This page has been archived and commenting is disabled.

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?


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Thu, 10/20/2011 - 10:00 | 1792622 101 years and c...
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?

Thu, 10/20/2011 - 10:08 | 1792654 mayhem_korner
mayhem_korner's picture

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

Thu, 10/20/2011 - 10:16 | 1792677 MillionDollarBonus_
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:

2. CNN was also proactively warning about the possibility of a downturn in the global economy, well ahead of mainstream thought:

3. This MSNBC article was considering the possibility of a double-dip recession all the back in 2010:

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.

Thu, 10/20/2011 - 10:17 | 1792703 mayhem_korner
mayhem_korner's picture

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




Yup.  I got it right.

Thu, 10/20/2011 - 12:28 | 1793491 Nom de Guerre
Nom de Guerre's picture

Why junk him? This shit is comedy gold.

Thu, 10/20/2011 - 10:20 | 1792716 Darth..Putter
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!!

Thu, 10/20/2011 - 10:20 | 1792718 homersimpson
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.

Thu, 10/20/2011 - 10:24 | 1792746 jdelano
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...

Thu, 10/20/2011 - 10:24 | 1792747 DosZap
DosZap's picture


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.

Thu, 10/20/2011 - 10:25 | 1792751 Dumpster Fire
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.

Thu, 10/20/2011 - 10:57 | 1792949 route40misery
route40misery's picture

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

Thu, 10/20/2011 - 14:51 | 1794279 xcehn
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.

Thu, 10/20/2011 - 10:09 | 1792658 DormRoom
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.

Thu, 10/20/2011 - 10:11 | 1792668 mayhem_korner
mayhem_korner's picture

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

Thu, 10/20/2011 - 10:20 | 1792700 Rynak
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.


Thu, 10/20/2011 - 10:23 | 1792726 topcallingtroll
topcallingtroll's picture

Zombie banks
Zombie mortgages
Zombie homeowners
Zombie corporations
Zombie politicians.

The whole economy of the first world is becoming zombified.

Thu, 10/20/2011 - 10:01 | 1792630 Steel_Preacher
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.

Thu, 10/20/2011 - 10:16 | 1792698 mt paul
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 

Thu, 10/20/2011 - 10:25 | 1792755 Steel_Preacher
Steel_Preacher's picture

You got me, how about an ASE every time?

Thu, 10/20/2011 - 10:23 | 1792732 treemagnet
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.

Thu, 10/20/2011 - 10:02 | 1792634 reader2010
reader2010's picture

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

Thu, 10/20/2011 - 10:06 | 1792648 mayhem_korner
mayhem_korner's picture

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

Thu, 10/20/2011 - 10:09 | 1792660 jdelano
jdelano's picture

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

Thu, 10/20/2011 - 10:13 | 1792678 Janice
Janice's picture

Just playing change the arrow.

Thu, 10/20/2011 - 10:38 | 1792831 reader2010
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. "


Thu, 10/20/2011 - 12:17 | 1793425 Temporalist
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."

Thu, 10/20/2011 - 10:03 | 1792637 Chuck Norris
Chuck Norris's picture

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

Thu, 10/20/2011 - 10:10 | 1792662 buzzsaw99
buzzsaw99's picture

Thu, 10/20/2011 - 10:11 | 1792664 The Limerick King
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

Thu, 10/20/2011 - 10:13 | 1792673 mayhem_korner
mayhem_korner's picture


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

Thu, 10/20/2011 - 10:16 | 1792696 The Limerick King
The Limerick King's picture

Thanks's nice to feel appreciated!

Thu, 10/20/2011 - 10:25 | 1792730 smithcreek
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.

Thu, 10/20/2011 - 10:48 | 1792883 The Limerick King
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

Thu, 10/20/2011 - 12:40 | 1793543 smithcreek
smithcreek's picture



Thu, 10/20/2011 - 10:15 | 1792688 homersimpson
homersimpson's picture

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

Thu, 10/20/2011 - 10:16 | 1792693 DosZap
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.

Thu, 10/20/2011 - 10:04 | 1792638 Irish66
Irish66's picture

Philly fed has been fiddled with

Thu, 10/20/2011 - 10:04 | 1792640 Trimmed Hedge
Trimmed Hedge's picture

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

Thu, 10/20/2011 - 10:05 | 1792645 mayhem_korner
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?

Thu, 10/20/2011 - 10:14 | 1792683 wisefool
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.

Thu, 10/20/2011 - 10:11 | 1792669 Belarus
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.  

Thu, 10/20/2011 - 10:12 | 1792670 ZippyBananaPants
ZippyBananaPants's picture

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

Thu, 10/20/2011 - 10:30 | 1792784 topcallingtroll
topcallingtroll's picture

I would do any of them

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

Thu, 10/20/2011 - 10:12 | 1792671 ZippyDooDah
ZippyDooDah's picture

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

Thu, 10/20/2011 - 12:24 | 1793463 Temporalist
Temporalist's picture

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


Thu, 10/20/2011 - 10:14 | 1792679 nobusiness
nobusiness's picture

Hopium is becoming a rare earth element

Thu, 10/20/2011 - 10:14 | 1792680 Belarus
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?

Thu, 10/20/2011 - 12:28 | 1793494 Temporalist
Temporalist's picture

DOW is down almost 100 now.

Thu, 10/20/2011 - 10:15 | 1792690 raki_d
raki_d's picture

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


Thu, 10/20/2011 - 10:40 | 1792850 fuu
fuu's picture

Your avatar still gets me everytime.

Thu, 10/20/2011 - 10:15 | 1792692 TJW
TJW's picture

Just in time for Christmas!

Thu, 10/20/2011 - 10:17 | 1792694 John Law Lives
John Law Lives'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."

It seems in our bizarro world that people like Cramer can say any reckless thing and it will bring no negative consequence upon them.

Thu, 10/20/2011 - 10:21 | 1792720 SheepDog-One
SheepDog-One's picture

Before Cramer speaks they put up a disclaimer which basically says 'Anyone actually BELIEVING what I say and acting on it is a damn idiot'.

Thu, 10/20/2011 - 10:27 | 1792759 treemagnet
treemagnet's picture

I think before Liesman or Cramer try to say something logical or inspiring the network should air a disclaimer "folks, don't try this at home - these are professional bullshitters....."

Thu, 10/20/2011 - 10:17 | 1792702 mt paul
mt paul's picture

outlaw hope

it's worse than herion ...

Thu, 10/20/2011 - 10:24 | 1792739 Adrenaline_Jockee
Adrenaline_Jockee's picture

Everyone's watching the S&P triple top 1225...which lines up with the 70wma (which hasn't been wrong in decades)  The 70wma signaled a new bear market last month, so by rights we shouldn't close the week  above 1230.  I'm keeping my QIDs till then. 

Thu, 10/20/2011 - 10:33 | 1792799 ivars
Thu, 10/20/2011 - 10:36 | 1792825 Truffle_Shuffle
Truffle_Shuffle's picture

Got plenty of hopium over here.  Be nice.....maybe I'll share.

Thu, 10/20/2011 - 11:11 | 1793018 DosZap
DosZap's picture

OT, sorry, But this does not sound like the REAL deal.

Anyone else see / hear this SO called interview?.

Not our Beloved Warren.

Warren Buffett, in a recent interview with CNBC, offers one of the
best quotes about the debt ceiling:

"I could end the deficit in 5 minutes," he told CNBC. "You just
pass a law that says that anytime there is a deficit of more
than 3% of GDP, all sitting members of Congress are ineligible
for re-election/

The 26th amendment (granting the right to vote for 18 year-olds)
took only 3 months & 8 days to be ratified! Why? Simple!
The people demanded it. That was in 1971 - before computers, e-mail,
cell phones, etc.

Of the 27 amendments to the Constitution, seven (7) took one (1) year
or less to become the law of the land - all because of public pressure.

Warren Buffet is asking each addressee to forward this email to
a minimum of twenty people on their address list; in turn ask
each of those to do likewise.

In three days, most people in The United States of America will
have the message. This is one idea that really should be passed

_*Congressional Reform Act of 2011*_

1. No Tenure / No Pension.

A Congressman/woman collects a salary while in office and receives no
pay when they're out of office.

2. Congress (past, present & future) participates in Social

All funds in the Congressional retirement fund move to the
Social Security system immediately. All future funds flow into
the Social Security system, and Congress participates with the
American people. It may not be used for any other purpose.

3. Congress can purchase their own retirement plan, just as all
Americans do.

4. Congress will no longer vote themselves a pay raise.
Congressional pay will rise by the lower of CPI or 3%.

5. Congress loses their current health care system and
participates in the same health care system as the American people.

6. Congress must equally abide by all laws they impose on the
American people.

7. All contracts with past and present Congressmen/women are void
effective 1/1/12. The American people did not make this
contract with Congressmen/women.

Congressmen/women made all these contracts for themselves. Serving in
Congress is an honor, not a career. The Founding Fathers
envisioned citizen legislators, so ours should serve their
term(s), then go home and back to work.

Thu, 10/20/2011 - 12:03 | 1793344 Grand Supercycle
Grand Supercycle's picture

NASDAQ megaphone pattern on daily chart indicates big move ahead.

USD weekly chart remains bullish and as predicted for some time further dollar upside expected.

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