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Chart Of The Day: "Profits And Sales Are Crumbling"
When not even Tesla's non-GAAP adjustment magic, shown previously in the following "bridge", can boost sales or earnings any more to beat Wall Street expectations, one things is clear: as SocGen's Albert Edwards puts it "US corporate profits and sales are crumbling."
It's not just his opinion: it's the truth, presented visually:
"And for those who dismiss this profits slump as just driven by the energy sector, take a look at the table below right, where US tech, telcos, consumer discretionary and staples are all seeing sharp EPS slowdowns. The strong dollar is hurting."
Meanwhile, the S&P is under 1% from its all time high.
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Janet put a large order in for helicopters. That should help stimulate the eCONomy.
Share buy-backs would be a much more effective use of that money.
This is a supermarket.... up up and away
It's not the fall that kills you, but the sudden stop.
Whats the BFD?
Why don’t the corporations just borrow trillions at little to no interest from the banks and buy their own products up?
It works in the financial sector.
They ARE doing that. It's called stock buy backs, silly.
Right on, Banzai! Wall Street and the US media wanted everyone to believe that profits were up because buy-backs gave the false impression that earnings per share were up. I'd be interested in a detailed look at actual profit dollars per quarter over the last two years. Bet it's ugly or flat at best.
Heck, I know that..
But now that sales are going into the toilet, they need to buy up their own goods and services to show good earnings, and then they buy their shares to lower the float and keep the EPS up so they can make the big bonuses.
Oh, and lest we forget, while the earnings per share give shimmer to the stock mirage that is buy-backs, we see no mention of vast increases in corporate debt.
Then they just need to swap their bad debt amongst themselves, then provide it as collateral on new loans to the banks where it will be marked to fantasy and hidden as toxic garbage on the banks books forever, or until the banks swap the crap amongst themselves.
Sounds like my EX, Ugly and Flat !
Bullish news though ... more QE coming to a toxic zombie TBTF's HFTs soon ... that'll fix it for sure.
This is a supermarket.... up up and away
"Money".... Lol.... that's a funny thing to call FRN's.
This number is even worse after the trillion or so buybacks already.....
The obvious solution is to cut wages and benefits, reduce the workforce, stop hiring, and increase stock buybacks. That will certainly boost the stock price and the economy!
Comming to a USSA near you
http://www.bloomberg.com/news/articles/2015-02-12/say-sayonara-and-then-pay-up-japan-to-impose-exit-tax
This is already the case. ZH has covered this some time ago. Just try and give up your U.S. citizenship with more than a million in assets...
Obviously we need to take energy companies out of the S&P 500. We'll call it the "core S&P 500". Excluding "volatile food and energy industries".
Or any industry other than fraud, I mean finance.
Maybe a Hyder flare will break some windows....
http://spaceweathergallery.com/indiv_upload.php?upload_id=108408
This is a solar filament, a tendril of plasma held suspended above the surface of the sun by magnetic forces. Filaments appear on the sun all the time, but this one is unusually large, 5 to 10 times longer than ordinary filaments. If it becomes unstable and erupts, it could hurl parts of itself into space. Pieces of the filament falling back to the solar surface would explode upon impact, sparking a Hyder flare.
Solar activity has been very interesting as of late. Perfect timing for the deployment of DSCOVR dont you think?
That big filament did not erupt and is dissipating, but another is coming around to take its place. Suspicious0bservers is right on top of it as usual:
http://youtu.be/S0gYm_pcaAk
BD is a great resource for truth about solar activity and its association with the 'climite'....plus, I hear he has an excellent road show.
clearly, the Fed needs to print moar so spx 2200 can encourage people to spend as gas hits $3/gallon since the bankers get all that free money again to gamble on oil (and other commodity) futures.
I'm just sick of it all. Can someone please hit the big red reset button now?
You know that feeling when you go to dinner with people you don't really want to see and the dinner takes forever - you think it's going to be an hour or so but it takes three because people are slow to order, the waitress sucks, and the kitchen is backed up? And then it's finally time to pay the bill, and some asshole orders dessert, extending the whole thing by another 45 minutes? That's what this feels like.
Not going to happen anytime soon. Starting to see manufacturing pick up again in the US back to 3rd Q levels 2014. Eateries are now, at least for the last two weeks, have come out of the Holiday hangover. 2nd Q numbers will be greatly improved. Budgets will never balance but printing will always continue sending stawks higher and higher. People with good businesses have ripe opportunities now to capture additional sales as the flakes have folded.
More and more on .gov dole with side job cash deals keeping economy rolling at least at these levels.
Common sense today makes no cents.
Gold Bitchez....I pick up pennies
From where US mfg. is, everywhere is up. As soon as it begins to stir to life, Ovomit and his Demoncraps will find a way to destroy it.
Eviscerate the Demoncraps.
Odd ... Mr. Efficient Stawk Market looks to past performance for present valuations.
Still amzaing that the earth has been functioning this long using a purely fiat monetary system. I see 1971 as the true beginning of fiat because this was the last time American paper was backed by physical silver. 40+ years, pretty fucking amazing. First economy to force the bankers and financiers to back the paper they create with real fucking collateral will lead the way now.
Interesting times.
You have to give credit to the whole cabal. They so far have done a masteful job of keeping the whole thing from utterly imploding. But like radio shack, that which is unsustainable will one day cease to sustain.
Fear not, just another balance-sheet recession, pump some toxic junk up, all good again.
Soon we'll have the XL pipeline jobs.
Of course, with no oil being produced, it won't transport anything.
But they'll still build it.
true enough who does that? oh yes the "fake shit army" we have the free shit army and also the fake shit army, perhaps they can live together and leave the rest of the world alone. we'll call it "the free fake shit army" and require everyone with a soul to stay at least 1 mile from them at all times.
Ovomit will veto it.
BTFCS! (Crumbling Sales)
The system is suffering from withdrawal symtems.
It's got the shakes
Then it's going to wobble
Then it's going to fall over onto the CTR-Print button
and then nock the light out
profits and sales???????????????????? where the hell is this feiry land located again?????????????????
they haven't had profit nor sales for many years, the crack fund is just begining to run dry is all and they make it sound like it was once real, yes 10 years ago and more it was.
What happened mid-2011 to cause the globe to stop spending? Oh yeah. A bunch of bankers devalued the globe's savings in gold by 50%. Imagine that. The genius bankers thought dropping US housing was a catastrophe. But they were fine with a gold intervention that gutted global savings. The economy will recover AFTER gold goes over 2k. Not before. No savings, no spending. The interventions in gold were the start of the second leg of the greater depression.
Elon Musk = Head Fudge Packer
But But But..73% of companies have beat their estimates.....so they say on CNBC...I know..just lower the estimates and its a good statistic..
Blue cheese sales crumble !
Household income down
down
down
down
oops
gone
http://www.firstrebuttal.com/2015/01/22/the-data-doesnt-lie-see-whats-really-driving-interest-rates/
When they start spending profits on buybacks rather than capex that says it all. Cant find growth. Soon debt will not grow anymore and the $ is toast. Corporate borrowing, student subprime loans, car subprime loans, title loans, Sovereign country loans, anyplace to keep the loan based money system ticking. At some point it all reverses and either the void is filled with Fed dollars or vaporizes.. We gotta be getting close.
thank god for aapl, what a great fucking company, that will carry the economy for years with sales of there ishits.
who needs anything else, all is great
Okay - everything is deteriorating
but markets are at all time highs- Japan- Dax - and Us markets
The problem with Zero hedge is that they are right with the data but super wrong with market directions because there is no correlation between economy and markets
So anyone implementing Zh's strategy has lost alot of money.
We can call it the Venezuela-Zimbabwe Strategy Record market increase with failing economics.
Please define the ZH strategy, provide links for proof.
PS - A newsy post about the economy a strategy does not make.
Yup, catch-cry of 2009 was, "Markets can remain irrational longer than you can remain solvent" (coined by Keynes prior to the Great Depression).
Back to the future.
I don't think Anyone is here for investment advice. I am just here to see how things are going. My trip isn't hinged on making a fortune.
Anyone profiting from this criminal enterprise is a PINKO FASCIST COMMIE. Woe to them who have deceived the world. Their reward awaits them in Hades...
Must weaken dollar. Print moar!
We are losing the race to the bottom of the fiat collapse. C'mon FED, you can do better than this!
Cheer: Impoverish! Impoverish! Impoverish!.....Confiscate! Confiscate! Confiscate!.....USA! USA! USA!
Eviscerate Ovomit! End The FED!
NIRP will solve our problems
Meanwhile, the S&P is under 1% from its all time high.
Meanwhile, the NASDAQ is 5% from its dot-com all-time high!!!
March 10, 2000, Nasdaq Composite: 5046.86 points
March 10, 2015, Nasdaq Composite: ???
While the Stock Market reaches new highs.....
Authorities crack down on cardboard theft in Californiahttp://news.yahoo.com/authorities-crack-down-cardboard-theft-california-...
...why aren't sales higher...hmmm...let me think
Downsizing in the new housing market.
Moar stock buybacks to boost stock prices with negative rate money.
Sounds like a plan for the long-term until they run out of shares to purchase.