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"Faith" In One Chart
Another day, another downgrade in the expectations for US economic growth in Q1 (to a mere 1.5%). But have no fear, oh ye of little faith, for the hockey-stick of hope will refuel that exuberance by the year-end to an underwhelming 2.7% 2014 growth rate...
Crucially, GDP will always mean-revert up from a drop... but profit margins will never mean-revert down from an exuberant extreme easy-money surge.
h/t @Not_Jim_Cramer
Bonus Chart: The Death Cross of Global Rationality continues
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I don't understand why we keep doing this. There is no faith. There is no growth expectations. There is no market. Every step down in the economy will be met by another pump up in the fake markets. That is the only tool the CB's have available and it will continue to be used until it does not work. But no one actually thinks anything is, or will be, gettting better.
Perhaps you look in the wrong direction. Yay though I walk through the valley of the shadow of death I shall fear no evil, for thou art with me.
Does anyone know the difference between a fart and a fizzle?
Give up? a fart travels around the turd, the fizzle goes through the turd, hence the smell. Kinda like our hope and change.
LOL
looks like reset is needed for this charts very soon
Obama supporters think it's real.
They think unicorns are real, too.
Go figure
For a buncha non-religious zealouts, they sure as hell use religious symbolism a lot... oh yeah, the state is the new religion... I forgot
Hope They Change
Meh. As long as the boomers, who won't draw on their money for fear of running out, have positive statements and the rest have snap, all is good in the U.S.S of A.
Hey look a squirrel!
I don't wanta squirrel.
I wanna unicorn
Gimme a unicorn
The predidinet said we were all gonna get unicorns
He promised!
I want MY unicorn
My very own big shiny smooth happy brave unicorn
And a tube of lube
Whaddya mean here's the lube?
Where's my unicorn?
Ouch, quit hitting me...
Sustained 'happy talk' and MSM "I'm okay your okay" is having an effect on people. We're in the 5th year of non stop lies told 24 hours a day to a people who get their world view from the USSA media complex.
I could give you a couple of dozen examples of people I know whom are relatively well educated and very good in their chosen fields of endeavor, but have a huge blind stop to what is really happening in the economy.
You see some clues when the Donks ban the word 'recovery' from their slapstick, but overall people simply don't want to see it. When I tell them the economy would collaspe without the Fed pumping you see a flash on understanding and than they tune out.
I love squirrels. They make me laugh. They sometimes get ran over, which makes me sad.
You have to feel it, before you can pass it ;-)
I sure did that this morning! It damned well hurt!
ALBANY, N.Y. - Sales-tax revenue dropped in 27 New York counties in the first quarter of the year, raising concerns among local governments that their budgets will be increasingly strained.
http://www.wgrz.com/story/money/economy/2014/04/17/new-york-sales-tax-re...
The term "the new normal" has not been used much as of late, but going forward it may be about to return. Many investors and the public at large may be about to realize that central banks can only do so much through printing money and lowering interest rates. Both these actions carry with them some very strong and nasty side effects.
Markets have become very distorted as money has flowed into risky assets in search of higher yields. It could be we are about to see the markets morph into a "realizing market", one that grinds slowly downward. Another possibility is that at some point the wisdom of buying every pullback changes and the market simply drops like a stone. More on this subject below.
http://brucewilds.blogspot.com/2013/06/realistic-expectations-for-econom...