Good News: Hookers Aren't Planning To Hike Rates

Tyler Durden's picture

As regular readers are no doubt aware, we like to check in on the hookers from time to time.

By that we of course mean SouthBay Research’s Vice Index, which tracks spending on fun activities in the cash economy.

Fun activities like boozing, gambling, and escort hiring. “Luxury good spending is sensitive to shifts in the economic winds, vice is even more so,” Andrew Zatlin reminds us. “A prostitute costs almost two days of after-tax wages [and] the consumer’s stack of money has to be a certain height before they can get on that ride.”

That’s right. You don’t want to “get on that ride” if your funds are low and so, Zatlin likes to pitch the index as a leading indicator for consumer spending. Below, find his latest including an up to date reading on the Vice Index and the second annual Hookernomics Survey.

*  *  *

Submitted by SouthBay Research

Vice spending is coasting  

Although the pace of Vice Spending appears to have surged starting mid-2014, that’s really a quirk of the 2013 comparables.  In reality, spending has been growing at a steady, flat 2% pace.  It corresponds to Retail Spending (ex auto & gas) y/y rate of 3.5%.

Hookernomics

Results from our 2nd annual Hookernomics Economic Survey

  • The Good News: Inflation & income growth expectations remain subdued.
  • The Bad News: Income growth expectations are subdued.

NOTE: This survey was conducted in early January.  Any impact from a stock market collapse is probably not reflected.

The Hookernomics Survey follows the Federal Reserve Regional Bank Business Outlook Surveys.  Business owners (escorts) are asked their opinions about current and 6 month business conditions.  The questions focus on similar topics: Prices, Costs, New Orders, and Inventory.

Last year’s survey results: No inflation, continued steady-as-she-goes economy

Last year respondents reported that there was no change in demand or activity.  Customer demand was the same, indicating no meaningful or anticipated change in incomes beyond normal raises.

This year, Same as Last Year: No inflation, continued steady-as-she-goes economy

Inflation still tame:

  • Are your costs rising? Somewhat
  • Do you expect prices to increase in the next 6 months?  No
  • Do you expect to raise prices in the next 6 months?  No

Escorts raised prices in 2015, largely in response to several years of rising hotel costs.  What began as tentative rate hikes turned into widely adopted increases.  

Hotel inflation remains a sore spot.

Hotel prices continue to trickle up and apparently the Priceline bargains are less of a bargain than they used to be.  So here comes AirBnB: many escorts have begun using it as a viable alternative.

However, having raised rates relatively recently, respondents reported no plans for a repeat.  

Customer demand remains steady

  • Has demand changed (number of clients, frequency of  appointments, etc)?  Do you expect demand to change?  No increase or decrease in demand
  • Is there a change to amount of money spent per transaction?  No

This is a very price elastic market.  The only reason price hikes held last year was that all escorts raised their prices; customers had little choice.  But it’s also a testimony to income growth: customers had the available disposable income.  

That trend continues this year: no deceleration in consumption points to continued expectations of job security.  

But that’s also a problem: no extra spending suggests that customer don’t expect much in the way of higher disposable incomes.  And that’s before the stock market collapse is taking hold.

Inventory remains steady

  • Are you encountering any increase or decrease in competition?  No
  • Do you believe that the number of other escorts is the same, more or less?  Same

There are essentially no barriers to entry.  That means that in times of economic stress, more providers can easily enter the market.  

Or, put differently, no changes in the volume of providers indicates no change in the economy.

That’s a big difference to early last year when many providers and adult film stars were travelling to boost business.

*  *  *

Of course all of this may not matter. 

If central banks end up heeding the "ban cash" calls on the way to developing a government-sponsored digital currency that allows PhD economists to take away citizens' econommic autonomy and institute deeply negative rates the cash economy may simply die out.

Unless the hookers start taking Visa, that is. 

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Manthong's picture

Thank God for deflation, er, I mean inflation..

Let’s just say deflation that promotes inflation.

 

Bullish?

OK, Studdish, too.

 

0b1knob's picture

On the downside, your chances of getting the clap, syp, or the big A(IDS) has gone up.

Boris Alatovkrap's picture

Boris is think, think, think, of metaphor for toothless washup whore searching for next crack fix, but…

zippedydoodah's picture

I paid by Visa for a "Massage" in 1986. That's 30 years ago in case you can't work it out.

junction's picture

Talking about whores, lets discuss the bought off mainstream media. 

Even now, reporters know better than to show their suspicions of the New World Order that is destroying Western civilization.  On September 11, 2015, a passenger plane used in the production of the Tom Cruise movie "Mena" crashed in Columbia.  This four seater plane had flown Cruise while he was in Colombia.  When the plane crshed, supposedly due to bad weather, their were only three passengers on it, Cruise wasn't aboard.  

http://www.dailymail.co.uk/tvshowbiz/article-3437802/Tom-Cruise-resumes-...

"Mena" is about the drug smuggler pilot Barry Seal, who worked for the CIA flying in tons of cocaine and other drugs weekly to the isolated airport at Mena, Arkansas when Bill Clinton was Arkansas governor.  In September 2011, Hillary Clinton had a lock on the Democratic nomination for President, everyone but the corrupt dopers who run the Democratic Party wanted her in.  If Cruise dies in a plane crash, there would be no "Mena" movie to tarnish Hillary's reputation in the eyes of her degenerate supporters who run the mainstream media.

Like the Mafia, "omerta" is the watch word for Hillary's monstrous supporters, such as mass child murderer Madeline Albright.    

Boris Alatovkrap's picture

Madeline Albright is Catholic?

giovanni_f's picture

No. This capon-faced devil has sold its soul long timeago to Satan.

herkomilchen's picture

Dammit, Tyler, show the full picture atop the article.

10mm's picture

Go on any porn site. Find said picture.

jaxville's picture

EWWW....  I liked the little picture better. 

MayIMommaDogFace2theBananaPatch's picture

'Dat's Hollywood!  Fuckin' slum.

Ms No's picture

That chick in the back with the leg warmers is awesome.  That front one looks way better up close.  It looked like she was sporting a pregnancy or a beer gut at first.

I saw a stripper with a wooden leg once and there was also a pregnant chick at the same place.  We went somewhere south or East of Cincinnatti and I was visiting a friend... that's honestly about all remember except that the streets were really dark and creepy too.  I think people brought their own coolers in.  I tipped them really good because I felt so bad and I still hate my friend for taking me there.

I'll never get that peg-legged stripper out of my mind.  I used to live by this place called "Bottoms Up" in N Myrtle Beach and I would go in there sometimes because I could walk to it and I knew one of the bartenders.  That place was not classy either but it had no cover and they service industry nights with cheap drinks for locals.  It was like being in a Terrintino movie.  I remember going to leave out the back door once and triping on my flipflops and falling on a stripper giving a dance.  Strip Clubs are seedy creepy funness.

Stares straight ahead's picture

All these months I thought you were a woman, Ms No.

Ummm, wait a minute....

Ms No's picture

I am a woman, I swear.  I am straight as a board too.  Remember how hysterical I was with the Ebola debacle?  Yes, I am a woman.

MayIMommaDogFace2theBananaPatch's picture

South of Cincinnati is Kentucky.  Peg-legged hooker?  Yeah, sounds about right.

Dave Thomas's picture

Flip Flops at a BYOB Strip club!? That's like eating a Jelly and Jelly sandwich wearing an angora sweater! Very Nails and Chalkboard Ms No!

Ms No's picture

The BYOB was the one by Ohio, I am pretty sure I had regular shoes on there.  I want to say it was in WV but we didn't drive for that long so I am not sure.  I am scarred from the experience. 

Golden Showers's picture

If you ever go to the Anchor Bar and Grille, put a quarter in the juke box on Patsy Cline for me and watch the Barbies dance.

I loved that spot. They Ain't callin' 911.

Cheers, Ms No!

Yen Cross's picture

    Rome is falling.

TheReplacement's picture

Get married and you'll never get screwed again. 

I'm not bitter at all.

mgbkurtz's picture

FS at a KMP in midtown has been .8/1.4 for a while now

Wild Theories's picture

I remember there was a global comparison of avg sex worker rates by nation, would be a good measure of economic conditions and deflation/inflation pressures

are more girls entering the trade due to hard economic times and driving down prices? and so on...

 

seemed to remember Tokyo prostitute rates was already on the lower end of the world

scatha's picture

It's much worse for 99%. American Men, What's wrong with you. Did economic depression, prospects of WWIII impaired your ability to get hard on. Whole US prostitution industry is hurting as the rest of us, now you can get sex legally in Las Vegas for a cigarette, or an ice cream. In LA for a dime, in Hong Kong for a penny.

Most famous porn stars are begging american men and their wives  to pay for sex and porn as a matter of national emergency if  you prefer your porn star having some flesh on her/his bone.

Why is that? This same reason as in any industry millions of women/men are being forced into prostitution to make ends meet, like millions of college educated people including with PhDs are forced to flip hamburgers, all just to feed oligarchic pigs and Washington neocons.

Millions of american women should go on strike at work and at home and focus men's sexual power into wiping out all those bastards of greed and lies.

scatha's picture

It's much worse for 99%. American Men, What's wrong with you. Did economic depression, prospects of WWIII impaired your ability to get hard on. Whole US prostitution industry is hurting as the rest of us, now you can get sex legally in Las Vegas for a cigarette, or an ice cream. In LA for a dime, in Hong Kong for a penny.

Most famous porn stars are begging american men and their wives  to pay for sex and porn as a matter of national emergency if  you prefer your porn star having some flesh on her/his bone.

Why is that? This same reason as in any industry millions of women/men are being forced into prostitution to make ends meet, like millions of college educated people including with PhDs are forced to flip hamburgers, all just to feed oligarchic pigs and Washington neocons.

Millions of american women should go on strike at work and at home and focus men's sexual power into wiping out all those bastards of greed and lies.

Budnacho's picture

This is fantastic news for Yellen and her new career as a top escort for the Wall-Street Liver-Spot and flaccid-dick brigdes...lets hear it for the progressives and their acceptance of elder-porn!

 

Because you know...when shes done rubbin her beef-curtain snail-trails on ya.....you too will be Yellin!

Amun's picture

And the Dutch have gone cashless and legalised barter:

 

"Dutch learners can now pay for their driving lessons with SEX"

http://www.dailymail.co.uk/news/article-3366958/Dutch-instructors-barter...



Ms No's picture

I am curious about the "inventory" levels.  If times are bad they may hire a whole bunch of extras which would either make the business more money or the same amount of money but the hookers might be hurting and making less.

"Lewanda got 5 blowjobs, a teabag and one them boys who just wants to be beat up last week and I haven't had a single customer in days!  And now they be hiring Perrtarekins?  Shiiia!" 

hcho3's picture

Recession is coming, so they will have to cut their fees. 

rwe2late's picture

from the article:

"Unless the hookers start taking Visa..."

Not so fast. Visa and the other credit cards are now acting as volunteer "vice" cops.

The credit card companies won't allow adult services ads in backpage to be paid for using credit cards... Bitcoin is instead forced to be used for backpage ad payments.

This is presumably just a sample of the "bankster morality" that the "cashless" economy will empower.

http://consumerist.com/2015/07/01/visa-mastercard-cut-ties-with-backpage...

 

 

Dickweed Wang's picture

 Good News: Hookers Aren't Planning To Hike Rates

 

And in other skank news . . . .

 

Bunga Bunga's picture

So will they cut to negative in order to stimulate?

personal109's picture

For many of us guys getting a whore is as important to eating, drinking and shiting. I'm not sure I would put this under discretionary spending.

Ms No's picture

Anybody ever go to that strip club in Hawaii where the chicks dance on little lit-up cubes?  Holy cow that place is screwed up! LMAO!  AND NO I AM NOT GAY!  I just think strip clubs are fun or I used to back when I drank a lot.  Anybody been to the one in Portland where all of the girls are pierced up?  They should call place "Ripley's believe it or not".  Some of the ones there are cool though and girls do fire shows and balet and stuff.

Anybody ever been to one of Chicken Ranches?  I am totally going to check one of those out next time I drive to Vegas with somebody.  They have bars you can just go in and have a drink and then leave, or at least I can, I'm not sure what would happen to you guys.  One of them has a huge regular bar accros the street and it's always packed.  I have a story about one of those and a gay indian with an 80 year old Grandma that couldn't wait to go to the bathroom.

A lot of these strippers pay to work, how the hell does that work?  Could you imagine having employees of that type that have to pay you?  That is shady.  They are probably all loaded.   

3Wishes's picture

Shit I'm paying too much.

Bunga Bunga's picture

Negative rates coming! Getting paid for the blow job.

onmail1's picture

Hell beckons

btw cheapest way to hell

 is in africa 

@5$ per shot

and cabalA$$LickerObamma has done nothing

in his home continent

where hunger & death are as common as air

He is only busy making rich richer

& poor poorer

iggenFlot's picture

I'm in the market for a $20 skank this Friday, but would prefer to pay with S&H Green Stamps if possible.

iggenFlot's picture

I'm sure if I vote for Bernie, he'll ladle on the sluts and hoes along with the mandatory health insurance.

I want cradle-to-grave-in-the-lap-of-luxury service from Bernie if I'm to vote for him.  

What I damn sure don't want is someone pointing out that the state is the great fictitious entity by which everyone seeks to live at the expense of everyone else.

dojufitz's picture

When do they launch Negative Rates....?

White Mountains's picture

Hookers and BitCoin are a match made in heaven.  Just saying.