US Consumer Hopium Drops To February 2009 Levels

Tyler Durden's picture

Someone forgot to tell the US Consumer that "Europe is fixed" and that "nobody has heard of Die Welt" according to Jim Cramer, who incidentally said back in May 2008 "how anyone can think housing will get worse from here is beyond me." Because according to the only non-biased and hence non-market moving consumer confidence poll, that of Bloomberg, October Economic Expectations dropped to -45 after -34. Not much to explain here: this was the lowest print since February 2009. As Bloomberg economist Brusuelas says, "Consumer confidence may be better predictor of direction of economy than spending."

Other findings in the weekly poll:

  • Weekly Bloomberg Comfort Index -48.4 for week of Oct. 16 vs -50.8 prior week; two-month high
  • Sentiment among highest earners ($100K+) -11.1 vs prior -9.2
  • Public “now expects economic conditions to deteriorate regardless of the recent increase in economic activity,” says Bloomberg economist Joseph Brusuelas
  • Seeing “consumer conundrum” where confidence remains relatively bleak despite increase in overall consumption
  • May tap savings, lines of credit to replace worn-out durables, then revert back to behavior consistent paring down

But, the consumer is deleveraging we are told. After all, some squiggly MMT line charts suggest that when the government is issuing $1.5 trillion in bonds each year, consumers must be deleveraging. They MUST.... Or, are those textbook descriptions of "reality" just a little off?

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101 years and counting's picture

spending up 3.5% YoY.  Inflation up 6.9% YoY.  am i the only one that sees REAL spending is down?

mayhem_korner's picture

I'd love to see a reporter throw that fundamental question to the Joe-B and TOTUS show.

MillionDollarBonus_'s picture

The libertarian crowd seems to have an ever increasing sense of superiority stemming from their belief that underground blogs are more credible than the mainstream media. I would like to point out that many mainstream media outlets were predicting this crisis WELL in advance. Here are some examples of the mainstream media predicting our current economic conditions:

1. This controversial BBC article discussed the possibility of a double dip recession long before anyone thought it was a possibility: http://news.bbc.co.uk/1/hi/8464774.stm

2. CNN was also proactively warning about the possibility of a downturn in the global economy, well ahead of mainstream thought: http://money.cnn.com/2010/06/09/news/economy/double_dip_recession/index.htm

3. This MSNBC article was considering the possibility of a double-dip recession all the back in 2010: http://business.newsvine.com/_news/2010/06/10/4490544-analysts-lawmakers...

I think it's time for libertarians to grow up and admit that the mainstream news outlets are FAR ahead of the game when compared to discredited internet conspiracy-blogs, and that journalists with Ivy League degrees are far more qualified to analyse world events than spotty libertarian computer nerds.

mayhem_korner's picture

Now that I've junked you, let me read what you wrote.  :D

...

...

...

Yup.  I got it right.

Nom de Guerre's picture

Why junk him? This shit is comedy gold.

Darth..Putter's picture

For my part I've increased my retail spending on survival food, guns, ammo, 4x4 truck, solar panels and seeds.

Oops, forgot bullion.

 

There's yer uptick!!

homersimpson's picture

"underground blogs are more credible than the mainstream media."

Surely you're not stupid enough to believe the opposite. If so, that'd explain why you posted what you did.

jdelano's picture

Good satire has to occassionally venture a little too far into the absurd, thereby revealing to the reader that it is in fact satire rather than genuine idiocy... at least, that's what this "libertarian" learned while obtaining his Ivy League degree...

DosZap's picture

MillionDollarBonus_

I think it's time for libertarians to grow up and admit that the mainstream news outlets are FAR ahead of the game when compared to discredited internet conspiracy-blogs, and that journalists with Ivy League degrees are far more qualified to analyse world events than spotty libertarian computer nerds.

 

When your OWNED by the newsmakers, it's easy to get a leg up,there is no analyzing to be done.

Besides anyone with Sixth grade education new we never came out of the LAST one, It's So hard to figure this stuff out.

Dumpster Fire's picture

journalists with Ivy League degrees are far more qualified to analyse world events than spotty libertarian computer nerds.

 

Yah like Cramer.  Preach it.

route40misery's picture

Are you getting a nice cut, plugging them like this?

xcehn's picture

Anything is more credible than the mainstream media, which is essentially a JOKE, a propaganda ministry serving the banksters and other corporate sponsors.

DormRoom's picture

yeah, why don't they normalize monthly retail spending to changes in monthly CPI?  And normalize yOy retail spending to inflation.  I"d like to see those charts.

mayhem_korner's picture

What?!?  Tell the truth???  Opacity is the linchpin of power retention.

Rynak's picture

Spending that does not directly or indirectly come from shots via (stealth-)taxation, has been down like forever.

And you don't need any fancy stats for this. Just look at real practical price inflation, and compare it with the wage/hour of the bottom 95%.... dude, they cannot spend what they do not have! That is, unless the average reduction in real wages, is to a lower or higher extend compensated via..... well, guess what.

If you take imports, exports and misc wealth-transfer mechanisms out of the game, then over a longterm timespan: Wages == purchasing power == corporate revenue == corporate spending == wages == purchasing power.... and so on. The only thing that changes anything at all in that loop, is transfers into and out of the system (imports, exports, debt) and wealth-transfer mechanisms, and hoarding.

 

topcallingtroll's picture

Zombie banks
Zombie mortgages
Zombie homeowners
Zombie corporations
Zombie politicians.

The whole economy of the first world is becoming zombified.

Steel_Preacher's picture

You know if I had a buck for every time I wanted to just grab a sheeple, family member etc and smack the piss outta them and yell..."WAKE UP" I could buy GS.   Hopium KILLS.

mt paul's picture

"You know if I had a buck for every time I wanted to just grab a sheeple, family member "

you would have fiat currency...and thus have less than nothing 

Steel_Preacher's picture

You got me, how about an ASE every time?

treemagnet's picture

Try living in rural farmville where everything that can be pushed up with a weak dollar is soaring - and they're loving it and livin large.  I feel like Noah building an ark sometimes.

reader2010's picture

Refi didn't work the magic this time around thanks to the free market. 

mayhem_korner's picture

Didn't see the /sarc/ so I down-arrowed you. 

jdelano's picture

you know you can go back and change it, right?

Janice's picture

Just playing change the arrow.

reader2010's picture

Less than 15% of the population accounts for nearly 90% of non-discretionary spending, and  that's the trend. As Richard Russell wrote lately, "Strange, although crowds are gathering to protest the difference in income, this does not seem to register on XLY.  Wealthy people are still spending and buying whatever they want.  The chart below shows the erratic moves of consumer discretionary. 

 

The latest move is a break below the 200-day moving average.  That takes XLY below the preceding top.  Here in La Jolla, the latest fancy restaurant (valet is $8) is bustling.  For the most part, nobody is bringing home brown bags for dinner.  Dinner at Eddie V's can easily run to $80.  There's a recession on and people are rioting, but who cares except those who can't pay their bills. "

 

Temporalist's picture

You really should cite your sources when you steal stuff:

 

Richard Russel - This Market is One for the History Books

"Gold -- Despite daily warnings from amateur experts, gold continues to climb above its 200-day moving average (see chart below).  The last real correction occurred in 2009.  So far, gold has ignored the call for another correction.  Watch that 200-day MA, which stands at 1542." 

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/10/19_R...

Chuck Norris's picture

Is there an ETF to trade Hopium?  What symbol is it?  I think its a good short candidate.

The Limerick King's picture

 

 

We've entered the hopelessness age

Our freedom has turned to a cage

And those at the top

Unwilling to stop

Are about to unleash primal rage

mayhem_korner's picture

+2

I don't think you've ever missed with a post, TLK.

The Limerick King's picture

Thanks MK...it's nice to feel appreciated!

smithcreek's picture

I junked you because that's the first non-limerick post I've seen, don't want it to become a habit.  But I did up arrow the limerick.

The Limerick King's picture

 

 

Thanks for the up arrow Creek

That non-limerick post sure was weak

It would make me smile

If once in a while

I'm permitted some non-limerick speak

homersimpson's picture

It's called FAZ, but unfortunately there has been a lot more hope in it than I'd like to see...

DosZap's picture

"how anyone can think housing will get worse from here is beyond me."

You were correct, IT IS beyond you.

Expect another 30-40% drop.

Irish66's picture

Philly fed has been fiddled with

Trimmed Hedge's picture

I'm not feeling very comfortable reading this....

mayhem_korner's picture

according to Jim Cramer, who incidentally said back in May 2008 "how anyone can think housing will get worse from here is beyond me."

My "root cause" meter just pegged: we know the problem is FUBAR when folks like Cramer are employed.

 

But, the consumer is deleveraging we are told.

By "deleveraging," do we mean cutting back SSRI intake by 1/3 because they can no longer afford to dull their depression symptoms?

wisefool's picture

Cramer is not dumb. Sell the hopium (taxable) on mad money, Then put sound money (gold) in his tax free charitable trust when the camera is not looking at his freinds and familiy.

And the casino stocks are down today. Must be some breaking news about the "Sushi Grade Tuna" in chinese fish farms really being tripe.

Belarus's picture

And most companies are doing something that everyone wants to ignore: they are missing on the top line. AT &T, all banks, IBM, etc.....some by substantial amounts. You can only get efficiency and peak margins so high, but revenues are the lifeblood of any company and when they are falling in unision, which the market wants to ignore and would rather ramp the ES up 100 pts in nano-seconds based on the slightest uptick in the EUR/USD, things are indeed starting to deteriote.

But, heh, right now all that matters are rumors, failed plans, and innuendo.  

ZippyBananaPants's picture

Maybe Michelle Horseface Cabarara will go into the streets of Greece and get 'cornholed' Greek style!!

topcallingtroll's picture

I would do any of them

But I am in love with Maria Bartiromo. She is just so sweet!

ZippyDooDah's picture

My crack pipe is all out of hopium.  Can you help a brother out?

Temporalist's picture

Switch to meth you can make it yourself in a gatorade bottle.  Or hillbilly qualudes:

http://www.metacafe.com/watch/3253811/how_to_make_meth/

 

nobusiness's picture

Hopium is becoming a rare earth element

Belarus's picture

Oh, and isn't it just a bit wee strange that every index in the world is down but the U.S.? And almost every major heavey market cap weigthed stock is missing estimates. 

How does one short the CAC?

Temporalist's picture

DOW is down almost 100 now.

raki_d's picture

Bought a Jim-Cramer costume for this Halloween
Trick for the savers, treat for debtors