Guest Post: The Last Refuge Of Wall Street: Marketing To Increasingly Insolvent Consumers

Tyler Durden's picture

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Ahmeexnal's picture

Reek of putrefaction.

eureka's picture

I have said it for two decades: US is a sales muscle - and its chief commodity is lies - that is to say myths/entertainment about its own glory, enforced by fear-mongering and bamboozlement.

I am glad someone else now sees it.

Merry Christmas - and cherrs - in good olf Anglish Christmas Ale.

GeneMarchbanks's picture

'US is a sales muscle - and its chief commodity is lies - that is to say myths/entertainment about its own glory, enforced by fear-mongering and bamboozlement.'

Bombs. They bomb people, often. Brown people usually, but not exclusively.

hedgeless_horseman's picture

 

 

Meanwhile, back in the real world, American consumers are increasingly insolvent: their incomes are declining even as their non-Federal taxes rise and their debts are pinned at the "crushing" level.

 

 

You buy furniture. You tell yourself, this is the last sofa I will ever need in my life. Buy the sofa, then for a couple years you're satisfied that no matter what goes wrong, at least you've got your sofa issue handled. Then the right set of dishes. Then the perfect bed. The drapes. The rug. Then you're trapped in your lovely nest, and the things you used to own, now they own you.

 

~Chuck Palahniuk, Fight Club, Chapter 5

trav7777's picture

real economy: negative profitability

solution: leverage and a virtual economy of MLM schemes

Note in EVERY SINGLE "recipe for a solution" we hear about how it will get "growth" going again.  That's a fuckin prerequisite, an axiom, of the system.  It's hundreds of years old and everyone has become accustomed to its running one-way.  It seems impossible that contraction could actually occur, yet that is where we are.

The monetary problems are a SYMPTOM, not a cause

GeneMarchbanks's picture

"The central irony of financial crisis is that while it is caused by too much confidence, too much borrowing and lending and too much spending, it can only be resolved with more confidence, more borrowing and lending, and more spending,"

A game of: Who Said It? Anyone care to guess?

Potemkin Village Idiot's picture

Sounds like Krugman for sure... Either that or some halfwit from the Ritholtz blog...

The Limerick King's picture

Close...it was actually Larry "The should have been a Cable Guy" Summers.

Mr_Wonderful's picture

Larry Summers.

I read the FT article a few weeks back.

Potemkin Village Idiot's picture

The same Larry Summers, who while in the process of losing a great deal of the Harvard Endowment fund, couldn't be bothered with an internal issue with regards to the startup of Facebook...

That Larry Summers?

Xkwisetly Paneful's picture

THey should just follow Germany's lead. They have been selling to insolvent customers longer than anyone else.

TheGardener's picture

So,what to make of those shallow Germans: Too big to hail ?

lynnybee's picture

You buy furniture. You tell yourself, this is the last sofa I will ever need in my life. Buy the sofa, then for a couple years you're satisfied that no matter what goes wrong, at least you've got your sofa issue handled. Then the right set of dishes. Then the perfect bed. The drapes. The rug. Then you're trapped in your lovely nest, and the things you used to own, now they own you.

 

~Chuck Palahniuk, Fight Club, Chapter 5         

it's obvious that Chuck Palahniuk wasn't running a household with kids to raise.    take it from me, my experience says that it's NOT the drapes & the rugs & the perfect dishes ....... it's the kids we raise that own us , the post-WWII lifestyle of hearth & home that owns us.

hedgeless_horseman's picture

 

 

I have read every word in Carla's Encyclopedia of Country Living at least once.  You should read Fight Club.  It will be like a trip to the zoo for you.

flattrader's picture

I have an original mimeographed copy given to me by my (then) hippie sister.

KK Tipton's picture

Bubuubut....what about Tajazzle?

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

We do make something!

USA! USA! USA!

CPL's picture

The dead eating the dead.  Good times.  Good times.

 

economics1996's picture

The author forgets the role of government consumption, and misallocation, of resources in creating more paper and less production.  

In 1999-2000 the feds share of the GDP was 18.2%, the lowest since 1958.  If you want to get over this fiscal disaster eliminate the feds to 11% of GDP or just eliminate them like the USSR did.

Back to capitalism and the free market. 

http://www.whitehouse.gov/omb/budget/Historicals

flattrader's picture

The author just cobbled together a bunch of charts from other web sites (often without citing/linking the source) slaps some narrative on it and tries to pass it off as "commentary" or even worse, "analysis."

For example, one of the charts (the second chart) came from here--

http://www.epi.org/publication/a_lost_decade_poverty_and_income_trends/

scatterbrains's picture

anyone know what that spike in volume was at 11:18am on the down tick?  or was that just nutsack loading up short for the 2:30 light volume buy to cover ramp up?

sunnydays's picture
Explosive Interview Jim Willie "JP Morgan Crashed MF Global to Avert COMEX Failure, they stole all the accounts that were going to take delivery"

 

http://sherriequestioningall.blogspot.com/2011/12/explosive-interview-si...

fonestar's picture

Haha... I really enjoy the Jim Willie articles and interviews and am thinking about a subscription.

...a family member asked me, "hey Jim, what should I do with my money?" and I told them go buy a coffin because you haven't listened to a thing I've said!

fonestar's picture

Yes, excellent post.

I have gotten rid of all of my Google, Yahoo, MSN, Facebook, Twitter, Youtube accounts (I still need eBay because there are no coin shops in my area).

If these assholes (who produce nothing) are going to use me in their ponzi schemes, and to gather intelligence in their massive data mining operations, they could at least include me in their IPOs or pay me a fucking dividend!

We made these schmucks what they are today and can take it back with how we click and spend (and short).  I urge all fanatical ZHers to do the same, to chose FREEDOM, LIBERTY and the non-ponzi'd interwebs!!

trav7777's picture

facebook is only good as a rolodex of acquaintances and to vet chicks you picked up on dating websites to see if they actually look like their pictures

In Fed We Trust's picture

I only use FacEbook to post links to ZH.

And to post links about fairy tale terrorists

And such. I now have over 5000 friends.

My friends think im crazyvboth they always come back for more.

Befriend me facebook if you wish.

Patrick the Painter

Potemkin Village Idiot's picture

And such. I now have over 5000 friends

I'm assuming many of them wear jackboots & ride around in black helicopters...

Potemkin Village Idiot's picture

and to vet chicks you picked up on dating websites to see if they actually look like their pictures

If they 'vetted' you, woulkd you look more like your avatar, or more like the dude on the yellow shirt that Forrest Gump wiped his face on?

trav7777's picture

I clicked it and Chuck Norris came up in the video.  Yes, I AM CHUCK NORRIS

flattrader's picture

I saw a chubby guy in his mid 30s with a bad hair cut peaking out from under a ball cap.

The blonde-headed kid was cute.

In Fed We Trust's picture

Facebook

A rolodex for the CIA.

Populated willing by the sheeple.

Farmville. A conspiracy to end farming.

LouisDega's picture

Relax. Its a place to hangout and converse with friends and family. I find it very relaxing. Stop thinking so much. Its bad for the brain

In Fed We Trust's picture

Facebook

A rolodex for the CIA.

Populated willing by the sheeple.

Farmville. A conspiracy to end farming.

Potemkin Village Idiot's picture

Ron Paul... a conspiracy to END THE FED

Clampit's picture

The web has far more sinister plans in store for centralized solcial media. Diaspora, while it looks like they're off to a shaky start, will be the trend of things to come. All our computer toys have Tx and Rx capabilities, central [Facebook] servers (and ISPs) could all quickly become a thing of the past when mesh networks really take hold. This also highlights how any kill switch action might be considered "censorship" (in web parlance), a defect to be automatically routed around.

PAPA ROACH's picture

We will get past this all the day that true capitalism is allowed to work. Out with the old in with the new, only the strong survive, etc etc.

 

STOP THE FUCKING BAILOUTS!

DormRoom's picture

still waiting for the web 2.0 bubble to burst.  Once DST (Yuri Milner) implodes, Silicon Valley will be like detroit over the next decade.  DST is patient 0 down there.

 

The misallocation of capital in Silicon Valley over the last decade would make Soviet planning committees blush

 

If you work in a seed funded web company, it's time to update your CV.

nhr215's picture

hah, that won't help. I lived in SF during the first bubble crash and my friends who were all programmers working at hot startups basically were unemployed for almost 3 years....

trav7777's picture

Silicon Valley doesn't have the demographics to ever look like Detroit

vegas's picture

Valuable function in Soetero's Amerika? Yur shitin' me right? "We lose money on every sale, but we make up for it in volume."

 

http://vegasxau.blogspot.com

pods's picture

Yep, and most of the debt charts look strikingly like exponential functions.

Hmmmm.

Wonder why that is?  Future P=P+I.

pods

GMadScientist's picture

Welcome to the Terry Schiavo Economy! #Veggie

 

Occams Aftershave's picture

"When was the last time a company went public in the U.S. that actually manufactured a good? "

 

TSLA   FIO     come to mind

NotApplicable's picture

GM, baby! Channel stuffers, extraordinaire!

(well, except for the ones that self-immolate)

nhr215's picture

Agreed 100%. Most of these businesses are based on advertising revenue. They are digital magazines essentially. Facebook has non-ad revenue from gaming which is substanal. Plus they are the 500 pound gorrilla. Too bad by the time they IPO all the value will have already been extracted in previous private share offerings. All the rest are basically minnows. As soon as the advertising market drops off even a small percentage, valuations will come tumblinhg down for everything from Twitter to Linked-IN to Foursquare etc. Their projected extraploated growth rates based on funn-money advertising (i.e. mucha as in 2000 the ad-money is actually just VC money being recycled... all the startups are buying ads from each other to promote their services all paid with VC money) will be shattered and valuations will collapse.... We've been here before.

 

Potemkin Village Idiot's picture

Let's get Mark Zuckerberg & Sean Parker on the fone and tell them to go crash the Comex...