The Fed-Induced Demise Of The American Dream (In 1 Simple Chart)

Tyler Durden's picture




 

Thanks to free and abundant credit to those at the front of the line, home prices have soared in the last few years as "smart" hedge fund managers have bought homes-to-rent in a yield-grab with both hands and feet. This - as we have noted numerous times - priced out the 'real' buyer; who this time, instead of being driven by a "fear of missing out", would rather not play (only to be left holding the bag). Another unintended consequence courtesy of The Fed's "main-street-helping" actions that has destroyed the American Dream for a declining middle class.

 

Fewer Americans think it's a good time to buy a home than at any time in the last 4 years... "recovery"!

 

The trickle-down is not working... the middle-class is tapped out (and releveraging just to get by)... and the Fed's key transmission mechanism to the masses (housing) has now been broken... let's hope the market doesn't drop ever again (or the economy).

 

h/t @Stalingrad_Poor

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Tue, 06/10/2014 - 15:42 | 4841732 TeamDepends
TeamDepends's picture

There can be only one conclusion, we need to vote out the Fed next time.

Tue, 06/10/2014 - 15:45 | 4841745 john39
john39's picture

vote the fed out?  I prefer A. Jackson's approach:

"You are a den of vipers and thieves. I intend to rout you out, and by the grace of the Eternal God, will rout you out."

seems to imply something more than voting.

Tue, 06/10/2014 - 15:49 | 4841754 TeamDepends
TeamDepends's picture

For over two centuries, this has been a constant source of irritation for vipers the world over.

Tue, 06/10/2014 - 16:00 | 4841780 power steering
power steering's picture

As long as Jamie's bonus is secured it's all good.

Tue, 06/10/2014 - 17:02 | 4841938 Boris Alatovkrap
Boris Alatovkrap's picture

Effort of Federal Reserve with complicit and capricious political elite is naturally result in make millionaire of all AmeriKa citizenry, just like as King Mugabe is make all Zimbabwe citizen millionaire. 

Tue, 06/10/2014 - 16:24 | 4841847 Kirk2NCC1701
Kirk2NCC1701's picture

For inspiration, I suggest you modify the church hymn "I am the bread of Life", and replace "And I will raise him up" with "And I will rout them out" in this song.  Try it, you'll feel better right away.

https://www.youtube.com/watch?v=YNWZwcM3gMM

Tue, 06/10/2014 - 17:07 | 4841953 Boris Alatovkrap
Boris Alatovkrap's picture

Absent of inspiration as chocolate ration increase from 5g per day to 20g per week, maybe citizenry is learn how to constructing own apparatus for distillation of vodka. Just add potato or turnip!

Tue, 06/10/2014 - 16:39 | 4841875 yogibear
yogibear's picture

Many would perfer the old French method of head chopping. Given the state of the treasionous people old Jackson would have approved.

Tue, 06/10/2014 - 17:05 | 4841945 Boris Alatovkrap
Boris Alatovkrap's picture

Best guillotine is make in Belarus!

Tue, 06/10/2014 - 17:20 | 4842004 Bemused Observer
Bemused Observer's picture

Belarus is still making them then? Cool...they must see some demand coming...
Be funny as hell to develop an automated guillotine for use on the job-destroyers, and sell derivatives on the ones used for bankers...

Tue, 06/10/2014 - 17:38 | 4842049 kchrisc
kchrisc's picture

One man, one guillotine.

Tue, 06/10/2014 - 15:44 | 4841738 NOTaREALmerican
NOTaREALmerican's picture

Oh,  jeezzz,   can we stop worrying about what the trash-class thinks it's entitled too.     The top 20% (or so) are doing as well as ever before in history.  

Everybody can't win in a survival-of-the-fittest society.   There's got to be many trash-class losers for each higher-evolved winner.    What are we supposed to do, give the trash-class a house as a "participation" prize.  

In real life, everybody isn't above-average.    Everybody can't be a winner. 

Tue, 06/10/2014 - 16:03 | 4841782 Dr. Richard Head
Dr. Richard Head's picture

To think that the current system we have is for survival of the fittest is a fool's errand. What we have is survival of the leaches of society courtesy of Fed operations of stealing the purchasing power of many for the few.

Tue, 06/10/2014 - 16:06 | 4841792 NOTaREALmerican
NOTaREALmerican's picture

Re:  survival of the leaches

What the survival-of-the-fittest lovers fail to realize is that leaches & cockroaches ( and assholes and sociopaths) are more fit that than not.

Survival-of-the-fittest is non-judgemental about who actually IS the most-fit.    

Tue, 06/10/2014 - 17:29 | 4842024 Urban Redneck
Urban Redneck's picture

The theory of natural selection evolved from the hard science of artificial selection.

In terms of the catchy slogan popular in the Cliff's Notes version... Spencer actually was judgmental about who was the most fit, as it would be rather difficult for a pauper to pass on a "rich" Lamarckian inheritance.

Tue, 06/10/2014 - 17:39 | 4842050 kchrisc
kchrisc's picture

"survival of the leaches"

You are a wordsmith. Good stuff.

Tue, 06/10/2014 - 16:07 | 4841794 SheepDog-One
SheepDog-One's picture

LOL, you need to watch the movie Idiocracy to find out just how wrong you are!

Tue, 06/10/2014 - 16:10 | 4841804 NOTaREALmerican
NOTaREALmerican's picture

That was a movie,  so was 'soylent green'.   Who won in that movie?  The smart-n-savvy asshole generally win.

Tue, 06/10/2014 - 16:44 | 4841894 Dick Buttkiss
Dick Buttkiss's picture

By "win" you obviously mean victory in an immoral system devoid of actual rights and where might is therefore the sole arbiter.

Ragnar Redbeard is your man, in other words — http://www.o9a.org/wp-content/uploads/texts/mightisright.pdf — in a Hobbesian "war of all against all.

 

 

Tue, 06/10/2014 - 16:52 | 4841907 NOTaREALmerican
NOTaREALmerican's picture

Re:  By "win" you obviously mean victory in an immoral system devoid of actual rights and where might is therefore the sole arbiter.

I'm not the only one who wanted a survival-of-the-fittest system 40 years ago when I was a young male.

There are consequences to your actions.    Be careful what you wish for, you might get it.  

 

Tue, 06/10/2014 - 17:03 | 4841940 Panafrican Funk...
Panafrican Funktron Robot's picture

So, think that through a sec.  What would happen if the "winners" stopped giving consolation goods/services to the "losers"?  What would subsequently occur?  You may find your answer to the question "why do we give a shit about the trash class".

Tue, 06/10/2014 - 16:52 | 4841909 logicalman
logicalman's picture

In a rigged game, only the riggers win.

Nothing to do with 'fittest'

By the way, Survival of the fittest doesn't have anything to do with fitness - It refers to being best fitted to the environment in which an organism lives.

See sentence one.

Tue, 06/10/2014 - 16:56 | 4841913 Budd aka Sidewinder
Budd aka Sidewinder's picture

Doesn't ZH have a zero tolerance racism policy????

 

 

nevermind

Tue, 06/10/2014 - 17:07 | 4841958 NOTaREALmerican
NOTaREALmerican's picture

Re;  In a rigged game, only the riggers win.

That's pretty smart-n-savvy of the winners, don't you think?   

You were expecting a level-playing-field?    Honesty?     

 

You can separate the adults from the children by how well they comprehend DUPLICITY.  

Tue, 06/10/2014 - 18:25 | 4842176 logicalman
logicalman's picture

I comprehend duplicity pretty well.

I'm just not good at it, personally, and neither would I want to be.

I'd rather be a called a loser in a game where only duplicitous psychopaths can win.

Unfortunately that's the kind of game I'm forced to play.

I am a realist. Everything in life is a compromise.

The playing field is level for everyone, eventually.

Tue, 06/10/2014 - 18:19 | 4842156 spinone
spinone's picture

unless the environment is completely neutral, the fittest is a judgement call. social darwinism is a junk science concept foisted by the priveleged to defend their position.

Tue, 06/10/2014 - 19:49 | 4842434 LooseLee
LooseLee's picture

Hey Hot Shot, survival of the fittest is formulated on a level playing field. That we do not have. What you have is a rigged game. Those of us 'aware' will decimate those of you dumb enough to follow the status quo...

Tue, 06/10/2014 - 15:44 | 4841739 ebworthen
ebworthen's picture

What is the N.A.R. going to do now, hire Bernanke to do ads?

Tue, 06/10/2014 - 15:46 | 4841746 i_call_you_my_base
i_call_you_my_base's picture

The housing market is getting to the point where the Fed is going to do something again. Charts like these won't sit well with Mr. Yellen.

Tue, 06/10/2014 - 15:51 | 4841759 LawsofPhysics
LawsofPhysics's picture

"For every seller there's a buyer"  - perhaps, but what happens when the only buyer is the fucking Fed?

Roll the damn guillotines already.

nothing changes otherwise.

Tue, 06/10/2014 - 15:53 | 4841766 NOTaREALmerican
NOTaREALmerican's picture

After the basketball finals,  oh, and then the football season, so after that... 

Tue, 06/10/2014 - 16:01 | 4841781 Ness.
Ness.'s picture

I think I can speak for the entire platoon when I ask you to please shut the fuck up.  Jesus Christ man, do you really have to make your snide little comments to every post?  We get it - you need/demand someone else to take care of you and you're very frustrated with your lot in life.  Stomp your feet a little louder and maybe some fairy will land on your shoulder, give you a tap and make everything better.

Tue, 06/10/2014 - 16:04 | 4841784 NOTaREALmerican
NOTaREALmerican's picture

End the Fed.   Awwwk!  

Tue, 06/10/2014 - 16:29 | 4841855 Kirk2NCC1701
Kirk2NCC1701's picture

We already have the Fed eating its own vomit, via "Brussels".

Time to put that dog down, before it turns on Sheepmericans with its full madness.  Those of us who know better, are ready or getting ready for the Big Financial Reset.

Tue, 06/10/2014 - 16:42 | 4841886 yogibear
yogibear's picture

Surprised the Russians and the KGB can't track down the buyers. Watch it lead indirectly to the Federal Reserve. Follow the money/transfers. 

Tue, 06/10/2014 - 16:52 | 4841908 Kprime
Kprime's picture

too late, that rabid dog done bit the sheeple.  didn't you hear about the couple that got .gov rabies?  Yah they went mad and shot a couple militia.gov zombies in a cici's, in vegas.

Tue, 06/10/2014 - 16:00 | 4841779 Nevsky
Nevsky's picture

Fewer Americans think it's a good time to buy a home than at any time in the last 4 years... "recovery"!

 

W-R-E-C-K-O-V-E-R-Y

Tue, 06/10/2014 - 16:05 | 4841786 Ignorance is bliss
Ignorance is bliss's picture

I'll be working until I drop or someone cheaper comes along. QE killed the value of our labor. QE killed the housing dream, QE inflated food prices, and destroyed all future generations potential retirement plans. We have been reduced to playing in a house driven casino called the stockmarket for anychance at a decent future with funny money in our 401Ks. I really hope there is a light at the end of this madness.

Tue, 06/10/2014 - 16:10 | 4841805 moneybots
moneybots's picture

"We have been reduced to playing in a house driven casino called the stockmarket for anychance at a decent future with funny money in our 401Ks. I really hope there is a light at the end of this madness."

 

The light is the oncoming train.  We have yet to see the Great (segment of the) Depression.

Tue, 06/10/2014 - 16:05 | 4841790 moneybots
moneybots's picture

"This - as we have noted numerous times - priced out the 'real' buyer; who this time, instead of being driven by a "fear of missing out", would rather not play (only to be left holding the bag)."

 

Same is true for the stock market.

Tue, 06/10/2014 - 16:17 | 4841825 NoWayJose
NoWayJose's picture

The 'new' American Dream will soon be to board a crowded ship and sail to a country offering real opportunity and freedom...

Tue, 06/10/2014 - 16:21 | 4841833 NOTaREALmerican
NOTaREALmerican's picture

And mostly empty with less technologically advanced inhabitants.    (I think I saw that movie). 

Tue, 06/10/2014 - 16:20 | 4841834 Ignorance is bliss
Ignorance is bliss's picture

Just like our forefathers? Times may change but people stay the same. What once was will be again.

Tue, 06/10/2014 - 16:23 | 4841836 Frilton Miedman
Frilton Miedman's picture

 

 

 

Word has it the Mexican border is easier to cross, from this side.

 

Tue, 06/10/2014 - 17:21 | 4842009 Gregor Samsa
Gregor Samsa's picture

I hope you believe strongly in space exploration then, because that's the only place left to go...

Tue, 06/10/2014 - 22:49 | 4843210 StychoKiller
StychoKiller's picture

"The surface of a planet is NOT the correct place for an expanding, technological civilization." 

-- R.A. Wilson

Tue, 06/10/2014 - 16:30 | 4841829 Frilton Miedman
Frilton Miedman's picture

 

 

Whew!

Now that I know it's all the Fed, I can stop holding the 3 branches of government to account for an unconstitutionally bribed scheme that put the Fed, transnational corporations and TBTF's where we are.

 

Tue, 06/10/2014 - 17:02 | 4841936 logicalman
logicalman's picture

I was fortunate enough to be informed by my father that trans-national corporations were evil entities and would fuck everything up, BACK IN 1968!

Clever guy, my dad was.

Tue, 06/10/2014 - 23:23 | 4843307 Aussiekiwi
Aussiekiwi's picture

My Grandad told me close to 40 years ago, that China would end up owning the world, that it would manufacture everything cheaper than anyone else and would simply buy all the farms up, stuck in my mind as a very young guy as at the time it seemed so incredible, but my Granddad was a very bright man, they would not let him go of to WW2, he tried and they hauled him back, too necessary at home, although he never spoke of exactly what it was he did, secret squirrel stuff I guess, very good at maths.

Tue, 06/10/2014 - 16:51 | 4841876 TeethVillage88s
TeethVillage88s's picture

I like charts:

http://research.stlouisfed.org/fred2/series/ROWFDN... ($3.16 Foreign Investment USA)
http://research.stlouisfed.org/fred2/series/GPDI ($2.69 Private Domestic Investment)
http://www.bea.gov/newsreleases/international/intinv/iip_glance.htm (Foreign owned Assets in the US)
http://research.stlouisfed.org/fred2/series/GFDEGDQ188S (Total Debt as percent of GDP)
http://research.stlouisfed.org/fred2/series/CP (corporate profits, 1-1-2014)
http://research.stlouisfed.org/fred2/series/DIVIDEND

Corporate Taxes end of 2013 = 273.5 Billion (Treasury data end of Fiscal year Sept 2013)
Corporate Profit end of 2013 = $1.9045 Trillion

$273.5/1,904,5 = 14.4% Corporate Tax

http://research.stlouisfed.org/fred2/series/BKFTTLA641N (all institution failures)
http://research.stlouisfed.org/fred2/series/USNUM (total Banks)
http://research.stlouisfed.org/fred2/series/MEHOINUSA672N (Median household income, what? discontinued?)
http://research.stlouisfed.org/fred2/series/PSAVE (Personal savings)
http://research.stlouisfed.org/fred2/series/PSAVERT (Personal savings Rate, a better chart to look at)
http://research.stlouisfed.org/fred2/series/TRP6001A027NBEA (SNAP Payments, 1-1-2012)
http://research.stlouisfed.org/fred2/series/GINIALLRH (Gini Ratio/Coefficient, what? discontinued?)

Do NOT follow this link or you will be banned from the site!