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Great Depression Deja Vu - "A Chicken In Every Pot And A Maserati In Every Garage"

Tyler Durden's picture




 

In 1928, just as income inequality was surging, stocks were soaring and monetary distortions were rearing their ugly head, the now infamous words "a chicken in every pot and a car in every garage" were integral to Herbert Hoover's 1928 presidential run and a "vote for prosperity," all before the market's epic collapse. Fast forward 86 years and income inequality is at those same heady levels, stocks are at recorderer highs, the President is promising to hike the minimum wage to a "living wage" capable of filling every house with McChicken sandwiches and now... to top it all off - Maserati unveils their (apparent) "everyone should own a Maserati" commercial. It would seem that chart analogs are not the only reminder of the pre-crash era exuberance and its recovery mirage and massive monetary distortions.

 

Income inequality - check

The last time the top 10% of the US income distribution had such a large proportion of the entire nation's income was the 1920s - a period that culminated in the Great Depression and a collapse in that exuberance.

 

"Wealth effect" - check

 

 

Monetary distrortions - check

"Today there is a tremendous amount of monetary distortion, on par with the 1929 stock market and certainly the peak of 2007, and many others," warns Universa's Mark Spitznagel.

 

 

and "a Maserati in every garage"

 

 

It's a great looking car and emotionally imploring but... did they really just suggest (subliminally of course) that such luxury is to be had by all?

Perhaps a gentle reminder of the reality for 99.99% of Americans...compared to the Maserati buyer...

 

As Mark Spitznagel warned:

The reality is, when distortion is created, the only way out is to let the natural homeostasis take over. The purge that occurs after massive distortion is painful, but ultimately, it’s far better and healthier for the system.

 

While that may sound rather heartless, it’s actually the best and least destructive in the long run.

 

Look what happened in the 1930s, when the actions of the government prolonged what should have been a quick purge. Instead, the government prevented the natural rebuilding process from working, which made matters so much worse.

 

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Sun, 02/02/2014 - 21:29 | 4394538 chump666
Sun, 02/02/2014 - 21:35 | 4394553 stocktivity
stocktivity's picture

All these big companies that spent millions of dollars for a 2nd half Super Bowl commercial have to be sweating bullets. Blowout possible with viewers already switching channels.

Sun, 02/02/2014 - 21:40 | 4394564 stant
stant's picture

i did

Sun, 02/02/2014 - 21:51 | 4394581 zerozulu
zerozulu's picture

probably Riots will start when soldiers will be back from Afghanistan.

Sun, 02/02/2014 - 22:14 | 4394636 InjectTheVenom
InjectTheVenom's picture

Well, I sure-as-fuck know that Ithere ain't no Maserati in MY garage !!

Sun, 02/02/2014 - 22:34 | 4394680 El Vaquero
El Vaquero's picture

My vehicle has fading paint, the rocker panels are crushed, it runs well and it's paid for.  While I wouldn't mind driving a Maserati once just to say I did, I do not want one.  I would actually prefer to not have one.  I actually like my mechanically sound beater that I paid $2k for. 

Sun, 02/02/2014 - 22:59 | 4394737 Oh regional Indian
Oh regional Indian's picture

Excellent choice. My 1992 Fiat 124 turns many more heads than the everycar that automakers are turning out today. No character.

ori

Sun, 02/02/2014 - 23:05 | 4394750 Soul Glow
Soul Glow's picture

I walk to where I need to go and when I turn heads I can stop and strike up a conversation.  Long live the game of face to face.

Sun, 02/02/2014 - 23:49 | 4394833 El Vaquero
El Vaquero's picture

I think that the bulk of my miles driven in the past 6 months has been hunting trips.  It is also difficult where I live to get around without a vehicle.  I just don't do a lot of extraneous driving anymore.  For example, I have a friend up in the mountains, which is about an 80 mile round trip.  When I go visit, I tend to bring food and beer, and then just spend the night.  I figure, if I'm going to use the gas to get up there, I might as well make it worth my while. 

Mon, 02/03/2014 - 08:03 | 4395278 new game
new game's picture

2002 corolla w 153ooo ce stripper, what could go wrong-not much...

paid for 30+mpg=cheap trans. 5 speed manuel gives it some zip.

just like all else minimal, basic insurance+money in bank for more

important stuffs like quality food...

fuck vanity, debt, the fed, and fools chasing a false image of wealth...

Mon, 02/03/2014 - 05:12 | 4395151 TheGoldMyth
TheGoldMyth's picture

El Vaquero, an economic climate psychiatrist such as myself, even in my hobbyist capacity, could help you find peace/happiness with 'any' vehicle paint condition, or even help identify the right vehicle for you?? It is my conviction that this new modern medical science should be consulted more often. :-)

Tue, 02/04/2014 - 08:02 | 4399534 thestarl
thestarl's picture

Couple of years back had a Audi A4 what a shitbox lemmon,say what you like about the Japs but they make good reliable cars

Sun, 02/02/2014 - 23:15 | 4394766 spdrdr
spdrdr's picture

My Maserati does 185.

 

Lost my licence, now I can't drive...

Sun, 02/02/2014 - 23:43 | 4394815 LMAOLORI
LMAOLORI's picture

 

 

                                                                   I Can't Drive 55
Mon, 02/03/2014 - 05:20 | 4395184 dark pools of soros
dark pools of soros's picture

you can still fuck in it

Mon, 02/03/2014 - 15:53 | 4396842 marathonman
marathonman's picture

I have a limo.  Ride in the back.

I lock the doors in case I'm attacked.

Life's been good to me so far... -  Jamie Dimon

Mon, 02/03/2014 - 08:00 | 4395273 Offthebeach
Offthebeach's picture

Garages are for us jobless to rent out to the new Hola American family the Republicrst partys want.

Sun, 02/02/2014 - 22:08 | 4394618 Soul Glow
Soul Glow's picture

You guys are watching TV?  I'm at my corner bottle shop listening to a Miles Davis cover band drinking dogfishhead's American Beauty.

[sip]

Sun, 02/02/2014 - 22:16 | 4394637 Caveman93
Caveman93's picture

What's TV? I've been too busy working on my homework tonight so I can get a degree to put on my resume so I can still not get an interview to get a job. PROGRESS!

Sun, 02/02/2014 - 23:08 | 4394755 Soul Glow
Soul Glow's picture

College, although overpriced, shouldn't be knocked too hard.  I wouldn't have the critical thinking skills I have today if I hadn't taken philosophy.  My high school taught me only how to mac girls and run game; how to cercumvent the system - and which I am thankful for.

Life is what you make of it.  Don't knock anything 'till you've tried everything. 

Sun, 02/02/2014 - 22:28 | 4394678 stocktivity
stocktivity's picture

WTF!  I posted this at halftime. Just checked the score with most of the 4th quarter to go ...43-8!  To think there were assholes that paid $2600/ticket.  Ha...I couldn't even get through the 1st quarter at home on my TV.

Mon, 02/03/2014 - 05:19 | 4395181 TheGoldMyth
TheGoldMyth's picture

Stocktivity, from an amateur economic climate psychiatry perspective, it would be interesting to check the condition of someone who actually did pay after they had watched the game. This is the stuff the new and exciting scientific world of economic climate psychiatry is all about.

Mon, 02/03/2014 - 01:29 | 4394986 TNT
TNT's picture

Ghibli is only $67,000. Your Tesla costs more than that.

Mon, 02/03/2014 - 10:35 | 4395517 RaceToTheBottom
RaceToTheBottom's picture

Wow, and I bet it does not even burn up when it starts sprinkling outside....

Sun, 02/02/2014 - 21:35 | 4394551 0b1knob
0b1knob's picture

During the 1928 presidential campaign, did Herbert Hoover really promise "a chicken in every pot and a car in every garage?"

The Hoover campaign used a variety of slogans in 1928 including "Vote for Prosperity," "Lest We Forget" (referring to Hoover's World War I relief work), and "Who but Hoover?"

Other slogans were introduced by Hoover supporters, often without direct input from Mr. Hoover. The link between Hoover and the phrase "a chicken in every pot" can be traced to a paid advertisement which apparently originated with the Republican National Committee, who inserted it into a number of newspapers during the 1928 campaign. The ad described in detail how the Republican administrations of Harding and Coolidge had "reduced hours and increased earning capacity, silenced discontent, put the proverbial 'chicken in every pot.' And a car in every backyard, to boot." The ad concluded that a vote for Hoover would be a vote for continued prosperity.

Hoover did make a variety of optimistic statements during the campaign, such as, "the slogan of progress is changing from the full dinner pail to the full garage," and "given a chance to go forward with the policies of the last eight years, and we shall soon with the help of God be in sight of the day when poverty will be banished from this Nation," but Hoover never promised "a chicken in every pot."

Sun, 02/02/2014 - 22:23 | 4394586 stant
stant's picture

[chicken in every pot]it was huey p long. and they shot his ass, named a bridge after him

Sun, 02/02/2014 - 22:59 | 4394734 Whoa Dammit
Whoa Dammit's picture

It was Henry IV of France. But Huey did say things like this that got him shot: 

"When you have a country where one man owns more than 100,000 people, or a million people, and when you have a country where there are four men, as in America that have got more control over things than all the 120 million people together, you know what the trouble is."

Mon, 02/03/2014 - 01:05 | 4394964 Catfish
Catfish's picture

"We do not propose to say that there shall be no rich men. We do not ask to divide the wealth. We only propose that, when one man gets more than he and his children and children's children can spend or use in their lifetimes, that then we shall say that such person has his share. That means that a few million dollars is the limit to what any one man can own."

— Huey Long, Share Our Wealth radio address, February 23, 1934

Mon, 02/03/2014 - 01:52 | 4395018 drstrangelove73
drstrangelove73's picture

I drove over that bridge(called the Huey P. Narrow bu locals ) for 6 months everyday.The bridge sucked and the man sucked.He was a tinhorn Demogogue

Sun, 02/02/2014 - 21:38 | 4394560 LMAOLORI
LMAOLORI's picture

 

 

Obamavilles around every bend

Sun, 02/02/2014 - 21:58 | 4394596 Pure Evil
Pure Evil's picture

Obamavilles are just Barack's idea of income equality.

Once everyone has lived in a tent for awhile, moving to your designated FEMA camp will be a step up in lifestyle.

Mon, 02/03/2014 - 11:40 | 4395756 Hugh_Jorgan
Hugh_Jorgan's picture

The reason Hoovervilles got their name is because the media was coerced and "bought and paid for by" the quintessential Liberal Progressive FDR to blame his predecessor (sound familiar?). He also owned his Depression because of the utter failure of his repeated massive socialist interventions trying to control the free market. So, given the state of things today we should be hearing about Bushvilles from the media. However, we do lack a dustbowl-scale natural disaster which really dialed up the pain and homelessness. We also have massive government handouts which mask the effect of our actual unemployment which languishes undesseminated in the high teens and low twenties. However, we all know about the problems that could be behind the curtain ready to make their appearance, so it may not be too late to see a complete repeat of history thanks to man's avarice and insanity.

Sun, 02/02/2014 - 21:40 | 4394563 Skateboarder
Skateboarder's picture

Yeah, and there's a cop in the shadows clocking you at 120, and you're going to jail.*

*regarding the Maserati commercial (which had way too much hopium).

Sun, 02/02/2014 - 22:15 | 4394639 LMAOLORI
LMAOLORI's picture

 

 

120 would give them cause but how about just being pulled over for doing nothing wrong but just because you have a conceal carry permit.

Sun, 02/02/2014 - 22:45 | 4394708 El Vaquero
El Vaquero's picture

I wish that would happen to me in my state.  The judge that they would very likely be facing would tell them that they don't have qualified immunity.  He already ruled detaining a person for carrying a firearm when it is lawful to do so merely because the person had a firearm did exclude the cops from having qualified immunity.  NM is a very gun friendly state:

 

http://www.youtube.com/watch?v=xMdf2Nwev1A

Sun, 02/02/2014 - 22:31 | 4394689 El Vaquero
El Vaquero's picture

I hate cops. 

Sun, 02/02/2014 - 21:40 | 4394566 LoneStarHog
LoneStarHog's picture

Does Maserati make a PICKUP with a standard rear window gun rack? Otherwise, not interested, thank you very mucho!

Sun, 02/02/2014 - 22:11 | 4394625 Caveman93
Caveman93's picture

Yeah they do have one but it's extra.

I like the "Gun Buggy" Model.

http://www.survivalistboards.com/showthread.php?t=15888 

 

Sun, 02/02/2014 - 21:41 | 4394568 Boondocker
Boondocker's picture

dang...lots of Mericans must be doing good....

Sun, 02/02/2014 - 21:59 | 4394601 Pure Evil
Pure Evil's picture

Yeah, its amazaing how one very young black girl, a ballarina, and a low paid black blue collar worker are going to afford a Maserati.

Sun, 02/02/2014 - 22:12 | 4394621 Skateboarder
Skateboarder's picture

It's subliminal messaging to steal one. "When they're asleep, we strike."

Sun, 02/02/2014 - 22:13 | 4394629 Caveman93
Caveman93's picture

Bwhahaha! +1,000

Yeah, when the SHTF, I wouldn't want to be flaunting my bling out there ya'all!

Mon, 02/03/2014 - 09:40 | 4395386 Vendetta
Vendetta's picture

no, but the cartel's money launderers are doing extremely well.

Sun, 02/02/2014 - 21:40 | 4394569 FieldingMellish
FieldingMellish's picture

I'd rather have a small diesel tractor and a few acres of productive land.

Sun, 02/02/2014 - 22:06 | 4394614 Soul Glow
Soul Glow's picture

My friend just bought 5 acres of land already tilled, fenced, and ready for farming.  He bought the chicken coup, a dozen hens, and ducks off the previous owners as well.  He has a tractor and likely just made a great investment.  He already had gold too.  Now as long as the bank can find his deed....

Sun, 02/02/2014 - 21:40 | 4394570 reader2010
reader2010's picture
"We must turn Russia into a desert populated by white negroes upon whom we shall impose a tyranny such as the most terrible Eastern despots never dreamt of. The only difference is that this will be a left-wing tyranny, not a right-wing tyranny. It will be a red tyranny and not a white one. We mean the word ‘red’ literally, because we shall shed such floods of blood as will make all the human losses suffered in the capitalist wars pale by comparison. The biggest bankers across the ocean will work in the closest possible contact with us. If we win the revolution, we shall establish the power of Zionism upon the wreckage of the revolution’s funeral, and we shall became a power before which the whole world will sink to its knees. We shall show what real power is. By means of terror and bloodbaths, we shall reduce the Russian intelligentsia to a state of complete stupefaction and idiocy and to an animal existence." - Trotsky === Just simply replace "Russia" with "America" and "Russian" with "American."
Sun, 02/02/2014 - 23:04 | 4394747 Bastiat
Bastiat's picture

Source?

 

Mon, 02/03/2014 - 02:24 | 4394930 Harbanger
Harbanger's picture

Searched the quote and came up with, Leyba Davidovich Bronstein, aka Leon Trotsky, as quoted in the book The Nature of Zionism by Vladimir Stepin.

Mon, 02/03/2014 - 06:36 | 4395220 Urban Redneck
Urban Redneck's picture

The language appears queer and contemporary...

From the newspaper "Russkoye slovo", No. 1 As recorded in the Memoirs of Aron Simanovich, a jeweler at the court of the Tsar's Imperial Majesty, secretary of Rasputin and quoted in numerous Russian scholarly works, including The Nature of Zionism By Vladimir Stepin, published (in Russian) in Moscow, 1993 and translated into English (for Radio Islam) by Clive Lindhurst

The relative number of pure copy & pasts jobs on the interwebs is also problematic, someone who speaks Russian would need to track down the original source and verify it.

Mon, 02/03/2014 - 09:42 | 4395389 Vendetta
Vendetta's picture

The version with the word 'American' in it is in the Obama manifesto.

Sun, 02/02/2014 - 21:42 | 4394571 Wait What
Wait What's picture

aspirational goods are what perpetuates this system. how dare ZH mock the only thing more american than apple pie? /s

Sun, 02/02/2014 - 22:04 | 4394608 Soul Glow
Soul Glow's picture

All I know is that beer has become increasingly expensive.

Sun, 02/02/2014 - 22:04 | 4394612 Caveman93
Caveman93's picture

FORWARD > Maserati?

Sun, 02/02/2014 - 22:14 | 4394631 knukles
knukles's picture

FORWARD > Miserabli

Sun, 02/02/2014 - 22:15 | 4394644 Caveman93
Caveman93's picture

You know it!

Sun, 02/02/2014 - 22:16 | 4394647 Berspankme
Berspankme's picture

Fuck You Obama, Bernanke and the rest of you elitist cocksuckers. Fuck you

Sun, 02/02/2014 - 22:29 | 4394679 The_Ungrateful_Yid
The_Ungrateful_Yid's picture

Let's give a BIG FUCK YOU to woodrow wilson who allowed these evil money changers to bankrupt the country.

Sun, 02/02/2014 - 23:14 | 4394767 22winmag
22winmag's picture

I agree, but Wilson recanted and repented before his death.

 

He knew he was fooled by the bankers and suffered a fatal mental and physical breakdown.

Sun, 02/02/2014 - 22:26 | 4394665 Reaper
Reaper's picture

Hoover had a Republican central plan. The Fed had a central bank plan. Only the best in our land make the best plans and proffer the best promises.

Sun, 02/02/2014 - 22:42 | 4394688 SKY85hawk
SKY85hawk's picture

So, all posters here think the chart is not credible? 

I'd feel better if the time frame for the second chart's 'current Dow' were shown on the x-axis,  as the Y-axis has 2 ranges.

2nd, how does the DJI#-s then, 1928-29, relate to the current DJI?  Is there even one stock from the old DJI still in the current DJI?

Lastly, doing this analysis on the SP-500  would be more  useful since S&P index is not 'fiddled' by newspaper guys each year! 

You, the reader, do know that the total DJI is NOT A REAL NUMBER?

On Jan 17, 2014  it was

           

Total-30            DJI-index       Multiplyer

  2,562.86        16,458.56      6.423

On March 01, 2012 it was

  1,714.86         14,054.49     8.196

   
Sun, 02/02/2014 - 22:50 | 4394718 The Wisp
The Wisp's picture

Dude, Step Away from the Chart and Calm Down..  the Medics will be here soon...

Sun, 02/02/2014 - 22:41 | 4394699 NoWayJose
NoWayJose's picture

Ad must be targeted to Chinese viewers watching the Super Owl...

Sun, 02/02/2014 - 23:10 | 4394757 Fix It Again Timmy
Fix It Again Timmy's picture

What's a Maserati?...

Sun, 02/02/2014 - 23:16 | 4394774 Mitch Comestein
Mitch Comestein's picture

I couldn't believe that Maserati had a commercial on the SB.  No one featured in the commercial could afford the call.  They are bad ass cars those.  My favorite sports car ever since I saw one in person.

Sun, 02/02/2014 - 23:17 | 4394775 WhyWait
WhyWait's picture

No, no, no!  You got it all wrong!  The Maserati *is* the monster she's talking about! Isn't it?

Someone at that ad agency screwed up!  

Sun, 02/02/2014 - 23:40 | 4394820 Backtable
Backtable's picture

"Look what happened in the 1930s, when the actions of the government prolonged what should have been a quick purge."

What happened was WWII.

Mon, 02/03/2014 - 00:16 | 4394882 Frozen
Frozen's picture

Aspirational.  It means get your ass back to work plebe and maybe one day you can be the object of envy!  Keeps people focused on the rat race, and away from those crazy thoughts of freedom people tend to get when idle and out of real, meaningful work.  The system depends on it.

Mon, 02/03/2014 - 00:52 | 4394946 Son of Loki
Son of Loki's picture

The new fees and taxes are killing small businesses. For example, 5% higher postal fees and so on crush the tiny margins many of these folks get. My guess is the "poor class" will get larger as these small businesspersons go under.

Mon, 02/03/2014 - 10:49 | 4395567 RKDS
RKDS's picture

All because anything even proposed to reign in billionaires and trillionaires is met with cries of Kristallnacht!  Auschwitz!  Reichstag!  Space Hitler Tornado AIDS!

Mon, 02/03/2014 - 01:22 | 4394974 yogibear
yogibear's picture

Obama wants to Change that,  "A Maserati In Every Garage"  to A Government Motors (GM) car in every garage.

Mon, 02/03/2014 - 05:05 | 4395168 LMAOLORI
LMAOLORI's picture

 

 

         And he wants to change from a chicken in every pot to Food Stamps in every pot!

Mon, 02/03/2014 - 01:22 | 4394975 oooBooo
oooBooo's picture

BTW, Maserati's newest model they are pushing (I think it's the one in the commerical) starts at $65K and the average new car is something like $28K now... so it's really not that out of reach for people who can still buy new cars.

Of course the issue isn't buying one so much as maintaining one.

 

 

Mon, 02/03/2014 - 05:24 | 4395188 dark pools of soros
dark pools of soros's picture

the only real bad news is that you never get the same roads with the car as in the commercials...  philly roads will turn it into a buick after a week

Mon, 02/03/2014 - 11:36 | 4395745 aerojet
aerojet's picture

10 year loan, bitchez!  

I got a lot of mileage [sic] out of ripping on that Maserati commercial at the party last night.  It was awesome!  

Honestly, I could 'afford' one if I wanted it bad enough, and people are buying F250s and F350s that cost in that range, so what's the difference?  I bet the upkeep on those is like that of a Ferrari, a hellish experience in many ways.  

Mon, 02/03/2014 - 11:39 | 4395765 aerojet
aerojet's picture

New Bimmers that start with a 5 or a 6 are in the same price range.

Mon, 02/03/2014 - 01:26 | 4394979 andrewp111
andrewp111's picture

The Great Depression didn't change the inequality ratio hardly at all. WW II did, and did so rather quickly. It is obvious why as well. War production funneled lots of income to workers, and profits on the military contracts was restricted to prevent war profiteering. Competition for workers drove up wage rates until those were controlled as well.

Some analysts are saying that the war cycles should peak around 2020.

http://www.moneyandmarkets.com/media/mam/2014/2895/chart3s.jpg

Mon, 02/03/2014 - 01:51 | 4395019 drstrangelove73
drstrangelove73's picture

I had the same reaction to the Maserati commercial.Eerir

Mon, 02/03/2014 - 04:17 | 4395131 EconoIdiot
EconoIdiot's picture

My tent doesn't have a garage.  I feel badly now.

Mon, 02/03/2014 - 07:21 | 4395239 Minburi
Minburi's picture

That ad made ZERO sense.

Mon, 02/03/2014 - 11:38 | 4395753 aerojet
aerojet's picture

Think of all the public employees retiring with fat 6 figure packages and maybe it makes more sense than you think.  People are buying $65K vehicles all the time.

Mon, 02/03/2014 - 08:37 | 4395315 Walt D.
Walt D.'s picture

The Obama Yugo (aka the Chevy Volt) costs $85,000 to produce - the same price as a Masserati. A Masserati in every garage is the same as an Obama Yugo in every garage, All that is required for this to take place is for the government to subsidize it. The increase in the Federal Debt since the end of 2008 is about $7 trillion. That enough to give 100 million a $70,000 car. The average worker has got jack s*** from this $6 trillion. I'm sure he/she would have preferred a new Masserati.

BTW The usual Marxist Class Warfare income inequality BS is just a ruse to deflect the blame away from the US government and Fed policies that ar exacerbating it.

Mon, 02/03/2014 - 09:37 | 4395379 Debt Slave
Debt Slave's picture

That ad sucked. What's with the little black kid? Is she gonna buy a Maserati too? Yeah right. Only in "Obamaworld".

Mon, 02/03/2014 - 09:47 | 4395395 Vendetta
Vendetta's picture

Ummm  the commercial was for a target audience and we're not it. 

Mon, 02/03/2014 - 10:38 | 4395534 RaceToTheBottom
RaceToTheBottom's picture

They were after Tesla money....

Mon, 02/03/2014 - 10:01 | 4395437 eucalyptus
eucalyptus's picture

would rather have 65k in uber credits than a maserati.

Mon, 02/03/2014 - 11:37 | 4395747 aerojet
aerojet's picture

Cue the Bitcoin guy...

Mon, 02/03/2014 - 19:22 | 4397808 nickt1y
nickt1y's picture

And so  they will again!

"Look what happened in the 1930s, when the actions of the government prolonged what should have been a quick purge. Instead, the government prevented the natural rebuilding process from working, which made matters so much worse."

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