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Cleanest Dirty Shirt Or Just The "Most Hopeful"?

Tyler Durden's picture




 

We have shown the endless hockey-stick-like charts of hope that are the coming margin expansion, dramatic earnings growth, and revenue increases (all juxtaposed against the reality of a labor-destroying cost-cutting and growth-disabled global economy) but perhaps nowhere is the 'hope' in the US more evident when compared to the rest of the world. Around the world, analysts and strategists are comfortable marking down expectations for British, European, Asian, and Emerging Market nations but not the good ol' USofA. We cannot help but believe that while momentum in US equity markets dominates all sense and rationality, it would appear the US will struggle to realize these 'hopeful' expectations if the rest of the world is collapsing... unless of course, Mars does indeed start importing Fords and GMs.

 

The normalized forward expectations for EPS... Spot the odd one out!

 

and this as US Macro data appears to have topped out... with the biggest two-day drop in 9 months!

 

Chart: Credit Suisse and Bloomberg

 

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Sat, 03/30/2013 - 20:53 | 3392603 km4
km4's picture

David Stockman Is Outraged — And A Lot Of Powerful People Won't Like What's In His New Book http://www.businessinsider.com/david-stockman-is-outraged-2013-3 via @bi_contributors

This is a history book. It’s a detailed account of the key events since the Depression that have shaped modern finance. I love history, and I’m familiar with those events. Stockman’s spin on financial history makes for a very good read. There’s something for everyone.

For example, were you troubled by the bailout of AIG, and TARP? If so, you’ll love this chapter:
Paulson’s Folly – The needless Rescue of AIG and Wall Street

Do you worry that Bernanke has overplayed his hand with monetary policy? Stockman rips him apart:
The Bernanke Bubble: Last Gift to the 1 Percent

or
How the Fed Brought the Gambling Mania to America’s Neighborhoods

Do TV talking heads influence Fed policy? Stockman says “yes”.

The Rant That Shook the Eccles Building: How the Fed Got Cramer’d

Worried about US indebtedness to foreign central banks? That’s covered in: Monetary Roach Motels

 

 

My only disappointment with The Great Deformation is that there is very little in the way of what could be done, versus what is being done. Stockman does offer up a few thoughts of what might be considered. These will get more than a few eyebrows raised on Wall Street and in D.C.:

- Abolish deposit insurance, strangle the Fed and shrink the banks.

- Adopt a Super Glass-Steagal. Abolish bailouts.

- Eliminate the Electoral College and establish strict term limits.

- A balanced budget, eliminate economic subsidies, shrink the federal government.

- Impose a 30% tax on wealth to reduce debt to 30% of GDP (assumes a $10T tax on the top 10% – think Cyprus on steroids)

- Eliminate income taxes and replace it with consumption taxes.

Sat, 03/30/2013 - 21:18 | 3392647 Eireann go Brach
Eireann go Brach's picture

Its because the US has Obama, no one else has such a brilliant leader, savvy business man, and honest politician, who can call on friends like Beyonce, Flavor Flav and Ice for economic solutions!

Sat, 03/30/2013 - 21:20 | 3392656 Ahmeexnal
Ahmeexnal's picture

First glance and I read "cleanest dirty shit"

Sat, 03/30/2013 - 21:51 | 3392708 Abraxas
Abraxas's picture

The biggest fish in a small pond, the prettiest girl in an ugly bunch, the most empathizing psychopath... you know, the most honest man in a bank.

Sat, 03/30/2013 - 23:35 | 3392822 markmotive
markmotive's picture

We're all watching the wrong game...

The cleanest shirt has been classic cars, coins and stamps...200%+ returns over the past decade.

http://www.planbeconomics.com/2013/03/returns-on-classic-cars-fine-art-w...

Sun, 03/31/2013 - 02:17 | 3392992 Boris Alatovkrap
Boris Alatovkrap's picture

Boris is learn hard lesson in youth. More is inebriated, prettier is girls. But next day, wake up sober and realize pretty girl is really fat pig.

Sun, 03/31/2013 - 08:26 | 3393133 TeamDepends
TeamDepends's picture

And heavy with little Boris.

Sun, 03/31/2013 - 09:35 | 3393178 nodhannum
nodhannum's picture

As we country boys here in USSA like to say Boris: "she wa a 10 at 2:00am and a 2 at 10:00am".

Sun, 03/31/2013 - 18:34 | 3394283 Boris Alatovkrap
Boris Alatovkrap's picture

Good thing Boris is sleep until 12:00!

Sun, 03/31/2013 - 10:26 | 3393212 smlbizman
smlbizman's picture

man that macro is forming a flag...and you know she is just getting ready to blast off to the moon, which by the way is made of cheese....

Sun, 03/31/2013 - 12:14 | 3393402 OutLookingIn
OutLookingIn's picture

The best looking horse!

At the glue factory!

Sun, 03/31/2013 - 18:32 | 3394281 Boris Alatovkrap
Boris Alatovkrap's picture

Best is looking hog!

...

No, that is not work...

Sat, 03/30/2013 - 21:34 | 3392682 Cabreado
Cabreado's picture

So you forgot about that Congress thing, too, eh?

As you type... You might also see that we are predisposed to wanting "a brilliant leader."

On a long enough timeline... that's how it all goes bad.

Sun, 03/31/2013 - 06:38 | 3393078 Go Tribe
Go Tribe's picture

In a country where black people and jews can do no wrong, we will get fucked by black people and jews.

Sun, 03/31/2013 - 14:49 | 3393798 Boris Alatovkrap
Boris Alatovkrap's picture

... and Albanian Gypsy hords.

Sat, 03/30/2013 - 21:21 | 3392661 SafelyGraze
SafelyGraze's picture

Cleanest Dirty Shirt Or Just The "Most Hopeful"?

We have shown the endless hockey-stick-like charts of hope that are the coming margin expansion, dramatic earnings growth, and revenue increases (all juxtaposed against the reality of a labor-destroying cost-cutting and growth-disabled global economy) but perhaps nowhere is the 'hope' in the US more evident when compared to the rest of the world.

Around the world, analysts and strategists are comfortable marking down expectations for British, European, Asian, and Emerging Market nations but not the good ol' USofA.

We cannot help but believe that while momentum in US equity markets dominates all sense and rationality, it would appear the US will struggle to realize these 'hopeful' expectations if the rest of the world is collapsing... unless of course, Mars does indeed start importing Fords and GMs.

The normalized forward expectations for EPS... Spot the odd one out!

and this as US Macro data appears to have topped out... with the biggest two-day drop in 9 months!

Sun, 03/31/2013 - 09:44 | 3393188 aint no fortuna...
aint no fortunate son's picture

Martians are really more into the Yugos... it's the Venutians who are hot on GM's, especially that spiffy looking Cherokee.

Sun, 03/31/2013 - 07:40 | 3393110 AGoldhamster
AGoldhamster's picture

"Adopt a Super Glass-Steagal. Abolish bailouts."

+100000000000

It worked as long as it was in place. The moment Clinton killed it - all the troubles started.

All those trouble will continue and get worse and worse. As nowadays bankers have the say and politicos are just bankers servants anymore.

ONLY another 1929ff - great depression with all its tragedies and international aftermath finally leading to WW2 -will force the public (all those nowadays ignorant J6Ps) to wake up and protest in the streets in millions - which is the only way another (Super) Glass-Steagal will be implemented - and the bankers thrown out of governments.

All that is needed is to stop banks gambling with their clients money.
But greed is soo huge and widespread in the elite that there is no chance for change anymore.

So all you can do is - to protect yourself. And that is to get of of the financial system as you know it. That also means to convert some of your assets into not visible assets - as whatever will be visible will be taxed to death. Before that house of financial slavery comes down again. Like it did in 1929ff.

Mark the dates 05-05-2013 and 02-02-2016. +/- 2 weeks. That is where I think we will see the major turns of markets. And a replay of the events of 1929ff. Checkout when Indices peaked in 1929. Greece and Cyprus are/were just the tip of the iceberg arriving.

ACT NOW - because later it might be too late.

Sun, 03/31/2013 - 08:56 | 3393143 new game
new game's picture

Wish, THINK, REALIZE!

None of this will happen.

anybody in there right mind seeing any of the right things happening, fuck no.

it is getting worse; EVERYWHERE EXCEPT ICELAND!!!!!!

tptb are firmly in control and WILL use the  force of police and military to back their policies.

we are firmly locked into facism. the grip is FIRM.

wake the fuck up and quite wasting your mental energies thinking there will be a better set of policies

governing america or anywhere on this globe.

dont get me wrong, i too wish that we could put stockman or paul craig roberts  in control. but i have

moved on to a better place(mentaly) - planning for the inevitable- anarchy til new forms of government evolve.  This is the HISTORY lesson that will take place in your lifetime (if you are under 80 years old). 

all i am saying these people sounding the alarm are correct but POWERLESS to make any change and most importantly IT IS TOO LAtE -ALREADY.

can't raise rates or allow them move to market adj. - bonds implode.  without printing rates would rise and kill the budget, not to meNtion dumpage, and most iMportantly the dollar is heading to the cliff. all these policies converge to a meltdown and chaos.

any change in current policy causes major disruptions such as no check in the mail to MILLIONS of humans or bond dumpage, all while the brics are setting up trading paths around the almighty dollar.  shalom has so fucked us all and he is getting backed tighter and tigher into a corner of which there is no way out without major, major market disruption or collape of life as we know it.

wish think realize and

plan accordingly...

JMFO

Sun, 03/31/2013 - 09:38 | 3393182 AGoldhamster
AGoldhamster's picture

Amen brother.

Sat, 03/30/2013 - 20:56 | 3392611 orez65
orez65's picture

But, but ... Obama says the economy is getting better!

And Paul Krugmann agrees!!!

Sat, 03/30/2013 - 21:11 | 3392643 knukles
knukles's picture

Two wrongs don't make a right

Sat, 03/30/2013 - 21:43 | 3392699 Bohm Squad
Bohm Squad's picture

No, but three lefts do.

Sun, 03/31/2013 - 02:22 | 3392997 Boris Alatovkrap
Boris Alatovkrap's picture

Q: How many progressive liberals is take to screw incandescent bulb?

A: After replace all incandescent bulb for CFC and set up cap and trade, all efficient source of energy is kaput, so is not even bother.

Sat, 03/30/2013 - 21:00 | 3392624 chistletoe
chistletoe's picture

The US economy IS doing better ....

 

on account of a lot of foreign investment ....

 

from places like, well, cyprus, for example ....

Sat, 03/30/2013 - 21:04 | 3392630 q99x2
q99x2's picture

Linsten to Stockman's interview about it with Chris Martenson here: He pretty much discusses everything in this 1 hour interview. Dude's pissed.

David Stockman: We've Been Lied To, Robbed, And Misled

Sat, 03/30/2013 - 23:39 | 3392832 SafelyGraze
SafelyGraze's picture

pissed.

yeah.

controlled-opposition type pissed.

even shakes his fist at the nank.

woo hoo.

Sat, 03/30/2013 - 21:12 | 3392641 mayhem_korner
mayhem_korner's picture

 

 

The FedEx man just delivered me 10 Krugs and three sleeves of silver Maples.  After 27 days of waiting, I'm going to enjoy my new stack additions over a single malt.  So excuse me if I don't care about stawks this noir.  :D

Sat, 03/30/2013 - 21:23 | 3392669 Ahmeexnal
Ahmeexnal's picture

that's a lotta tungsten dude.

Sat, 03/30/2013 - 21:28 | 3392679 mayhem_korner
mayhem_korner's picture

 

 

Wish it was.  Then I won't feel so sad when my boat turns over next weekend.

Sat, 03/30/2013 - 23:00 | 3392791 They Tried to S...
They Tried to Steal My Gold's picture

Damn it...YOU are a GREAT AMERICAN!

Sun, 03/31/2013 - 06:42 | 3393080 Go Tribe
Go Tribe's picture

You do know that ZH is an IRS site, right?

 

(really, sarcasm people)

Sat, 03/30/2013 - 21:21 | 3392660 bugs_
bugs_'s picture

what is bad for our unfair trading partners is good for us

what is bad for bad fair trade deals is good for us

nearly my entire life politicians and wall streeters have been moving jobs and opportunity overseas

the pendulum can swing no further in that direction

and it is probably a good thing for all considering the pollution, corruption, and radiation extremes

Sat, 03/30/2013 - 21:23 | 3392663 Yen Cross
Yen Cross's picture

     If these 'quantum statisticians' claim that 50-70% of corporate revenue and profit come from overseas, and the figures show a global slowdown (1st chart rtrs-credit suisse), then how in the hell can U.S. revenue/guidance be effectual on the overall earnings report? These fucking ass clowns have cake smashed in their faces.

    I would rather hire TROOP of dyslexic Chimps to plot guidance for my company!

Sun, 03/31/2013 - 09:33 | 3393172 hooligan2009
hooligan2009's picture

probably more accurate that 50% of profits are earned overseas and 20% is sheltered overseas for tax purposes to ensure the US remains in deficit.

the confiscation of deposits above anumber, say, 100 million, for individuals and where profits above 1 billion have not been reinvested for, say 3 years and held overseas, or that have been held by companies in the US for 3 years makes; a lot of sense, since this money cannot be spent by an individual in their lifetime and companies hve shown an inability to deploy cash, thus withholding it from the economy. used to be that baks would redeploy the funds held o deposit with them, but now those funds just pay for banksters to get fat with fat bonuses.

Sat, 03/30/2013 - 21:43 | 3392701 eigenvalue
eigenvalue's picture

But stocks are the place to put one's money because we have Ben Bernanke. Other things like precious metals can only make one poorer. In stocks we trust!

Sat, 03/30/2013 - 21:53 | 3392712 Abraxas
Abraxas's picture

Sieg Heil!!!!

Sat, 03/30/2013 - 21:56 | 3392720 eigenvalue
eigenvalue's picture

Vielen Dank!

Sat, 03/30/2013 - 21:58 | 3392723 Abraxas
Abraxas's picture

Bitte!

Sat, 03/30/2013 - 23:03 | 3392794 W74
W74's picture

Heir komest die Sonne.

Sat, 03/30/2013 - 22:06 | 3392713 Abraxas
Abraxas's picture

Sieg Heil!!!!

 

edit: there must be some kind of cyber-echo as I posted it only once

Sat, 03/30/2013 - 23:38 | 3392833 Nobody For President
Nobody For President's picture

In stocks we trust,

But gold don't rust.

Sun, 03/31/2013 - 06:43 | 3393081 Go Tribe
Go Tribe's picture

What happens when bernanke announces that he's had a liver transplant?

Sat, 03/30/2013 - 21:55 | 3392714 Yen Cross
Yen Cross's picture

   This pdf file is calendar year 2011. Notice the disparity (Overseas Profits vs Domestic)  I'm digging deeper, so stay tuned.

Sat, 03/30/2013 - 23:23 | 3392811 morning_glory
morning_glory's picture

We need moaaaar CON-fidence!

Sun, 03/31/2013 - 00:54 | 3392948 Peter Pan
Peter Pan's picture

Did you cleanest dirty shirt?

Sorry but I was focusing on the missing buttons.

Sun, 03/31/2013 - 04:24 | 3393029 TraderTimm
TraderTimm's picture

Here's the short version.

All sovereign currencies are fucked. They just don't know it yet. Like a hatchet on chicken's neck, it will run around a while before it bleeds out.

This includes the Euro, Yen, Pound, Canadian Dollar, Yuan, Baht, Rial, etc...

You're all in the financial event horizon - and you can't believe that relativistic effects will prolong your collapse to infinity. Before you're consumed whole by the greed you produce.

Sun, 03/31/2013 - 07:09 | 3393096 Black Markets
Black Markets's picture

The chicken has been running around headless since August 15th 1971.

Sun, 03/31/2013 - 09:14 | 3393155 d edwards
d edwards's picture

IMO Cyprus is just the beginning of the plan to collapse all currencies and usher in a new global currency and along with it the NWO.

Sort of like a controled demolition of a building.

Sun, 03/31/2013 - 06:26 | 3393076 poldark
poldark's picture

" nowhere is the 'hope' in the US more evident when compared to the rest of the world."

That maybe because the US is printing more money than the rest of the world combined.

Sun, 03/31/2013 - 11:03 | 3393270 abgary1
abgary1's picture

At present, QE equals hope?

When does unsustainable debt equal despair?

Sun, 03/31/2013 - 07:49 | 3393115 Mototard at Large
Mototard at Large's picture

BLS Hacked!  For God’s sake, please don’t tell anybody outside of the ZH forum, but I hacked into the Bureau of Labour Statistics (BLS) to find out how they keep making all those seasonally adjusted weather conforming ever improving economic stats. In a file called “statistics production generation methods” I found the answers. They use: 

Anthropomancy – the entrails of recently deceased long term unemployed men are read to determine U6 figures. 

They have a series of other methods to find other economic statistics. They include  Gastromancy (U3) , Gyromancy, Myomancy, Omphalomancy , Onychomancy, Tyromancy, Belomancy and Necromancy  (Necromanyc is for 401K stuff. You really do not want to know about the last one.....)

 

ZH readers can see the full report at:  http://tinyurl.com/cwm8e3s

(a little humor to go with your Easter Weekend)

Sun, 03/31/2013 - 09:55 | 3393196 Racer
Racer's picture

They will no doubt as usual revise them down the nearer and nearer it gets to reporting season and then the companies will magically beat expectations

A complete farce of a 'market'

Sun, 03/31/2013 - 11:10 | 3393282 RaceToTheBottom
RaceToTheBottom's picture

It might be time to turn the shirt inside out

Sun, 03/31/2013 - 17:02 | 3393440 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

That's why we're richer than you ?

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