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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tu-ne-cede-malis's picture

Thanks Uncle Ben, Uncle Alan, and Uncle Paul!

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!

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...

BandGap's picture

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

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.

fuu's picture

If only there were another choice.

razorthin's picture

I'm writing in RP.  Fukk em.

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.

MaxPower's picture

Don't blame me. I voted for Kodos.

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.

The Big Ching-aso's picture



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

XitSam's picture

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

smiler03's picture

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

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's divisive and it's despicable and I'm speaking from the po' house.

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........................

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)

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.

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.

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.

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.

walküre's picture

Let 'em bake their own cakes

fuu's picture

Taxing everyone 100% will not plug the spending hole.

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."

CryingBear's picture

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

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.


Shizzmoney's picture

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


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, 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

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.

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

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:

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. 

Dr. Engali's picture

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

Dan The Man's picture

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


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...

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.

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

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.

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!!

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.

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.

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.

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).

carbonmutant's picture

Certainly done wonders for RGR and SWHC YOY...

Josh Randall's picture

Long Gated Subdivisions

NotApplicable's picture

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

carbonmutant's picture

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

Some gates have ZHers behind them.

smiler03's picture

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

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!