Presenting For Your Correlation Consideration: THE Transfer Payment

Tyler Durden's picture

We know correlation is not causation, but... Black line is student loan debt; Orange line is AAPL total cash. 2+2 just may ≠ 5 in this case.


Chart: Bloomberg

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jcia's picture

but but but but but... it's SHINY

slaughterer's picture

Topeka Capital's Brian White, who made waves by setting a $1,001 PT on Apple (AAPL +9%) 3 weeks ago, is raising it to $1,111 following the company's FQ2 beat

SheepDog-One's picture

Well good for him, I'm sure he's all-in Apple fully margined.

slaughterer's picture

SD-1: don't you see, AAPL is #1 four times in a row.

Buckaroo Banzai's picture

Well, at least Apple customers get something of value for their purchase.

BTW, it's "hoard" not "horde".

Although the the vision of a "horde" of Apple dollars sweeping across the Asian steppes is a funny one.

Mongol General: Hao! Dai ye! We won again! This is good, but what is best in life?
Mongol: The open steppe, fleet horse, falcons at your wrist, and the wind in your hair.
Mongol General: Wrong! Conan! What is best in life?
Conan: To crush your enemies, see them driven before you, and to hear the lamentation of their women.
Mongol General: That is good! That is good.

SheepDog-One's picture

And ding dong Bill Gates is dead, The Guru is gone. 

Arthor Bearing's picture

I have a hunch that if a professional trader is predicting the world's most overbought stock is going to double in price, he's looking for somebody to pick up his shares so he can cash in

derek_vineyard's picture

I saw my first crack in the apple armour when 2 (yes two) different 20 somethings told me that wanted a droid and apple was over priced and hyped-----this was last week.   Apple and facebook are now too trendy to be trendy anymore.  On to a new trend here in USA.  Foriegn countries lag behind us as new trends are set.


crawldaddy's picture

yep,  hard to be cool and trendy as a young adult if your freakin mom has the same thing you do.

CvlDobd's picture

All the dipshits I know that play WOW think they are cool and they use droids.

trebuchet's picture

droid      ...............................   cooool

koperniuk666's picture

Surely Performance and Price are more important - or am I just being stupid???

The last mac I bought (a G4 in 2005) was  3 times the price of a crappy PC. And I was happy

The most recent mac I bought (a Pro) is disappointlngly ..... crappy. I will not be buying another one. 

Dont ALL products have life cycles?????

I mean, do you remember when 'North Face" was a QUALITY brand???????


Chaffinch's picture

Are you sure Brian White is human? These price targets look awfully like binary code to me... ; )

Acorn10012's picture

iOwe,'s off to debtor prison we go.

cougar_w's picture

Chart porn for the _________ crowd

Arthor Bearing's picture

for the anti-yuppy finance crowd?

TheGardener's picture

Chart porn indeed it is; two different right hand scales adjusted for one chart curve correlation

vast-dom's picture

yes of course!


so it then follows that AAPL bites the dust when the student loan bubble blows.....ah but timing is central obsession and i've been ocd'ing on SP at 800 for over 9months...


(as a student i actually did go into debt for a macbook pro once....)

Arthor Bearing's picture

I'm sure it's common, thus the chart. I'm sure you could put many lines that look like that from that same time period together. How about gold price? What would the causation be between AAPL, student loans, and gold?

vast-dom's picture

hey man i could make causation between charts and piles of iShit and squiggly heberphrenic scrawl from the insane asylum! and then i could provide some impenetrable ironclad algos and formulas.

iFuckingiNsaneiMotherfuckingPods as function of iFuckYouUpwiTiCharts.


Temporalist's picture

That chart just shows that we need more students.  This message was approved by Barack Obama.

SheepDog-One's picture

Time to fill the college classrooms with every EBT card holder out there...Kenyanomics, bitchez!

Nobody For President's picture

Actually SD, you're right, maybe not in the sarcastic way you thought = it is a lot cheaper than puttin' em in jail:

In CA, cost per inmate per year = $47K

Cost per student (including living costs) = $22 K (Community college living on campus) to $45K (Private college living off-campus)

Amusing, eh?

GubbermintWorker's picture

And he said that he and his wife just recently paid their student debt off? Doesn't that scream that "something" is wrong here!?!?!

SheepDog-One's picture

2+2 may question 5? 

Dr. Richard Head's picture

Reminds me of the old ZH captchas.

SheepDog-One's picture

LOL I do remember those...-250x-275= (answer must be shorter than 1 character)....WHAT?

cougar_w's picture

You will have to admit though, the captcha practice did serve to prepare us all for the running test of absurdity that became BLS data.

cougar_w's picture

I swear, the articles were better back then, too.

Not saying anything about correlation and causation and all that. Though it seems fashionable these days to imply such things.

Dr. Richard Head's picture

Correlation and causation for lack of trolls could be deduced.  At least the trolls back then were inteliigent....mhhhmmmmm....MillionDollarBOnus.

kridkrid's picture

You could throw the chinese factory worker suicide rate over that as well.

vast-dom's picture

someone's gotta pay.


and it's not personal.....

kevinearick's picture

So, the Bataan Death March through stupidity continues...the Fed battles volatility behind the margin, while pumping the margin, racing to avoid transparency...

Apple is the empire bet, assuming the path through which it must betting on the Dallas Cowboys... America's Team right? How's that $2B stadium working out? Great if you're San Francisco, or a league owner.

Load the kids down with debt and hope you catch 1 in a thousand with some kind of intelligence to turn over...of course you must control everything to make it work. They call it noise.

In the meantime, how's the family, and business? Are you getting enough sleep?

zhtidbits's picture

Nice chart, but 60% of revenue comes from overseas.  Agree with the long term non-sustainability of their competitive advantage, but the peak could be tomorrow or 3 years from now.

TideFighter's picture

I called the rental equipment place to rent Al Gore's cherry picker, we're gonna need it. 

Dr. Richard Head's picture

It's right over there by the lock box and the internet.

NotApplicable's picture

Which are behind that rather large pile of carbon credits.

hedgeless_horseman's picture



It is a wonder how my wife, children, and I can live so well without student loans and iPhones.

Temporalist's picture

It's all good.  Housing is bottoming:

Housing Declared Bottoming in U.S. After Six-Year Slump

TideFighter's picture

Brilliant piece of work. "Bottoming (seeking a bottom)" vs. "Bottomed"

sarc off 

SheepDog-One's picture

OH right, housing itself declaring its bottoming! Well its been either recovering or bottoming for 4 years now so I guess someday it will actually bottom. Of course that doesnt mean it heads right back up either....the Titanic also bottomed.

cnhedge's picture


An update on TARGET2