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Shopping With Bernanke: Where QE Cash Ends Up Tells Us Who Benefited

Tyler Durden's picture




 

One can debate whether QE has benefitted Main Street or Wall Street until one is blue in the face, even though five years later, the answer is perfectly clear to all but the staunchest Keynesians and monetarists (and if it isn't, just pay attention to the 3:30 pm S&P ramp every day). One thing, however, that is undisputed is what the market itself says about where the QE money ends up when it is being spent by its recipients. And that story is so simple even a Keynesian would get it.

Stated briefly, luxury retailers such as Tiffany, Coach and LVMH are now up 500% since the Lehman lows, and about 30% above the prior cycle highs. On the other hand, regular retailers such as Macy's, Kohl's and JC Penney are barely up 100% from the crisis lows, and still more than 30% below the last bubble highs.

And that, in a nutshell, is precisely how the money from QE has been distributed.

Source: JPM

 

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Tue, 11/19/2013 - 18:21 | 4171587 CPL
CPL's picture

Marx brothers Train SKetch...

http://www.youtube.com/watch?v=LOe2bTVLRxk

That would be a good summary of the situation.

Tue, 11/19/2013 - 18:29 | 4171607 Future Tense
Future Tense's picture

Stock market is for slow players. Will bitcoin double again tonight and cross $1,000? Live bitcoin bubble tracker. Place your bets before the explosion.....

http://www.ftense.com/2013/11/live-bitcoin-bubble-tracker.html

Tue, 11/19/2013 - 18:37 | 4171635 ZerOhead
ZerOhead's picture

I don't know why but my comic book and Beanie Baby investments haven't been performing well over the last couple of years. Perhaps I should diversify with some Bitcoins...

Tue, 11/19/2013 - 19:47 | 4171863 Say What Again
Say What Again's picture

They need a third line for Wal*Mart

Tue, 11/19/2013 - 20:15 | 4171936 ZerOhead
ZerOhead's picture

Or perhaps a 'third rail' with a 'touch-me' sign near the discount compost pile...

Wed, 11/20/2013 - 01:13 | 4172525 r3phl0x
r3phl0x's picture

High-end retail is doing just fine: powerful male insiders always grow their income in every phase of the business cycle, and their female companions always spend it on gratuitious luxury products, to compete with their female friends.

Low-end retail is doing just fine because of EBT.

Middle-class-dependent retail is totally fucked, like the middle class itself.

Tue, 11/19/2013 - 20:36 | 4171989 HardAssets
HardAssets's picture

Prime farmland has skyrocketed in price. Farmers know its in a bubble, but at least its a hard asset producing an essential - - food.

Tue, 11/19/2013 - 18:31 | 4171616 Zero Point
Zero Point's picture

Bahaaa CPL. Perfect.

Tue, 11/19/2013 - 18:33 | 4171623 CPL
Tue, 11/19/2013 - 18:26 | 4171596 Peter Pan
Peter Pan's picture

We are heading towards a world similar to that depicted in the Time Machine by HG Wells. Part of the population will be above ground enjoying the sun and the surf while the majority will be undergrounf toiling away.

Tue, 11/19/2013 - 18:25 | 4171598 uncle.bigs
uncle.bigs's picture

This is precisely how it should be.  Most people are fat, lazy and dumber than a box of rocks.  They should shop at Wal Mart and live like monkeys.  The economy's winners should live like kings.  It's just bizness.  LOL

Tue, 11/19/2013 - 20:16 | 4171612 CPL
CPL's picture

The net worth of a Zimbabwean Billionaire is what happens. The Fed holds the print button down with a rock to eventually to adjust against all those rotten derivatives about to steam roll because they are all collecting interest continuously times infinity. 

Money just won't be worth anything because the constant effect of interest is like a gambler doubling down against the house.  Every month.  Doubling.  And doubling.  And doubling.  Guess what happens then?

House always gets the money.  Gamblers dilemma now with the numbers floating around worldwide it's Russian roulette with six bullets.  Everyone playing is going to get it financially because that's the way the system is built.

Tue, 11/19/2013 - 19:27 | 4171801 TheReplacement
TheReplacement's picture

That's retarded. 

1.  Today's winners are not winning a fair game.  The rules are not the same for everyone.

2.  Nobody should live like monkeys.  Monkeys murder each other as part of the routine.

3.  Nobody should live like kings.  Get rich, have a ball, I don't care.  Start acting like you are a king and things go south.

4.  Go away Mr. Paid Agent.

Tue, 11/19/2013 - 18:28 | 4171603 Peter Pan
Peter Pan's picture

There are some fat and lazy people who just happen to be rich and stupid.
What do you suggest for them?

Tue, 11/19/2013 - 19:21 | 4171787 Dadburnitpa
Dadburnitpa's picture

Casinos.

Tue, 11/19/2013 - 19:58 | 4171896 Diogenes
Diogenes's picture

A fool and his money are popular everywhere.

Tue, 11/19/2013 - 18:29 | 4171609 Billy Shears
Billy Shears's picture

 

shopping is for rich folks

Tue, 11/19/2013 - 18:31 | 4171617 Seasmoke
Seasmoke's picture

Give me Louis Vuitton or Give me Death.

Tue, 11/19/2013 - 18:32 | 4171621 maskone909
maskone909's picture

Fun facts:
Walmart absorbs 40% of foodstamp market.
He rest is from qe maybe?

Thu, 11/21/2013 - 05:31 | 4176660 PT
PT's picture

They sell the cheapest shit and their employees still can't afford to buy from them ...

Tue, 11/19/2013 - 18:36 | 4171632 mayhem_korner
mayhem_korner's picture

 

 

Wow! That comment disintegrated like one of dem dar arcade Space Invaders...

Tue, 11/19/2013 - 18:37 | 4171637 buzzsaw99
buzzsaw99's picture

Who said that? Who the fuck said that? Who's the slimy little communist shit twinkle toed cock-sucker down here who just signed his own death warrant? Nobody, huh? The fairy fucking godmother said it. Out-fucking-standing... [/Gunnery Sergeant Hartman]

Tue, 11/19/2013 - 18:43 | 4171656 mayhem_korner
mayhem_korner's picture

 

 

When you put your hand into a bunch of goo, that a moment before was your best friend's face...you'll know what to do.

(George C. Scott, Patton)

Tue, 11/19/2013 - 18:43 | 4171654 uncle.bigs
uncle.bigs's picture

Joe Sixpack went hog wild on Lazy Boys last quarter.  Stock up 7% in after hours.  Comp store sales up very strong 13.7%.  Looks like even the fat lazy alcoholics got some Bernanke Bucks.

 

http://finance.yahoo.com/news/la-z-boy-reports-fiscal-211000985.html

Tue, 11/19/2013 - 18:51 | 4171675 Cursive
Cursive's picture

It's a simple mathematical equation.

      FRB = Federal Reserve Board

                         FRB = Financial Repression Bros.

                         FRB = FRB

Federal Reserve Board = Financial Repression Bros.

Thu, 11/21/2013 - 05:32 | 4176661 PT
PT's picture

Fucking Rich Bastards?

Tue, 11/19/2013 - 18:56 | 4171705 Goldilocks
Goldilocks's picture

Katy Perry - The One That Got Away
http://www.youtube.com/watch?v=Ahha3Cqe_fk (4:50)

Tue, 11/19/2013 - 19:05 | 4171740 Bunga Bunga
Bunga Bunga's picture

 

Coupon code is:

BEN

Use at any store, get 100% off on all purchases.

Tue, 11/19/2013 - 19:19 | 4171783 insanelysane
insanelysane's picture

GREAT CHART!!!

Tue, 11/19/2013 - 21:43 | 4172144 akarc
akarc's picture

I would send this chart out to my old mailing lists were it not for the fact that most of them would take it to mean they are going to get to shop at Tiffany's if the economy keeps getting better.

Wed, 11/20/2013 - 08:35 | 4172898 esum
esum's picture

The wealthy can not sustain a world economy... it takes the mass market consumer to do so. there are more chevys than veyrons... and far as the lux goods market goes... its a display of outward label insecurity and snobishness. i love seeing the subway rider with the imitation LV bag... is plasticized canvas really worth it... 

Wed, 11/20/2013 - 08:55 | 4172951 esum
esum's picture

MARGIN

Wed, 11/20/2013 - 12:43 | 4173704 novictim
novictim's picture

Wake up people.  

The policy to date has not been KEYNESIAN!  

When you think Keynes then ask yourself "Is this a policy that FDR would have followed?".  Clinton-Bush-Obama policy has NEVER been Keynesian.

Keynes would have pumped money into the struggling middle class in order to fuel DEMAND.  He supported TRICKLE UP economics is these circumstances.  

It seems there is a conspiracy of idiots to distort what represents a Keynesian solution to our economic slump.

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