Thursday, April 28, 2011
Wal Mart CEO: "Shoppers Are Running Out Of Money"; There Is "No Sign Of A Recovery"
Submitted by Tyler Durden on 04/28/2011 11:12 -0400
When a month ago the CEO of Wal Mart Americas told the world to "prepare for serious inflation", the Chairman laughed in his face, saying it was nothing a 15 minutes Treasury Call sell order can't fix (granted net of a few billions in commissions for JPM). 4 weeks later the Chairman is no longer laughing, having been forced to hike up his inflation expectations while trimming (not for the last time) his economic outlook. "U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday talking to USA Today. And if Wal-Mart which is at the very bottom of commoditized consumer retail, and at the very peak of avoiding reexporting of US inflation by way of China is concerned, it may be time to panic, or at least cancel those plane tickets to Zimbabwe, which is soon coming to us." In light of that perhaps today's words of caution from Wal Mart CEO Mike Duke will be taken a tad more seriously (yes, even with the $50 billion in "squatters rent" that the deadbeats spend on iPads instead of paying their mortgage: that money is rapidly ending). Warning is as follows: "Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried. "We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact." Tell that to Printocchio please.
From Money:
Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.
Lately, they're "running out of money" at a faster clip, he said.
"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern.
Also remember that long-running joke from the NBER short bus that the recession ended in late 2009? Turns out they were just kidding, as well as blatantly lying.
Wal-Mart which averages 140 million shoppers weekly to its stores in the United States, is considered a barometer of the health of the consumer and the economy.
To that end, Duke said he's not seeing signs of a recovery yet.
With food prices rising, Duke said Wal-Mart is charging customers more for some fresh groceries while reducing prices on other merchandise such as electronics.
Wal-Mart has struggled with seven straight quarters of sales declines in its stores.
Here's an idea: how about we let someone with actual business experience, who runs the one company employing more people than even the Federal Reserve, Mike Duke, control US monetary policy for a few months and see what happens? Surely it can't get worse than what that other insane sociopath is doing, as with each passing day we are now moving closer and closer to a hyperstaglfationary conclusion, and even the collective cheerleading crew of Cottonelle bearing monkeys, half of whom were reading "Monetary Policy for TV Reporters" (just two steps down below idiots), from yesterday's FOMC conference are finally starting to realize this.
When a month ago the CEO of Wal Mart Americas told the world to "prepare for serious inflation", the Chairman laughed in his face, saying it was nothing a 15 minutes Treasury Call sell order can't fix (granted net of a few billions in commissions for JPM). 4 weeks later the Chairman is no longer laughing, having been forced to hike up his inflation expectations while trimming (not for the last time) his economic outlook. "U.S. consumers face "serious" inflation in the months ahead for clothing, food and other products, the head of Wal-Mart's U.S. operations warned Wednesday talking to USA Today. And if Wal-Mart which is at the very bottom of commoditized consumer retail, and at the very peak of avoiding reexporting of US inflation by way of China is concerned, it may be time to panic, or at least cancel those plane tickets to Zimbabwe, which is soon coming to us." In light of that perhaps today's words of caution from Wal Mart CEO Mike Duke will be taken a tad more seriously (yes, even with the $50 billion in "squatters rent" that the deadbeats spend on iPads instead of paying their mortgage: that money is rapidly ending). Warning is as follows: "Wal-Mart's core shoppers are running out of money much faster than a year ago due to rising gasoline prices, and the retail giant is worried. "We're seeing core consumers under a lot of pressure," Duke said at an event in New York. "There's no doubt that rising fuel prices are having an impact." Tell that to Printocchio please.
From Money:
Wal-Mart shoppers, many of whom live paycheck to paycheck, typically shop in bulk at the beginning of the month when their paychecks come in.
Lately, they're "running out of money" at a faster clip, he said.
"Purchases are really dropping off by the end of the month even more than last year," Duke said. "This end-of-month [purchases] cycle is growing to be a concern.
Also remember that long-running joke from the NBER short bus that the recession ended in late 2009? Turns out they were just kidding, as well as blatantly lying.
Wal-Mart which averages 140 million shoppers weekly to its stores in the United States, is considered a barometer of the health of the consumer and the economy.
To that end, Duke said he's not seeing signs of a recovery yet.
With food prices rising, Duke said Wal-Mart is charging customers more for some fresh groceries while reducing prices on other merchandise such as electronics.
Wal-Mart has struggled with seven straight quarters of sales declines in its stores.
Here's an idea: how about we let someone with actual business experience, who runs the one company employing more people than even the Federal Reserve, Mike Duke, control US monetary policy for a few months and see what happens? Surely it can't get worse than what that other insane sociopath is doing, as with each passing day we are now moving closer and closer to a hyperstaglfationary conclusion, and even the collective cheerleading crew of Cottonelle bearing monkeys, half of whom were reading "Monetary Policy for TV Reporters" (just two steps down below idiots), from yesterday's FOMC conference are finally starting to realize this.
Hedge Fund Insider Trading Cases Claim 21st Guilty Plea
The good news is that it appears the case with Galleon is coming to an end. The mass media has beat this story like a dead horse to showcase what regulators are doing to clean up Wall Street. The bad news is that Galleon is a small fish and in the larger picture what we have in our global markets is nothing short of criminal cabal of governmental officials, bankers and oil tycoons that commit murder and outright treason on a daily basis.
The SEC's (MO) is to conduct meaningless enforcement actions against small fry defendants and then claim victory. For their efforts I offer a paper bag of dog shit as a thank you. I have spare time....
Silver update 4/28/11 SLV /PSLV
Submitted by: Francis Soyer 4/28/11
Well... That didnt last long did it? As a follow up to yesterdays post on using this pullback to buy more silver lets review what happened. On Tuesday PSLV / SLV came into us roughly 5 to 6%. This was an opportunity to leg into silver and add. Why? If you look at silver from a 6 month point of view notice that pullbacks of this nature are few and far between. Why are these pullbacks few and far between? Because silver, unlike paper money can not be printed on a printing press, is considered to be money like gold and has been since humans began trading with eachother using something other than teeth for toolmaking, will be the new currency reserve after fiat money blows up the global economy, is a real hard asset that has industrial use other than being considered money, is what foreign governments are scrambling to acquire along with gold and is a safer heaven than paper backed assets. Remember, gold and silver are what humans buy when they lose confidence in governmental systems. I think at this point to restate the obvious that confidence is governement systems or lack thereof is still in the early innings maybe first or second if we were to scale it to a baseball game. I think most would agree that the governmental systems around the world are broken and badly so.
Back to the tactical issue: Looking at the 6 mth also take note of volume. Notice strong volume on the upside followed by a slowdown / cool off and then resumption of the trend. This is a classic supply demand scenario where demand is stronger than supply for bull moves. Strong volume on upside means bears are on the defensive and the opposite applies for bear markets.
Now look at the three day, notice how quickly shares were snapped back to the upside. Leaving barely more than one trading session to react and add to the position. We may still get lucky and hopefully see some fear creap in for newer investors who do not understand the fundementals and are simply looking for the quick trade from a technical point of view. One of the reasons for failing trades in that your short term view should agree with your long term view.
From the three day point of view the pull back on tuesday which went below VWAP volume weighted average price was our signal and will continue to be our signal to add. I do not see silver fundementals changing any time within the next 15 to 18 months so as the days pass by we can keep vigil and be ready to react.
Cheers
Francis Soyer
P.S. New investors to silver should really watch the video posted the other day from the silver producers point of view and the other videos on the blog from Eric Sprott and Max Keiser to get up to speed.
Subscribe to:
Posts (Atom)