics/ 

 

 

Mon, 01/28/2013 - 11:09 | 3191245 Ballin D
Ballin D's picture

Youre only looking at what you can see. Sure, the machine replaced someone's job, but thats not the end of the story. The lower costs for the company would normally be passed along in some other way, through adding new jobs that add value to the company in other ways, or even price cutting to edge out competition (savings being passed on to customers to be spent elsewhere).  Unfortunately, since were quickly falling into the shitter, this cost cutting is only able to allow companies to barely break even, somewhat masking the economic perils we face.  Its not like these companies are wreaping huge profits even if they are doing better than individuals.

Ultimately, those jobs are the casualty of no growth, of ZIRP, or our huge govt sponsored debt burden, etc.  The robots are just an easy excuse to point fingers at to keep the sheep happy.

Mon, 02/04/2013 - 23:45 | 3215422 MeelionDollerBogus
MeelionDollerBogus's picture

Something doesn't fit with this "robots take all our jobs" bullshit.

Seriously. #1 robots mean you can produce a lot of inventory, yet that can be a very bad thing. Over-production without a good human forecast - measuring not only what data an AI can parse but also modulated by what a human can discern from emotional & cutural cues - will lead to serious problems, maybe bankruptcy, even in the best of times. Now with heavily rigged markets no way that risk goes down

#2 robots need to constantly improve to ensure avoidance of problem #1 so they can be upgraded in affordable modular fashion & so that inventories can be changed in affordable modular fashion rather than making too many Widget_2010's only to realize that by 2013 absolutely no one wants a Widget_2010 no matter how amazing their sales were into 2011 and appeared to be in 2012 with channel-stuffing.

#3 robots & software, be they highly innovative or merely highly reliable at doing 1 to 10 things that we can't do without (e.g. making sheet metal, tires, pipes, etc.), humans still need to maintain these non-self-repairing robots & to anticipate cost of failure based on various business conditions to plan for replacement parts, replacement robots or to say "fuck it, we made our money" and drop it like a hot potato.

Sat, 01/26/2013 - 17:43 | 3188134 pragmatic hobo
pragmatic hobo's picture

it's a unprecedented golden age for the top 0.1%. No wonder buffet keeps thanking the government, no wonder bernanke is worshipped, no wonder obama got re-elected.

Sat, 01/26/2013 - 17:53 | 3188140 khakuda
khakuda's picture

We're back to giving low cost/free money away, causing bubbles in asset prices and thinking it will somehow end better this time around.  The so called Keynesian economists running the show don't really understand Keynes or economics for that matter.  The key difference in the next cock up is going to be that debt of the developed world will be many times higher than the last go around, so no one really knows how that disaster will play out.  If rates rise, I think real estate is toast in addition to the bond market, obviously.  Real estate won't be an inflation hedge when it is purchased on leverage and the marginal buyer folds as rates rise.

In the meantime, stocks may go into a bubble soon enough given recent all news is good news price action.  It sure feels like we're on the cusp of euphoria erupting.  Bernanke must have been sleeping or masturbating during the Greenspan era and not paying attention to how that turned out.  With bonds and stocks in a bubble and government debt and the Fed balance sheet growing rapidly, some bad stuff is going to follow.  At that point, maybe we have to settle in with firearm stocks and gold, which are already doing pretty darn well.

The money printing is really pissing me off.  They shouldn't even be allowed to bullshit the public and call it QE.  It should be called what it is:  purposeful debasement and theft from what was supposed to be a store of value for people's hard work.  Here's your paycheck for mowing the lawn Timmy, sorry you were prudent and saved it for 3 years and can't trade it in for more than a Pepsi anymore.  Oh well, America is a great country.

Sun, 01/27/2013 - 12:32 | 3189096 jerry_theking_lawler
jerry_theking_lawler's picture

luckily for us, this should be the last 'bubbles' to be blown because they are inflating everything (except PMs)....since this is the largest bubble blowing, I would imagine it would take some time to finish, but when it does it is going to be EPIC.

 

http://www.youtube.com/watch?v=ERTT_sv8sV0

Sat, 01/26/2013 - 17:53 | 3188145 yogibear
yogibear's picture

Krugman and other economist living in their ivory tower. Get out of your comfortable setting and look at  what's going on, not what the government stats state, which are BS.

http://www.pizzamarketplace.com/blog/9727/A-forgotten-key-strategy-in-av...

The rising commodity prices continue to challenge restaurant operators providing the value customers seek balanced with profitability.

January 24, 2013

In 2013 commodity price increases are expected to top 3 percent and some proteins going up more than 15 percent. The article notes strategies that operators are taking to counter higher costs. They include:

  • Promoting items with lower food costs
  • Renegotiating contracts
  • Changing suppliers
  • Increasing use of third-party purchasing groups
  • Reducing portion sizes
  • Eliminating high cost items


Sat, 01/26/2013 - 18:02 | 3188162 ToNYC
ToNYC's picture

When the party's over, they always say no one could have seen it coming. Then they go to the closet with the rake for the take. The boys from brazil with the 2 Trillion bills, take to the hills.

Sat, 01/26/2013 - 18:27 | 3188204 adr
adr's picture

and those graphs are based on the BLS reports. Want to take a guess at the real numbers, far more than 8 million jobs down. Even with the over 55 additions we haven't come close to adding a single job. Then take the average earnings of the jobs that were created, compared to the earnings of those lost. Even further down the hole you go.

Sun, 01/27/2013 - 12:48 | 3189119 jerry_theking_lawler
jerry_theking_lawler's picture

I was visiting with extended family recently as we were gathered due to a death. As most of my conversations eventually lead to the 'what do you do?' quetion, I found some startling information. i would say 50% of the under 40 crowd was 'in school' with all talking about federal grants, extended unemployment benefits and other .gov programs that were supporting them somewhat nicely. even had a few go on to say that when they finish their 'online' BS degrees that they were going to go for 'online' MS degrees......next, i would say that 75% of the over 50 crowd was on disability or SSI. So in my estimation there were 100 people at this event and maybe 35 that are actaully working...the rest were on the .gov dole. Plus of the 35 that work about 30% work for the .gov (fed or state). So only 25 out of 100 people are actually working and producing.....and I ask myself, why am I working daily and not living that much higher a standard of living than these folks.

This is utter non-sense. This system WILL collapse.

Sat, 01/26/2013 - 18:36 | 3188225 Bicycle Repairman
Bicycle Repairman's picture

Soon those that got rich on stocks will start spending.

Reset!!!!!

Sat, 01/26/2013 - 18:44 | 3188235 Waterfallsparkles
Waterfallsparkles's picture

Most of the Population explosion is from Welfare Moms.  Jobs?  We not be working for a living.  We knows the system pays us.

Many are incarcerated and living off the system as well.

Sat, 01/26/2013 - 19:53 | 3188345 bunnyswanson
bunnyswanson's picture

Hey rich asshole, get off the backs of the American poor people.  They were created by your govt so they'd not vote.  They were kept stupid and poor strategically.  why would that surprise you fuckers since you are so goddam smart?  The less democratic voters, the better.  Keep some cheap beer and cheap drugs, preferably crank/meth, available to ruin their ability fo function at all is also part of the plan.  Their stupid lives, without a purpose in the world but to find the next meal was given to you by Yours Truly, the US Government.

 

So back off.  Who are you?  A 29 yr old whose daddy footed the bill for college or gave cash gifts so large, you'd always be okay?  Cheated your way through your classes, perhaps?  Went into "grey areas" on the income return....nothing special.  Just a useless eater in a nice house.

Sun, 01/27/2013 - 08:21 | 3188884 Waterfallsparkles
Waterfallsparkles's picture

I am a Section 8 Landlord and have friends that are also Section 8 Landlords.

By the way they do vote.

Sat, 01/26/2013 - 18:59 | 3188263 ekm
ekm's picture

As far as I am concerned S&P can go 5000 easy peasy. The primary dealers will continue to bounce the same amount of stocks around over and over and over and over...until the order is given to dump.

 

However, those morons seem to not understand that the more S&P goes higher, the more the financial sector is NOT needed because the stock casino is going higher ONLY AND ONLY due to primary dealers, hence shut down all the financial sector except for the primary dealers.

Any point about 1000 of S&P is simply primary dealers selling the same amount of stocks to each other over and over and over.

 

I still hold my forecast of the inevitability of S&P at 400 and crude oil at $15 quite soon...by executive order.

I forecast the following primary dealers will be the dump: Merryl Lynch, Deutsche Securities.

Sat, 01/26/2013 - 19:00 | 3188274 Yen Cross
Yen Cross's picture

 A Ray of Light. Gotta like EKM.

Sat, 01/26/2013 - 19:05 | 3188287 ekm
ekm's picture

It's simply pure madness.

The financial sector is dying slowly, layoffs everywhere, hedge funds shut down everywhere, because........stocks are too, too, too expensive, by 100%. S&P book value is at about 700 I think. People are retiring and no longer have any money to play at the stock casino.

 

Those idiots want high stock prices. What? What? Whaaaat?

Low and cheap stocks are great for finance since people will come back to play in the casino. That's why I say S&P at 400 inevitable or shut down the financial sector.

Sat, 01/26/2013 - 19:11 | 3188296 LooseLee
LooseLee's picture

And what about when the 'order' is given to 'dump' the primary dealers, Singapore-Sling style?

Sat, 01/26/2013 - 20:24 | 3188394 ekm
ekm's picture

What is the depth grand canyon?

Sat, 01/26/2013 - 20:42 | 3188417 Yen Cross
Yen Cross's picture

  Mariana Trench - Wikipedia, the free encyclopedia\   

 

         Mount Everest - Wikipedia, the free encyclopedia       The Fed is that deep under water...

   I started my first business out of my garage. I slept in squalor, knowing my hard work would pay off.

     I was correct, initally. The unemployment rate in Mexico is  < http://www.tradingeconomics.com/mexico/unemployment-rate>

  The unemployment rate in Mexico is a full (4 sigma) below the United States.  I can have some discussions. That is published statistics.                                                                

Sat, 01/26/2013 - 19:06 | 3188289 Black Markets
Black Markets's picture

So can I take from this article that back in 2007 S&P 500 companies were carrying 8 million fat ass time wasting US workers, who contributed ZERO added value?

And having "cut the fat" these companies are now leaner meaner and FAR more competitive?

Anyone who thinks the stock market should be correlated to the employment rate is a COMMUNIST. It's all about profit numbnuts.

It's fantastic news that the S&P can reach such valuations whilst carrying 8m fewer workers! Levels of productivity must be soaring!

Shumpter will be delighted.

Now that the S&P 500 companies have advanced their productivity to the point where they have found 8m surplus workers. All of whom should be freed up to do other things when the opportunity arises.

Great news for productive / competent / value adding people everywhere.

That's how I read the article anyway.

Sat, 01/26/2013 - 22:04 | 3188542 mess nonster
mess nonster's picture

+ sarc points

Sun, 01/27/2013 - 07:20 | 3188859 GNWT
GNWT's picture

Profits, eh?

 

30% of the S&P profits are banks

 

ever heard of arthur andersen???

Sat, 01/26/2013 - 19:07 | 3188290 kill switch
Sat, 01/26/2013 - 20:42 | 3188415 Proofreder
Proofreder's picture

Oops, posted before I saw ...

OT, but wonder just the same why there has been little MSM analysis beyond a headline - Activist Suicide Revenge and that sort of thing.

Should be interesting how this develops - of course, what could the DOJ possibly be hiding.

Off with his head.

Sat, 01/26/2013 - 19:19 | 3188308 jal
jal's picture

Granny has a great financial advisor.

"See, I told you that the markets always goes back up. By not selling, since 2007, you got all your money back."

Question:

How much money did I make since 2007?

Answer:

Don't sell. The markets keep going up.

Question:

How long do I have to wait to make an average of 6%?

Answer:

heheheheh

Don't worry. Trust me.

hehehehe

Sat, 01/26/2013 - 19:28 | 3188317 jonjon831983
jonjon831983's picture

All they need to bring it higher are a few more of these "Britain's £1m and £100m banknotes" + $1 Trillion coins.

http://www.bbc.co.uk/news/magazine-21145103

Sat, 01/26/2013 - 20:05 | 3188367 spankfish
spankfish's picture

Off topic, Starbucks fires back at#10 Downing St.

http://www.telegraph.co.uk/news/politics/9829108/Starbucks-threatens-Cam...

Sat, 01/26/2013 - 20:13 | 3188377 JimmyCDN
JimmyCDN's picture

I'll tell you what isnt back...

 

The price of sliced bacon at the local butcher shop!!

 

I went to buy some bacon for my family from the local butcher this morning.  NINE DOLLARS A POUND.  NINE DOLLARS!!!!!

 

 

 

Sat, 01/26/2013 - 23:21 | 3188647 Mentaliusanything
Mentaliusanything's picture

Nine Dollars a Pound ... Tell him he is DREAMING.

I'm paying $3.63.. 

Fillet steak is $8.99

Porterhouse $7.75

Chicken Breast $3.63

We don't have QE here... thats the Rub

Sun, 01/27/2013 - 07:17 | 3188858 GNWT
GNWT's picture

 

go vegan bitcez

Sun, 01/27/2013 - 12:08 | 3189070 OldTrooper
OldTrooper's picture

Maybe this will help with your bacon situation:

http://www.firepit-and-grilling-guru.com/how-to-make-bacon.html

Sat, 01/26/2013 - 20:37 | 3188408 realtick
realtick's picture

Great presentation

Sat, 01/26/2013 - 20:37 | 3188410 Proofreder
Proofreder's picture

And yet another ...  (spoiler -> OT)

http://abcnews.go.com/blogs/politics/2013/01/anonymous-hijacks-federal-w...

Why the silence about this at the Hedge ???    Perhaps it is assumed that it's a False Flag in progress.

Last Straw, Indeed

Sat, 01/26/2013 - 21:28 | 3188486 Yen Cross
Yen Cross's picture

 You assholes, Didn'T LISTEN TO kNUCKLES. You whimps discuss ways to get fucked, and I discuss ways to "Build Empires".

  I'll  die trying. ( you meat balls talk about "submiting")  You are a bunch of "wanabe / self preservation ass holes".

  Yen cross is buying Platinum, and XAG on the dips. ( I trade paper)   You so called Investors, are apalling.\

  Grow some balls/

  

Sun, 01/27/2013 - 20:49 | 3189881 jim249
jim249's picture

Troll

Sat, 01/26/2013 - 21:31 | 3188499 Tom Green Swedish
Tom Green Swedish's picture

Good now they won't need as much Social Security.  Time to decrease benefits.  We all know wht the plan is decrease the value of money create more debt, increase inflation to lower the treasury debt, and to create as many debt serfs as possible.  This has been going on for years.  Who really gives a fuck.

Sat, 01/26/2013 - 21:47 | 3188528 Yen Cross
Yen Cross's picture

The Un-Employment rate in Mexico is  .

06:00   MXN     Mexican Unemployment Rate 4.5% 4.8%

5

 ... 

It,s published @ just under 8% in the states.

Sat, 01/26/2013 - 22:14 | 3188564 mess nonster
mess nonster's picture

Is it because all their unemployed came here?

Is it because the director of Banco de Mexico (Agustín Guillermo Carstens) is good buds with DSK and Legarde over at the IMF?

What is Mexico doing that we can't, or won't?

The last time I was in Mexico, I went to the bank to get some pesos. The line was out the door. Damn! Of course, it was the first business day of the month, and everyone was cashing in their welfare checks. I shit you not, it took over an hour to get to the teller- the queue was that long.

 

 

Sun, 01/27/2013 - 08:09 | 3188875 Grand Supercycle
Grand Supercycle's picture

Bank charts tell the real story...

Despite recurring equity short covering spikes - bank index & BAC charts tell the real story...

http://trader618.com/2013/01/10/thurs-10-jan

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