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Has The Next Recession Already Begun For America's Middle Class?

Tyler Durden's picture




 

Submitted by Michael Snyder of The Economic Collapse blog,

Has the next major economic downturn already started?  The way that you would answer that question would probably depend on where you live.  If you live in New York City, or the suburbs of Washington D.C., or you work for one of the big tech firms in the San Francisco area, you would probably respond to such a question by saying of course not.  In those areas, the economy is doing great and prices for high end homes are still booming.  But in most of the rest of the nation, evidence continues to mount that the next recession has already begun for the poor and the middle class.  As you will read about below, major retailers had an absolutely dreadful start to 2014 and home sales are declining just as they did back in 2007 before the last financial crisis.  Meanwhile, the U.S. economy continues to lose more good jobs and 20 percent of all U.S. families do not have a single member that is employed at this point.  2014 is turning out to be eerily similar to 2007 in so many ways, but most people are not paying attention.

During the first quarter of 2014, earnings by major U.S. retailers missed estimates by the biggest margin in 13 years The "retail apocalypse" continues to escalate, and the biggest reason for this is the fact that middle class consumers in the U.S. are tapped out.  And this is not just happening to a few retailers - this is something that is happening across the board.  The following is a summary of how major U.S. retailers performed in the first quarter of 2014 that was put together by Jim Quinn...

Wal-Mart Profit Plunges By $220 Million as US Store Traffic Declines by 1.4%

 

Target Profit Plunges by $80 Million, 16% Lower Than 2013, as Store Traffic Declines by 2.3%

 

Sears Loses $358 Million in First Quarter as Comparable Store Sales at Sears Plunge by 7.8% and Sales at Kmart Plunge by 5.1%

 

JC Penney Thrilled With Loss of Only $358 Million For the Quarter

 

Kohl’s Operating Income Plunges by 17% as Comparable Sales Decline by 3.4%

 

Costco Profit Declines by $84 Million as Comp Store Sales Only Increase by 2%

 

Staples Profit Plunges by 44% as Sales Collapse and Closing Hundreds of Stores

 

Gap Income Drops 22% as Same Store Sales Fall

 

American Eagle Profits Tumble 86%, Will Close 150 Stores

 

Aeropostale Losses $77 Million as Sales Collapse by 12%

 

Best Buy Sales Decline by $300 Million as Margins Decline and Comparable Store Sales Decline by 1.3%

 

Macy’s Profit Flat as Comparable Store Sales decline by 1.4%

 

Dollar General Profit Plummets by 40% as Comp Store Sales Decline by 3.8%

 

Urban Outfitters Earnings Collapse by 20% as Sales Stagnate

 

McDonalds Earnings Fall by $66 Million as US Comp Sales Fall by 1.7%

 

Darden Profit Collapses by 30% as Same Restaurant Sales Plunge by 5.6% and Company Selling Red Lobster

 

TJX Misses Earnings Expectations as Sales & Earnings Flat

 

Dick’s Misses Earnings Expectations as Golf Store Sales Plummet

 

Home Depot Misses Earnings Expectations as Customer Traffic Only Rises by 2.2%

 

Lowes Misses Earnings Expectations as Customer Traffic was Flat

That is quite a startling list.

But plummeting retail sales are not the only sign that the U.S. middle class is really struggling right now.  Home sales have also been extremely disappointing for quite a few months.  This is how Wolf Richter described what we have been witnessing...

This is precisely what shouldn’t have happened but was destined to happen: Sales of existing homes have gotten clobbered since last fall. At first, the Fiscal Cliff and the threat of a US government default – remember those zany times? – were blamed, then polar vortices were blamed even while home sales in California, where the weather had been gorgeous all winter, plunged more than elsewhere.

 

Then it spread to new-home sales: in April, they dropped 4.7% from a year ago, after March's year-over-year decline of 4.9%, and February's 2.8%. Not a good sign: the April hit was worse than February's, when it was the weather’s fault. Yet April should be the busiest month of the year (excellent brief video by Lee Adler on this debacle).

 

We have already seen that in some markets, in California for example, sales have collapsed at the lower two-thirds of the price range, with the upper third thriving. People who earn median incomes are increasingly priced out of the market, and many potential first-time buyers have little chance of getting in. In San Diego, for example, sales of homes below $200,000 plunged 46% while the upper end is doing just fine.

As Richter noted, sales of upper end homes are still doing fine in many areas.

But how long will that be able to continue if things continue to get even worse for the poor and the middle class?  Traditionally, the U.S. economy has greatly depended upon consumer spending by the middle class.  If that continues to dry up, how long can we avoid falling into a recession?  For even more numbers that seem to indicate economic trouble for the middle class, please see my previous article entitled "27 Huge Red Flags For The U.S. Economy".

Other analysts are expressing similar concerns.  For example, check out what John Williams of shadowstats.com had to say during one recent interview...

We’re turning down anew. The first quarter should revise into negative territory… and I believe the second quarter will report negative as well.

That will all happen by July 30 when you have the annual revisions to the GDP. In reality the economy is much weaker than that. Economic growth is overstated with the GDP because they understate inflation, which is used in deflating the number…

 

What we’re seeing now is just… we’ve been barely stagnant and bottomed out… but we’re turning down again.

 

The reason for this is that the consumer is strapped… doesn’t have the liquidity to fuel the growth in consumption.

 

Income… the median household income, net of inflation, is as low as it was in 1967. The average guy is not staying ahead of inflation…

This has been a problem now for decades… You were able to buy consumption from the future by borrowing more money, expanding your debt. Greenspan saw the problem was income, so he encouraged debt expansion.

 

That all blew apart in 2007/2008… the income problems have continued, but now you don’t have the ability to borrow money the way you used to. Without that and the income problems remaining, there’s no way that consumption can grow faster than inflation if income isn’t.

 

As a result – personal consumption is more than two thirds of the economy – there’s no way you can have positive sustainable growth in the U.S. economy without the consumer being healthy.

The key to the health of the middle class is having plenty of good jobs.

But the U.S. economy continues to lose more good paying jobs.

For example, Hewlett-Packard has just announced that it plans to eliminate 16,000 more jobs in addition to the 34,000 job cuts that have already been announced.

Today, there are 27 million more working age Americans that do not have a job than there were in 2000, and the quality of our jobs continues to decline.

This is absolutely destroying the middle class.  Unless the employment situation in this country starts to turn around, there does not seem to be much hope that the middle class will recover any time soon.

Meanwhile, there are emerging signs of trouble for the wealthy as well.

For instance, just like we witnessed back in 2007, things are starting to look a bit shaky at the "too big to fail" banks.  The following is an excerpt from a recent CNBC report...

Citigroup has joined the ranks of those with trading troubles, as a high-ranking official told the Deutsche Bank 2014 Global Financial Services Investor Conference Tuesday that adjusted trading revenue probably will decline 20 percent to 25 percent in the second quarter on an annualized basis.

 

"People are uncertain," Chief Financial Officer John Gerspach said of investor behavior, according to an account from the Wall Street Journal. "There just isn't a lot of movement."

 

In recent weeks, officials at JPMorgan Chase and Barclays also both reported likely drops in trading revenue. JPMorgan said it expected a decline of 20 percent of the quarter, while Barclays anticipates a 41 percent drop, prompting it to announce mass layoffs that will pare 19,000 jobs by the end of 2016.

Remember, very few people expected a recession the last time around either.  In fact, Federal Reserve Chairman Ben Bernanke repeatedly promised us that we would not have a recession and then we went on to experience the worst economic downturn since the Great Depression.

It will be the same this time as well.  Just like in 2007, we will continue to get an endless supply of "hopetimism" from our politicians and the mainstream media, and they will continue to fill our heads with visions of rainbows, unicorns and economic prosperity for as far as the eyes can see.

But then the next recession will strike and most Americans will be completely blindsided by it.

 

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Sat, 05/31/2014 - 09:23 | 4812350 corporatewhore
corporatewhore's picture

Can you tell me how Kim and Kanye looked at their wedding? That's all I'm interested in.  (sarcasm)

Sat, 05/31/2014 - 09:28 | 4812360 Grouchy Marx
Grouchy Marx's picture

Dumb and dumber. No sarcasm. 

Sat, 05/31/2014 - 14:25 | 4812726 lotsoffun
lotsoffun's picture

dark and darker.  sorry - i know i will be mis-understood, but somehow, the media has this fascination with stupidity and getting to bash stupid sterling with even stupider 'celebrities' is incredible.

dark and darker are the best way to keep the very bottom on the bottom.  they sit and drool looking at the one's that were chosen to be the 'lottery winners' in order to dumb the rest down into thinking their stupid fat ass could one day be cinderella.

it's sad.  the worst of it is, we have to live surrounded by these idiots.

 

Sat, 05/31/2014 - 16:02 | 4812884 hardmedicine
hardmedicine's picture

yes, all kinds of people around here think everything is great....... I live around a lot of college kids whose parents are supporting them or they have big student loans.... my best friend in medical equipment  is doing great with Kaiser account......lots of people working for the government with government healthcare think things have never been better!

 

Sat, 05/31/2014 - 02:31 | 4812096 Aussiekiwi
Aussiekiwi's picture

What is the world like outside this echo chamber?

 

Candi floss and Unicorns talking to the people I work with, no problems anywhere, if only Russia would do what it is told to do.

Sat, 05/31/2014 - 02:00 | 4812066 Peter Pan
Peter Pan's picture

In the years to come the history books will show that there was only one recession in the 21st century. The footnote will however explain  that it began in 2007 and ended in 2099.

Sat, 05/31/2014 - 10:45 | 4812463 Oldwood
Oldwood's picture

So what you are saying there is a chance, right? A chance it will end! The return of optimism! My week is complete!

Sat, 05/31/2014 - 02:29 | 4812092 Aussiekiwi
Aussiekiwi's picture

Twitter,Facebook,Apple and other high tech companies will save your jobs and Yellen and Obama will guide the economy to a hockey stick recovery......any day now, just around the corner, starting next quarter...possibly.

Sat, 05/31/2014 - 02:49 | 4812111 Bloody Muppet
Bloody Muppet's picture

A recession is two quarters of negative growth in GDP. It is not you feeling bad because you don't earn as much as you want.

Sat, 05/31/2014 - 08:12 | 4812250 29.5 hours
29.5 hours's picture

 

 

Yes, and since the definition of GDP is flexible enough to include prostitution and drug pushing, it is possible all recessions are in the past.

The destruction of national wealth and systemic decapitalization have somehow found themselves in the 'plus' side of the GDP account sheet.

 

 

Sat, 05/31/2014 - 10:07 | 4812414 icanhasbailout
icanhasbailout's picture

Since GDP can be whatever the inflation-rate-fakers want it to be, basing any definition off of it is an exercise in self-deception.

Sat, 05/31/2014 - 23:17 | 4813720 Midnight Rider
Midnight Rider's picture

Everybody need to go out an break a few windows to drive up GDP.

Sat, 05/31/2014 - 04:37 | 4812149 no more banksters
no more banksters's picture

It's not a matter of recession. Middle class is systematically being destroyed.

Sat, 05/31/2014 - 04:51 | 4812154 Incubus
Incubus's picture

Depression and climate change.

 

The Middle Class in a flash in the pan in the history of civilization.

 

Humanity is a flash in the pan in universal history.

 

I can't be the only one who looks at men and see so much potential squandered?  We're willing to settle for so much less than what we're capable of. 

 

Oh well.

Sat, 05/31/2014 - 06:44 | 4812198 AdvancingTime
AdvancingTime's picture

We have not gotten the job done! Sustainability means planning our future in a way that we do not set ourselves up to crash and burn at some future date. Long-term planning has not been something politicians excel at or are even good at. Our system is geared at getting politicians reelected and fulfilling the most pressing needs of today. 

Things like profit, greed, are at the top of our priority list and quenching our unrelinquishing desire for growth has been placed in front of longer term issues and needs. Mapping out a logical and sustainable long-term plan requires delving into some rather hefty philosophical questions like what brings real happiness. More on this important topic in the article below.

http://brucewilds.blogspot.com/2014/04/planning-sustainable-future-for-m...

Sat, 05/31/2014 - 06:40 | 4812195 AdvancingTime
AdvancingTime's picture

 A big shift is occurring in what consumers are buying. Recently we are witnessing a shift from general consumer goods to more purchases of autos and healthcare. The first quarter GDP just came out down 1% yet these two sectors have been outperforming the economy. 

If indeed online and auto sales are roaring up double digits at the same time healthcare spending has increased 4.2% it is only fair to assume small business and someone else is getting their ass kicked. Interestingly, this is all occurring as the government continues to pour out billions of dollars each month in student loans, many of these loans will never be repaid. This can be viewed as more proof we are on the wrong path, more on this subject in the article below.

 http://brucewilds.blogspot.com/2014/05/consumption-of-autos-healthcare-a...

 

Sat, 05/31/2014 - 06:40 | 4812196 Racer
Racer's picture

the next recession?

Duh, how about is there no end to this DEPRESSION?

Sat, 05/31/2014 - 06:46 | 4812201 AdvancingTime
AdvancingTime's picture

Anyone who understands numbers knows that this is not working! More uglyness on the way.

Sat, 05/31/2014 - 07:14 | 4812212 negative rates
negative rates's picture

Look on the bright side, you still get to breath air and smell the roses.

Sat, 05/31/2014 - 09:23 | 4812352 Grouchy Marx
Grouchy Marx's picture

Plastic roses made in China have a decidedly chemical aroma. 

Sat, 05/31/2014 - 07:35 | 4812226 B2u
B2u's picture

"What difference does it make?" - Hillary Clinton

Sat, 05/31/2014 - 09:30 | 4812366 corporatewhore
corporatewhore's picture

our next president..........no comment

Sat, 05/31/2014 - 07:41 | 4812230 CoastalCowboy
CoastalCowboy's picture

Let me rephrase this:

"The rate of deterioration of the economy is now beginning to exceed the rate that they can manipulate the statistics to paper over it."

Sheeple are so stupid. I know redundant.

The traffic on the main road leading to our retail area is like 1/4 of what it used to be. I swear I also meet as many people of all ages living with their parents again than when I was in my early 20's or late teens.

Sat, 05/31/2014 - 07:51 | 4812234 overmedicatedun...
overmedicatedundersexed's picture

let anyone reading ZH know this: America has been taken over by globalist reptile traitors, look at the decline of the last 60yrs and guess what that's how long the CFR and Bildebergers have exsisted..just coincidence I am sure.

Let anyone reading ZH also know  true patriots, a persons who's loyalty is 100% American can reverse the decline, but those are few. The bs of one worldism has been drummed into so many heads, they willingly cut their own throats to save the poor across the world. We are insane and the explosion of psychotropic drug use supports that.

Sat, 05/31/2014 - 08:01 | 4812241 I am Jobe
I am Jobe's picture

Dumbing down of Amerika one generation at a time

Americans are materially rich, emotionally poor. By end of 2014 lot's folks will realize the illusion or maybe not. 

Sat, 05/31/2014 - 09:03 | 4812308 Incubus
Incubus's picture

"...materially rich, emotionally poor, and protoplasmically redundant."

 

/fixed

Sat, 05/31/2014 - 10:48 | 4812465 Oldwood
Oldwood's picture

Can we anticipate a convergence of the two?

Sat, 05/31/2014 - 08:24 | 4812269 Solarman
Solarman's picture

Sales of low end homes in San Diego has collapsed because all of those homes are now rentals owned by investors.

Sat, 05/31/2014 - 08:50 | 4812289 FredFlintstone
FredFlintstone's picture

The last man left working in the USA will be truly embarrassed when it dawns on him that everyone else is on the sidelines watching him labor.

Sat, 05/31/2014 - 09:08 | 4812332 d edwards
d edwards's picture

IMHO, the first recession never really ended. We're just going from bad to worse.

Sat, 05/31/2014 - 09:07 | 4812327 khakuda
khakuda's picture

The unstated policy of the Federal Reserve is to create a massive stock market and credit bubble to create inflation to debase the debt. They do not care if middle class, the poor and senior citizens dependent on positive interest rates to survive suffer. They really don't.

Sat, 05/31/2014 - 09:16 | 4812343 ms8172
ms8172's picture

I drove around this past week looking for a small home for my son to live in while attending college.   UHHHH, I could not believe what I see that is going on with the middle class!!!

Sat, 05/31/2014 - 09:19 | 4812347 fishmonger
fishmonger's picture

Hey, who ordered another recession? I'm still basking in the grudge-fucking I took with the current recession.

Sat, 05/31/2014 - 09:29 | 4812361 shovelhead
shovelhead's picture

Bunch of crybabies...

Wait until the devaluation hits. You ain't seen nothing yet. THESE are gonna be the good old days.

Sat, 05/31/2014 - 09:38 | 4812377 Grouchy Marx
Grouchy Marx's picture

Consider the irony of the phrase "Gross domestic product. "

Who do you know who works making any product today? Attorneys, doctors, accountants, salespersons, and a myriad of service positions, never made a thing, or even inserted a single fastener. 

It is the primary root of the problems we face. Henry Ford famously said we can't all make a living doing each other's laundry. 

Sat, 05/31/2014 - 09:40 | 4812382 mrdenis
Sat, 05/31/2014 - 09:54 | 4812391 Pee Wee
Pee Wee's picture

According to Christine Polesmoker of the Richmond Fed, "inflation [corruption] is contained."

And in other news, Rome burns.

Sat, 05/31/2014 - 10:10 | 4812419 joego1
joego1's picture

Hey Bevis-- Polesmoker!!

Sat, 05/31/2014 - 10:39 | 4812456 yogibear
yogibear's picture

Even with inflation raging at 50% a year the Fed would state that inflation is contained. It's all about BSing and convincing the masses to stay with their Ponzi scheme to steal what's left of the 99%.

Sat, 05/31/2014 - 10:49 | 4812470 Oldwood
Oldwood's picture

Are you saying we can't believe our own government?

Sat, 05/31/2014 - 10:10 | 4812418 RevRex
RevRex's picture

Anyone recall that during the last months of Bush, the NBER changed it's definition of recession to ONE quarter of contraction instead of two consecutive quarters of contraction?

 

Did they change that back for the ObowelMovement?

Yep, "both parties are the same"  uh huh.......

Sat, 05/31/2014 - 10:53 | 4812480 Oldwood
Oldwood's picture

Sometimes I wonder if language was not developed simply for the ability to lie. To tell us what we are seeing is not actually true. When we ignore what people say and just watch their body language and what actually do, truth becomes much more apparent.

Sat, 05/31/2014 - 11:46 | 4812559 edifice
edifice's picture

I guess nobody understands that the recession never let up... We've been in a Depression since 2008, and will continue to be in one, for the foreseeable future. Maybe another decade, who knows? Or, maybe power has shifted back to the East and it will be permanent?

Sat, 05/31/2014 - 11:58 | 4812571 kurt
kurt's picture

eh con no money for you!

Sat, 05/31/2014 - 12:14 | 4812591 Jack4952
Jack4952's picture

The middle class is ALREADY destroyed. Past tense.

With savings and IRA's being used up, what is next? For the elderly, maybe a "reverse mortgage"?

The economic carnage would be much more visible were it not for the various social programs in place, such as socila security, disabilty, food stamps, etc. Just ask any supermarket manager what percentage of sales is purchased with food stamps. Just ask your dentist if the percentage of visits for "maintenance care" has decreased compared to "acute care" visits.

We will soon witness "trickle up" economics, where more and more people in the heretofore secure upper-middle class (and above) will be adversely affected by this economic depression.

The BIG QUESTION is: how will the American people react? With passivity or open rebellion? I think the former.

Sat, 05/31/2014 - 14:17 | 4812716 lotsoffun
lotsoffun's picture

i live in nyc.  and the answer is simple!!  you need to be indian and get an h1b visa.  then you need to bring over another and make babies!!.   then you can bring over the parents and the grand parents.  it really works, trust me.  (oh fuck, i was born here).

it's good this america, if you are an immigrant and can't vote.  the rest of us are fucked.

 

 

Sat, 05/31/2014 - 15:32 | 4812831 Oldwood
Oldwood's picture

Not destroyed, simply redefined. Its all about language, don't you know. Word meaning we were brought up with have been changed for the good of the collective. War is peace because war is profit and peace is not. Poverty is wealth because poverty creates wealth for those at the top.

Words to fuck us with.

Sat, 05/31/2014 - 14:14 | 4812713 shouldvekilledthem
shouldvekilledthem's picture

Whoa...when did the last recession end??? I guess this is what Hiroo Onoda must have felt.

Sat, 05/31/2014 - 21:16 | 4813523 Youri Carma
Youri Carma's picture
WHERE’S THERE A CRASH? WORLD ECONOMY COLLAPSING!!!

HEADLINES MAY 2014 - FINAL http://forum.prisonplanet.com/index.php?board=198.0

WORLD
- Derivatives Bubble Hanging Over The Global Economy Hits A Record High
- OECD Cuts Forecast for 2014 Global Growth; Urges ECB Action to Cut Rate to Zero
- Global Manufacturing PMI Plunges To 6-Month Lows
- So, what does Dr. Copper tell us? - Copper Set for Longest Slump Since 1996
- Iron Ore Futures in Singapore Decline to Lowest Since ’13
- Singapore industrial-output growth slows sharply
- Indonesia’s GDP Misses Estimates, Growing Least Since 2009
- Thai Q1 GDP Contracts For First Time Since 2011 - Forecast Lowered
- Brazil Economists Cut Their 2014 Growth Forecast to Slowest Ever
- Brazil Economic Activity Has First Drop in March Since December
- Argentina’s Economy Contracts for First Time Since 2012
- Israeli Growth Slows as Investment, Private Consumption Drop

RUSSIA
- Russia’s Services Drop Points to Recession, HSBC Says
- Russia’s Manufacturing Slows for Sixth Month on Ukraine
- Ruble Plunge Hitting Russians Speeds Slide to Recession
- Russia To Invest $55 Billion In Gas Deal, China Another $20 Billion
- Russia China, Iran Willing To Drop USD From Bilateral Trade
- Russia to Stay Away From Global Debt as Crisis Cuts Funding Plan
- Russia Dumps A Record Amount Of US Treasurys
- Russia And China Finally Sign Historic $400 Billion "Holy Grail" Gas Deal

CHINA
- China Signs Non-Dollar Settlement Deal With Russia's Largest Bank
- Bank of China Hiring 20 in Frankfurt in Yuan Clearing Bid
- China trims US debt holdings by $800 million
- China Set to Overtake U.S. as Biggest Economy in PPP Measure
- PMIs Confirm China And Japan Economies In Contraction
- China's real-estate slump worsens
- China real-estate market cools further
- China Home-Price Growth Slowdown Spreads as Developers Discount
- At Least 6 Chinese Cities Have Bailed Out Their Real Estate Markets
- China April Home Sales Decline 18% as Credit Remains Tight
- China Slowdown Deepens
- China’s New Credit Declines
- China April Home Sales Decline 18% as Credit Remains Tight
- Tumble in Fuel Sales Adds to Evidence of China Slowdown
- China’s Inflation Slows More Than Estimated
- China Property Slump Adds Danger to Local Finances
- China Manufacturing PMI Misses 6th Month In A Row As Home Sales Collapse 47% YoY
- Top Tier Cities Discounting Property; Beijing Prices and Volume Down 11 weeks
- Chinese Firms See Revenues Collapse At Fastest Rate Since 2009
- China April Manufacturing Data Add to Signs of Weakness

JAPAN
- Japanese Retail Sales Collapse By Most On Record
- IMF: Japan may need to keep easing for some time
- Japan's Consumption Hangover Begins as Car Sales Decline
- Honda Cuts India Motorcycles Outlook After Growth Cools
- Sony Cuts Earnings a Third Time as Recovery Founders

AUSTRALIA - NEW ZEALAND
- Australia transport, mining firms are cutting jobs
- Australian housing finance falls in March
- Australian home-building approvals fall 3.5%
- N.Z. Home-Sales Plunge May Cap RBNZ Rate Moves
- New Zealand house prices, sales volumes fall

U.S.
- US Economy Shrank By 1% In The First Quarter: First Contraction Since 2011
- First-Quarter U.S. Economic Slump Looking Uglier by the Day
- Q1 GDP Cut To -0.6% At Goldman, -0.8% At JPMorgan
- Q1 GDP Takes Another Hit As Factory Orders Miss
- Growth Freezes Up as U.S. Business Spending Slumps
- Corporate Debt At An All Time High! - S&P500 Companies Stock Buybacks
- U.S. Lost $11.2 Billion in GM Bailout, TARP Report Says
- Citigroup’s CFO Says Trading Revenue Could Slide 25%
- Freddie Mac earnings down 12% - Level of Earnings Not Sustainable
- Barclays to cut 19,000 jobs as it scales back investment bank business
- Barclays' FICC Slaughtered: Revenue Plummets 41% In Q1
- AIG Profit Declines 27% on Property-Casualty Claims Costs

U.S. MANUFACTURING
- Machinery Goods Drop Most Since February 2013; CapEx Slides 1.2%
- Richmond & Dallas Fed Miss; Manufacturing Outlook Plunges
- Industrial Production Plunges By Most In 5 Years (Biggest Miss In 3 Years)

U.S. JOBS
- U.S. UNEMPLOYMENT 23.2% (SHADOW STATS)
- Labor Force Participation Rate Crashed to 62.8% from 63.2%
- Labor Force Participation Rate for 25-29 Year Olds Hits Record Low
- In 20% Of American Families, EVERYONE Is Unemployed
- Jobless Claims in U.S. Unexpectedly Climb to Nine-Week High

U.S. INCOME
- No Raises For Anyone: Real Hourly Wages Decline For The First Time Since 2012
- The Meat Crisis Is Here: Price Of Shrimp Up 61% – Beef At All-Time High
- Inflation is evident to everyone but the government
- 94% Of March Consumer Credit Was For Student And Car Loans
- Early Tap of 401(k) Replaces Homes as American Piggy Bank
- US Savings Rate Plummets To Second Lowest Since 2008

U.S. CONSUMER CONFIDENCE
- Consumer sentiment falls in May: reports
- Consumer Comfort Plunges To 6-Month Lows
- Consumer Confidence Falls Short Of Weather-Peak; Plans To Buy A Home Drop
- Consumer Confidence in U.S. Unexpectedly Declined in May

U.S. HOMES
- Existing Home Sales Miss; Worst Start To Year Since 2007
- Pending Home Sales Demand Missing; Down 9.4% YoY
- Home Prices in 20 U.S. Cities Rise at Slower Pace in March
- Home Prices Climbed in Fewer U.S. Cities as Demand Cools
- "The Market's Not There" - One World Trade Center Lowers Asking Rents By 10%
- 30-year yield marks largest weekly rise since March
- Freddie Mac Eases Mortgage Rules to Limit Putbacks
- Cash U.S. Home Purchases Surging as Rates Rise: Mortgages
- Americans Shut Out of Housing as FHA Fees Jump: Mortgages
- DoubleLine’s Gundlach Recommends Betting Against Housing
- Realogy Falls Most on Record as U.S. Home Sales Decline
- Freddie Mac Starts Trailer Loans That Buffett Criticized
- Fannie Mae Would Need New Bailout in Downturn, FHFA Says
- Easier Homeowner Credit Compelling Wells Fargo: Mortgages

U.S. RETAIL
- U.S. Retailers Missing Estimates by Most in 13 Years
- Retail shares tank in premarket on disappointing profit, sales
- Retail Sales Miss Across The Board
- Wholesale March Inventories Rose 1.1% - Smashing Expectations 3rd Month In a Row
- Caterpillar Global Retail Sales Decline For 15th Consecutive Month
- Deere Cuts Sales Forecast After Decline in Equipment Volumes
- Hewlett Packard Just Announced Another 16,000 Job Cuts
- GM’s China April Sales Rise at Slowest Pace in 14 Months
- Wal-Mart Profit Plunges By $220 Million as US Store Traffic Declines by 1.4%
- Target Profit Plunges by $80 Million, 16% Lower Than 2013, as Store Traffic Declines by 2.3%
- Sears Loses $358 Million in First Quarter as Comparable Store Sales at Sears Plunge by 7.8% and Sales at Kmart Plunge by 5.1%
- JC Penney Thrilled With Loss of Only $358 Million For the Quarter
- Kohl’s Operating Income Plunges by 17% as Comparable Sales Decline by 3.4%
- Costco Profit Declines by $84 Million as Comp Store Sales Only Increase by 2%
- Staples Profit Plunges by 44% as Sales Collapse and Closing Hundreds of Stores
- Gap Income Drops 22% as Same Store Sales Fall
- American Eagle Profits Tumble 86%, Will Close 150 Stores
- Aeropostale Losses $77 Million as Sales Collapse by 12%
- Best Buy Sales Decline by $300 Million as Margins Decline and Comparable Store Sales Decline by 1.3%
- Macy’s Profit Flat as Comparable Store Sales decline by 1.4%
- Dollar General Profit Plummets by 40% as Comp Store Sales Decline by 3.8%
- Urban Outfitters Earnings Collapse by 20% as Sales Stagnate
- McDonalds Earnings Fall by $66 Million as US Comp Sales Fall by 1.7%
- Darden Profit Collapses by 30% as Same Restaurant Sales Plunge by 5.6% and Company Selling Red Lobster
- TJX Misses Earnings Expectations as Sales & Earnings Flat
- Dick’s Misses Earnings Expectations as Golf Store Sales Plummet
- Home Depot Misses Earnings Expectations as Customer Traffic Only Rises by 2.2%
- Lowes Misses Earnings Expectations as Customer Traffic was Flat

CANADA
- Canada Unexpectedly Loses Jobs in April
- Canada 2014 Housing Starts to Drop 3.6%, CMHC Says
- Sears Canada loss widens, revenue sinks
- Target earnings fall 16% as fewer shoppers visit

EURO-ZONE
- Eurozone Construction Output Falls In March
- EU car sales growth slows in April
- European Auto Sales Rise at Slowest Pace in Five Months
- Euro-zone producer prices fell again in March
- EU Cuts Euro-Area Growth Outlook as Inflation Seen Slower

GERMANY
- German unemployment rises unexpectedly in May
- German consumer spending fell 0.9% in April
- German Ifo index disappoints with fall in May
- German Investor Confidence Drops for Fifth Straight Month
- German Factory Orders Unexpectedly Drop as Risks Weigh
- German new car registrations fall 3.6% in April
- German economy to grow more slowly: Bundesbank
- German Finance Minister Admits To “New Bubbles” & “Excessive Confidence”
- Commerzbank, Germany’s 2e-Biggest Bank Profit Misses Estimates on Lower Revenue
- Siemens: Restructuring will affect 11,600 jobs
- Adidas Profit Misses Estimates on Currency Swings, Golf Drop
- Bundesbank Support for ECB Stimulus Not to Be Automatic
- Moody's revises outlook on Credit Suisse ratings to negative

SWEDEN
- Sweden's GDP falls unexpectedly
- Swedish Unemployment Higher than Expected in April

FRANCE
- French Recovery Fades as Manufacturing, Services Contract
- France's consumer spending drops in April
- French business sentiment declines in May
- Michelin to Close Budapest Truck-Tire Plant to Cut Costs

U.K.
- U.K. Banks’ Profits Squeezed by Slow Lending Recovery, E&Y Says
- HSBC Quarterly Profit Falls 20%, Outlook ‘Muted’ in April
- RBS to cut hundreds of jobs in U.S. trading businesses
- Kingfisher, Europe’s Largest Home-Improvement Retailer Signals Profit Slowdown

ITALY
- Italian Bad Loans Surge 26% YoY To Record High (59th Month In A Row)
- Italy Output Unexpectedly Fell in March
- Italy Economy to Expand Less Than Renzi Sees, EU Says
- Fiat’s Disappointing Profit Casts Doubt Over Growth Goals

SPAIN
- Spain cuts GDP growth estimate for first quarter
- IMF: Spain may need monetary easing
- Spanish home prices continue to fall
- 50,000 Spanish families lose homes in 2013

PORTUGAL
- Portugal's Largest Bank "In Serious Financial Condition" Auditor Warns
- Portugal Laden With $293 Billion Debt Exits Bailout Plan - More Austerity Coming

AND WHERE’S THERE A FUNDING? http://youtu.be/EYa_fhLkg5c?t=10s

The Next Obamacare Scandal: A Taxpayer-Funded Bailout Of Insurers http://www.zerohedge.com/news/2014-05-21/next-obamacare-scandal-taxpayer-funded-bailout-insurers

Sun, 06/01/2014 - 03:18 | 4813872 kareninca
kareninca's picture

Maybe some of these (formerly) middle class people have been spending their money on airline tickets.  Holy cow, I just priced a trip from CA to the east coast.  Is this something new, these crazy prices???  On all the sites I check????  Has the price of oil suddenly made its way through to plane tickets in a big way???  If these prices I am seeing are representative, only rich people will be traveling.

Fuck you, Bernanke and Yellen, for making visiting my elderly parents so much harder.

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