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Chart Of The Day: Europe's Chip On Its Shoulder Hasn't Been Heavier In Three Years
As noted yesterday, the confounding divergence between the stock markets of the Chinese growth "dynamo" which is at three year lows, and that imploding basket case of a banana republics known as Europe, whose stock markets trade like a penny stock and have been soaring laelt, may never have been wider, but when it comes to how people feel, unlike in the US, they refuse to be fooled by some arbitrary manipulated level of the DAX, CAC, IBEX or MIB. In fact, Europe's "chip on its shoulder" grow to the largest it has been in three years as confidence plunged. Specifically, consumer confidence in the euro area slumped to the lowest in three years at minus 24.6, according to the final estimate for August. The 3.1 deterioration in August represents the sharpest decline in a year. The index has been lower in only two periods over the past three decades. Not unexpectedly the least unconfident is Germany, while Greeks are urgently trying to find new reasons to keep pushing the rock uphill day after day.
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Sure.....we'll knock that chip off you.
Do you have your new list of demands ready for us?
Confidence..... "lack thereof"...... can be improved with a couple more LTRO's and Unlimited bond purchasing by the ECB.... for at least -------- a week or two
Better make it three weeks.....just to be sure.
bullish - marking a bottom :P
It's interesting when you overlay XOM on the SPY from the 03 lows, it jumps out in your face, that while the fed can puff and fluff paper all day and night, the real economy is dying and will only accelerate down the more they boost inflation because it will fix nothing. Eventually it will be reflected in stocks like XOM which are propping the whole market up, as folks are forced to shrink down to 1 car per drive way or ride their bikes to the nearest farm labor camps to find work out in the fields.
They'll have to pry the steering wheel of my second car from my cold dead hands!
Or better yet look at XOM from the 2000 peaks and note that while it is up 150%, stocks are unchanged 0%. Perhaps if the fed prints enough XOM will rise another 150% from here, who cares if it means the real economy must shrink by twice as much again to get there.
Confidence in confidence-men in sharp decline. Good.
That's when the Grifters turn pro.
In Germany consumer confidence has been pretty strong over the last few years but retail sales are just flat. In France consumer confidence hasn't been that strong but French retail sales started skyrocketing when the Euro was introduced and haven't stopped yet.
So while we all agree that Europe is totally skrewed, personally I don't give much about consumer confidence.
Family just got back from Paris last week. They said it's dead. No economic activity outside of tourism. No construction. Stores closing down. Could be that it's August and no one works in Europe during August.
"...and no one works in France during August."
fixed
...and they just voted to sxtend it to September.
http://www.youtube.com/watch?v=2S8ZrQG0y6g
Could be because of the summer holidays. School holidays in France start early July and end early September and a lot of companies completely shut down for a few weeks during that period, too.
Is Gene Kelly singing and dancing in the rain????
I've always wondered if consumer confidence is treated like the unemployment numbers where the people no longer looking for work are not counted. If a person has no longer has any money to spend, are they still counted as a consumer in terms of making the calculation?
China and Germany will no longer do business in USD, Euros and Yuan preferred
It only makes sense. I can figure how it took them this long. If two guys want to make a deal, why do they need to have a 3rd party to muck things up?
great--they can sell stuff to each other-- two merchantiles selling to each other but neither buying?? hows that going to work out ?? holding my breath on this one-NOT
the check and balance system of europe is failing and becoming eurobia.
http://expose2.wordpress.com/2011/11/20/a-voice-from-the-dark/