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Goldman Crushes The "Low Gas Prices Are Unequivocally Good" Meme (In 1 Simple Number)
The retail sales data proved it... The Fed admitted it... and now Goldman Sachs has proved it... there is no 'economic stimulus' benefit from low gas prices for the US consumer (it is, simply put, merely a transfer of consumption from one good to another - or worse, it is saved or used to pay for healthcare or debt). As Goldman explains so clearly in its analysis of WalMart's results, the correlation between gas prices and WalMart same-store-sales "is nearly zero."
As Goldman shows... the R^2 between WalMart sales growth and gas prices is negligible at best...
Not exactly the "unequivocally good" meme confirming data that so many have rested their careers (and their client's money) on...
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Upping personnel expense will correct this problem...
LOL!!!
Anybody else feeling gassy?
I am glad that they can justify it to themswlves.
OT: just incase you arent incensed yet today.
Jefferson City Parks and Recreation director Bill Lockwood said sledding safety is often a topic broached after a serious injury, though city officials haven’t yet moved to ban sleds.
“Unfortunately, we can’t protect people from themselves all the time,” he said.
We're going to try Ice Skating in a public park for the first time in thirty years .
Western PA.
Hmmmmm..... I wonder where GS has their bets......
Deflation my ass, everything has gone up and is still going up. My gas savings is going to the butcher... moo ;)
Ours is going right back into liquid dinosaur to keep us warm in this sneaky russian winter out east.
In one way these low gas prices were caused by too high gas prices. People betting QE capital on oil as something that never goes lower in price. They lost. Oversupply was caused by QE capital flowing into fracking. They lost. Destroyed too many businesses. Good luck getting those businesses back.
Whatever GS says, don't believe it.
Where are theier massive shorts this week?
Its is explained by low income elasticity of the food, so why anybody should expect the big surge in WMT sales if gas prices went down?
Here is a fair value estimates for some US stocks: http://prudentvalueinvestor.blogspot.com
Walmart shoppers all arrive on foot?