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Empire Manufacturing Index Prints At Lowest Since April 2009

Tyler Durden's picture





 

Today's horrible piece of news, which at least on the surface was supposed to send the market soaring, comes courtesy of the Empire Fed Manufacturing Index, which printed at -10.41, the lowest print since April 2009, down from -5.85, and well below expectations of -2.0. The Index print confirmed the biggest 6 month drop since records began. The components painted a dire picture for jobs, with the employment index sliding from 16.47 to 4.26, New Orders tumbling from -5.50 to -14.03, while, wait for it, prices rose, from 16.47 to 19.15. Re-stagflation here we come. Market for now seems confused - since QE is priced into infinity, it is unclear if this latest datapoint confirming a recessionary economy, QE can't be more-er infiniter. Best to not respond to this, or any other macro news at all, which is precisely what the market has done. For those who missed it, not only has Bernanke doomed the global economy to stagflation and imminent food riots, while making the richest 0.001% richer than ever, he has completely broken any linkage between the economy and the market.

 


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Mon, 09/17/2012 - 08:44 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

YES!

 

USA USA USA!!! 

Mon, 09/17/2012 - 09:27 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Major mfg. in US is all Military, directly or other-wise. 

Labour rates + Red tape + corrupt unions (sell-out mafia controlled for the most part) killed US Mfg.

That is why US is MFugged.

we are all in the mfugging boat together anyways. Globally Coupled.

ori

Mon, 09/17/2012 - 08:43 | Link to Comment lizzy36
lizzy36's picture

Welcome to the recovery QE infinity edition.

Mon, 09/17/2012 - 08:46 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

I'll gladly trade you a trillion dollar bill for a $20 gold certificate.

 

I know you can't trade them in anymore.....but still.

Mon, 09/17/2012 - 08:45 | Link to Comment Cassandra Syndrome
Cassandra Syndrome's picture

Bullish!

QE4 acoming bitchez!

 

Mon, 09/17/2012 - 08:50 | Link to Comment Dr. No
Dr. No's picture

I agree.  The Bernak made a mistake with "Unlimited".  I would assume he is aware that one of his strongest weapons is rhetoric.  With "unlimited" used in his latest policy, how is he going to use rhetric to boost markets 6 months from now?  The thought of QE3 for two months gave us a 1000 points.  Will it be "double secret" QE4?  Like, "yeah, QE3 was unlimited, but QE4 is both unlimited and undirectional..."

Mon, 09/17/2012 - 08:59 | Link to Comment Sheeple Shepard
Sheeple Shepard's picture

QE4 will be Benny in a wizards hat telling the FOMC that he can turn pure unmitigated terror into gold. Thats got to be good for another 1000 points, right?

Mon, 09/17/2012 - 09:02 | Link to Comment Dr. No
Dr. No's picture

He will never use the word "gold" in his statement.  He will use "unmitigated terro*r into finacial stability through unfocused and randomized money throwing...."

Mon, 09/17/2012 - 09:15 | Link to Comment Sheeple Shepard
Sheeple Shepard's picture

" I keep throwing this money in a randomised and unfocused fashion and it keeps ending up in the mega-banks commodities purchase funds, ain't that the darnedest?"

Mon, 09/17/2012 - 09:27 | Link to Comment Dr. No
Dr. No's picture

So far it has not been random.  It has been focused on the pockets of the primary dealers and the big banks.  We all know the focus will stay there, but it is fun to think about him truely dumping cash from helicopters.

Mon, 09/17/2012 - 11:17 | Link to Comment 0z
0z's picture

I wouldnt want to be called Mr.Bernanke in a revolutionary America!

Perhaps Marie-Antoinette thought she could get away in her horse carriage if things went bad.

Perhaps the Bernnake thinks he can fly out to some shack in the Andes just before the crowd burns his house down.

It will not be pretty. He should just run now. I would.

Mon, 09/17/2012 - 09:11 | Link to Comment spastic_colon
spastic_colon's picture

he is fully aware!  he knows that every bad econ report will now be equity bullish.....what happens when we get a truly good report?.....oh wait that is bullish too since he said ZIRP, NIRP QE etc will continue even after the recovery is mature

Mon, 09/17/2012 - 10:26 | Link to Comment Rip van Wrinkle
Rip van Wrinkle's picture

In other words....Benrnake's f*cked.

Mon, 09/17/2012 - 08:45 | Link to Comment Obadiah
Obadiah's picture

is this why the benake released the kracken?

Mon, 09/17/2012 - 09:15 | Link to Comment DeadFred
DeadFred's picture

There has to be some unseen reason for his insanity. His actions drove a stake through the Bernanke Put which gained its power from whispered rumors of 'new QE'. The next time the market corrects how will they turn it around? "I hear the Fed will do an extra MBS purchase next week", how does that turn psyches around. Their only defence is the PPT now.

Still have my short positions.

Mon, 09/17/2012 - 11:08 | Link to Comment RSloane
RSloane's picture

What insane person needs a reason for his insanity? If you mean the magical unicorn wage inflation argument, see manufacturing sector in third quarter contraction. He did drive a stake through the Bernanke put, which tells me he is desperate. Short positions are all we have left IMO. Long is risk-on bigtime.

Mon, 09/17/2012 - 08:45 | Link to Comment Jason T
Jason T's picture

Gas prices bitches.. staying home and not working cause can't afford the gas!

Mon, 09/17/2012 - 08:48 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Ah, nothing like the smell of stagflation.  Time to cull the herd, again.

Mon, 09/17/2012 - 08:49 | Link to Comment firstdivision
firstdivision's picture

Not to worry, that $40B of MBS purchases from the Fed will fix everything.  It's not like the banks would take the proceeds from the sales, and pump it into salaries and bounses. 

Mon, 09/17/2012 - 08:51 | Link to Comment ptoemmes
ptoemmes's picture

Employment index sliding...infinity and beyond.

 

WB7 - We REALLY need The Bernank in a Buzz Lightyear costume.

Mon, 09/17/2012 - 08:57 | Link to Comment Racer
Racer's picture

Yeah Buzz Lightyear was deluded into thinking he could fly, just like the ChairSatan thinks he can create jobs with QE.

(I know he is only benefitting the banks really and just another covered up bailout for his pals)

Mon, 09/17/2012 - 08:52 | Link to Comment Cursive
Cursive's picture

At this rate, we will have long grocery lines.  The groceries will cost too much and EBT cards will slow down the check-out lanes (only 2 open to keep labor costs down).  Security will be posted at the check-outs to deter theft, but most of the problem will be spoilage from items that are left at check-out because the EBT card didn't have the required funds.

Mon, 09/17/2012 - 08:54 | Link to Comment fonzannoon
fonzannoon's picture

Some rifle association group put out a piece on what would happen if the ebt card system was thrown off line, even temporarily. Someone posted the link here a week or two ago. Holy scary crap.

Mon, 09/17/2012 - 09:03 | Link to Comment centerline
centerline's picture

Exactly.  S will HTF if the EBT systems were even to burp.  Is really a scary thought.

Mon, 09/17/2012 - 08:55 | Link to Comment caimen garou
caimen garou's picture

ebt cards,it's the new american express! don't leave home with out it! apply now and get a free case of beer and cig

Mon, 09/17/2012 - 08:52 | Link to Comment Sheeple Shepard
Sheeple Shepard's picture

Looking at the chart, shouldn't it be lowest since 2010?

Mon, 09/17/2012 - 08:52 | Link to Comment caimen garou
caimen garou's picture

Quick turn on the Buffet light to signal him to turn this news bullish!BUY,BUY,BUY, stocks,I pads,and big screen tv's! oh yes we can! ha,ha,ha,

Mon, 09/17/2012 - 08:53 | Link to Comment Racer
Racer's picture

Poverty and fewer jobs for the 99%

Well done ChairSatan...

You evil sadistic, genocidal criminal you

Mon, 09/17/2012 - 09:00 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Wouldn't know about that...I'm part of the 45%......and we're not too happy about this crap.

 

Mon, 09/17/2012 - 08:55 | Link to Comment Peter Pan
Peter Pan's picture

Society is increasingly becoming dysfunctional because the level of debt on one hand and the level of expectations on the other are about to exceed the threshold of sustainability in a very visible and ugly manner. Those with massive financial assets need to take a write-off and those with ever increasing wants need to pull away from the government's teet and downsize their expectations.

Mon, 09/17/2012 - 09:11 | Link to Comment centerline
centerline's picture

Unfortunately, neither will happen.  In fact, the opposite is what will occur.  Is why a crash is inevitable.  This time global - with a very fragile supply chain - and populations that have been brainwashed like never before.

Mon, 09/17/2012 - 08:55 | Link to Comment buzzsaw99
buzzsaw99's picture

they should have asked about their prospects for bigger bonuses and larger stock options instead. [/bitchez]

Mon, 09/17/2012 - 08:56 | Link to Comment Schmuck Raker
Schmuck Raker's picture

Isn't there a "3X Inverse General Biz Conditions/Future General Biz Conditions Spread" ETF?

My Bloomberg terminal is only showing 16oz of data right now.... for some reason.

Mon, 09/17/2012 - 08:57 | Link to Comment apberusdisvet
apberusdisvet's picture

The sheeple are asleep.  But when gas goes above $5 (irrespective of war), there may be an awakening.  It will be interesting to see how the MSM spins this.

Mon, 09/17/2012 - 09:05 | Link to Comment insanelysane
insanelysane's picture

Bloomberg wrote something like "well the economy won't be getting help from this sector."  Must be betting on some BS housing numbers and how well the TBTF banks are doing.

Mon, 09/17/2012 - 09:14 | Link to Comment centerline
centerline's picture

Already in motion.  Damn that middle east turmoil!  And those evil speculators.

Mon, 09/17/2012 - 17:27 | Link to Comment TheProphet
TheProphet's picture

They will believe who they are told to believe. And the media will tell the poor slobs that the cause of their $5 gas and $7 milk is "Big Oil" or "The Koch Brothers" or "The Associated Milk Producers" mafia, and the poor slobs will believe it.

Mon, 09/17/2012 - 08:58 | Link to Comment HD
HD's picture

Where is this story on the CNBC site?

Mon, 09/17/2012 - 09:04 | Link to Comment insanelysane
insanelysane's picture

It's a central bank world now.  Manufacturing numbers in the US, Europe, or China do not matter any more.  You might as well as where the article for the NHL lockout is.  Not relevant.

Mon, 09/17/2012 - 09:32 | Link to Comment HD
HD's picture

"Not relevant" Indeed. Still not on their site as far as I can see. Usually it's reported as breaking news with a red banner...it's not on the home page yet.

Update: Up on CNBC site 9:14am is the time stamp on the article. A full 30 minutes after listed on ZH.

Mon, 09/17/2012 - 09:31 | Link to Comment insanelysane
insanelysane's picture

On at 9:14.  Me thinks they are trying to write algo positive articles.  All of the negative numbers are written with the word minus instead of a - sign.  Apparently algos don't understand the word minus as being synonymous to negative.

Mon, 09/17/2012 - 09:34 | Link to Comment HD
HD's picture

You beat me to it.

Not bullish enough to report. Now if the new iPhone where to suddenly be available in a new color they would stop the world to report it.

Mon, 09/17/2012 - 09:47 | Link to Comment Winston Churchill
Winston Churchill's picture

CNBC releases are written by Algo's.

Did someone forget to put them on charge overnight ?

Mon, 09/17/2012 - 08:59 | Link to Comment insanelysane
insanelysane's picture

This QE nob goes to ELEVEN!

Mon, 09/17/2012 - 09:11 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

QE11......that's just crazy talk there.

 

Mon, 09/17/2012 - 09:00 | Link to Comment john_connor
john_connor's picture

the clown show can lower interest paid on excess reserves, which paradoxically will not force banks to lend but rather cause more volatility in the casino.

 

 wow we are screwed.

separately, I picked up some extra water, salt, flour, rice, and vegetable oil this weekend.

Mon, 09/17/2012 - 09:09 | Link to Comment centerline
centerline's picture

Yeah, I have cycled through my inventory pretty good from late last year till recently.  Now building it back up again in earnest.  Same stuff.

 

Mon, 09/17/2012 - 09:01 | Link to Comment Shizzmoney
Shizzmoney's picture

I don't know what you guys are so worried about?  "The jobs are coming", obviously.

Mon, 09/17/2012 - 09:05 | Link to Comment John Law Lives
John Law Lives's picture

"Today's horrible piece of news, which at least on the surface was supposed to send the market soaring,..."

What better way is there to start a new week than by watching the global economic structure continue to unravel...

100% FUBAR.

Mon, 09/17/2012 - 09:09 | Link to Comment Monedas
Monedas's picture

"The Innocence of Mormons !" , a film by Barack Obama !  Playing now in MENA camp theatres everywhere !

Mon, 09/17/2012 - 11:30 | Link to Comment Ungaro
Ungaro's picture

Try not to be distracted by meaningless side-shows of the village carnival's midway.

Keep you eyes on the looting of the world's wealth and your nose sniffing the wind of impending wars. If you allow your mind to be occupied by the lead-in act, or even the emotionally exhausting false flag to follow, you will surely miss the main event.

Mon, 09/17/2012 - 09:08 | Link to Comment max2205
max2205's picture

Ben knew this print was coming. And he knew even the PPT couldn't keep the market from cratering today without the QE announcement. Well played sir, but will it work?

Mon, 09/17/2012 - 09:16 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

Manufacturing ? what manufacturing ?

In Pittsburgh ? a vibrant happening kind of town.....

en.wikipedia.org/wiki/Union_Station_(Pittsburgh)

 Passengers in Y2011 : only 133,885!!!

The ugly little Scottish West highland Old Garrison town of Fort William gets more rail passengers then the City of Pittsburgh !

en.wikipedia.org/wiki/Fort_William_railway_station

 Y2009/10 :134,000!!

There is no oil crisis in America.

There is a malinvestment crisis caused entirely by the free banking system using the power of external oil to destroy these former coal based Industial areas and their Labour pools.

Mon, 09/17/2012 - 09:25 | Link to Comment adr
adr's picture

Union Station includes the passengers that ride the Mt Washington incline. Most of that 130k probably rode the railcar up and down the mountain, it is a tourist activity.

I actually don't know anyone that rides a passenger train in Pittsburgh. I didn't think they even had a passenger train that leaves Union Station anymore. It is like Quaker Square in Akron, OH. An old train station that is now filled with shops and restaurants.

Mon, 09/17/2012 - 10:53 | Link to Comment THE DORK OF CORK
THE DORK OF CORK's picture

@ADR

According to Wiki Greensburg station is down to one train a day now........

en.wikipedia.org/wiki/Greensburg_(Amtrak_station)   (city pop. 15,000~ , envoirns 70,000~)

down a huge 6.5% in 2011 to a woeful 13,097 passengers.

How can a modern country function without adequate rail passenger travel ?

Everyone says this is a oil crisis.

What oil crisis ?

This is a monetary / malinvestment crisis.

The Muir of Ord station in the far north east of Scotland (village pop. 3000~) served 62,428 people during the march 2010/ march 11 period.

en.wikipedia.org/wiki/Muir_of_Ord_railway_station

Something is very wrong with resourse allocation withen the US.

Mon, 09/17/2012 - 09:12 | Link to Comment insanelysane
insanelysane's picture

The greater question is How can Ben un-QE?  Does the FED need to un-Ben before it could un-QE?

Mon, 09/17/2012 - 09:15 | Link to Comment Miss Expectations
Miss Expectations's picture

QE can't be more-er infiniter.

So, what  on earth can Ben announce at the next Fed Meeting? 

Ben Ben Ben

How can you retire? 

My gosh.

Hot damn.

You've lit the world on fire.

Mon, 09/17/2012 - 11:24 | Link to Comment Ungaro
Ungaro's picture

Sure it can. QEternity+15. Retroactive QE to 1973. When you are in the central bunker, you can twist numbers however you like.

Mon, 09/17/2012 - 09:17 | Link to Comment adr
adr's picture

Every manufaturer I know is cloase to bankrupt. Even the pipe suppliers for the shale gas. They were riding high earlier in the year, but with the nat gas slowdown they have masive inventory overhangs right now. Even with iron ore prices falling through the floor, the finished commodity of steel is still priced very high. Prices have gone up all year thanks to the declining dollar.

When you combine high input costs with absurdly low demand for finished product, it becomes a disaster for any producer. It is impossible to make a profit. At that point it doesn't matter if you get orders. If you can't make money on what you produce, you aren't going to produce anything. Which means you don't need any employees.

Bernanke broke the first gear running the economy. Until it is replaced, the economy can't start. The only thing the Fed can do is completely pull out of the market and let inflated base commodities collapse. That includes, grains, metals, oil, ore, and gas. Once it costs less to produce, we can restart production and allow manufacturing to become profitable. Of course he won't because of the billlions in contracts held by hedge funds and other speculative players. We can't have another MF Global.

Mon, 09/17/2012 - 09:19 | Link to Comment Inthemix96
Inthemix96's picture

Look on the bright side folks.  Just wait till the EBT kards are switched off.

You want outright pandomonium and warfare on the streets?  Just switch off the EBT kards.

Mayhem on a biblical scale bitchez......

Mon, 09/17/2012 - 09:22 | Link to Comment Wheatman
Wheatman's picture

Tylerm stop the bullshit. QE is NOT, I repeat NOT, priced into this rigged market. The idiots can INCREASE the QE amount at any time. The AMOUNT of QE is NOT priced in. So stop your bullshit pleas.

Mon, 09/17/2012 - 09:36 | Link to Comment adr
adr's picture

The market can price in QE to 50k, it won't matter because that number will mean 0% employment. QE is destroying earned income in favor of unearned income. You can't have an economy if nobody works.

Production costs are accelerating past the cost of consumption. Very soon it will become unprofitable to produce anything. When we hit that point the only answer is hyperinflation. Retail prices will have to rise faster than wholesale prices. The thing is prices paid will always rise faster than prices received. The end consumer recieves his wage increase long after the rise in the first link of the chain. If it costs you $15 to produce an item, but people only have the cash to pay $10, you have a major problem.

Weimar here we come. I think I'm going to start manufacturing guillotines, I think people will trade me just about anything for one soon.

Mon, 09/17/2012 - 09:29 | Link to Comment edifice
edifice's picture

Manufacturing... Hahaha...

Mon, 09/17/2012 - 09:37 | Link to Comment roadhazard
roadhazard's picture

At least the Panthers won yesterday.

Mon, 09/17/2012 - 09:45 | Link to Comment adr
adr's picture

I think we are getting pretty close to the endgame.

My weekly Walmart circular featured a Colt Blackhawk AR-15 chambered in 5.56 NATO for $1000.

Or a SigSauer M400 SRP 5.56 NATO for $900.

To help hit your target you can pick up a Bushnell Tactical M&P Red Dot Scope for $180.

This seems a bit overkill for deer hunting.

If I see a P-90 at my Walmart like you do in Wisconsin, I think I'll shit my pants.

Mon, 09/17/2012 - 09:58 | Link to Comment Ying-Yang
Ying-Yang's picture

Walmart... doing its part to arm Americans!

Mon, 09/17/2012 - 10:35 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

 

Probably seems crazy to someone in China......but we like it.

 

 

Mon, 09/17/2012 - 10:48 | Link to Comment common_sense
common_sense's picture

MORE QE , MORE QE...!!!

 

THANKS BERNI....

 

     Obama.

Mon, 09/17/2012 - 11:46 | Link to Comment Snakeeyes
Snakeeyes's picture

Amazing print! This should really help The Fed's blasitng of the housing market with QE-FED!!!!!

http://confoundedinterest.wordpress.com/2012/09/17/unintended-consequences-of-the-feds-qe3-mbs-buying-program/

Do NOT follow this link or you will be banned from the site!