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Class Warfare Succeeding: Rich Vs Poor Divide Near Record As Consumer Comfort Plunges

Tyler Durden's picture




 

Bloomberg's weekly Consumer Comfort Index just had its largest two-week drop in over 13 months after tracking stocks up to near four-year highs in early April. These levels are still markedly negative compared to the zero print in early 2007 and while the index has generally tracked sideways, the consumer finally seemed to go all-in when Europe's LTRO and Fiscal Compact was announced and the world's coordinated easing occurred starting in November of last year. However the divergences within the data are growing rapidly with high-income individuals near four-year highs in terms of their comfort as low-income individuals at near record-lows for comfort. The comfort spread between rich and poor has not been this wide since before the crisis and yet so many expected 'change'.

Consumers finally threw in the towel as recession fatigue appeared to hit in November of last year and sentiment suddenly improved...

But the last two weeks have seen the biggest plunge in 13 months...

with lower income households near four-year (all-time) lows and yet higher income (>50K) near four-year highs - not a pretty picture as the rich-poor divide (lower pane) nears record pre-crisis levels...

 

Charts: Bloomberg

 

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Thu, 05/03/2012 - 10:56 | 2393774 tu-ne-cede-malis
tu-ne-cede-malis's picture

Thanks Uncle Ben, Uncle Alan, and Uncle Paul!

Thu, 05/03/2012 - 11:03 | 2393797 Buckaroo Banzai
Buckaroo Banzai's picture

How did you forget the Class-Warrior-In-Chief, Barry Soetero???

Yes, he's been wearing his Race-Warrior-In-Chief hat lately ("doin' it for Treyvon!") but let's keep our eye on the ball, please!

Thu, 05/03/2012 - 11:10 | 2393816 kralizec
kralizec's picture

No kidding!  Replacing that punk is paramount...

Unless wanting to destroy civilization as we know it is what people yearn for, then by all means, they should vote for Barry and embrace the horror...

Thu, 05/03/2012 - 11:12 | 2393824 BandGap
BandGap's picture

Makes no difference at this point, just a matter of speed and direction.

Thu, 05/03/2012 - 11:15 | 2393830 Buckaroo Banzai
Buckaroo Banzai's picture

Yes Obama is truly despicable, but let's not kid ourselves, Mitt "White Obama" Romney is not much of an improvement.

Thu, 05/03/2012 - 11:29 | 2393896 fuu
fuu's picture

If only there were another choice.

Thu, 05/03/2012 - 11:48 | 2393983 razorthin
razorthin's picture

I'm writing in RP.  Fukk em.

Thu, 05/03/2012 - 12:03 | 2394060 fuu
fuu's picture

Indeed.

Thu, 05/03/2012 - 14:55 | 2394816 Michael
Michael's picture

Get it strait, the civilians are now preparing for "Sector Warfare", Private Sector vs Public Sector!

The Public sector is well on their way to waging war on the private sector. Now it's our turn.

Thu, 05/03/2012 - 20:51 | 2395571 MaxPower
MaxPower's picture

Don't blame me. I voted for Kodos.

Thu, 05/03/2012 - 11:17 | 2393847 walküre
walküre's picture

Replacing with who? The gazillionaire who doesn't tie his own shoes and doesn't know is ass from his elbow? Whose track record shows absolutely no regard for anyone else but his corporations and the biggest shareholders? You really want that guy to take that last bit of dignity we still have and sell it to the next highest bidder?

Mittens Romney is all that is wrong with America. But at least if he were to get the seat in the WH it would finally be the coronation of the greediest bastards who ever lived. I might even sacrifice a few newborn babies in their name.

Thu, 05/03/2012 - 11:23 | 2393865 The Big Ching-aso
The Big Ching-aso's picture

 

 

Keeping up with the Joneses these days is tough when our car only sleeps six.

Thu, 05/03/2012 - 11:54 | 2394009 XitSam
XitSam's picture

Oah, you're lucky to have a car. We've only got two bicycles and an tent.

Thu, 05/03/2012 - 18:15 | 2395359 smiler03
smiler03's picture

Look on the bright side, no need to buy gas.

Thu, 05/03/2012 - 12:57 | 2394262 eatthebanksters
eatthebanksters's picture

The 1% has flourished under Barry more than uner Bush while the opposite is true for the 99%'ers...maybe Barry ought to look at job creating policise and financial reform policies (or lack thereof) before he decides to raise taxes...this is all about divide and conquer for the elections...it's divisive and it's despicable and I'm speaking from the po' house.

Thu, 05/03/2012 - 11:10 | 2393820 ihedgemyhedges
ihedgemyhedges's picture

I don't know why the low income should feel less confident.  I'm sure the hostess at Sotheby's last night got a nice $10 tip from the metrosexual on the phone talking to the $120MM bidder on a f'n piece of paper with some paint on it........................

Thu, 05/03/2012 - 18:17 | 2395367 smiler03
smiler03's picture

The paper 'n' paint will probably hold its value better than BOA and CITI after the reset, I hope. At least it's physical ;O)

Thu, 05/03/2012 - 10:58 | 2393780 Shizzmoney
Shizzmoney's picture

But wait, I thought Obama was going to "redistribute the wealth"?

If he meant by "wealth" = "debt".......then he has succeeded.

Of course now, during the election year, he has to pander to us young folk again....who happen to be the poor people. 

He proposed to start a program to offer 110K jobs for inner city young teens; too bad most of them are basically corporate manpower subs to places like Johnson & Johnson, UBS, and McDonald's.

And I am also sure that some of these "summer jobs" are unpaid internships.  That don't cut into the fact that there are over 4.1 million teens in this country looking for work, and that the poorest of the poor actually NEED those jobs to contribute to the household....and that the rich teens, the ones who really *don't* need the money, are the ones getting the jobs (because you don't get jobs on merit today; you get them mostly by knowing somebody.  Nepotism FTW!).

Good luck with that.

Thu, 05/03/2012 - 18:38 | 2395385 smiler03
smiler03's picture

Fail I'm afraid.  I have no love whatsoever for Obama but he did not say that he would "redistribute the wealth". But this is the ZH comment section so facts don't matter.

http://voices.washingtonpost.com/fact-checker/2008/10/obamas_redistribution_bombshel.html

Thu, 05/03/2012 - 10:59 | 2393781 CryingBear
CryingBear's picture

So Obama was telling the truth I guess. Tyler, you should know that their can be no 'change' if republicans wont pass anything in the house that would tax the rich a bit.

Thu, 05/03/2012 - 11:05 | 2393799 Dr. Engali
Dr. Engali's picture

I have a better idea...get rid of the guaranteed put and let the rich succeed or fail like the rest of us.

Thu, 05/03/2012 - 12:24 | 2394139 walküre
walküre's picture

Let 'em bake their own cakes

Thu, 05/03/2012 - 11:30 | 2393899 fuu
fuu's picture

Taxing everyone 100% will not plug the spending hole.

Thu, 05/03/2012 - 11:02 | 2393783 Mercury
Mercury's picture

From Einhorn today:

"Income inequality remains a headline issue. Democrats argue for higher taxes for top earners, and increased transfer payments to those on the other end of the spectrum. Republicans remain opposed to any redistributive policies. Ending the Jelly Donut monetary policy would do more to alleviate income inequality than any of the widely debated changes in the tax code.

For the super wealthy, zero rates supported by a Bernanke put on the bond market encourage outsized income through leveraged speculation. For everyone else, zero rates reduce the standard of living because greater food and energy costs soak up income. Ironically, it is some Republicans that are beginning to question the Jelly Donut monetary policy, while Democrats generally support it. Democrats who sincerely care about income inequality should speak out against the Fed's policies."

Thu, 05/03/2012 - 11:03 | 2393793 CryingBear
CryingBear's picture

I think Jelly Donut policy and 50% minimum tax on capital gains and income over 1mil would work.

Thu, 05/03/2012 - 11:11 | 2393822 Buckaroo Banzai
Buckaroo Banzai's picture

Why not take 100% of every dime earned by every person and corporation?

Oh, wait I forgot. That won't come anywhere near closing the budget gap.

They are using class warfare to get you to believe the problem is in a deficiency of tax confiscations. But it's a spending problem.

 

Thu, 05/03/2012 - 11:14 | 2393826 Shizzmoney
Shizzmoney's picture

Democrats who sincerely care about income inequality should speak out against the Fed's policies

#sftrue

Out of all the polls I've seen about the worry of high gas prices and where the blame goes, I've seen all types of choices: Obama, Congress, Speculators, Big Oil, Government Oil Policies, OPEC, Iran Tensions......

.......but NONE ever have "the Federal Reserve" or even "US Monetary Policy" as their choices.  MSNBC, CNN, FoxNews, etc......no matter what side of the political spectrum, none of the MSM polls ever have this choice.

Which is curious, only because, you know, OIL IS FUCKING TRADED IN USD!!!!1111

Thu, 05/03/2012 - 11:49 | 2393988 spekulatn
spekulatn's picture

"...Democrats who sincerely care about income inequality should speak out against the Fed's policies."

 

Oops. The cat be let out of the bag.

Democrats, like the Republicans, could give a shi* about the little people, David.

Thu, 05/03/2012 - 11:01 | 2393787 jus_lite_reading
jus_lite_reading's picture

This is so incredible that as I have been saying, IT MUST BE PLANNED!! There is no way that the leaders of this world can be so naive about the consequences of their fraudulent and corrupt actions!! Do they think the people are THAT stupid???? 

"When people have nothing to lose, they lose it all!!" G. Celente

Thu, 05/03/2012 - 11:07 | 2393808 ArrestBobRubin
ArrestBobRubin's picture

Of course it's been planned. It has been for quite some time. We're just watching the end game as we live through it. See this, Mr. Salinas Price knows of what he speaks. This is a subtle but DIRE warning from one of the few Good Guys in the ranks of the global financial elite:

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/3_Billionaire_Hugo_Salinas_Price_-_Elites_Plan_to_Control_the_World.html

Thu, 05/03/2012 - 11:02 | 2393788 Village Smithy
Village Smithy's picture

Sadly J6P doesn't even know this series exists. He's too busy getting up at 6 AM so he can drive an hour to work, then back at the end of the day, then maybe play with his kids a bit before he sits down with his wife to discuss just how bad their finances are. 

Thu, 05/03/2012 - 11:02 | 2393789 Dr. Engali
Dr. Engali's picture

I will gladly pay you back in 4850 years for an Edvard Munch painting today.

Thu, 05/03/2012 - 11:02 | 2393790 Dan The Man
Dan The Man's picture

if there are not enough poor ppl...just make some more

 

Thu, 05/03/2012 - 11:03 | 2393792 junkyardjack
junkyardjack's picture

Its only an issue because all the news networks are trying to push race and class wars right now.  Next week it'll be whether another Kardashian is getting divorced or is sleeping with another rapper...

Thu, 05/03/2012 - 11:04 | 2393795 LawsofPhysics
LawsofPhysics's picture

Once you realize that collapse and war is the goal, this all makes sense.  Psst, the only people who can spend are those with capital, never count on the "poor" to prop up spending.  Perhaps the problem all along has been with what is considered capital and money.

Mark to unicorn accounting is still very much in play, hedge accordingly.

Thu, 05/03/2012 - 11:04 | 2393796 ArrestBobRubin
ArrestBobRubin's picture

That's just how they roll.... here's a must-read on the topic from KWN:

Billionaire Hugo Salinas Price - Elites Plan to Control the World

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/3_Billionaire_Hugo_Salinas_Price_-_Elites_Plan_to_Control_the_World.html

Thu, 05/03/2012 - 11:14 | 2393828 SheepDog-One
SheepDog-One's picture

Funny how you can show the 'elites' themselves admitting theyre taking over the world, but people still come around and say youre crazy to see it.

Thu, 05/03/2012 - 11:24 | 2393868 jus_lite_reading
jus_lite_reading's picture

SD! Shut yer mouf! Jersey Whore is on TV and I MUST WATCH EVERY NEW SITCOM ON TV!!

/sarc off

I got into the habit of monitoring the hourly top 10 interent searchs and it never ceases to amaze me that more people care about what Justin Beiber is wearing to his birthday party than what the CISPA bill means for free speech!!

Thu, 05/03/2012 - 11:29 | 2393890 SheepDog-One
SheepDog-One's picture

The 'Consumer Comfortable' american people have done this to us with their complacency. 1 day a year they wave a little flag on a stick, and say 'hooray' for long gone generations who actually DID stand vigilant against a tyranical govt/bank power...but today its all just an act, and excuse to drink beer and eat burgers.

Thu, 05/03/2012 - 11:56 | 2394017 spekulatn
spekulatn's picture

People have been mind fu**ed so hard by the best mind fu**ers in the universe.

Fortunately a few have shook it off. Now its time to really educate the masses.

The internets will be the light.

Thu, 05/03/2012 - 11:33 | 2393913 NotApplicable
NotApplicable's picture

CISPA is no more relevant then Bieber, as it matters not what privileges the slave-masters allow me, as I do not consent to their criminal rule. They have nothing but the force of violence on their side, while I the morality of existing peacefully amongst others without having to control them.

Thu, 05/03/2012 - 11:29 | 2393895 NotApplicable
NotApplicable's picture

Actually, Price isn't one of "them." He's a committed Austrian, and has been trying to reintroduce silver as currency to protect the people from fiat inflation's wealth destruction effect.

But yeah, I get what you're saying (the "Soros can do no wrong" crowd).

Thu, 05/03/2012 - 11:08 | 2393804 carbonmutant
carbonmutant's picture

Certainly done wonders for RGR and SWHC YOY...

Thu, 05/03/2012 - 11:09 | 2393813 Josh Randall
Josh Randall's picture

Long Gated Subdivisions

Thu, 05/03/2012 - 11:35 | 2393923 NotApplicable
NotApplicable's picture

Those gates won't last three tenths of a second when it really matters.

Thu, 05/03/2012 - 12:19 | 2394119 carbonmutant
carbonmutant's picture

It's what's behind the gates that matters...

Some gates have ZHers behind them.

Thu, 05/03/2012 - 18:29 | 2395394 smiler03
smiler03's picture

That guy who gets Million Dollar Bonuses, I bet he lives behind a gate. /joke (it's a basement really)

Thu, 05/03/2012 - 11:09 | 2393818 SheepDog-One
SheepDog-One's picture

Oh the poor ARE getting their 'change', right into 3rd world status! Thats what happens when youre told 'things will 'change' but you dont ask what the change IS!

Thu, 05/03/2012 - 11:41 | 2393953 Vince Clortho
Vince Clortho's picture

The media continues to tell America that the "recovery" is right around the corner, even as the wealth-sucking machine goes into hyperdrive.

Thu, 05/03/2012 - 11:16 | 2393839 SheepDog-One
SheepDog-One's picture

OMFG I sure hope Bernank starts QE mutterings, Id just love to see gold scream over $2,000 and WTI up to $120.

Thu, 05/03/2012 - 11:12 | 2393823 CryingBear
CryingBear's picture

LOL, the rich invested all their money in AAPL

Thu, 05/03/2012 - 11:15 | 2393838 CryingBear
CryingBear's picture

We should not raise capital gains tax or the rich might take their money out of AAPL, move to China and invest in Bidu. AAPL will be then broke and wont be able to operate.

 

Dont raie capital gain taxes.

Thu, 05/03/2012 - 11:15 | 2393840 Stuck on Zero
Stuck on Zero's picture

Gosh.  Have you noticed that the bigger and more Socialist the government gets the larger the income ratio gets?  That can only mean that government is there to transfer wealth from the poor to the rich.

Thu, 05/03/2012 - 12:00 | 2394046 wherewasi
wherewasi's picture

Retarded Robin Hood, bitchez

Thu, 05/03/2012 - 11:36 | 2393922 yogibear
yogibear's picture

LOL, the 1% have so much money they can afford to pay $190 million for a painting which looks like it was drawn by a elementry kid with crayons. They have so much wealth they swindled they can pay outrageous money for assets. 

Thu, 05/03/2012 - 18:32 | 2395400 smiler03
smiler03's picture

Holy tap dancing Christ! It went up $71.1 million in a day!

Thu, 05/03/2012 - 11:40 | 2393939 geewhiz190
geewhiz190's picture

what i find amazing, and a seemingly huge contradiction is that consumer stocks like CL, and KMB, just keep rocketing up.  if the consumer is so down about things, who's buying all the paper towels and mouthwash?

Thu, 05/03/2012 - 11:42 | 2393959 CryingBear
CryingBear's picture

they are rotating out of tech and into consumer and retail stocks. nothing to do with fundamentals. they just follow each other.

Thu, 05/03/2012 - 11:46 | 2393980 Vince Clortho
Vince Clortho's picture

Nobody.

 Stock prices are being driven up by an endless stream of 0.00% interest loans from the Fed to the Banks.  The Banks then invest this free cash in paper towels, mouthwash, AAPL and other equities.

The old Supply / Demand paradigm no longer works in the current Bizzaro system.

Thu, 05/03/2012 - 11:46 | 2393979 AnAnonymous
AnAnonymous's picture

US citizenism is class warfare. Another evidence US citizenism is triumphant.

Thu, 05/03/2012 - 13:29 | 2394403 Monkeyfister
Monkeyfister's picture

Oh-- WOW!!!

 

I was beginning to think that **I** was the only one so old that I remember when we were called Citizens, instead of Consumers.

Thu, 05/03/2012 - 11:56 | 2394018 Monkeyfister
Monkeyfister's picture
Jobless Claims in U.S. Fall More Than Forecast

Markets get sad, and tumble.

Nothing cynical about Wall Street-- nosiree.

 

Thu, 05/03/2012 - 12:14 | 2394100 farmerjohn2112
farmerjohn2112's picture

Pretty pictures...

Thu, 05/03/2012 - 18:34 | 2395405 smiler03
smiler03's picture

please don't feed the hedgeless_horseman.

Thu, 05/03/2012 - 12:17 | 2394113 KCMLO
KCMLO's picture

I can't help but thinking lately that one of the most effective means to stop a drunk driver is to make them crash.  I really maintain hope (one of the best words in the English language tarnished by politicos) that we can finally elect some officials with integrity, but this election cycle seems to prove that it has to be much much worse before it can get better.

Thu, 05/03/2012 - 12:33 | 2394175 rosiescenario
rosiescenario's picture

"plus ça change, plus c'est la même chose"

 

The only candidate who would probably bring actual chnge (RP) will never be elected because he antagonizes most all of the specialinterest groups who run D.C.

Thu, 05/03/2012 - 18:38 | 2395410 smiler03
smiler03's picture

Big money and lobbyists, status quo ad infinitum (definition US).

Thu, 05/03/2012 - 13:14 | 2394333 R. Giskard
R. Giskard's picture

"Suppose bad men weren’t gaming the system. Globalization and IT would still be sufficient to polarize the jobs market, skew the demand for skills, destroy careers-for-life and channel a bigger share of income to the successful. But globalization and IT are not threats to be resisted, much less crimes to be punished. Like earlier industrial revolutions, this one will have bad consequences that need to be addressed. But overwhelmingly, this transformation is a force for progress. That is something the left should not set its face against."

ref: http://www.bloomberg.com/news/2012-05-01/liberals-need-to-exploit-progre...

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