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Consumer Credit Misses, As Fed Magically Creates $1.5 Trillion In Net Worth Out Of Thin Air
That the just released consumer credit update for April missed expectations of a $11 billion increase is not much of a surprise. As noted earlier, the US consumer has once again resumed deleveraging: April merely saw this trend continue with revolving credit declining by $3.4 billion, offset by the now traditional increase in student and subprime government motors car loans, which increased by $10 billion. In other words, following a modest increase in revolving consumer credit in March, we have another downtick, and a YTD revolving credit number which is now negative. Obviously the government-funded student loan bubble still has a ways to go.
No: all of this was expected. What was very surprising is that as noted in the earlier breakdown of the Z1, the entire consumer credit series was revised, with the cumulative impact resulting in a major divergence from the original data series. Why did the Fed feel compelled to revise consumer credit lower? Simple: as debt goes down, net worth goes up, assuming assets stay flat. Which in the Fed's bizarro world they did! Sure enough, if one compares the pre-revision Household Net Worth data (which can still be found at the St. Louis Fed but probably not for long) with that just released Z.1, one notices something quite, for lack of a better word, magical. Ignoring the March 31 datapoint which does not exist for the pre-revision data set, at December 31, household net worth magically grew from $58.5 trillion in the original data set to $60.0 trillion in the revised one!
And that, ladies and gentlemen, is how you "create" $1.5 trillion in net worth in this wonderfully wacky fiat world, with the wave of a magic wand, or the push of a revision button.
We hope all of you feel $1.5 trillion wealthier as of this post.
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Smoke and mirrors - the people want to be fooled, told everything is fine. Politicians, statisticians, and market movers are happy to oblige.
This is Bearish for stocks!
Pretty funny shit ZH digs up.
Dear Customer:
I am writing to let you know that contrary to recent reports on various websites, YOUR debt did NOT get revised down. Have a great life.
Sincerely, J. Dimon
Cameron talks dirty to Merkel:
http://i.dailymail.co.uk/i/pix/2012/06/07/article-2155605-137DCC7D000005...
Had to go clean out my eyes with battery acid.
woohooo .... I'm off to buy me a new Obama thingamajig!!!
Photo Caption Contest!
Does this mean we can get back to tank-o-rama and then have another little squeeze before the Fed meeting in two weeks?
But but but Ben can create inflation whenever he wants to.
PONZI PONZI!!!
GAME OVER
We have the best Government.....Honest/Hard Working/Caring about the little guy..../sarc
Yep the pond scum took over around 65 or so.
for the people by the people (in power that is...)
“Our government teaches people by example. If the government becomes the lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy."
-Louis Brandeis
Well I think I am going to run right out to Best Buy and get me something.
pods
They have a special on iThingamajig.
iThingamajig is only 1/2 oz of gold.
I MEAN $800!!! $800!!! I SWEAR, I MEANT $800!
We're cool, right?
at least you'l have the store to yourself..and a few sales people standing around.
well, i don't feel 1.5 trillion wealthier right now but i do have an urge to stay at a holiday inn express tonight.
In the bizarro world of "baffle you with bullshit terminology" of the Fed they always graph credit/debt as if it's an asset. Then they tell you complex it all is, and not to bother yourself worrying about it, since they are taking care of everything for you. Sweet dreams!
...guests of the central bank stay at the luxurious maytag fridge box near the Wall Street holiday inn.
Credit Cards, bitchez!
Ben - "Watch me pull a rabbit out of my hat. Nothing under my sleeve. Presto.
Whoops. Better get me a new (fiat) hat."
All four Rocky and Bullwinkle versions just in case you want to watch the cartoon referrence.
http://www.youtube.com/watch?v=kRW7pITY5Cg
'Hey Krugman! Watch me pull an Economy outta my ass!'
The Magical Fed said it could raise the Dead,
Economy as it has been for years.
Ben waved his wand and confirmed our fears,
We'll soon be living on water and bread.
Instant ZH classic.
I didn't know that Bearnanke did his undergrad at Wossamotta U.
Ok then, tell me I'm a handsome devil.
Just a quick, off topic observation. I'm intrigued by the number of socialist, nanny state advocates that frequent ZH. It's a "free country" but it's a bit like my spending the day on the nation of islam's website.
You called?
5 Snaps Whoa....lmao
spice of life and all that besides unless you're a Sheik from Dubai, a European aristocrat or part of the Rockefeller family etc. you probably have more in common with the average run of the mill socialists, nanny state advocate or nation of Islam members than you do Jamie Dimon, Barry Obie-One, Leon Panetta etc.
Ha! That is so true. Let's see who can handle it.
I concur. However, instead of "intrigued", I would put the word "nauseated".
I got junked on another post as to my utter disgust for the big government nanny staters.
Socialists simply blow. Government ALREADY fucks up and spends more money than they have, ALWAYS over-spends, fucks up in general - and these cretins want MORE government?
It defies logic, any form of sense, and it disgusts me that their so-called "leaders" (Obama, Clinton, Kerry, etc.) go on and on and lie straight to their faces and get away with it.
I am NOT "for" big business, corporate lobbying, and a fucked UP tax structure. I am for a government FOR the people - which it is NOT.
Maybe this will cheer you up: http://online.wsj.com/article/SB1000142405270230383020457744814422687708...
"KABUL, Afghanistan – The U.S. has terminated funding for a $20 million project to develop a Pakistani version of Sesame Street, the U.S. Embassy said Tuesday. The decision came as a Pakistani newspaper reported allegations of corruption by the local puppet theater working on the initiative."
Well, the TBTF banks do need more muppets....
There goes another one of those "shovel - ready" projects.
Yeah! What we really need are those wonder boys from the Bush administration that left the country in such fine shape with all their free market ideas.
Tax cuts, two trillion dollar, losing wars managed so badly they'll be teaching how not to do that at West Point for another 100 years, Medicare Part D which is now a bigger unfunded liability than Social Security, the first trillion dollar deficit, a doubling of the debt, a big expansion in government with the Homeland Security scam, and the worst economic collapse since the Depression.
Oh, and we got hit under their watch on 9/11 too after they were explicitly warned. Now, what is it you like so much more about them?
Isn't there a nice Tea Party Dumb Ass site for you instead?
Grim.
If you're using the words "Bush" and "free market" in the same sentence, you'd better be talking about prostitutes . . .
I say good graces. The more uninformed people there are exposed to sites like this, the better chance our world has.
HERE HERE
this!
Photoshop for Fed data series.....what could be better.
A rounding error...
Trillion here, trillion there, pretty soon you're talking about real money...
What do you call that thing at the bottom of the urinal?
DaMint!
I'm feeling wealthier already. I think I'll take a second mortgage out and buy a boat.
Sure did knock the crap out of the SPY.
In fact I too am inflating right now, myself.
Rule by fiat. Whatever they say it is. The BLS has already famously revised U3 to the point that it does not represent what it did 30 years ago. I believe none of these numbers, but Bob Brusca and his "economics" brethern will happily swallow them whole and beg for more of this bullshit.
I can't tell you how many times I've found a trillion or two in the couch cushions...
While cleaning my garbage, I found 2 trillions which were accidentally put in throwaway bag.
People do tend to forget small things.
I found a trillion once, in the pocket of a jacket I pulled off the rack at the thrift store. I asked the lady at the counter what I should do with it, and she said I should donate it to the store. I sorta did that; used it to buy the coat. It was a great coat, best trillion I ever spent, and it wasn't even my money. That's sorta like Jon Corzine though, so I feel kinda bad about that part. Maybe I should have just donated it like she said.
You know, this kind of thing used to be fiction:
http://madscienceunlimited.com/fiction/uncomfortableWithTheTruth.html
I wrote that last year. They've already caught up with me. I guess I need to move further up field.
Well way up field is still this one:
http://madscienceunlimited.com/fiction/thisHeartOfGold.html
Let's hope they can control themselves. So what's left in between "we are teh liarz" and "we are wantz ur goldz now"? I mean not much right?
Okay that's it. I'm only writing about rainbow ponies and puppies now. Seriously. I'm not taking the blame for any of this shyte.
"Rainbow Pony!" cried Puppy, Tsar of the People's Economy. "There are Gold-mongers and Austrians at the gate! And the Fiatsco storm troops are already enroute to Belgium!"
Rainbow Pony swished her long, rainbow-colored tail and shat another skittle in agitation. "It is become more than I can stand. Release the ultimate weapon of monetary destruction!"
Puppy froze in terror. "No!" he wimpered, his tail between his legs. "Not that ... not the terrible ..."
"Release the Chopper!" Rainbow Pony shrieked in defiant defiance. "Let the Benjamins rain down on the enemies of our great and purposeful economic recovery!"
The chopper was loaded with bails of fiat toilet paper and ...
Geh. Fuckit. I can't stand it. Yo Bernanke go figure this out the fuck yourself. I ain't writing your scripts anymore, mo'fo'. Got myself a real job doing standup at Persephone's House of Blood and Biscuits. See you Tuesdays and Thursdays during happy hour, bitch.
lolwut?
if only the fed was smart enough to do "reverse" QE.
They wanna stimulate demand? thats the one thing Americans are good for, if they gave us money we would've bought everything, who gives a rat's ass abt hyperinflation
its still better than giving the money to TBTF and they just lock it away
what a waste of billions and time oh yes the clock's ticking away Bernanke you faggot
They wanna stimulate demand?
That's what they say. However, they really want to stimulate banker bonus pools and banker balance sheets.
One only needs to look at facts:
What is the origin of the Fed? (to support banks)
Who is on the board? (hint: TBTF bankers and corporations)
Who is an "advisory" member? (hint: see hint 1)
Who is a former Fed member and advisor? (hint: see hint 1)
Good things consumers can leverage phone companies for iPhones...
They're Magicly delicious!
Going out to buy my thingamajigs now, didn't know i was richer!
It's A Kind Of Magic
http://www.youtube.com/watch?v=FytMNBUR2CQ&feature=youtu.be&t=5s
"One dream one soul, one prize
One goal, one golden glance of what should be"
Hey, as long as no-one tries to actually take delivery of that "wealth" its all good.
The bankers will somehow manage to take delivery.
Don't ask me how. It defies all logic. But somehow they will manage it. They'll force their blood funnel into that imaginary space and siphon up the loot, and the invoice payable to the future will be 100% genuine and everyone else in the world will have already signed the contract.
Money out of "thin air"....
Well I'll be dammed.
Next they will be thinking of taxing our air.....
Oh,wait a minute....
There is no reality any more in the "magically" Federalized world of money creation. We're all magicians now! We have PRINTED prosperity now! It's economic alchemy! Magic!
May I suggest another word? DELUSION!
I saw that in the data too. I am going on TV tomorrow to discuss the housing market and they asked in the pre-interview about this index.
Ben Bernanke is David Copperfied.
The cooks doing the books have lost control of the ingredients altogether....they have stopped giving a fuck a long time ago.
They couldn't care less if we can't see the soup for the flies; it's not them who are doing the eating.
Just like the first paper dollar that was created out of this air.
"Its a tradition."
2.9% contraction in mortgage credit. Great for the housing recovery ,,, NOT!
http://confoundedinterest.wordpress.com/wp-admin/post.php?post=15280&action=edit&message=6&postpost=v2
stay debt-free and go back to schoolTM with tyler, BiCheZ!
The Fed is a Criminal Enterprize...
$1.5 trillion / 310 million people = $4838.71 per person in the US.
That would be $17,554.84 for a family of four.
Yeah, right...
Same day milk, bread and gas costs go up 1000%.
Hey - look what the UK did to inflation! Now you see it, now you don't.
Unbelievable...
Fed name change: Free-$Trillions-R-Us
I think spouse and myself will donate our $9,677.42 to the Untied Way (tm) charity...
It is rather clever....
Sweet thanks for the heads up. I just checked my bank account and I got it. Balance of a cool $1,500.000,000,682.37. So I'm off to buy that decomissioned missle silo I've been dreaming about.
http://www.silohome.com/
What's duh Big Deal here? We're talken bout du Fed here, sees? A lousie $1.5 billion heist is good fur under bosses like dat Corswine dude, but dis is da Fed! What du ya think? Da Feds gonna look cheap here? A Trilly and a half? jus anudder white chip for doze guys. Naw,ders noting to see here folks, jus move along,....Yeah, dats right. An if yu does says someting smart, we'll know whose ya are an we'll send du IRS boys round ta see yu......Yeah an day nose hows tu shake U down.
Oh, an have a nice day.