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Consumer Comfort Tumbles To 3-Month Lows As Wealth Effect Collapses

Tyler Durden's picture




 

The last month has made the baffle-'em-with-bullshit Schrodinger-driven central planning confusion proud as the all-important measures of confidence in the US (which stoke the fires of multiple expansion) have dropped, been revised, risen, and stalled. However, today's third indication - from Bloomberg - of Consumer Comfort shows a notable fall to near three-month lows - diverging dramatically from the other measures. The last time this happened, the Conference Board and UMich data rapidly deteriorated to the year's lows. It ha snow been a month since this indicator was in the 'comfort' zone but perhaps most notably those earning over $100k saw their biggest drop in comfort since July 2011.

 

Trilemma...

 

"Buying Climate" dropped to near its 2-year lows.

And the "rich" earning over $100k saw confidence collapse at fastest pace in almost 3 years...

 

Charts: Bloomberg

 

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Thu, 02/06/2014 - 14:58 | 4408541 Duc888
Duc888's picture

 

 

Wealth effect (snicker).  Right.

Thu, 02/06/2014 - 15:19 | 4408635 ArkansasAngie
ArkansasAngie's picture

How about the poor effect.  I believe it's at least creeping up on people.  When money disappears out of your pocket ... you do notice.

Thu, 02/06/2014 - 15:22 | 4408644 Sudden Debt
Sudden Debt's picture

why would they waste money on a graph about the poor?

Thu, 02/06/2014 - 15:28 | 4408661 Dr. Engali
Dr. Engali's picture

Like those that dropped of the payroll figures, we no longer count them.

Thu, 02/06/2014 - 15:39 | 4408699 NOTaREALmerican
NOTaREALmerican's picture

Re:  How about the poor effect.

There are no poor people in Merica, only lazy worthless losers who refuse to try to better themselves.   If you can't make 100k+ in worlds greatest country that - obviously - makes you a worthless loser.   This country didn't get great and glorious worrying about worth losers bitching about how they don't have what it takes to make 100k+ per year.  Those who make 100k+ per year just went out did it, by themselves and they didn't ask for any help either, they just did it with lots of hard work and dedication which is what made this country great; not a bunch of hippies bitching about how they can't make 100k+ per years because nobody gave them something.

Get a job you goddamn hippies, I don't sit around all day bitching about the greatest country in the world.   And get a goddamn haircut.

Thu, 02/06/2014 - 15:01 | 4408552 NOTaREALmerican
NOTaREALmerican's picture

The confidence dropped because of the souper bowl.

Nothing that more debt and more bling won't fix.    My TBTF Financial INSTITUTIONNNNN had a great January with auto loans and student loans.  

Everybody is happier with more bling.

Thu, 02/06/2014 - 15:03 | 4408559 Dr. Engali
Dr. Engali's picture

They all started chasing the returns they missed out on last year, and hoped in just in time for a 7% loss.

Thu, 02/06/2014 - 15:05 | 4408585 disabledvet
disabledvet's picture

just guessing but I think you will see a massive increase in production itself in the USA as the very idea of consumption is simply obliterated here.

There are simply no incomes left.
It's not impossible to fit 40 million people inside North Dakota but that might be where we are headed here.

That is a two percent unemployment rate and has been for over a decade now. It's no like people have to answer the question "why."

Thu, 02/06/2014 - 15:02 | 4408562 Grande Tetons
Grande Tetons's picture

Short Tiffany's.

Thu, 02/06/2014 - 15:41 | 4408711 corporatewhore
corporatewhore's picture

it would seemingly make sense.  but one thing i've noticed about the industries that cater to the wealthier--such as financial planners--is the ability to believe things will get better.  i watched this in 2000 up until 2008 when I was reorged and it's still continuing.  Financial planners continue to drive expensive cars, live in ridiculously huge homes, have egos to match (as if they had a magic formula--which they don't.  But they never suffer.

Tiffany's, Neiman's, Nordstrom's, Saks--they'll probably continue to do ok.

I wish financial planners would just die.  they're really full of themselves

Thu, 02/06/2014 - 15:45 | 4408729 NOTaREALmerican
NOTaREALmerican's picture

In a feudal society those who provide services to their betters will do well themselves.

We should be proud that the USA has become the first feudal society in history where none of the peasants are starving in the streets and the peasants love their masters so much.   

Thu, 02/06/2014 - 17:29 | 4409164 Poor Grogman
Poor Grogman's picture

In feudal times the local nobility usually pretended to offer some amount of protection to the serfs, from externals such as barbarians.

Nowadays it's just a bunch of bread and circuses, with plenty of i- stuff.

Inflation + technological progress = odd bedfellows for sure!

Thu, 02/06/2014 - 20:08 | 4409825 tweedle dee
tweedle dee's picture

Good for you. I wish more people had studied history and could see this for themselves.

Thu, 02/06/2014 - 15:04 | 4408567 taketheredpill
taketheredpill's picture

 

 

It ha snow...your Freudian slip is showing.

Thu, 02/06/2014 - 15:05 | 4408575 Glass Seagull
Glass Seagull's picture

 

 

"Quick!!!  Goal seek a huge employment report figure for tomorrow, then call Stanley and have him buy every ETF that isn't nailed down with our FX reserves."

Thu, 02/06/2014 - 15:09 | 4408594 Critical Path
Critical Path's picture

"Rich" earning more than $100k... well, thats just fucking.... rich?

Thu, 02/06/2014 - 15:16 | 4408617 NOTaREALmerican
NOTaREALmerican's picture

Re:  "Rich" earning more than $100k... well, thats just fucking.... rich?

Well, the top 20% is about 100k+.    So,  what else would you call them if 80% are below "the top 20%".   

Poor = bottom 20%?
Rich = top 20%?
Middle = the rest?

 

Thu, 02/06/2014 - 15:12 | 4408602 Emergency Ward
Emergency Ward's picture

Shit, I wondered why I started feeling that pea under the mattress.

Thu, 02/06/2014 - 15:14 | 4408616 medium giraffe
medium giraffe's picture

Consumer confidence? You mean that survey they do of five people down at the Doggy Day Care Center which gives us more or less fuck all in terms of meaningful data?  Don't even waste the calories it takes to post an article about it TD, seriously.

Thu, 02/06/2014 - 15:18 | 4408623 Pareto
Pareto's picture

Dow 20,000.  Get used to it.  Learn it.  Love it.  Live it.  POMO and PPT will never allow for a correction.  Ever.

 

Excuse me now.......while I hurl.

Thu, 02/06/2014 - 15:19 | 4408628 sunny
sunny's picture

Yep, the masses are feeling pain.  That's why the markets are suffering their best day of the year.  Can't you just hear the gnashing of bankster's teeth at the discomfort they feel.

sunny

Thu, 02/06/2014 - 15:25 | 4408647 MFLTucson
MFLTucson's picture

Fraud never lasts forever!

Thu, 02/06/2014 - 15:32 | 4408676 NOTaREALmerican
NOTaREALmerican's picture

Re:  Fraud never lasts forever!

No, but new scams replace old scams.   Humans complete by scamming each other.  

So,  the smart-n-savvy people are already working on bullshit for the dumbasses about how the next scam is "a sure thing".  

Thu, 02/06/2014 - 15:36 | 4408688 thismarketisrigged
thismarketisrigged's picture

the only thing i am confident in is that this shit is 110 percent rigged beyond comprehension.

 

why the fuck the markets are up over 1 percent today is a fucking joke.

 

nothing whatsoever happened today that should indicate a buying signal

Thu, 02/06/2014 - 15:39 | 4408712 NOTaREALmerican
NOTaREALmerican's picture

Re:  nothing whatsoever happened today that should indicate a buying signal

You mean the "buying whistle"?   I don't think that blows anymore.

Did you forget pathological optimism?   BTFD?   And American exceptionalism?   Each of those is a buy signal.

Thu, 02/06/2014 - 15:51 | 4408759 medium giraffe
medium giraffe's picture

I think the buying signal went something like this:

 

while (SPX) < 1770 and (time) > (OPEN);

           buy buy buy!

return 0;

 

Thu, 02/06/2014 - 15:41 | 4408703 Smegley Wanxalot
Smegley Wanxalot's picture

This can't be true.  I read on Yahoo that everyone is happy as a clam and making money hand over first in their plentiful jobs.  The author of that article - no joke - then expressed puzzlement that people could barely afford to shop at Walmart anymore.  It's like he spent the whole article parroting the story line he was dictated, and then had a brief moment of logic at the very end, but dismissed it in favor of the talking points.

Thu, 02/06/2014 - 15:52 | 4408766 ptoemmes
ptoemmes's picture

http://www.youtube.com/watch?v=5ddnwyyGo4s

"
Oh Lord, won't you buy me a Mercedes Benz ?
My friends all drive Porsches, I must make amends.
Worked hard all my lifetime, no help from my friends,
So Lord, won't you buy me a Mercedes Benz ?

Oh Lord, won't you buy me a color TV ?
Dialing For Dollars is trying to find me.
I wait for delivery each day until three,
So oh Lord, won't you buy me a color TV ?

Oh Lord, won't you buy me a night on the town ?
I'm counting on you, Lord, please don't let me down.
Prove that you love me and buy the next round,
Oh Lord, won't you buy me a night on the town ?

Everybody (You too Tyler Durden)!
Oh Lord, won't you buy me a Mercedes Benz ?
My friends all drive Porsches, I must make amends,
Worked hard all my lifetime, no help from my friends,
So oh Lord, won't you buy me a Mercedes Benz ?

That's it!
"

Thu, 02/06/2014 - 16:00 | 4408804 q99x2
q99x2's picture

The weather has caused the drop in consumer comfort.

Thu, 02/06/2014 - 16:01 | 4408821 assistedliving
assistedliving's picture

thats what happens to the 1% when Perkins calls us "Nazi's" and Zell agrees

someone on BB was saying there is plenty of liquidity

yeah, the 1% shuffling between the 1%

Thu, 02/06/2014 - 17:42 | 4409205 starman
starman's picture

The end is near!

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