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Durable Goods Miss, Inventory Stockpiles Soar To New All Time High

Tyler Durden's picture





 

We have been keeping a close eye on economic reports in the month of March and as of this morning's just reported Durable Goods number we are now officially at miss 15 of 17. The headline print was +2.2% to a total of $211.8 billion, on expectations of +3.0%, up from a revised -3.6% decline in January. Ex-transportation, the number was +1.6% on expectations of a 1.7% increase, while Non-defense ex aircraft was up 1.2% on Exp. of 1.5%. The primary driver in the core slump was electrical equipment which slide 2.5% in February from $10.5 billion to $10.25 billion - are Americans getting all "gizmoed out?" And finally, for those who are saying the inventory restocking is over, we have two words: Dead Wrong. "Inventories of manufactured durable goods in February, up twenty-six consecutive months, increased $1.6 billion or 0.4 percent to $373.7 billion.  This was at the highest level since the series was first published on a NAICS basis in 1992 and followed a 0.6 percent January increase.  Machinery, up twenty-three consecutive months, had the largest increase, $0.6 billion or 0.9 percent to $62.2 billion.  This was also at the highest level since the series was first published on a NAICS basis." That's right - inventories just hit an all time high having increased 26 months in a row. And now you know where US economic "growth" has been hidden all these years. But yes, if you build it, they will come. Eventually. In the meantime, expect sell-side desks to again enact Q1 tracking GDP reductions.

Durable Goods

Inventories: simply stunning.

 


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Wed, 03/28/2012 - 08:49 | Link to Comment Irish66
Irish66's picture

long trucks to move stuff around and count as sold!

Wed, 03/28/2012 - 08:52 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Chevy Volts up the wazzoo! Get yours now cause they're going up in flames fast.

 

Wed, 03/28/2012 - 08:54 | Link to Comment Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Don't forget your new piece of iCrap. It awaits.

Wed, 03/28/2012 - 08:58 | Link to Comment francis_sawyer
francis_sawyer's picture

I'll bet the guns & ammo depots aren't sitting there with rotting inventory...

Wed, 03/28/2012 - 09:02 | Link to Comment malikai
malikai's picture

Damnit you beat me to it!

Wed, 03/28/2012 - 09:14 | Link to Comment stocktivity
stocktivity's picture

You screwballs with your guns and ammo make me chuckle. Do you really think things would be sooo out of control that your guns will save you? Do you really think there would be no more police , swat teams, national guard call ups, ect to surround you and your property if you ever began or even threatened to shoot? Do you honestly believe that your guns and ammo would save you from out of control mobs of people that will swarm over your property and take it all if you don't protect it? Do you really deep down believe that things will get soooo bad that you will have to hunt for your food to survive? That every food manufacturer will go bankrupt? That you have to stand guard over your fruit and vegie garden 24 hours a day or the out of control mobs will come and steal them? Wow...get out of your fantasy world and come back to the real world. By the way...thanks for the chuckles all you rough and tough gunslingers. hee heee.

Wed, 03/28/2012 - 09:18 | Link to Comment jus_lite_reading
jus_lite_reading's picture

ROTFLMAO!!!

Then you are invited to my secret garden...

Wed, 03/28/2012 - 09:37 | Link to Comment JPM Hater001
JPM Hater001's picture

So prices will be coming down and all is good in America right?

Wed, 03/28/2012 - 09:46 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Basically, stockdummy suffers from cognitive dissonance and delusions of pink unicorns just around the corner... 

Wed, 03/28/2012 - 09:19 | Link to Comment Race Car Driver
Race Car Driver's picture

Magic Eight Ball says: Chances are good

Wed, 03/28/2012 - 09:41 | Link to Comment francis_sawyer
francis_sawyer's picture

 "Do you really deep down believe that things will get soooo bad that you will have to hunt for your food to survive?"

Thankfully ~ I have enough of a supply to get me through enough of a period that I won't have to go hunting for it while the storm passes... & even if I do run out, I'm happy to know that there will be people like you that I wouldn't even have to shoot... That's assuming someone else hadn't pistol whipped you already...

Wed, 03/28/2012 - 09:46 | Link to Comment BadKiTTy
BadKiTTy's picture

You know what?....... You may be right. But as Churchill said "i would rather die on my feet a free man, than to live on my knees as a slave".

We can assume you will be one of those on their knees........

k@

Wed, 03/28/2012 - 10:10 | Link to Comment William113
William113's picture

Hey Buttnut your ignorant thoughts work if you live in the city. There is no SWAT team in 90% of the country and the police, National Guard are poorly trained. You must live in MASS HOLE Chuesetts and you think the GOVERNMENT is going to keep you safe. Why do you think the state GOVERNMENTS (including Mass.) are passing stand your ground laws they know if the shit hits the fan they can't do anything about it. But don't worry your liberal ass will be protected by your neighbor and his shiny new Mossberg pump shot gun.

Wed, 03/28/2012 - 10:15 | Link to Comment BandGap
BandGap's picture

I have guns, I have friends and I have friends with guns.

The best defense is a good offense. Would you steal from a garden if you thought you might get lead poisoning?

Wed, 03/28/2012 - 10:46 | Link to Comment RallyRoundTheFamily
RallyRoundTheFamily's picture

Ask the Katrina survivors how that worked out for them. 

Wed, 03/28/2012 - 11:22 | Link to Comment Nels
Nels's picture

For some, it's as if there are no more police already ....

http://www.americanthinker.com/2012/03/on_that_violent_death_in_the_berk...

Wed, 03/28/2012 - 11:36 | Link to Comment catacl1sm
catacl1sm's picture

You obviously haven't read about the roving bands of farm marauders in Weimar at the height of the hyperinflation. Hungry people are desperate people.

Wed, 03/28/2012 - 11:50 | Link to Comment zuuma
zuuma's picture

All those cops, Natl Gaurdsmen, SWAT, etc. types will be vastly more concerned with their OWN families.

Count on it. That's the nature of human beings. Truthfully, I don't blame them.

I live 3 -4 days walk from the nearest city.

I & my Ant neighbors will be very unhappy if you and your Grasshoper neighbors manage to make it to my prepared, self-sufficient anthill expecting to be fed for a few months.

We will be disinclined to hand over the fruits of our labor and planning.

Winter's coming. It always does.

Wed, 03/28/2012 - 12:03 | Link to Comment Chuck Walla
Chuck Walla's picture

You screwballs with your guns and ammo make me chuckle. Do you really think things would be sooo out of control that your guns will save you?

 

Guess you never head of the Progressive paradise and Showplace - Dee--Troit.  Or is there some honor in dying like the little Media Matters lap dog you are?

Wed, 03/28/2012 - 09:58 | Link to Comment William113
William113's picture

Ruger has run out of inventory. hee hee

Wed, 03/28/2012 - 09:01 | Link to Comment malikai
malikai's picture

Well, at least sales are strong in lead, gunpowder, and molded stainless.That's got to be good for the gap in DG.

Wed, 03/28/2012 - 10:17 | Link to Comment HomoHominiLupus
HomoHominiLupus's picture

For what it's worth, the Chevy Volt has been declared "2012 Car of the Year" in...drumroll please...GERMANY of all countries. Known as the Opel Ampera, it has NO competition, which, given the car's limitations and apparent quality problems is amazing but perhaps not so much if you take an average gasoline price of $10 per gallon across Europe into consideration. Draw your own conclusions...

Wed, 03/28/2012 - 14:55 | Link to Comment RollinsArline3
RollinsArline3's picture

my classmate's sister makes $67/hour on the laptop. She has been without a job for 6 months but last month her pay was $20212 just working on the laptop for a few hours. Read more on this web site .....  http://lazycash9.com

Wed, 03/28/2012 - 09:03 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Few people understand that forecasts that companies spend millions on are based on false economic indicators... just as retirement and pensions are based on false "inflation" data... Ben knows that if the true inflation rate of 10-12% were published and made the official CPI there would be major storms all over...

It is already game over... these charts help you remember that

Wed, 03/28/2012 - 09:13 | Link to Comment theorist
theorist's picture

You are not too far off on that. In the good old days, a company with excess inventory would set up a separate company for the special purpose of buying its inventory. They would sell to this new company through a loan arrangement directly, or in a convoluted way through a bank, whilst indirectly guaranteeing the bank loan themselves. Hey presto, you had earnings...

Wed, 03/28/2012 - 09:31 | Link to Comment Roscoe
Wed, 03/28/2012 - 10:05 | Link to Comment Neo1
Neo1's picture

Returning to real money is the best way to put more money in your pocket to buy this inventory.

The real reason you pay an income tax, is for the privilege of using a private currency.

Also known As A:  Federal Reserve Note

Demand from your bank or brokerage, lawful money and the tax goes away, with a tax exemption on lawful money, all of your money is yours.

http://www.21silver.com/?show=merrill&read=federal_reserve_act_remedy

http://stormthunder.com/federal-reserve-act/

Tax Exemption: http://stormthunder.com/federal-reserve-act/#ixzz1pOYzDgEm

 Web search these three different phrases:

Redeemed in Lawful money  or

Redeemed in Lawful money Pursuant to Title 12 USC §411  or

deposited for credit on account or exchanged for

non-negotiable federal reserve notes of face value  

Wed, 03/28/2012 - 08:50 | Link to Comment stant
stant's picture

bullish warehouse fires

Wed, 03/28/2012 - 09:00 | Link to Comment jus_lite_reading
jus_lite_reading's picture

You mean "Jewish lightning"

Wed, 03/28/2012 - 09:04 | Link to Comment oak
oak's picture

Big fire sales are coming. DEFLATION!

Wed, 03/28/2012 - 08:53 | Link to Comment LongSoupLine
LongSoupLine's picture

 

 

 

yayyyy! GDP! GDP! GDP!

Wed, 03/28/2012 - 08:54 | Link to Comment i-dog
i-dog's picture

Well, there are plenty of empty facilities to store "stuff" in.

Wed, 03/28/2012 - 08:59 | Link to Comment DeadFred
DeadFred's picture

And at 0% interest the cost of holding all that inventory is low, that is if you're a BIG CORPORATION that can get the Fed's free money. You small businesses can just suck on some lemons.

Wed, 03/28/2012 - 08:55 | Link to Comment WoodMizer
WoodMizer's picture

15 of 17, Jesus this world is fucked.

The markets know not what they do.

Wed, 03/28/2012 - 09:26 | Link to Comment EscapeKey
EscapeKey's picture

Yeah they do, react to the expectation of further QE (time for Guru).

Wed, 03/28/2012 - 09:56 | Link to Comment fuu
fuu's picture

I've been trying to figure out what the 2 of 17 were.

Wed, 03/28/2012 - 10:24 | Link to Comment BooMushroom
BooMushroom's picture

Bullshit manipulated unemployment, and bullshit manipulated inflation.

All the actual, factual, real numbers have been bad.

Wed, 03/28/2012 - 11:58 | Link to Comment fuu
fuu's picture

Should have known.

Wed, 03/28/2012 - 08:56 | Link to Comment q99x2
q99x2's picture

Long Junk Yards, recycling, and wealth re-distribution.

Wed, 03/28/2012 - 10:27 | Link to Comment BooMushroom
BooMushroom's picture

How do you go long wealth redistribution? And if you make a killing, don't they just take it away and give it to someone else, anyway?

Wed, 03/28/2012 - 08:56 | Link to Comment francis_sawyer
francis_sawyer's picture

Better crank up the speed on those printing presses Benny...

Wed, 03/28/2012 - 08:56 | Link to Comment A Dim View
A Dim View's picture

but, but, but.... i thought all these corporations were sitting on mountains of cash.

 

Or was it "cash in kind"... it's so confusing

Wed, 03/28/2012 - 08:57 | Link to Comment chistletoe
chistletoe's picture

You have theright ides but the wrong language here ...

 

this behavior pattern is called "hoarding" .... just like those people who are stockpiling inventory of precious metals ....

Wed, 03/28/2012 - 08:59 | Link to Comment WoodMizer
WoodMizer's picture

So, Bernanke walks into a bar, and the bartender says

"why the long farce".

Wed, 03/28/2012 - 09:29 | Link to Comment Osmium
Osmium's picture

Or Gran Torino.

Bernanke walks into a bar, the bartender looks up and says "Get the Fck Out of Here"

http://www.youtube.com/watch?v=rlluWyTT9Gw

Wed, 03/28/2012 - 08:59 | Link to Comment Hmm...
Hmm...'s picture

It's probably because of the weather.  It usually is.  Warm weather often depresses the markets.  So does cold weather.  And perfectly average weather too.  Except when it doesn't.

Besides, what's wrong with inventory?  You don't want to be like in the USSR where they had bread lines but no bread, do you?

Wed, 03/28/2012 - 09:09 | Link to Comment Irish66
Irish66's picture

How much extra chemicals do they have to put in the bread to last longer?

Wed, 03/28/2012 - 11:41 | Link to Comment catacl1sm
catacl1sm's picture

The other day I went to get some potatoes out of the pantry and found that they all had eyes rampantly growing. At first, I was horrified. None of the potatoes I had stored before ever had eyes growing. Then I remembered my childhood, that eyes like these were the norm back then. That was when I realized that this bag of potatoes was organic. The other bag of potatoes (red) in my pantry did not have any eyes and was not organic. Non-organic potatoes are sprayed with a chemical to prevent them from growing eyes. I wonder what it prevents you from growing.

Wed, 03/28/2012 - 13:15 | Link to Comment Things that go bump
Things that go bump's picture

Get a bread machine - make your own. Then you always know what is in it.

Wed, 03/28/2012 - 09:00 | Link to Comment Robslob
Robslob's picture

 

 

And now you have your excuse for more QE on lower GDP projections compliments of Ben-O...this must be what the markets are pricing in that we are not?

Wed, 03/28/2012 - 09:00 | Link to Comment mirac
mirac's picture

Is the inventory build mostly cars?  Most industries will hold less inventories when business is perceived to be mediocre-or their caught with it unexpectedly, but the above chart has gone on a build for quite awhile.

Wed, 03/28/2012 - 09:38 | Link to Comment adr
adr's picture

You are wrong there. A normal private company would cut back, perhaps lower prices to move inventory. Since 99% of what is in stores today comes from a publicly traded marketing company, they can't cut back and the can't cut prices.

If a public company cuts back, that is admitting they can't show growth. That is like saying you have terminal cancer, your stock will drop and the company will be dead.

Look at Sears, in reality they are bankrupt and can only grow by closing stores to hopefully show increasing comps by having less locations to shop at. However, management sent out a wondefull pipe dream letter claiming they will grow, instant doubling of their stock reality be damned.

All any corporation cares about is its market cap. Sales don't matter, profit doesn't matter. Only increasing revenue to show growth and increase the share price.

You ever wonder how every single store seems to increse comps every quarter, even in the face of declining demand? Stores and the name on them are seperate corporations under the same umbrella. The main corporation produces more inventory than could ever be sold, they sell it to the stores and book the forward profit, WOW LOOK AT THE MASSIVE GROWTH!!! When the product never sells, the company buys back the store inventory, WOW LOOK AT THE HUGE COMP GAIN!!! The corporation will then write off the buyback inventory as a loss, helping the "accountants" fix the books, WOW HUGE TAX SAVINGS!!!

Retail is a scam. Lulu Lemon works exclusively on this scam. Select Comfort too. Apple uses this to their advantage as well. They do sell a lot of product, but nowhere near what they claim. Any corporation with their own stores sells inventory to itself to claim profit. Yes product does actually get sold to consumers but the majority of the inventory is produced to keep the ponzi scam going. Think about all the inventory you see in a store right before a product change, within a day all the inventory is gone and new stuff takes its place. If the store couldn't sell all the inventory in a few months even on sale, they didn't sell it off to consumers over a weekend.

Wed, 03/28/2012 - 09:55 | Link to Comment mirac
mirac's picture

Thank you for the reply...very interesting!

Wed, 03/28/2012 - 10:32 | Link to Comment BKbroiler
BKbroiler's picture

great post.  

Thu, 03/29/2012 - 03:23 | Link to Comment Milton Waddams
Milton Waddams's picture

Head shot

Wed, 03/28/2012 - 09:00 | Link to Comment disabledvet
disabledvet's picture

you mean "if they build it they will cut price." the stores up here are chock full of goodies--and i don't know if that counts in an inventory number. as with our houses, our girth and our cars however "we have super-sized out stores as well." perhaps a simple "give-away" day? or how about a "no you don't have to pay your taxes anymore" weekend? anywho this is good news for consumers...not a market negative per se but definitely a "political negative" as "the government has all the money and the retailer only has a boat load of stuff to the rafters." needless to say "this is China. This is China's trade surplus without an American consumuer":
http://www.youtube.com/watch?v=VKNSmw8jdBY&feature=player_detailpage

Wed, 03/28/2012 - 09:13 | Link to Comment Village Smithy
Village Smithy's picture

I like your take on that "This is China's trade surplus...". I feel better already.

Wed, 03/28/2012 - 09:01 | Link to Comment Manthong
Manthong's picture

At least there is plenty of stuff that nobody can afford laying around now.

It will be great for all the window shopping people will be doing to pass the time between unemployment checks.

 

Wed, 03/28/2012 - 13:20 | Link to Comment Things that go bump
Things that go bump's picture

Maybe people can supplement their income with shoplifting.  

Wed, 03/28/2012 - 09:01 | Link to Comment theorist
theorist's picture

I cannot understand why the average Wall Street analysts have been so bullish. Thus far there has been a bullish chorus at every corner. Although this sounds like rear seat driving, where did they think the great corporate revenues arose from. There has been a massive inventory build up in the US and these numbers lay it bare. Clearly, with interest rates low, companies funding this inventory have been happy to build up larger stocks than they would usually. The question is when will the consumer buy. That is, now it is built "When will they come?" If there is a long time lag, you can perhaps see corporate bankruptcies increasing, and corporate credit spreads going through the roof. Remember, although rates are low, loans have a finite maturity and need to be repaid. If you aren't selling down goods, the bankers are going to get nervous, and pull your lines and not re-finance maturing debt.

Wed, 03/28/2012 - 09:15 | Link to Comment jus_lite_reading
jus_lite_reading's picture

>>"I cannot understand why the average Wall Street analysts have been so bullish. "<<

What? You can't be serious. They can't sell a single worthless turd unless the sucker they are selling to believes that TOMORROW or NEXT YEAR will be better... it is part of the bigger idiot theory and how Wall Street has been operating since the start. I worked there. I know. 

I also know that they are scared shitless knowing that if the retail sucker does not come back with both hands open ready to buy their worthless paper very soon, it will collapse... and BEnron knows this as well so he is prepared to print all that is needed to keep the ponzi going... 

Wed, 03/28/2012 - 09:45 | Link to Comment Vince Clortho
Vince Clortho's picture

If you are a large enough corporation, you need not worry about bankruptcy.  Like taxes, Bankruptcy is for the little people.

Wed, 03/28/2012 - 09:01 | Link to Comment AN0NYM0US
AN0NYM0US's picture

Bloomberg:

one analyst calls it a good number

 

Wed, 03/28/2012 - 09:25 | Link to Comment kill switch
kill switch's picture

He's got his numbers fucked up...It's an accurate number not a good one.

Wed, 03/28/2012 - 09:32 | Link to Comment junkyardjack
junkyardjack's picture

Apple knows that very few people will do a refund. Its silly anyway, people are complaining because it doesn't get 4G in Australia.  Maybe the people should read about a product before they hop on line to sleep outside to buy it.  In a good world, Apple wouldn't do a refund and it could be viewed as a tax on the stupid.  Next time they'd be more mindful of their purchases before they spent their money.  Unfortunately Apple is a great company so they want to keep their reputation and thus they offer a refund.  I bet one of these people will be suing McDonalds for having coffee that is hot as well.

Wed, 03/28/2012 - 09:40 | Link to Comment kill switch
kill switch's picture

I believe the article indicated that APPL  said yes you can with a SIM solution, that we find is pure  BS,, buyer beware??? WTF!! Of course if the article is accurate..

Wed, 03/28/2012 - 09:07 | Link to Comment Taterboy
Taterboy's picture

Lots of stuff to advertise in "The Closeout News" magazine.

Wed, 03/28/2012 - 09:09 | Link to Comment Jason T
Jason T's picture

Inventory to sales is not as "stunning" however. http://research.stlouisfed.org/fred2/series/ISRATIO

Still..there's too much crap being sold these days.  I"m finding I can recycle so much crap around my house to buld things its quite nice .. got to build a chicken coop and a solar  water and space heater.. i've got a huge pane of glass, an aluminun shed that's shot so will use those to get stared on the solar heater.. and good deal of left over wood i can use to get started on the coop.  

 

Invest in self sufficiency

 

Wed, 03/28/2012 - 09:32 | Link to Comment Shizzmoney
Shizzmoney's picture

Plus, most of the crap out of China doesn't even last.  My company has crap from China, tons of consumer complaint about the plastic falling apart, the shit melting onto product, etc.

But all about moving those units!

Wed, 03/28/2012 - 09:52 | Link to Comment Jason T
Jason T's picture

Debasement 

Wed, 03/28/2012 - 09:19 | Link to Comment Village Smithy
Village Smithy's picture

I feel badly for any small business owner who listened to the MSM and believed the BLS and, in anticipation of a growing economy, layed down extra inventory. This is just one of the unintended consequences of bull shitting about the state of the economy. Maybe all the patio furniture places in the DC area that are stuffed to the rafters with shit they won't be selling this summer should drop it all by Benny's house and store it in his garage, and basement, and backyard, and front lawn, and...

Wed, 03/28/2012 - 09:23 | Link to Comment Race Car Driver
Race Car Driver's picture

Which house?

Wed, 03/28/2012 - 09:42 | Link to Comment Vince Clortho
Vince Clortho's picture

The large estate home he is building on a remote island in the Pacific.

Wed, 03/28/2012 - 09:11 | Link to Comment bshirley1968
bshirley1968's picture

This is what this economy has been built on for the last 30 yrs.  Build some crap, advertise it out the wazoo, be sure some hollywood whores or some dufus athletes get some for free, watch the herd go buy it while wondering how they ever lived without it, and then tax the money everytime it passes "go".  Getting to the place where Ben is the only buyer.  No fun taxing oneself.

Wed, 03/28/2012 - 09:12 | Link to Comment Ima anal sphincter
Ima anal sphincter's picture

You're along for the ride. Gold up.....Gold down. I watch with amazement. The media screams rah-rah-sis-boom-ba, but we all know the ponzi is crumbling. The government takes care of the "money-masters" ONLY. The wee-little-folk will get screwed.

Will they ever let gold see its REAL value? Icicles in hell.

Liars, crooks, sellouts, and traitors. Greed run amuck. They haven't figured out immortality yet. The only good news is that all these fucks WILL die someday.

Wed, 03/28/2012 - 09:26 | Link to Comment Race Car Driver
Race Car Driver's picture

Except Cheney - he's already well on his way to full borg.

Wed, 03/28/2012 - 10:18 | Link to Comment mirac
mirac's picture

Cheney is more Reptilian than Borg-like...

Wed, 03/28/2012 - 09:16 | Link to Comment Wakanda
Wakanda's picture

Stocking up for the next page in the game plan: war and rationing

"Build it now while commodities are cheap and markets unprotected."

Wed, 03/28/2012 - 09:17 | Link to Comment mayhem_korner
mayhem_korner's picture

 

 

These channels have more stuffing in 'em than a muppet. 

Wed, 03/28/2012 - 09:24 | Link to Comment StychoKiller
StychoKiller's picture

Well, youse guys oughta know!  :>D

Wed, 03/28/2012 - 09:17 | Link to Comment holdbuysell
holdbuysell's picture

Machinery?

The military type?

Wed, 03/28/2012 - 09:19 | Link to Comment the not so migh...
the not so mighty maximiza's picture

What a mess, i need a shot of something with my morning vegitable juice.

Wed, 03/28/2012 - 09:26 | Link to Comment Snakeeyes
Snakeeyes's picture

And The Fed STILL can't jump start home purchases. And it isn't doing too well in stimulating mortgage refis either!

http://confoundedinterest.wordpress.com/2012/03/28/mortgage-bankers-purchase-applications-increase-3-25-refi-applications-down-4-58-waiting-for-godot/

Wed, 03/28/2012 - 09:29 | Link to Comment Shizzmoney
Shizzmoney's picture

You do get the sense that corporations are trying to "firce" the business through, onto the consumer.  They want to hire, they want to sell their McStuff....but the American consumer, who wants to buy the stuff, just can't.

Geez, I wonder why?  With wages stagnant and gas rising like Jerry Sandusky's pants at a Day Care Center, it is hilarious to see those baffled at why they can't move inventory out the door.

Hell, even GameStop, know for having tons of gizmo crap in their coffers, are actually offering 50% Trade-In VALUE towards store credit in their stores.  For all games.  That's really telling; basically says to me, "Minus Mass Effect, COD, and the random kids' game......no one is buying our shit."  And videogames usually tend to be recession proof.

Inevitability *will* kick in sooner or later.  They can stretch that dollar as much as they want, even the corporations and big banks can beat math.

Wed, 03/28/2012 - 09:45 | Link to Comment lizzy36
lizzy36's picture

The deal the same as it has been for 3 years.

Economy is not the stock market.

In the stock market, to much free money chasing fewer and fewer assets. ERGO.....

What matters is wealth effect is the ONLY way the monetary policy is transmitted because all other channels are broken.

Learn it. Live it.

Btw, the program is the same. Soft landing in living standards for bottom 80% as poverty effect trickles down. Everything else is just PR propoganda.

Wed, 03/28/2012 - 10:12 | Link to Comment mendigo
mendigo's picture

Yes but we will feel richer surrounded by our gadgets and pretending to be players in the markets. Next xbox should have etrade game - would have all the capabilty of bats in hpme version.

But seriously what's happenimg is the Great Levelling - simply bad timing.

Wed, 03/28/2012 - 13:51 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

aye, a soft landin

many a slip...

radar's out, we're in clouds of rfFiat chum, chum...

if we can just avoid that parabolic debt spike, and the shoals0default, we got a fighting chance of making it to happy hour, lizzy;  deflation special day!  nickel water! 

Wed, 03/28/2012 - 09:55 | Link to Comment mendigo
mendigo's picture

Excellent.
Attention Ebay shoppers!
More shit from China I can horde - need bigger house after they forclose on this one. Life is so good in Ameriiica!
I am think that now that we all get healthcare benefits I thing we should get all same benefits as civil service - pensions, tenure, sick leave, etc

Wed, 03/28/2012 - 09:56 | Link to Comment vote_libertaria...
vote_libertarian_party's picture

So we're more like the Chinese model.  Sales are counted on delivery to a warehouse and not when somebody actually buys stuff.

Wed, 03/28/2012 - 10:15 | Link to Comment MiddleageThinni...
MiddleageThinninghair's picture

I think it would be useful to divide the inventory number by the population to get a more useful calculation.

Wed, 03/28/2012 - 10:37 | Link to Comment Jason T
Wed, 03/28/2012 - 11:04 | Link to Comment MiddleageThinni...
MiddleageThinninghair's picture

Nice chart... thx

Wed, 03/28/2012 - 10:50 | Link to Comment Dead Canary
Dead Canary's picture

Apple has a new device to pick your nose. The iPick.

Wed, 03/28/2012 - 11:35 | Link to Comment Madrid2020
Madrid2020's picture

Not to worry! I'm quite sure Diane Sawyer(ABC) will spin this as great news,being an election year!

Wed, 03/28/2012 - 12:37 | Link to Comment dolph9
dolph9's picture

Can anyone here honestly explain to me how anybody with a commute, much less loans to pay off, can keep on buying all of this crap?

With wages stagnant, how do the powers that be expect us to pay for both oil and everything else?  With magic pixie dust?

Do they want me to bankrupt myself so I can buy an ipad number whatever?  Do they want me to starve so I can continue to pay for cable TV?  Do they want me to stop paying for electricity so I can afford better health insurance?

I have savings, no debt, a decent income, and am healthy.  And believe me, I'm struggling.

Fuck 'em.

Wed, 03/28/2012 - 13:34 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

valued at lower of cost or market?  Hahaha!

these are assets, BiCheZ! 

mmm,...  skittles!

Wed, 03/28/2012 - 14:28 | Link to Comment viahj
viahj's picture

great comments all.

i'm done trying to warn people outside of my close family, so as not to be a target in the upcoming ugliness of the global reset.

empty chinese cities, overstuffed us wharehouses, collapsing real estate, unemployed, unbelivable deficits...won't be too much longer

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