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Apple Is Now 75% Of The Market Cap Of Europe's Entire Banking Index

Tyler Durden's picture




 

First Apple overtook Exxon as the biggest company in America, now its market cap just hit 75% of the market cap of the entire European bank stock index (that's right: one maker of phones and fads is worth almost as much as all of Europe's banks). We expect parity within a few months. Since Apple's cash generation of about $10 billion per quarter, and growing at ~100% each quarter, means that the firm will have more than a trillion in a few short years, and not a penny in debt on the other side, we are going to go ahead and say what everyone is thinking: Steve Jobs for lifetime Federal Reserve chairman.

Market cap comparison:

And the ratio of market caps:

 

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Fri, 08/19/2011 - 09:36 | 1576803 youngman
youngman's picture

Talk about a bubble....Apple..the worlds biggest toy maker...

Fri, 08/19/2011 - 09:46 | 1576834 Mercury
Mercury's picture

As the debt-fueld consumer economy runs into a brick wall, one very well-run and innovative consumer products company garners a staggering and increasingly larger percentage of aggregate consumer spending. Impressive to behold.  Sure hope Apple isn't too dependant on any one single mortal being...

Fri, 08/19/2011 - 10:15 | 1576983 Dental Floss Tycoon
Dental Floss Tycoon's picture

 

I am not sure how dependant Apple's longterm prospects are on Steve Jobs but Job's death would be a short term disaster.  

Makes it worth maintaining those deep out of the money AAPL puts.

 


Fri, 08/19/2011 - 09:41 | 1576835 TheTmfreak
TheTmfreak's picture

"toy maker"

Man you hit that one out of the ball park. I never put it in those terms but you're right. The stock of a toy maker is now a "safe haven."

Fri, 08/19/2011 - 10:15 | 1576984 Young
Young's picture

Well, people are retards, and retards love toys! What else could be more Safe Haven? Link to picture of three retards

http://images4.clubzone.com/events/images/382872/382872-1.jpg

Shit, sorry, wrong retards. Here we are:

http://bit.ly/qQhmlZ

 

Fri, 08/19/2011 - 09:44 | 1576851 Version 7
Version 7's picture

When a toy manufacturer is the biggest shark around that's about everything you need to know about your fellow man

Fri, 08/19/2011 - 09:53 | 1576902 Ned Zeppelin
Ned Zeppelin's picture

The FAO Schwartz of computer gadgets and toys on steriod, all the manufacturing for whihc is done by elves in China.  What a business model to be proud of.  A wealth extraction machine of the highest order.  "An iPad in every home, and an unemployment check in every mailbox."

Fri, 08/19/2011 - 11:34 | 1577504 ThisIsBob
ThisIsBob's picture

suicidal elves

Fri, 08/19/2011 - 12:08 | 1577669 I am a Man I am...
I am a Man I am Forty's picture

my mac products make me fucking happy, i'm typing on a mac right now having a good fucking time on my favorite website, best money i've ever spent, pc's suck, just bought more apple stock and have a shit ton already, apple should be worth twice the amount of a bunch of shit european banks

oh, and reggie hasn't the foggiest idea of what he is talking about when it comes to apple, so far i've been right and he has been wrong, i'm a champion

Fri, 08/19/2011 - 14:40 | 1578355 malek
malek's picture

Everybody is free to pay 50% more, for about same functionality in a nicer package...

By the way has a[pple finally introduced the right mouse button, so mac users can also get the convenience of context menus?
Three years ago, that was the biggest annoyance for me while sitting at my sister's mac.

Fri, 08/19/2011 - 14:59 | 1578418 theotheri
theotheri's picture

Short and post your trade big shot.  Only takes a second.

Fri, 08/19/2011 - 09:37 | 1576806 Cognitive Dissonance
Cognitive Dissonance's picture

Makes it easier to manipulate....dude. Get with the program.

Fri, 08/19/2011 - 09:38 | 1576810 kaiten
kaiten's picture

iBubble

Fri, 08/19/2011 - 11:39 | 1577534 centerline
centerline's picture

I like that.  Good one.

Fri, 08/19/2011 - 15:03 | 1578436 kaiten
kaiten's picture

Thanks ;)

Fri, 08/19/2011 - 09:38 | 1576812 unky
unky's picture

its ridiculous how a company mainly producing "toys" is so highly valued.

Fri, 08/19/2011 - 09:40 | 1576829 williambanzai7
williambanzai7's picture

What company doesnt produce toys?

Fri, 08/19/2011 - 10:05 | 1576948 Sudden Debt
Sudden Debt's picture

GM... there you have it....

 

Fri, 08/19/2011 - 09:42 | 1576839 Rothbardian in ...
Rothbardian in Cleveland's picture

Right wrong or indifferent, Apple is making crap that somebody wants.  Key words "making" and "wants".  In an economy based entirely on buying and selling and services it is somewhat reassuring that at least a company that makes crap people want is doing well.  Apple is the modern GM or US Steel I suppose.

Now, the larger issue of people buying electronic soma and playing angry birds while civilization crumbles...there you have a point.

Fri, 08/19/2011 - 09:44 | 1576852 Ricky Bobby
Ricky Bobby's picture

+1 Excellent post

Fri, 08/19/2011 - 10:06 | 1576954 ipahophead
ipahophead's picture

I agree with Ricky; +1. People are buying this stuff. Toys or not.

Fri, 08/19/2011 - 11:41 | 1577549 centerline
centerline's picture

LOL on the angry birds.

The key issue here is "want" versus "need."  Guess what takes a backseat the moment money gets funny.  You cant eat an iThingie.  So, 75% founded on something other than consumer staples.  Yeah, feels like a stable market to me.  Ha, ha.  

Fri, 08/19/2011 - 09:45 | 1576861 nantucket
nantucket's picture

all companies try to produce the same end product; cash.  the tools they use to generate the cash may differ...ipads, cars, houses, toothpaste,...but the end goal of virtually every company is the same...CASH!

Fri, 08/19/2011 - 11:29 | 1577470 cowdiddly
cowdiddly's picture

Steve Jobs first he screws his partner out of his part of the bus. now its= Beyond greed, You would think that this close to death he would perhaps drop the prices on his products for the consumer. 

Fri, 08/19/2011 - 09:39 | 1576814 Dagny Taggart
Dagny Taggart's picture

iBanks

Fri, 08/19/2011 - 09:42 | 1576838 Sudden Debt
Sudden Debt's picture

makes so much sense....

let's hope the life cycle of the Iphone and Ipad never end....

 

Fri, 08/19/2011 - 09:42 | 1576841 nantucket
nantucket's picture

steve jobs for a "life"time appointment may be a very short time. 

Fri, 08/19/2011 - 09:42 | 1576842 williambanzai7
williambanzai7's picture

This said the day after Apple symbolically killed the PC market (see HP).

Fri, 08/19/2011 - 09:43 | 1576850 twinshot
twinshot's picture

Have a friend working for HP. She is in shock at the moment.

Fri, 08/19/2011 - 11:38 | 1577529 falak pema
falak pema's picture

maybe that has more to do with her nite life than her day life. Never can tell when a chick gets her ground swell.

Fri, 08/19/2011 - 09:42 | 1576846 twinshot
twinshot's picture

iEATbanks

Fri, 08/19/2011 - 09:43 | 1576847 firstdivision
firstdivision's picture

Did someone leak the details of QE3?

Fri, 08/19/2011 - 09:43 | 1576849 latentdissident
latentdissident's picture

Boycott Apple! Bad losers!  Buy Samsung!

Fri, 08/19/2011 - 09:48 | 1576853 Dr. Engali
Dr. Engali's picture

Just think how much they can generate if they lever that cash up 40x. It's all the rage,everybody is doing it.

Fri, 08/19/2011 - 09:48 | 1576878 Rothbardian in ...
Rothbardian in Cleveland's picture

40%?!?!?  Pussies.

Fri, 08/19/2011 - 09:56 | 1576921 Dr. Engali
Dr. Engali's picture

Typo I meant 40x

Fri, 08/19/2011 - 09:44 | 1576857 twinshot
twinshot's picture

Samsung = SHAMSOMEONE

worst products I have ever I had. I will never buy another SS product

Fri, 08/19/2011 - 10:04 | 1576863 TruthInSunshine
TruthInSunshine's picture

 

 

 

All I have to write in response to the headline - not because I doubt it, but because it clearly indicates what terrible roles Central Bankers/Planners play in bringing down the global economy - is:

iWTF.

Fri, 08/19/2011 - 09:46 | 1576868 caerus
caerus's picture

iLaugh

Fri, 08/19/2011 - 09:47 | 1576872 Buzz Wired
Buzz Wired's picture

Jobs would certainly do a better job than the Bernank as Chairman at the Fed.  Apple is a real technology company, they invent new things people want, they set trends.  Dell has always been called a tech company which is a joke.  They are a manufacturer of tech products, nothing innovative, but don't really invent much of anything.

Fri, 08/19/2011 - 10:28 | 1577075 Spastica Rex
Spastica Rex's picture

Apple sells confidence.

Fri, 08/19/2011 - 09:54 | 1576908 lolmao500
lolmao500's picture

Yeah I have my mortgage at Apple! They give better deals!

Fri, 08/19/2011 - 12:18 | 1577712 Young Buckethead
Young Buckethead's picture

Yes, they will become a bank (if not already) and be forced to borrow money from the Fed to protect . . . Altair!

Fri, 08/19/2011 - 09:56 | 1576916 Lews Therin
Lews Therin's picture

Well...

 

I actually think its a good sign.  It shows you who is a real business, who is just bullshit.  

 

Whatever you feel about Apple, the fact is that... Apple makes stuff people wants.  Banks?  Just figments of numbers.  They're worthless these days.  

 

Buy Gold.  Buy Silver.  Buy oil.  Buy iPhones or iPads.  These shit will do you well versus stupid fiat or bonds or whatever pushed around by banksters. 

Fri, 08/19/2011 - 09:58 | 1576926 Monedas
Monedas's picture

The biggest company is a toy maker and not an arms maker ? Isn't that everything the liberal twits have been wetting their beds for forever ? Monedas 2011 You can't win with sick minds......even when you give 'em what they want !

Fri, 08/19/2011 - 09:58 | 1576927 Zero Debt
Zero Debt's picture

The iCoin is coming...in black and white...I can imagine the design...Steve on one side, the Apple on the back..snap them in the iWallet, available in seven trendy colors.

 

Fri, 08/19/2011 - 10:07 | 1576962 V10
V10's picture

Not the worst of ideas, actually. Unlike a lot of other currencies, it would at least be backed by something.

Fri, 08/19/2011 - 09:59 | 1576930 smore
Fri, 08/19/2011 - 10:03 | 1576943 Eagle Keeper
Eagle Keeper's picture

You realize that APPL is now another TBTF

Fri, 08/19/2011 - 10:03 | 1576945 Sudden Debt
Sudden Debt's picture

We must admit that the Ipad really improves our lives....

For example:

When you sit in your garden, you can check the weather report so you don't have to look up anymore.

We can go out and chat with other people besides the once sitting next to us.

We can play arcade style games with it.

....

I can't imagine not having one anymore today....

Fri, 08/19/2011 - 10:13 | 1576978 Version 7
Version 7's picture

When you sit in your garden, you can check the weather report so you don't have to look up anymore.

+10

Fri, 08/19/2011 - 10:06 | 1576951 slaughterer
slaughterer's picture

iGold!

iSocGen!

iPOMO!

iZH!

Calling William Banzai. 

Fri, 08/19/2011 - 10:15 | 1576982 Catullus
Catullus's picture

Family Fued Topic:

Things You Associate With Taking A Dump

Survey says:

Apple Products
European Banking Stocks

Fri, 08/19/2011 - 10:20 | 1577010 Eagle Keeper
Eagle Keeper's picture

Commercial:  I you don't have an iPad....  You're a nobody...

Fri, 08/19/2011 - 10:22 | 1577021 bill1102inf
bill1102inf's picture

Apple is like McDonalds in the sense that they make something the people think they want.  McDonalds are little fat factories all over the US, delivering HFCS directly to your liver so that it can process it into VLDL which causes diabetes and heart disease as well as most other 'conditions'.  McDonalds employs hundreds of thousands.  MCDONALDS is like US STEEL, each Mickey D's is the new US Factory.  Apple makes pet rocks with Chinese slaves.  All fads come and go.

 

Regarding business.  2004,05,06,07 and to some extent 99-03, the business market in the Northeast and I assume most other places was extremely congested with people who simply refinanced their mortgages.  That was all it took to open a business then.  I know builders who double or triple charged folks for buildouts on restaurants, and some even 10X charged them.  No one cared, the money was their because of the house.  What a bunch of stupes, I am glad most of those businesses which never should have existed in the frist place are gone.  And the houses that paid for them, foreclosed.  BUT, the builders, well, they still have the cash.  Talk about a transfer of wealth.

 

My point to the above para is. Soon, very soon, we will see this again, except with the gold hoarders.  They will be out there paying for construction at a stupid rate paid with gold exchanged for fiat.  You do know that if you pay $900,000 for something that should have been $100,000 that your gold was not really 'worth' what you thought it was right?

Fri, 08/19/2011 - 10:27 | 1577062 Jovil
Jovil's picture

Living through a currency devaluation and how to cope

In 1976 I was managing an American subsidiary of a successful large US Company in Mexico. It had been a financial turnaround for our team. Cash flow had accumulated in our bank in Mexico and corporate didn’t want the money repatriated to the US. Although we had already paid a 35% income tax to the Mexican government, we would have to pay an additional 30% exit tax to repatriate the money. In addition, we would have to pay high fees for the peso/dollar exchange, in order to make the transfer. The company wanted to expand our successful business and so we decided to keep the money in Mexican pesos to be used for further expansion.

One morning, as my wife and I were on a trip driving on the highway, we heard a national message from the President of Mexico, Luis Echevarria, one of the most corrupt presidents in Mexican history. “It is a lie that we are going to devalue the peso,” he said.

Read more

http://lonerangersilver.wordpress.com/?s=living+through+a+currency+deval...

Fri, 08/19/2011 - 10:41 | 1577185 JR
JR's picture

Instead of chairman of the Federal Reserve System, I propose that Steve Jobs be named Governor of the People’s Bank of China and control China’s monetary policy and regulate the financial institutions of mainland China.  After all, the PBC “has more financial assets than any other single public finance institution in world history (Wikipedia).”  Wouldn’t that be a fitting match?

And I propose that Steve Jobs and Apple keep their slavery-gotten gains in one of China’s bank, and let the Chinese government provide global security for Steve's assets with its military instead of asking the American taxpayer to do it.

And then we in America can get back to rebuilding, with freedom, the American dream – literally snatched off our shores by “U.S.” multinational corporations and transferred en masse to Asia.  

And good luck with that, Steve. It’s been nice knowing ya.

As Uncoverage asks: How Much Would an Apple iPad Cost if it Weren’t Made by Suicidal Slaves in China? Here’s an excerpt:

An interesting article from Stone Street Advisors via Zero Hedge has figured out the cost/profit margin of  iPad 2 comparingChinese labor versus “Made in America.”

The take-aways:

An Apple iPad 2 currently sells for $729. Its actual cost to make with FoxConn Chinese workers [who make a whopping $185 / month AFTER their big 30% pay-raise] is $292.77 which means a gross margin of 54%.

If made in the U.S. the same iPad2 would cost $617.77 to make, thus a gross margin of 15.25%.

To keep the same 54% margin, the “Made in America” iPad would cost $1,144.02.

http://www.uncoverage.net/2011/05/how-much-would-an-apple-ipad-cost-if-it-werent-made-by-suicidal-slaves-in-china/

Fri, 08/19/2011 - 10:43 | 1577190 Paper CRUSHer
Paper CRUSHer's picture

At the peak of the Nasdaq bubble i remember Cisco's market cap approached a ridiculous $600B plus $USDX was north of 100 at the time so ,$339B APPL Vs $600B CISCO even with massive $ devaluation doesn't come close.

Its kinda like comparing APPL's to......?

 

Fri, 08/19/2011 - 11:01 | 1577306 Living The Dream
Living The Dream's picture

Anybody remember the devolved humans in the movie WALL-E?

That's precisely what most are turning into.

Fri, 08/19/2011 - 11:02 | 1577313 Pretorian
Pretorian's picture

Fucking Toy company replace banking system od 1/2 billion people. Thats what you get when u QU1,2,3

Fri, 08/19/2011 - 11:09 | 1577351 FranSix
FranSix's picture

There was a time during the Punk Rock era that record sales were more profitable than the banking industry in the UK.  My, my.  How things have changed.

Fri, 08/19/2011 - 11:20 | 1577418 Diogenes
Diogenes's picture

ABBA was once the biggest earner of foreign exchange in Sweden, bigger than Volvo.

Fri, 08/19/2011 - 12:01 | 1577631 Lester
Lester's picture

In a story for popular consumption, Joseph P. Kennedy, sr stated that he avoided losing all his money in the 29 crash because when the shoeshine boy was giving him stock tips, he knew the top was in...

This is a similar V-8 moment that too few will respond to.

 

Have nothing against Apple, but have never bought one of their products because they are way overpriced commodities and no computer or cellphone functions I use or have need to use are "better" on their platforms.

Fri, 08/19/2011 - 14:21 | 1578265 jmc8888
jmc8888's picture

So I guess that's about 6 months to 6 years?

 

Fri, 08/19/2011 - 18:13 | 1579279 boricuadigm-shift
boricuadigm-shift's picture

Tyler,

Are you getting some royalties from these guys?  They don't even give you credit.  Chumps!

http://www.cnbc.com/id/44203960

 

 

Mon, 09/19/2011 - 16:35 | 1686054 papaswamp
papaswamp's picture

Perhaps they will 'go seimens' and become a bank themselves...pull their funds from (insert bank here) and deposit it in the Fed?

Thu, 01/12/2012 - 01:05 | 2057391 Mitesh
Mitesh's picture

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Regards,
Stock market

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