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Here Is What Even Goldman's Clients Missed

Tyler Durden's picture


Ask 10 people in New York who won the Greek election, and chances are 8 will respond correctly. Yet among all the manic-depressive euphoria surrounding Europe, most will likely have missed the following. Not that there's nothing wrong with that: as Goldman's David Kostin explains, even Goldman clients were caught unaware.

While investors focus on the European sovereign debt and bank problems and Fed policy, our client discussions reveal that portfolio managers are not aware of the wave of negative preannouncements across the market. The reduction between the midpoint of new guidance and consensus estimates prior to the pre-announcement ranged from 2% to 20%. The median 2Q reduction equaled 4%. Firms lowering quarterly earnings guidance include: Pall (PLL), Nucor (NUE), Ryder Systems (R), Proctor & Gamble (PG), Cardinal Health (CAH), Texas Instruments (TXN), Starbucks (SBUX), Autodesk (ADSK), FedEx (FDX), Jabil Circuit (JBL), Bed, Bath & Beyond (BBBY), and Adobe Systems (ADBE).


Explanations for the lower guidance ranged widely. Europe ranked at the top of the list but weak US demand was also identified as a cause of lower revenue guidance. Many firms expect slower demand to continue through 2012. For Bed, Bath & Beyond promotional pressures are squeezing margins. Texas Instruments’ customers are still hesitant to rebuild inventory and industrial orders are moderating due to uncertainty. Proctor & Gamble cited operational errors when lowering its sales and EPS guidance and cut its spending on developing market expansion. FedEx noted margin headwinds from higher pension expenses.

Don't worry though: CTRL-P can fix aaaaaaall of the above. Just sprinkle some magic toner dust.

And if that fails, who needs earnings anyway?


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Sat, 06/23/2012 - 20:20 | 2554826 old naughty
old naughty's picture

So, this is the shape of an economic recovery.


Sat, 06/23/2012 - 20:31 | 2554843 knukles
knukles's picture

Betcha a Natural Born Greek won the Greek Election.
No Diversions.
Back to Work.

Sat, 06/23/2012 - 20:43 | 2554857 knukles
knukles's picture

Come to think of it...


No wonder none of Goldman's clients knew of this.
That's an oxymoron.

Goldman has no clients.

They're all counter-parties.

Sat, 06/23/2012 - 21:00 | 2554890 Fluffybunny
Fluffybunny's picture

They just don't know it until their account is empty? :D

Sat, 06/23/2012 - 23:19 | 2555092 flacon
flacon's picture

South Park vs. Cafe Del Mar - And It's Gone

Sun, 06/24/2012 - 00:54 | 2555175 Michael
Michael's picture

Something truthful for a change from CNBC?


Sun, 06/24/2012 - 03:48 | 2555257 The Alarmist
The Alarmist's picture

There's a [possibly apocryphal] story from the dot-com days that when asked when Amazon would ever show a profit, CEO Jeff Bezos responded that profits were for pussies.

Sun, 06/24/2012 - 08:19 | 2555371 blindfaith
blindfaith's picture



So what else is new.  Listed companies don't make money by selling stock.  They make their money by printing stock, just like Ben.

Sun, 06/24/2012 - 10:53 | 2555612 Temporalist
Temporalist's picture

"They just don't know it until their account is empty?"

To riff off your theme:

They just don't know it until their account is empty and the party is over.

Sat, 06/23/2012 - 21:18 | 2554923 PhilB
PhilB's picture

Thats ture. Which makes me think this is another piece of crap information from the street. GS is saying that from the client meeting PORTFOLIO MANAGERS didnt know about negative preannoucnements. WTF?! Guys, their clinets in this case are not retail, its Hedge fundas and other Portfolio Managers. Now, you gonna tell me they missed something as so basic to their livelihood as knowing whats coming up for next seasons earnings? Please! This is another plant of WTF information. Its not believable, its uselsss info, and makes me wonder what the purpos of writing it was for. Any ideas? To further their reasoning to go short Thursday? If so we need and there are a hell of a lot better shit than this!

Sat, 06/23/2012 - 21:33 | 2554944 LetThemEatRand
LetThemEatRand's picture

Why would Goldman and others in the industry want to push down the market?  After all, if the market crashed and burned over the next few months it would help investment banker O'Romney win the big game.  Just a coincidence that we have no QE, bank downgrades, GS negative predictions, etc, I'm sure.  

Sat, 06/23/2012 - 21:47 | 2554968 nmewn
nmewn's picture

"Why would Goldman and others in the industry want to push down the market?"

They're massively short?

Sat, 06/23/2012 - 22:00 | 2554991 LetThemEatRand
LetThemEatRand's picture

Nothing like front running your own negative press.  

Sat, 06/23/2012 - 22:19 | 2555016 nmewn
nmewn's picture

They're snakes...always have been...always will be.

IB's are protected by government, its really all anyone needs to know about the set up. They are not capitalist, they are fascist.

A real capitalist will short them into the dust when the time comes ;-)


Sat, 06/23/2012 - 23:11 | 2555083 Caviar Emptor
Caviar Emptor's picture

Nahh..since when do capitalists create de-stabilizing crises to serve their own purposes? It goes against every Darwinian principle, including the theory about giraffes and long necks. Simply ludicrous

Sat, 06/23/2012 - 23:33 | 2555107 WonderDawg
WonderDawg's picture

I guess that makes me a real capitalist, because that's exactly what I plan on doing.

Sun, 06/24/2012 - 00:04 | 2555140 Hulk
Hulk's picture

Beware the Bernanke put...

Sun, 06/24/2012 - 10:56 | 2555622 Temporalist
Temporalist's picture

I know exactly where to put him and the only assholes big enough to fit him are Krugman and Summers.

Sat, 06/23/2012 - 22:11 | 2554996 CClarity
CClarity's picture

About that new Prime Minister in Greece.  Yes, selected and seated Wednesday June 20th.  Went to a "routine" eye exam yesterday, June 22nd.  Really? Two days into ruling during a crisis and he has a "routine" eye exam?  Anyway, he has a detached retina that is being medically attended to today, June 23rd.  

As someone who had a detached retina less than two months ago, I sure hope his is a minor tear and not actually detached.  Or at least easier than mine.  I had general anaethesia for 4 hour operation, and a long acting gas injected into eye, and had to keep my head (and usually body) in a 24/7 face down position for weeks.  Not painful, but very distracting, uncomfortable, challenging for reading etc etc etc.  If he has had the gas injected he cannot fly or climb Mt Olympus do to pressure changes - which means he is not a Greek God that is able to fix this stuff.

Not an ideal situation for a new leader of a country in crisis.  Oh yeah  . . . and the Greek finance minister physically collapsed on Friday too.

I don't think it will evoke more than a Merkel sympathy card.  Certainly won't solicit an austerity punt or Eurobonds for Hellas.

Sun, 06/24/2012 - 00:22 | 2555155 flacon
flacon's picture

It could be "central serous retinopathy" a condition where a bubble forms under the retina, caused by extreme levels of stress. 

Sun, 06/24/2012 - 04:25 | 2555273 PhilB
PhilB's picture

I must be suffering from financial Armageddon fatigue. For a second I thought you said "serious central bank sociopathy" where debt bubbles form causing extreme levels of economic stress.

Sun, 06/24/2012 - 08:00 | 2555358 RoadKill
RoadKill's picture

Romney was never an Ibanker moron. He was a management consultant before he founded Bain Capital. Not that facts matter to peopke like you.

Sun, 06/24/2012 - 06:14 | 2555327 negative rates
negative rates's picture

Ah, the old people can tell you anything trick. And they do so often that the sum of the parts adds up to more than the whole.

Sat, 06/23/2012 - 22:16 | 2555013 They Tried to S...
They Tried to Steal My Gold's picture

Is Kenya one of the Greek Isles?

Sun, 06/24/2012 - 09:06 | 2555402 knukles
knukles's picture

Kenya is the capital of DC

Sun, 06/24/2012 - 07:45 | 2555355 bank guy in Brussels
bank guy in Brussels's picture

How the Greek regime may have rigged the 17 June election ...

In order to 'game' the result, they allocated parliamentary seats and votes, not based on the completed Greek census of 2011, as required, but on an older census of 11 years ago, in 2001, before their were major population shifts ... Which might have changed the outcome in favour of the pro-EU parties ...

The Athens Bar Association has apparently declared the 17 June Greek election null and void due to this electoral fraud ...

From John Ward's 'The Slog', interesting tidbits there ... his EU-related articles should be on the ZeroHedge contributor's page:

Sat, 06/23/2012 - 20:34 | 2554846 Oracle of Kypseli
Oracle of Kypseli's picture

There will never be a recovery unless all private and government debt is forgiven, all .gov pensions are adjusted, % of government employees goes down significantly +++ and there is a great reset.

Absent the above, the world will be muddling through in perpetuity.  

Sat, 06/23/2012 - 21:51 | 2554977 Buck Johnson
Buck Johnson's picture

Your exactly right, exactly right just Look at Japan.  They have been in a recession/slow depression for over 20 years since the late 80's fiasco of them buying American realestate and other things.  We told them and the world that they need to get the bad debt off their books and essentially forgive it, but they didn't.  And look at the US and the EU along with the UK, they aren't even taking their own advice to Japan.  The big banks know that they won't exists and other things won't exists if this is done so as you said they will keep muddling along until a black swan (one of many) come out of left field that they never thought would be a black swan. 

Sat, 06/23/2012 - 23:44 | 2555119 Fred Hayek
Fred Hayek's picture

And Japan entered that time period with a lot of tremendously positive characteristics to their economy. They had a strong export sector and they had a tremendous savings rate. We, in the U.S. have neither of those things.

Sun, 06/24/2012 - 03:04 | 2555247 Nage42
Nage42's picture

Problem with the theory.

In Japan, the gov debt is not held by a foreign soveriegn that you can just thumb your nose at and say: "sorry, I can't pay."

In Japan, like >80% of the gov debt is held by _its people_, so when you say: "Japanese have a high personal savings rate," do you see how it's a bit of a house of cards?


So in Japan, they burned their citizen's pensions to attempt to inflate their way out of deflation = fail

In USA, they burned the Chinese/European's soverign holdings (by transfer, their citizen's pensions) to build a lot of weapons to hold off the loansharks when they come back to ask for their money = moral fail, but game-win.


Either way... next generation is going to have some very angry people trying to get back at the old cronies that have already died.


Sun, 06/24/2012 - 03:54 | 2555258 The Alarmist
The Alarmist's picture

USA is paying China enough in interest to fund the build up of its military. That plus several hundred million under-occupied young men of military age makes any technological advantage fleeting, so your hypothesis would suggest we are actually on the losing side of the game.

Sun, 06/24/2012 - 13:11 | 2555936 11b40
11b40's picture

You might want to reflect on how miltary tactics have adjusted to take advantage of the HUGE technological weapons sytems advances the U.S. has made....both in quantity and quality.

Regardless if they have 1 million soldiers or 50 million soldiers, unless we are going to invade and conduct a ground war in China, which we would never do, they are worthless if we decide to act against them offensively.  Take out transport systems, stageing areas, and Command & Control, and what China would be left with is a huge number of soldiers roaming around the countryside wondering what happened.

They could, however, cause a lot of trouble in their neighborhood and other sensitive areas of the world if we let it happen.  Based on how we let bankers and multinational corporations sell out our industrial advantage, I am not optimistic about keeping our military advantage over the very long term.  The game is still ours to lose.

Sun, 06/24/2012 - 15:16 | 2556213 The Alarmist
The Alarmist's picture

We think we have a problem with a few thousand al Quaeda? Wait til we piss off a few million Chinese.

Sun, 06/24/2012 - 22:27 | 2556846 11b40
11b40's picture

The Chinese are much too intelligent and practical for suicide to become a fad, let alone a way of life.  It's not like they are married to the Communist Manifesto.  Like average people of all cultures, the Chinese you will meet on the street would like nothing better than to have friendly relationship with other nations and other business partners.  America is still the international beacon of light for all but the most backward..... and the most advanced.

They have over 3 times our population.  Our GDP is about 14 times bigger than theirs.

Think about it.


Mon, 06/25/2012 - 05:41 | 2557143 tonyw
tonyw's picture

In the 1950s GDP per head was over 20 times, now it is around 5 and the trend has accelerated.

During the last few years people in the US have seen their wealth fall, in China it has risen.

Sat, 06/23/2012 - 21:52 | 2554978 nmewn
nmewn's picture

Exactly...debt jubilee.

A year ago people were scoffed off the pages of ZH for suggesting such a radical, not so much.

I guess size (of debt) does matter ;-)

Sat, 06/23/2012 - 22:37 | 2555033 robertocarlos
robertocarlos's picture

No way I'm going to accept that some guy got a free house and a free BMW, and I only got a free 32" TV.

Sun, 06/24/2012 - 01:11 | 2555190 Oracle of Kypseli
Oracle of Kypseli's picture

That only applies to unsecured debt. Please return that TV immediately and we will not report you.

Sat, 06/23/2012 - 22:37 | 2555034 RockyRacoon
RockyRacoon's picture
Odious debt

In international law, odious debt is a legal theory that holds that the national debt incurred by a regime for purposes that do not serve the best interests of the nation, should not be enforceable. Such debts are, thus, considered by this doctrine to be personal debts of the regime that incurred them and not debts of the state. In some respects, the concept is analogous to the invalidity of contracts signed under coercion.

When a despotic regime contracts a debt, not for the needs or in the interests of the state, but rather to strengthen itself, to suppress a popular insurrection, etc, this debt is odious for the people of the entire state. This debt does not bind the nation; it is a debt of the regime, a personal debt contracted by the ruler, and consequently it falls with the demise of the regime. The reason why these odious debts cannot attach to the territory of the state is that they do not fulfill one of the conditions determining the lawfulness of State debts, namely that State debts must be incurred, and the proceeds used, for the needs and in the interests of the State.   Odious debts, contracted and utilized for purposes which, to the lenders' knowledge, are contrary to the needs and the interests of the nation, are not binding on the nation – when it succeeds in overthrowing the government that contracted them – unless the debt is within the limits of real advantages that these debts might have afforded. The lenders have committed a hostile act against the people, they cannot expect a nation which has freed itself of a despotic regime to assume these odious debts, which are the personal debts of the ruler.

Sun, 06/24/2012 - 01:17 | 2555193 Oracle of Kypseli
Oracle of Kypseli's picture

<<analogous to the invalidity of contracts signed under coercion.>>

Or under durress!

Example: Sign here or we would expose you that you received bribes for ordering those submarines from Siemens, even though your country is landlocked.

Sun, 06/24/2012 - 07:23 | 2555344 nmewn
nmewn's picture

Good post Rocky.

Which is why I am always careful to call it government debt...not yours or mine. You will never find me saying we (the citizens) owe X for the actions of (in a just rational world) the power mad, criminally insane. We don't, the government does.

What else can one call a regime that terrorizes its own citizens with armed tax collectors, military "training exercises" in metro areas, fondeling babies & invalids in airports, gestapo-like "traffic safety" road blocks, tracking devices in cell phones etc. ad nauseum but...despotic.

And finally, I never knowingly signed any contract, with any government official, at any time, to place my children and their unborn children (and theirs) into involuntary servitude to government or their proxies. For one thing I could never bring myself to do it morally or ethically. For another, what party, acting in good faith, would even ask such a thing be in a contract and have it enforced by "the law of the land"?

I know...I answered my own question ;-)

Sun, 06/24/2012 - 11:48 | 2555767 RockyRacoon
RockyRacoon's picture

Paying us back for that war should deplete the Bush family fortune quite a bit.   Has he been sent the invoice yet?

Sun, 06/24/2012 - 23:49 | 2556934 merizobeach
merizobeach's picture

"I never knowingly signed any contract..."  What about a tax filing?  That's a legal contract that you (may) voluntarily sign that proclaims your legal obligation to pay the taxes that you are declaring that you owe.  If you feel otherwise and would like to elaborate, please do.  I generally read your posts with interest and agreement.

Mon, 06/25/2012 - 00:44 | 2556980 TrulyBelieving
TrulyBelieving's picture

    Good observation merizobeach. I beg to differ that it is voluntarily signed. Just consider what would happen to a citizen that would agree to pay only on what the Fed. govt. Constitutionally spent.

Sun, 06/24/2012 - 09:10 | 2555412 falak pema
falak pema's picture

your are restating Jefferson's declaration of independence expressed differently...I salute you. I salute the Parthenon under siege...

Sat, 06/23/2012 - 23:18 | 2555090 Caviar Emptor
Caviar Emptor's picture

I agree with you, except we differ on one absolutely key point: we won't muddle through, we'll get swallowed up in quicksand. Why? Biflation. Simply put, the cost-structure of the economy will exceed growth in real final sales at an accelerating pace. So there will be contraction, not "low growth" especially when looked at in real terms (inflation stripped out). On a social level this will mean the continued extinction of the middle class, less social mobility, fewer employment and advancement opportunities and of course political polarization

Sun, 06/24/2012 - 01:22 | 2555194 Oracle of Kypseli
Oracle of Kypseli's picture

In practice however, an underground market will spring outside of the financial/banking sector which will balance things out. Nonetheless, I agree that there will be some serious pain all arround and high crime rates.

Sun, 06/24/2012 - 09:58 | 2555455 centerline
centerline's picture

I am afraid you might be underestimating the number of people of who are dependant the system and incapable of functioning in any system that requires them to be productive in some manner.  This will be the source of profound pain.

The underlying subject at hand is explosive cheap-oil fueled industrial age population growth that was the real energy used to fuel one hell of a fiat ride this cycle.  Social complexity and resource constraints are already pushing back.




Sun, 06/24/2012 - 00:00 | 2555135 icanhasbailout
icanhasbailout's picture

nah, that is too reasonable - let's have an inconceivably destructive war instead

Sun, 06/24/2012 - 00:35 | 2555168 bnbdnb
bnbdnb's picture

GS only lies when they claim they are bullish.

Sun, 06/24/2012 - 04:22 | 2555272 geoffb
geoffb's picture

GS only lies when they open their mouth.



Sun, 06/24/2012 - 09:08 | 2555407 knukles
knukles's picture

GS only lies

(Occam's Razor)

Sun, 06/24/2012 - 07:57 | 2555357 StormShadow
StormShadow's picture

Whoa, hold on there!

The private sector is doing fine, King Barry said so himself, and he is never wrong, right?


Sat, 06/23/2012 - 20:21 | 2554827 JackT
JackT's picture

Probably going to need super-print: CTRL+Shift+P

Mon, 06/25/2012 - 00:04 | 2556951 merizobeach
merizobeach's picture

There's some innovative thinking!  When we prepare the printers for ludicrous speed, maybe it'll be: Insert+Alt+Home+Esc+P (=@0$4U)...?

Sat, 06/23/2012 - 20:25 | 2554835 El Oregonian
El Oregonian's picture

Bed, Bath, and Beyond? How about Bust... There, that is what is beyond in the "B" category.

Sat, 06/23/2012 - 23:38 | 2555113 WonderDawg
WonderDawg's picture

I love BBBY. Bought some puts Wednesday afternoon and sold them Thursday morning for a 1200% gain. Sweetness. I sold too early, though, they were up 2000% at one point, and finished the week up 1700%. BBBY is the shit.

Sun, 06/24/2012 - 00:35 | 2555167 flacon
flacon's picture

Nice! Now... take half the profits and buy some silver. 

Sat, 06/23/2012 - 23:44 | 2555120 Ineverslice
Ineverslice's picture

Bed , Bath-Salts, then Bust.  Retail is lookin' goood.

Sat, 06/23/2012 - 20:30 | 2554840 CreativeDestructor
CreativeDestructor's picture

cant wait for the blind date: 

1: "Hi my name is Algo"

2: "ö hi my name is No-Bid, pleasure to meet you"

Sat, 06/23/2012 - 20:31 | 2554844 JTBfromtheWL
JTBfromtheWL's picture

Too many wealthy folks hoarding cash. Bubble.

Sat, 06/23/2012 - 20:31 | 2554845 potlatch
potlatch's picture

If the trading programs and planning simulators are happy, why can't you guys just be happy?  You guys are just trouble, that's your problem.

Sat, 06/23/2012 - 21:17 | 2554847 Cognitive Dissonance
Cognitive Dissonance's picture

""....our client discussions reveal that portfolio managers are not aware of the wave of negative preannouncements across the market.""

That's because everyone's thinking with their CTRL-P(enis).

Sat, 06/23/2012 - 22:40 | 2555041 RockyRacoon
RockyRacoon's picture

Both of my previous wives told me that's where my brains are.  And the current wife is surely thinking it.

Sat, 06/23/2012 - 22:47 | 2555047 Hulk
Hulk's picture

If it flys, floats or fucks, its best to rent ...

Sat, 06/23/2012 - 23:39 | 2555114 WonderDawg
WonderDawg's picture

Hulkster. My brotha.

Sun, 06/24/2012 - 11:49 | 2555769 RockyRacoon
RockyRacoon's picture

Or, at my age, 2 outta 3.

Sat, 06/23/2012 - 20:40 | 2554852 Lokking4AnEdge
Lokking4AnEdge's picture

There is a very noticeable decline in the rail traffic on the line parralel to the I-10 (San Diego going East...)

This is not is a strong decline in shipments

Sat, 06/23/2012 - 20:46 | 2554862 El Oregonian
El Oregonian's picture

Same applies with FedEx and UPS manifests. Most cargo carriers are experiencing dramatic fall-offs in shipping business.

Sat, 06/23/2012 - 20:58 | 2554879 TomGa
TomGa's picture



AAR Reports Mixed Weekly Rail Traffic


WASHINGTON, D.C. – June 21, 2012 – The Association of American Railroads (AAR) today reported mixed weekly rail traffic for the week ending June 16, 2012, with U.S. railroads originating 287,036 carloads, down 2.5 percent compared with the same week last year. Intermodal volume for the week totaled 249,975 trailers and containers, up 5.2 percent compared with the same week last year.

Twelve of the 20 carload commodity groups posted increases compared with the same week in 2011, with petroleum products, up 50.3 percent; motor vehicles and equipment, up 22.6 percent, and coke, up 11.1 percent. The groups showing a decrease in weekly traffic included metallic ore, down 18.5 percent; nonmetallic minerals, down 15.2 percent, and iron and steel scrap, down 12.6 percent.


Weekly carload volume on Eastern railroads was down 3.3 percent compared with the same week last year. In the West, weekly carload volume was down 2 percent compared with the same week in 2011.

For the first 24 weeks of 2012, U.S. railroads reported cumulative volume of 6,757,454 carloads, down 3 percent from the same point last year, and 5,550,105 trailers and containers, up 3.1 percent from last year.

Sat, 06/23/2012 - 21:05 | 2554895 Cognitive Dissonance
Cognitive Dissonance's picture


Neither the AAR nor any other private, public or institutional organization would ever lie about statistics that support their paychecks and/or control structure.


Question everything.........beginning with those sources you trust the most.

Sat, 06/23/2012 - 21:39 | 2554952 nmewn
nmewn's picture

"Question everything..."

Yes everything, then question again to make sure you get the same answer ;-)

Sat, 06/23/2012 - 23:01 | 2555023 Bollixed
Bollixed's picture

"Question everything.........beginning with those sources you trust the most"

My Magic 8 Ball is always trustworthy.

That's what my horoscope says, anyway...

Sat, 06/23/2012 - 23:51 | 2555128 GMadScientist
GMadScientist's picture

What does it mean when it just sinks to the bottom and doesn't come back?

(you need a new 8-ball!)

Sun, 06/24/2012 - 03:58 | 2555261 The Alarmist
The Alarmist's picture

Sorry CD, but how can I be sure I can trust your advice to question everything?

Sun, 06/24/2012 - 08:16 | 2555370 Cognitive Dissonance
Cognitive Dissonance's picture


I am a propagandist just like every other writer. Question everything I say.

Sun, 06/24/2012 - 09:58 | 2555456 The Alarmist
The Alarmist's picture

Logical conundrum ... head will explode!

Sat, 06/23/2012 - 21:05 | 2554899 Dr. Sandi
Dr. Sandi's picture

Shit. That means an imminent shortage of Chinese-made salad shooters in the eastern U.S.

Sat, 06/23/2012 - 21:46 | 2554963 Marginal Call
Marginal Call's picture

Me Ma's been waitin' months for her Flowbee and perfect meatloaf pan.  I prays this depression ends soon. 

Sun, 06/24/2012 - 09:29 | 2555431 Jake88
Jake88's picture

keep laughing

Sun, 06/24/2012 - 22:22 | 2556862 Dr. Sandi
Dr. Sandi's picture

Ya gotta keep laughing. Otherwise the pain kills you.

Sun, 06/24/2012 - 08:01 | 2555360 StormShadow
StormShadow's picture

Magic Bullet is more versatile anyway.

You're gonna love my nuts!

Sat, 06/23/2012 - 22:10 | 2555002 vast-dom
vast-dom's picture

that is excellent non-disputable incorruptible data. unless bernank et. al. begin shipping large empty containers and packages.........that is, full of used toner and paper shavings.........

Sun, 06/24/2012 - 09:14 | 2555417 knukles
knukles's picture

Just for shits and grins...

The traffic cited is eastbound.

One of the Great American exports just so happens to be waste paper. 
Believe it or not.
West bound.

Betcha don't hear anybody in the Commerce boasting about that crap.


Sat, 06/23/2012 - 20:44 | 2554859 mjk0259
mjk0259's picture

I doubt 8 out of 10 people in NY could correctly guess which continent Greece is on let alone who won their election.

Sat, 06/23/2012 - 21:15 | 2554916 Bizaro World
Bizaro World's picture

Exactly...most sheep could care less that the EU is imploding, let alone who is Captain when the iceberg is struck. I find that 90% of the people I speak with (outside of ZH of course) are completely ignorant on how interconnected the banking world / global economy is now. They errantly feel safe by physical separation of the Atlantic and have never heard of derivative. Ignorance is truly bliss....until it isn't.

Sat, 06/23/2012 - 21:44 | 2554962 nmewn
nmewn's picture

Must fight urge to post Howard Stern...must fight urge...

I lost.

Sat, 06/23/2012 - 22:14 | 2555009 Savyindallas
Savyindallas's picture

ask them to name any President of Grease and you will likely find that the most popular answer is John Travolta- we are sheep-we are meant to be fattened, sheared and then eaten by the wolves and the farmers-except for a few of us who are plotting our escape.   I am re-reading Orwell's Animal farm to try to get some better insight on where the animals went wrong.

Sat, 06/23/2012 - 20:45 | 2554861 mayhem
mayhem's picture

do earnings really matter?

Sat, 06/23/2012 - 20:52 | 2554868 Grimbert
Grimbert's picture


Sat, 06/23/2012 - 20:56 | 2554881 El
El's picture

I'm more concerned about what Jim Sinclair posted over on Mineset today:


There is a big problem brewing again in the OTC derivative market.


A major international financial auditing firm is currently involved in a massive project on Wall Street that presently has over 900+ consultants involved, which is massive and beyond even the size/scope of the Fannie Mae restatement several years ago. They’re grabbing any senior financial analyst and software expert that they can to help this "unnamed" major Wall Street bank calculate valuations for a suddenly devaluing portfolio of Credit Default Obligations that they have heavily invested in. This auditing firm is charging nearly double their normal billing rate and is getting it, no questions asked.



Sat, 06/23/2012 - 21:26 | 2554936 Dead Canary
Dead Canary's picture

Gee, that's a WHALE of a story.  (see what I did there)

Sat, 06/23/2012 - 21:49 | 2554972 Marginal Call
Marginal Call's picture

Wow, sounds like a Junk Portfolio Mate. 

Sat, 06/23/2012 - 20:59 | 2554886 km4
km4's picture

Matt Taibbi and Yves Smith on the Follies of Big Banks and Government

BILL MOYERS: There’s a definition of a sociopath as being radically deprived of empathy. Do you see characteristics of sociopathic behavior on Wall Street?

MATT TAIBBI: Absolutely.


MATT TAIBBI: I’m sorry, just what Yves was talking about with, you know, the old people who were dying earlier now, people who don’t have kids, who aren’t going to school, garbage that’s being left in the streets. That’s all because some guy was sitting up in a skyscraper in Wall Street and knowingly selling some communities, some municipality a fraudulent, toxic mortgage backed security.

I mean, he knows that that instrument is going to blow up in, you know, six months, a year. But he’s selling it to them anyway. But he doesn’t care, you know, because he can’t see it, you know? I think in the eyes of a lot of these guys if they can’t see the effect, it doesn’t really exist. And to me, that’s classic sociopathic behavior when you’re blind, you’re willingly blind to the consequences.

YVES SMITH: I mean, it’s really the growth of the trading culture. You know, in the old days, I worked on Wall Street when Wall Street really was only criminal around the margins. I mean, you really, Goldman Sachs in those days had the expression long-term greedy which meant you didn’t kill the–

BILL MOYERS: Long-term what?

YVES SMITH: Long-term greedy. That they were long-term greedy. And that meant you didn’t kill the goose that laid the golden egg. You know, you wouldn’t put your customer into egregiously bad deal. If you took a little extra, you only took it when the customer was making money, too, so if they ever figured it out they wouldn’t be really upset. That attitude has changed completely. And I attribute it significantly to the growth of derivatives

Claire gets it right

The propaganda is working: thousands of MSM reporters (CNN, FoxNews, NPR, ABC, NBC, NY Times, WaPo, Atlantic Monthly, etc), and billions of dollars in resources, broadcasting their pro-Wall Street message 24 hours a day, 7 days a week, 365 days a year.

It’s hard to find one person (in real life, not on the blogs), who hasn’t been totally brainwashed, or who doesn’t agree with Roger Lowenstein’s assessment that Wall Street is not guilty.

And what’s up with all these Obama supporters who’ve never heard of the National Defense Authorization Act? I’ve probably met a dozen of them in the last couple weeks. Once I explain, they say they watch CNN, they listen to NPR, they read the newspapers, etc, but they’ve never once heard NDAA mentioned.

Mass propaganda ruling the public, and molding minds without any need for physical coercion, is really something to behold.

Sat, 06/23/2012 - 21:34 | 2554947 nmewn
nmewn's picture

"And what’s up with all these Obama supporters who’ve never heard of the National Defense Authorization Act?"

They're too busy ooohing & ahhhing over his latest open pandering to South Americans here illegally who will be asked who & where their illegal parents are in order to sign up & qualify for his latest election year gimmick.

Fortunately they are not as stupid as he is and won't roll their own parents onto some government list somewhere.

Not to mention the hit to the already skewed unemployment stats...well done Barry, give your BLS stataticians

Sat, 06/23/2012 - 23:09 | 2555082 RockyRacoon
RockyRacoon's picture

And Fox News won't make a big deal out of it like they did Fast-N-Furious.  Why?  Because they like the idea and wish they'd thought of it first.   Oh, wait.  This has been in the works for some time now.  It has only now just been implemented.  Don't think whatever Administration happened to be in the so-called driver's seat wouldn't have finalized the plans.   It's got very little to do with political party action.

Sat, 06/23/2012 - 23:46 | 2555122 WonderDawg
WonderDawg's picture

Nailed it, Rocky.

Sun, 06/24/2012 - 09:45 | 2555441 nmewn
nmewn's picture

Well hell yeah Rocky...everyone knew it was coming...amnesty, after they comb through the documents looking for undesireables. Of that, there is not a doubt in my mind.

And still no secure border and why is that?

One of the most despicable things is the way their labor is treated. Not on parity with prevailing wages and labor laws on the books for everyone is something less...uniquely institutionalized less, with all that entails from our past.

Both "sides" still want it open for the cheap illegal labor.

From an illegals standpoint its a helluva lot better than where they came from...but for those who hire them (from housekeepers to roofers) they are an expendable group, almost sub-human in many cases.

Its abusive, plantation style and wrong. We need to fence it off and put a stop to it.

Sun, 06/24/2012 - 11:46 | 2555755 RockyRacoon
RockyRacoon's picture

Yup.  Some of the truest words ever spoken, from the script of All The President's Men:

Follow the money...

Sun, 06/24/2012 - 00:29 | 2555163 JR
JR's picture

One of my friends - in finance – lost his job with Google and was sent to an Asian country I won't mention for six months to retrain his Google replacement. Why did he oblige Google? In that he was soon to be unemployed and without a job prospect, the need for money trumped his humiliation… but not his depression.

Remember back in January when Obama was asked about H1B work visas, which allow employers here to sponsor foreigners who offer specialized skills (and work for lower wages), by a woman whose husband, an engineer, had been unable to find a position in his chosen field for three years? And Obama replied: “What job shortage?”

Sun, 06/24/2012 - 10:15 | 2555499 roadhazard
roadhazard's picture

You could have written that first paragraph in the 90's.

Sat, 06/23/2012 - 23:54 | 2555129 Fred Hayek
Fred Hayek's picture

CNN is painful. I'd forgotten just how worthless it is until someone had the TV on that channel at the gym. My god. CNN is for lefties who don't want to be agressive about it, who want to tell themselves that they watched the news but who don't have that next scintilla of curiosity which would make them ever question a comfortingly left wing presentation of things that leaves out anything challenging at all.

Sun, 06/24/2012 - 04:08 | 2555266 The Alarmist
The Alarmist's picture

Yeah, I had the NDAA coversation with an Obamabot and she said, "I'm pretty well informed, so why don't I see anything about this on any of the major networks or read it in the NY Times? You can't just latch on to every conspiracy theory because you don't agree with Obama."

Sun, 06/24/2012 - 08:44 | 2555382 knukles
knukles's picture

Ah yes....
Like small children, the uber-lefties and neo-cons are to be seen, not heard.

It is getting absolutely painful to have any conversation (forget intelligent) with either "Dems" or "Repubs" anymore.  The polarization is unfathomable.
This, to my way of thinking is a product of the Hegelian Dialectic as displayed in infinitesimally small and irrelevant arguments serving no specific purpose other than to prove ones self right...
Thereby facilitating, actively but unknowingly facilitating the movement of and on the issue of weighty momentousness, essentially signing on the public through disingenuous negative assents.

To wit:
My golf buds yesterday.  2 conversations.  The neo-cons bitching about the Obama phones... them thats given out to folks who cannot afford them, paid for by the feds.  The uber progressives deriding the GOP for establishing a Latino study group comprised exclusively of Asians.

But bring up NDAA and whaddya get?
Either fuck all nothing (Conspircy theory, etc.)
Or, the ubers say if they did it so it must be OK and the neos say its needed to fight the last 3 fucking rag heads hiding in Tora Bora.


Draw your own conclusions.

Actually makes one want to watch Dancing with the "Tsars"
Which is the exact intent of the whole fucking "program".

Sat, 06/23/2012 - 21:00 | 2554889 Benjamin Glutton
Benjamin Glutton's picture

Damn, I have nothing pithy to add.



Guess I'll just go bang Miss Piggy.

Sat, 06/23/2012 - 21:07 | 2554904 Dr. Sandi
Dr. Sandi's picture

Does she jingle when you shake her?

Sat, 06/23/2012 - 21:03 | 2554894 LoneStarHog
LoneStarHog's picture

Proctor & Gamble? ... But ... but ... CNBS and Bloomturd are always touting that people have to shit, even in a "slowing economy" (sic or should be sick) ... What about all that toilet paper and other "personal care" items?

Note:  CNBS and Bloomturd should be a catalyst for P&G stock since bowel movements increase after only five minutes of viewing.

Sun, 06/24/2012 - 09:59 | 2555458 Satan
Satan's picture

People gotta shit...but they don't have to wipe with triple ply paper.

Sat, 06/23/2012 - 21:07 | 2554903 buzzsaw99
buzzsaw99's picture

Muppets is as muppets does. [/mama sed]

Sat, 06/23/2012 - 21:17 | 2554920 nmewn
nmewn's picture

We don't need no stinkin fundamentals!!!

C'mon Benny my know you wannit ;-)

Sat, 06/23/2012 - 21:18 | 2554922 post turtle saver
post turtle saver's picture

Looks like it's time to fire up the mandatory quarterly vacations again... what, you don't have any accrued? LWOP.

Sat, 06/23/2012 - 21:27 | 2554934 Convolved Man
Convolved Man's picture

Ah come on Goldman, get with the times...


You need to make some more friends on Facebook and start spreading some real news.

Can't expect CNBC to shoulder the load all by themselves.

Sat, 06/23/2012 - 21:30 | 2554937 q99x2
q99x2's picture

Channel stuffing was also likely to affect future profits. But you didn't say channel stuffing so some industry groups must use Enron/JPM accounting more than others.

I'm suprised anyone is offering lower guidance since the legalization of fraud. What are they, Stupid.

Sat, 06/23/2012 - 21:40 | 2554953 Dead Canary
Dead Canary's picture

Ya know, we haven't had a good riot in Greece in a while. I guess they are just too weak from hunger.

Sat, 06/23/2012 - 21:41 | 2554957 Spastica Rex
Spastica Rex's picture


Sat, 06/23/2012 - 21:53 | 2554981 Cabreado
Cabreado's picture

Nice description of the perfect little dance...

the shallowness, myopia and tunnel vision of the Self-Absorbed

begets more

shallowness, myopia and tunnel vision...


(it's a very simple dynamic, really)

chaos, and


it all falls down.

It most certainly does.


Sat, 06/23/2012 - 22:20 | 2555020 Savyindallas
Savyindallas's picture

Next earnings will suck-2012 elections will be a rerun of 2008  -serious recession, more war and hardship -rinse and repeat. Romney is sufficiently vetted, they are ready to throw Obama under the bus. Better to let Romney inherit another huge mess so he can take credit for cleaning it up. If you thought 2008 was bad-2012 will make it look like a picnic. This is where the Russians and Chinese toughen up and attempt to hold their line -militarily and through economic warfare. We may have a better military, but we're in their backyard, and we don't have a single ally where the masses don't despise us. It will be interesting -possiblty fightening and disastrous.

Sun, 06/24/2012 - 04:10 | 2555267 The Alarmist
The Alarmist's picture

Rmney better hope for a war, because Madame Clinton will be waiting in the wings for 2016.

Sun, 06/24/2012 - 06:23 | 2555329 Optimusprime
Optimusprime's picture

Anent Mrs. Clinton, I used to think that no nation would ever voluntarily select such an ugly female to be its leader--then I thought of Golda Meir.

Sun, 06/24/2012 - 21:40 | 2556806 Dr. Sandi
Dr. Sandi's picture

I still have my Margaret Thatcher cheesecake campaign posters hanging over the bed.

Sun, 06/24/2012 - 10:22 | 2555516 roadhazard
roadhazard's picture

Romney = Obama in white face.

Sat, 06/23/2012 - 22:22 | 2555022 Conman
Conman's picture

Buy retail because Robotard says so.

Sat, 06/23/2012 - 22:57 | 2555064 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

GS:  Since it's a fucking client, try spelling Procter & Gamble correctly.

Sat, 06/23/2012 - 23:50 | 2555126 WonderDawg
WonderDawg's picture

NeedleDick, uh, they had it right (Proctor). I'm down with bashing GS, but you're making us bashers look bad.

Sun, 06/24/2012 - 00:58 | 2555174 NeedleDickTheBu...
NeedleDickTheBugFucker's picture

Like a proctologist, GS is also ass-focused, but in their case its fucking people up the ass.  For them, I guess it was inevitable that Procter would become Proctor.

Sun, 06/24/2012 - 07:24 | 2555345 WonderDawg
WonderDawg's picture

You know what? I might have had that wrong. My apologies. I'll be shuttin' up now.

Sat, 06/23/2012 - 23:01 | 2555070 slewie the pi-rat
slewie the pi-rat's picture




Sat, 06/23/2012 - 23:20 | 2555096 Caviar Emptor
Caviar Emptor's picture

If we have downgrades for major retailers then the next thing we'll get will be compulsory shopping under penalty of firing squad

Sun, 06/24/2012 - 00:03 | 2555137 JR
JR's picture

I kept thinking today of the ZH read from Eric Sprott yesterday (Ministry of [Un]Truth) regarding McDonald’s; I mean the hungry folks eating at McDonald’s apparently now have downsized to the dollar menu!! This is reverse recovery. It shows that there is increasing pressure on disposable income, perhaps more than previously thought. Sprott wrote:

“If you want to know what's really going on, listen to the executives of companies that actually produce and sell things. On May 24, Tiffany & Co cut its fiscal-year sales and profit forecasts blaming "slowing growth in key markets like China and weakness in the United States as shoppers think twice about spending on high-end jewelry."18 On June 8th, McDonald's surprised the market with lower than expected same-store sales growth in May, following a lacklustre April sales report that the company stated was "largely due to underperformance in the United States, where consumers continue to seek out very low-priced food."19, 20 On June 13th, Nucor Corp., the largest U.S. steelmaker by market value warned that its second-quarter profit will miss its previous guidance after a "surge" in imports undermined prices and "political and economic uncertainty affect buyers' confidence".21 On June 20th, Proctor and Gamble lowered its fourth quarter guidance and profit forecast for 2012. Factors that drove the company's challenges included "slow-to-no GDP growth in developed markets", high unemployment levels, significant commodity cost increases and "highly volatile foreign exchange rates".22 Other companies that have recently lowered guidance include Danone, Nestle, Unilever, Cisco Systems, Dell, Lowe's, and Fedex. It's ugly out there, and many companies are politely warning the market about the type of environment they foresee ahead in both the US and abroad.”

Here is expansion of the Reuter’s article Sprott quoted:

(Reuters) - Neither premium chicken sandwiches nor Angus burgers could tempt U.S. consumers to spend more on higher-priced items at McDonald's, as a tepid U.S. economic recovery kept restaurant spending in check

"First and foremost, the consumer continues to want value," Lazard Capital Markets analyst Matthew DiFrisco told Reuters.

Advertised premium chicken sandwiches and Angus burgers failed to meet sales targets, and it took longer than expected to roll out new blueberry banana nut oatmeal, Bernstein Research analyst Sara Senatore said in a client note.

McDonald's also promoted new "Extra Value Menu" items and combo meals with prices above the offerings on its famed "Dollar Menu."

The new menu includes 20-piece chicken McNuggets, double cheeseburgers, chicken snack wraps, Angus snack wraps, medium iced coffees, and snack-sized McFlurries, plus up to four regional options that were previously listed elsewhere on its menu.

Sun, 06/24/2012 - 00:04 | 2555138 Stackers
Stackers's picture

Bring on the stimulus. .......... a little to the right ....... oh yeah thats it.

Sun, 06/24/2012 - 00:24 | 2555159 sitenine
sitenine's picture

Well, there you have it - hope has become the dominant investment strategy.

Sun, 06/24/2012 - 04:12 | 2555269 The Alarmist
The Alarmist's picture

Hope has become the dominant survival strategy. "Nope" would be the most prudent investment strategy.

Sun, 06/24/2012 - 04:07 | 2555265 Paul Thomason
Sun, 06/24/2012 - 04:12 | 2555268 NuYawkFrankie
NuYawkFrankie's picture

Re Ask 10 people in New York who won the Greek election, and chances are 8 will respond correctly

This is a joke right? 8 outta 10 New Yorkers would have difficulty telling you what day of the week it was &  couldnt even tell you who the Governor of NY is - let alone who's now running Greece! LOL!!!

Sun, 06/24/2012 - 04:14 | 2555271 The Alarmist
The Alarmist's picture

8 out of 10 New Yorkers would have difficulty pointing you to the nearest Greek diner these days.

Sun, 06/24/2012 - 05:56 | 2555275 NuYawkFrankie
NuYawkFrankie's picture

Aint it the truth - hear you lound 'n clear bro.


Sad to say, but there arent all that many of those classic long, narrow,"railway carriage"-style, greasy-spoon Greek places left.. Used to go to one -the Spartan Diner - where the counter-guy (Fat Al I seem to recall) would take your feta-cheese omlette/bacon/sausage/home-fries (small Greek salad on the side)breakfast out of the serving hatch and fling it 10, 20ft  or more right down the counter - I swear the damn plate would land right in front of you and not hit a thing on the way! Like something outta a Popeye cartoon! LOL!!!

If you left a big enuf tip - Fat Al would even throw in a gyro in a pita (to "snack on on the way home") gratis ;)

THink you'd get that sorta service these  days - Fuggedaboutit!!!  LOL!

Sun, 06/24/2012 - 10:06 | 2555473 The Alarmist
The Alarmist's picture

Used to go to one called Skyline on East 76th Street, and an omlette and coffee cost less than $6 ... the Greeks were squeezed out by higher rents and upturned noses who preferred EJ's, so nowadays a comparable meal will rarely be less than $10.

Sun, 06/24/2012 - 11:40 | 2555738 NuYawkFrankie
NuYawkFrankie's picture

$6 - WOW! You got rotally ripped off bro.

I never paid more  than $5 in the Spartan- tip included!!!

The Skyline! Wasnt that over on 1st Ave?

might be co nfusing it with the Green Kitchen thats a 24/7 place and on 1st/76.

The Spartan Diner was on between 77th/78th & 2nd (east side) - way back when.

Yeah - youre right: the old-style Greek diners were squeezed out by that corporate shi!t from starbucks etc - those that could pay higher rents. Blame those faggot yuppies - I do!



Sun, 06/24/2012 - 17:41 | 2556421 The Alarmist
The Alarmist's picture

I was off by one street ... it was 75th & Lex ... guess I was paying for the scenery.  

Sun, 06/24/2012 - 19:02 | 2556561 NuYawkFrankie
NuYawkFrankie's picture

Yeah - it's a nice view of the entrance to the Lexington Ave subway from there ;)

Sun, 06/24/2012 - 05:29 | 2555301 spentCartridge
spentCartridge's picture

One would have thought that Adobe Systems could rustle up some of their own paper via their own products, no?

Sun, 06/24/2012 - 06:07 | 2555322 justsayin2u
justsayin2u's picture

we're americans  obamas going to pay my mortgage for me   we like easy  earnings sound like work     i agree with just printing our ay to prosperity - we need more obama bucks from uncle ben

Sun, 06/24/2012 - 07:09 | 2555340 icanhasbailout
icanhasbailout's picture

Ask 10 people in New York who won the Greek election, and chances are 8 will respond correctly.

Doubt it. The correct answer is "Goldman Sachs".

Sun, 06/24/2012 - 08:41 | 2555380 Racer
Racer's picture

New Yorker:

A: "Greece? Never heard of it"

Sun, 06/24/2012 - 09:51 | 2555445 epwpixieq-1
epwpixieq-1's picture

Another New Yorker: "Greece? Of course, I know it, it is part of Astoria."

Sun, 06/24/2012 - 09:51 | 2555446 Whatta
Whatta's picture

I didn't see PM on the list. PM cut estimates as well.

Sun, 06/24/2012 - 11:16 | 2555676 Alejandrito
Alejandrito's picture

Maybe goldman would be able to answer what is happening at markets? or are they not interested to do that?

Because i'm so confused

Sun, 06/24/2012 - 13:11 | 2555935 ATG
ATG's picture

Brilliant analysis re disappearing margins and negative pre-announcements. 

Sold SPY Jul 133 calls at profit toward Friday close and bought QQQ Jul 65 and SPY 134 puts...

Sun, 06/24/2012 - 14:04 | 2556060 Grand Supercycle
Grand Supercycle's picture

DOW weekly chart shows uncertain market & fluctuating consensus with likely bullish pattern contained within megaphone wedge.

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