This page has been archived and commenting is disabled.
Wholesale Inventories Have Never Been Higher Relative To Sales, Ever
Having risen to its highest level since the middle of the last two recessions, wholesale inventories-to-sales ratio remains at cycle highs at 1.31x. With wholesale sales and inventories both rising 0.5% (both more than expected), however, the absolute difference between sales and inventories has never been higher, leaving either major inventory liquidation ahead (or a miracle in sales). Wholesale inventories have now risen 4.7% YoY, as Sales have fallen 3.9% YoY. Finally, Auto inventories-to-sales ratio dropped very modestly (thanks to the surge in sales), but remains deep in 2008/9 crisis territory.
If we keep building it... they are just not coming...
Recession anyone?
As Automakers inventories remain at cycle extremes...
The absolute spread between inventories and sales has never been wider...
What happens next? The Fed is the only thing "enabling" zombie firms to carry such huge amounts of inventory... and they are about to leave the party.
Charts: Bloomberg
»
- 317 reads
- Printer-friendly version
- Send to friend
- advertisements -
Behold, the Fed's next monetization program, called "BRS n" or the longer name "Buy Random Shit" 1....n.
My last pay check was $9500 working 12 hours a week online. My sisters friend has been averaging 15k for months now and she works about 20 hours a week. I can't believe how easy it was once I tried it out. This is what I do... www.wallstreet34.com
My last pay check was $2.50 working on the local street corner. My sisters friend makes more, but that's cause she's a she, and I'm a man dressed in as a she. Bascially the same thing your dad does for a living.
So if i work 24 hours a week online I'll make a pay check (sic) of $19000 a month?
Retailers are discounting the Hell out of Stars Wars merchandise...Right BEFORE Christmas and BEFORE the movie even comes out...sales must be seriously disappointing...if the movie "disappoints"...they'll have to pay people to take the merchandise.
I'd love to see Star Wars tank. I have never found that Sci-Fi crap interesting or entertaining. I go to 1 movie every 3 years and think that's too much based on the lack of entertainment per $1.
It's the weathers fault because it's alway too hot, too cold, too wet or too dry. Obozo needs to sign an executive order banning weather, that'll fix everything.....
And the Wall Street partying continues.
People on food stamps find it hard to buy cars, stainless steel appliances, etc...
five finger discounts usually work for the fsa
Rent-To-Own Baby
What part don't they understand, that the CONsumer is broke, penniless, destitute, negative net worth, can't borrow another dime and have no disposable income, if any income at all...
You just have to be creative!!!!
There are ways to buy a Chevrolet 200 just by donations!!
CHRYSLER dude! The dindu nuttins love their CHRYSLERS!
"People on food stamps find it hard to buy cars, stainless steel appliances, etc..."
I'll "one-up" you:
"People WITHOUT credit find it hard to buy cars, stainless steel appliances, etc..."
OR in the corporate world:
"Corporations with out stock buy backs find it hard to retain the valve of thier stock."
Everything is awesome! BTFD!!
Assholes!
If you build them, they will buy.
All we need is a rate hike to jumpstart sales. Goldman has promised that this expansion is good for another 4 years
just pack it on barrages and dump it in the Ocean...destroy some more...all is good...the New Kenyian's Economy!
No worries. we're told the upcoming Christmas shopping season will be the best ever unless that pesky weather screws things up.
Oh please, if it's not to hot, not to cold, not to wet, not to dry, not to dark, not to bright, not to buzzy, not to fuzzy, not to loud, not to... act of god thingy...
Well be fine!!!
EVEN GOD CAN'T SINK THIS ECONOMY!! AND IF IT DOES, WE SHOULD BLAME MOHAMED AND BOMB THE SHIT OUT OF THEM!!
that's why there's no lifeboats....
Personally I just love the warm feeling of walking into stores filled to the brim with cheap Chinese chit.
It's like going on a Costco run everyday!
"Welcome to Costco...I love you."
-Idiocracy
that warm feeling could be a allergic reaction to the toxic chemicals they use to make that crap shine...
Were not doing it right! go get some credit cards you fools and spend!...Then just keep rolling over the balances or better yet take out a fifth mortgage and roll that balance into the 30 year note...come on do your part America!..
Langley buys more autos and basketball shoes for ISIS with FRN. Problem solved.
We make, you buy
We make, WHY YOU NO BUY?
Good-bye
This is great. Lots of stuff ready for Americans to purchase after President Trump takes over next year and fixes everything. USA! USA! USA!
The PVF Industry is stocked to the ceiling with commodity products bought on credit with Fed Easy Money. Let the dumping begin!
Great idea. The Fed can print a trillion dollars and lend it out to the American people at zero %, regardless of whether they have a job or not, so that they can buy Amerikan made products and services such as cars, motorbikes, houses, donuts & beer. Also, family type activities such as BBQ's, casinos, drag racing and visiting strip clubs. This will boost the economy and create jobs. I know Ben Bernake and the other big nosed fuck Greenspan tried this idea, but they never included gambling, drag racing and sex in their economic plan for recovery. I might quit being a bricklayer and become an economist, I am sure Yellen would employ me! Now back to my weed.
"What happens next? The Fed is the only thing "enabling" zombie firms to carry such huge amounts of inventory... and they are about to leave the party."
The real party has yet to begin.
They make that chinese plastic crap just to good!
I've heard stories about phones and LCD screens that don't break down after the first 12 months!!!!
No wonder there's so many of them that stay in the warehouses.... They should make that crap more crappier!
Better idea: those banks can lend at -1.0% on 50-yr mortgages. I will borrow millions when that
occurs.
Why would they do that when they could just warehouse millions worth of cash in their vaults and 'earn' 0%? Negative rate loans simply will not be made. The system will become unstable on account of such. That's why owning instability hedges is so important these days. Hyperdeflation can be just as self-reinforcing as hyperinflation. With similar results, the destruction of debt.
Time to give the gold bugs some spending power. After 35 years of pain, they deserve it.
This gap in inventories -vs- sales will lead to deflation first. That will not be huge deal for the gold bugs. BUT after the deflation there will probably be hyperinflation due to over reacting by the FED. THEN....then the gold bugs will really make a killing. My advice, keep gold and some cash on hand. That way you can exploit both scenarios.
It may be no surprise that the upcoming slowdown will happen just like every other slowdown throughout history. Excessive inventories will cause fewer orders to be placed, which will cause less of a need for employees to make things and provide services ... the fat will be cut. There will be writedowns and then the cycle will restart.
We are already seeing this in the heavily manipulated commodity sector. China is seeing it in their manufacturing sector. Where it is not being seen is in the corrupt and fraudulent financialization sector.
The crud filled sliminess of International Bank led financialization and the government and media corruption that accompany it is difficult to stomach. Maybe they have finally found their way to fiddle while the world burns.
I'm thinking of getting a car in the next 2-3 years, but I'm going to wait for the next financial crisis. Can't wait for whatever stupid "buy a car, get a tax rebate" program they come up with!
Very good move. When this whole thing blows up cash will be king. I think you will be able to get a lot more bang for the buck, but your timing must be good. Good luck :)