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Philly Fed Signals Worst Margin Compression Since Lehman
With markets pricing in nothing but a "permanent plateau of margins," it appears the Philly Fed is about to ruin that meme too... Thanks to the collapse of the Prices Received (and Prices Paid) indices, margins are now implicitly the lowest since Lehman. The last 2 times "margins" were this low, the US entered recession.
Prices Paid Collapse...
But Prices Received Collapse-er...
Leaving the worst "margin" since Lehman...
Charts: Bloomberg
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And yesterday Dear Leader claimed credit for the recovery we are all experiencing ---
http://www.nbc24.com/news/story.aspx?id=1179565
Right. Except, this "recovery" has everything to do with the FED's monetary policy, and nothing to do with the President's Fiscal Policies.
Even Yellen got pissy a few weeks back when some schlub congressman told her she wasn't doing enough.
They're all actually saying 'wreckovery' but no one is getting it.
Guys, just a smidge of QC before hitting the "post it up button". Second graph should be prices RECEIVED. You got it right in the text but not in the graphic.
I don't read text. I only look at the pictures so this sort of stuff is important to me.
Could someone please 'splain me how margins are collapsing? According to the chart, prices paid are always above prices received, so I get this is a very loose proxy for mfg margins - there is no profit ever if taken literally. The direction of the difference is the key. But when the difference between what is paid and what is received is narrowing from a condition where prices paid are sometimes dramatically higher than prices received, shouldn't we interpret this to mean that mfg *losses* (rather than profits) are getting narrower and therefore a good thing? What am I missing? Thanks.
Everything is the worst since Lehman.
You forgot the little trademark thingie. Like this: Worst Since LehmanTM
Lehman brand dildo's for when you need a REAL fucking.....
That's why my new saying is 'Worst since flapper girls were busting a move to The Charleston'.
the last time margins were this compressed, the USA entered a recession?
no prob, just change the way we define recessions. the fed knows that they are risking a catastrophy if they announce another round of QE.
They are working on it but there's still that pesky reality problem.....
Margin compression? Is that you Reggie?
I noticed he hasn't had too much to say lately about the imminent demise of Apple.
margin compression?
sounds quite tasty for capex, profits, and employment
Make it up in volumn.
I was thimkink the same thing!
My testosterone levels are Worst Since LehmanTM
meet bob. bob has bitch tits.
hi bob, meet neil
I have this feeling Tyler used to work for Lehman,,,since everything is based on that date...event
why not '' this is the worst since bear stearns?
what we need is a New MADD.. MADA Mothers Against Bad Accounting..
Knock, knock..
FED: Who's there?
Margin
FED: Margin who
Margin COMPRESSION mofo!!
Don't worry. There's a small exit over in the corner if you want to get out.
Nevermind the chain and padlock, rest assured it will easily open.
So maybe it is time for Goldman to collapse.
Who cares? The market did not even blink cause the effing Zombies doan care. Jan Yelling and the Fed have placed a floor under stawks forever! Did you catch her comment yesterday about GDP? She sure didn't mention HER Fed Staff in Atlanta number: 0.3 %. Nope but she did mention something about 2 % - or maybe I was dilusional from all the Hopium she was injecting.