Cheap is the New Cool!

Cheap is the new cool and it is Now COOL to be Cheap!

The emergence of the Super Tsunami Kondratieff Long Wave in 2007/08 has ushered in a new era.  We comment about this extensively on our website and in our yearly Market Reviews and Quarterly and Monthly Updates and in a much abbreviated version on these Blogs. 

Basically people have much less money and they are going to begin shopping for value, which means cheap and inexpensive is ‘In’ and gaudy and unnecessarily expensive is ‘Out.’

The following is from our homepage:

“…We believed then that the economic shocks of 2000 & 2001 would force companies to refocus their Marketing and Advertising campaigns on the 'quality' of the products or services offered and the real 'needs' that they satisfied.  We believed that US consumers would no longer be as susceptible to the over-buying of massive quantities of  'cheap' imported products, merely because they were 'cheap.'  Conversely, we believed they would become resistant to the lure of overpriced luxury goods/services that only satisfied the 'ego-boosting' effect of owning something that everybody else wanted. We felt that these dramatic shifts in consumer behavior would be evidenced as the US consumer metamorphosed from an insatiably covetous 'Debt-Crazed Buying Fanatic' (DCBF) to a more Conservative, Frugally Sane Shopper (CFSS) focused on satisfying needs by the exchange of his money for value. …”

And the following is from our “New Normal” page on that website:

"... The “New Normal” of a decades-long Real Estate Deflation of ALL Commercial and Residential "Bubble" priced RE and a steady and increasingly pernicious Commodity Inflation will depress the Public Psyche for many, many years, as the Monetary and Fiscal Authorities of ALL Nations fight the unrelentingly depressive effects of the "Kondratieff" Long-Wave, to no avail.

The public's Psyche is now struggling with the adjustment to a real shocker, i.e. the continuing DEFLATION of the US consumer's primary asset, i.e. their home. This unpleasant and totally unexpected phenomenon is starkly juxtaposed against soaring commodity prices that will continue to soar as long as the Fed is intent on exploding the Monetary Base via successive Quantitative Easing (QE) campaigns.  QE 3 is now a foregone conclusion and promises severely impacted prices of food and energy.

So, over the next several years, while US "Bubble" priced Commercial and Residential RE prices are imploding, the level of incomes will be stagnating or collapsing, the number of good-paying jobs will be evaporating, the level of ALL taxes (local, State & US) will be inexorably rising, the prices of everyday necessities will be exploding and the Public's Psyche will be negatively impacted - day after day after day after day for many, many years into the future - until it is totally crushed in the onslaught of the "Kondratieff" Long-Wave.

The cognitive dissonance resulting from this nightmare scenario is just now becoming apparent and it will soon cause successively more powerful emotional shock waves to repeatedly jolt the Public's Psyche. …”

Are you and your company ready?  

Or, are you and your company choosing to ignore these things?

If the answer is the latter, then you are in ‘good company’ along with Bernanke and Greenspan and all the other loony economist ‘Pencil Heads!’

So, read about one of those who does clearly realize, and evidently has all along, that people really don’t have the money to spend that they like to pretend they do.

Ortega Tops Buffett With Zara Fortune of $53.6 Billion

By Alex Cuadros - Oct 31, 2012 12:02 AM ET ; Bloomberg Markets Magazine

Oct. 31 (Bloomberg) --
"Bloomberg's Matthew G. Miller and Alexander Cuadros discuss Bloomberg Markets' inaugural list of the world's richest people. The roster is a snapshot of Bloomberg's exclusive daily wealth ranking, the Bloomberg Billionaires Index, which identifies the mega-rich and quantifies their fortunes. China’s richest man, Zong Qinghou, and This issue features profiles of Europe’s richest man, Amancio Ortega, …

Since opening the first shop in his seaside home of La Coruna in 1975, billionaire founder Amancio Ortega has built the world’s largest clothing retailer -- and a fortune exceeding Warren Buffett’s, Bloomberg Markets magazine reports in its December cover package.
Ortega’s wealth is soaring even as his country battles an economic meltdown. Spain’s unemployment is hovering around 25 percent as the country suffers its second recession since 2009 and a debt crisis roils Europe. Standard & Poor’s cut Spain’s debt rating to one level above junk on Oct. 10. With the global economy growing the slowest in three years, Ortega’s cost- conscious lines are ringing up sales.

Cool Status

“That turbulence strangely favors a retailer like Zara,” says Nancy Koehn, a retail historian at Harvard Business School. “Among fashionistas, there’s a new badge of status in finding the cool at a lower price.” Kate Middleton, the Duchess of Cambridge, is sometimes photographed wearing Zara.
Inditex, short for Textile Design Industries in Spanish, boosted revenue to 7.2 billion euros ($9.3 billion) in the first half of 2012, 17 percent more than a year earlier. Revenue in Spain remained stable at about 1.6 billion euros during that time.
“They are fast reacting to fashion, they are very flexible with their product and they are growing nicely,” says Peter Braendle, who helps oversee $55 billion, including Inditex shares, at Swisscanto Asset Management AG in Zurich.
…. Wearing a simple shirt and slacks rarely of his own brands, which are cut for slimmer men, he confers on everything from placement of a zipper to the September debut of Zara’s Chinese website. …

Democratizing Fashion

“He saw that fashion has to be accessible, not just for a small elite,” says O’Shea, who describes Ortega as humble, eager for her opinion and trusting of young talent. “Fashion had to be democratized.”
Ortega doesn’t have qualms about borrowing from haute brands. In 2008, French footwear maker Christian Louboutin Sarl unsuccessfully sued Inditex, saying the company had infringed on its trademark red-soled high heels. A typical Zara shoe costs less than $100; Louboutin’s can exceed $1,000.

Low Inventory

Seamstresses in nearby cooperatives assemble the pieces and then send them back for ironing. A machine tags the price, applies plastic wrap and, using a system that borrows from Deutsche Post AG (DPW)’s DHL shipping unit, slots each item for delivery. …

Cheap Prices

Inditex doesn’t make everything at home. For less-fashion- sensitive items such as jeans and office wear, it outsources about half of its production to lower-cost countries.
Ortega’s drive for a cheap price tag has sparked a clash with Brazil, home to 35 Zara stores. Last year, government inspectors discovered more than a dozen Bolivians laboring in slavelike conditions, living in shops where they sewed garments for Zara Brasil Ltda. …”

# II Unfolding Horrors of THE "New Normal"

I am horribly saddened to post this Blog, but I must in the interest of getting the truth out about the devolution of this once great country.

 

The following very apocalyptic-laden tale is from:

www.http://endoftheamericandream.com/archives/will-frustrated-homeowners-and-armed-posses-take-matters-into-their-own-hands-as-home-invasions-rise

 

Will Frustrated Homeowners And Armed Posses Take Matters Into Their Own Hands As Home Invasions Rise?

By Michael, on October 22nd, 2012

   

Violent crime is on the rise in the United States, and many Americans are totally fed up.  According to the U.S. Bureau of Justice Statistics, the number of household burglaries rose by 14 percent last year, and the overall rate of violent crime in the United States increased by 18 percent during 2011.  Based on what we have seen so far this year, we will almost certainly see another huge increase once the statistics for 2012 are released.  All over the country criminals are becoming bolder.  Meanwhile, police budgets are being slashed from coast to coast.  Things have gotten so bad in some communities that police are openly admitting that crime is completely and totally out of control.  For example, police in Detroit recently handed out flyers with this message: "Enter Detroit at your own risk".  Sadly, you can't even escape the crime and the violence by staying in your own home these days.  Home invasions are becoming increasingly common, and many police departments seem powerless to stop them.  If many of the poorer areas of America today, if you are a victim of a home invasion you will be really lucky to get a police officer to show up a couple of hours later to fill out a report.  A lot of frustrated home owners have had enough and have started to arm themselves to the teeth.  Some have even begun to form armed posses to patrol their own neighborhoods.  We are watching America change right in front of our eyes, and it is frightening to think about what is coming next.
The streets of some U.S. cities have been transformed into war zones at this point.  Juts check out this excerpt from a recent story about the horrific violence that is taking place in Camden, New Jersey...
At the vigil last week, residents prayed that Camden would simply find peace and that the masked gunman who killed Jewel Manire and Khalil Gibson would be caught.
As it grew darker, Michael Benjamin stood toward the back of the crowd, his son huddled even closer now, and shook his head.
"I've known at least 45 kids who've been killed in my lifetime," he said, the boy holding his finger. "I stopped counting in 2004, though."
You may think that talk of "armed posses" patrolling local communities is a little "out there", but the truth is that it is already happening.
For example, a groups of residents in Josephine County, Oregon have formed "the CAC Patrol".  They have mounted flashing lights on to their vehicles and they openly carry guns as they patrol their neighborhoods...
There's no room in the county jail for burglars and thieves. And the sheriff's department in a vast, rural corner of southwest Oregon has been reduced by budget cuts to three deputies on patrol eight hours a day, five days a week.
But people in this traditionally self-reliant section of timber country aren't about to raise taxes to put more officers on the road. Instead, some folks in Josephine County, larger than the state of Rhode Island, are taking matters into their own hands — mounting flashing lights on their trucks and strapping pistols to their hips to guard communities themselves. Others have put together a virtual neighborhood watch, using Facebook to share tips and information.
"I believe in standing up for myself rather than waiting for the government to do something for me," said Sam Nichols, a retired marina manager.
Nichols has organized a posse of about a dozen fed-up residents who have started patrolling the small community of O'Brien, which has about 750 residents.
As home invasions continue to get worse all over the country, I expect that we will see a lot more of this type of thing.
In the old days, we were taught that if burglars enter your home that you should let them take whatever they want and leave.
But these days you simply cannot trust that they will leave you and your family alone.  Many home invaders actually hope to find someone inside that they can rape, and many victims end up dead.
That is exactly what happened to one man in Gary, Indiana the other day...
Last Friday, Jerry Hood, 48, of Gary, Ind., left work and decided to go home during lunchtime. Gary police said Hood, who was with a co-worker, noticed activity in his house and called police for help, but did not wait for police to arrive. Instead he went in and lost his life when he disrupted a home invasion, police say. Hood died from multiple gunshot wounds.
And that is exactly what happened to another man in Pontiac, Michigan recently...
A shootout during a possible home invasion left the 27-year-old owner dead and a suspected intruder wounded, the Oakland County Sheriff's Office said.
Deputies were called about 3:25 a.m. to an address in the 800 block of Inglewood Avenue near Cesar Chavez, where a home invasion was reported.
A 12-year-old girl down in Oklahoma may have been added to the growing list of dead victims if she had not been willing to shoot first and ask questions later.
The story that she recently told police is absolutely chilling...
"He opened the screen door and started pounded on the door. So I didn't answer it. And I called my mom. She said to go get the gun and hide in the closet."
Kendra St. Clair says she stayed in the closet until she thought the coast was clear. So she went to check the back door.
And he was standing there trying to open it. So I got really scared and I called 911."
She went back to the closet. That's when she heard the man in the house.
"When I was back there on the phone with 911, I heard the bathroom light turn on that was leading to the closet. And when I saw the door handle turn, I shot him. I guess it went through the door, went through him, and went through the wall."
What do you think would have happened to that 12-year-old girl if she had not had a gun?
You normally would not think of Oklahoma as a high crime state, but the truth is that home invasions are on the rise all over the nation.
Here is another home invasion story from Oklahoma.  A young mother was home alone with her three-month-old son when two men started breaking into her home.  Fortunately, she had a gun and was willing to use it...
An Oklahoma woman was recently home with her 3 month old son when two men tried to break in.  Armed with a shot gun and a pistol she called 9-1-1.
Operator: "Are your doors locked?"
Caller: "Yes, I've got two guns in my hand.   Is it ok to shoot him if he comes in this door?"
Operator: "I can't tell you what you can do but you do what you have to do to protect your baby."
The mother did shoot killing one of the intruders.  Oklahoma police called the shooting justified.
Would you do the same thing to protect your children?
Sadly, criminals are becoming more desperate than ever and many of them do not even care if there is anyone inside the homes that they are invading.
For much more on this, please see my previous article entitled "11 Shocking Home Invasion Horror Stories That Are Almost Too Creepy To Believe".
Are you starting to see why I believe that more homeowners are going to start taking matters into their own hands?
Some areas of the country that once had very little crime are now seeing crime absolutely skyrocket.
A while back, I shared what one man down in Georgia says is going on in his neck of the woods...
I worked until around 9:30-10 Friday night, and Saturday morning my tools and equipment were gone. Footprints, fingerprints, a neighbor saw the guys and pickup truck - but the sheriff's department can't afford the resources to track them down (by comparison it's not a violent/murder case or a $40k vehicle...) I have a security camera on the front gate, and they avoided that by a 100 foot radius - dragging everything across a fence and down into a ditch on the other side of the property.
The day before another neighbor literally met and passed by people that had just robbed his farm, on his way back from the store, less than a mile from his house - he recognized his stuff on the back of their trailer. This was in the middle of the day. His gate was locked - but they drove through the ditch and around a field to get to his house.
A local truck repair shop has been in business for 3 generations, and until a few weeks ago had never been robbed. They are on the main street of a little town, and live right behind the shop. The front door of the shop is about 30 feet back from the main street. The thieves parked in FRONT, and loaded up his equipment.
Another big shop was hit on a Saturday morning - main street going into town - they loaded up everything right out the front door, with people seeing them, hundreds of cars driving by... They have bolt cutters, whatever it takes to break in...
Another older shop had a heavy wood door with a metal hasp - they CHOPPED THROUGH THE DOOR WITH AN AXE to cut out the metal hasp. A house is 100 feet from this shop.
We live in Georgia, south of Atlanta, and theft has become so bad, the state recently required all scrap yards to take pictures of everything brought in, with a picture of who brought it, a copy of their drivers license, and their tag number. If it is air conditioning/heating equipment (bigger than a window unit) you must have a commercial heating/ac license or a new equipment bill of sale. People were ripping the copper ground wires off the sides of power poles and tearing wires off the poles for scrap.
A local gas station/restaurant had their AC equipment stolen so many times, they had to build a chain link locked enclosure around all the equipment. You can see it from the main street - out in plain view.
Do you have any stories like this that you would like to share?
What are you seeing in your neck of the woods?
Please feel free to post a comment with your thoughts below...

Unfolding Horrors of the 'New Normal'

Before you read the following news story out of imploding California, I offer the following excerpt from our “New Normal” webpage at www.polestarcomm.com:

“… The very tangible and inevitable effects of the devolving dynamics of this RE “Bubble Bursting” conundrum (until its eventual wash-out) will be the primary causation of a years long interlinked series of psychologically depressing events:
#1 continued suppression of interest rates causing a continued punishment of savers (forcing the gullible ones to the equity markets) until they are totally wiped out when the “Bond Bubble” finally bursts, after the "Great Deception of 2012" has finally run its course,
#2 successive QE's will artificially inject capital into the equity markets fostering totally unwarranted rallies (which will wipe out all the bears, who are actually right) and congruently pull in all the disenchanted bond holders who will then be totally wiped out when the equity markets crash just before the 'Bond Bubble' bursts,
#3 continued inflation of food and energy prices and a continued deflation of all Real Estate prices in 'absolute' terms for the next 12 to 24 months and then a continued decades-long deflation of "Bubble" priced RE in 'inflation adjusted' terms into the 2022 to 2027 time-frame,
#4 continued inflation in the cost of and pricing of all professional services precipitating a continued deflation of quantity and quality of those very services,
#5 continued inflation of all taxes to raise money from the strapped middle classes that will not be sufficient to fund the US Government's expenditures in a period of contracting incomes and GDP, congruent with horrifically expensive Wars and planned Wars. So that, there will then be an accelerated deflation of the quantity and quality of all Government services and a near severance of the US Government’s Social Safety Nets installed in the 30’s by a once caring and socially responsive National political class of Democrats,
#6 continued inflation in the number of Corporate and individual bankruptcies caused by the continued inflation in the absolute numbers of the newly unemployable, as more and more jobs are outsourced or taxed and regulated into oblivion,
#7 all of the above will insure the US Government’s continued bailing out of the financial institutions and banks, which will be financed by the accelerating abandonment of individuals as the ‘Safety Nets’ of States and the US Government are shredded,
#8 the net effect will be a resurgence of the ‘Misery Index’ of the 70’s and a continued surge in all inflation hedges – most especially Gold and Silver!
The "Age of Frugality"
Any company that ignores the emotional impact of this “New Normal” on the average US consumer or investor will likely see their market share progressively shrink and their corporate visibility diminish….”

The following horror story is from:

http://www.city-journal.org/2012/cjc1022jr.html

What Austerity Looks Like

Bankrupt San Bernardino’s new, skeletal government

Jeremy Rozansky; 22 October 2012

“Three interconnected forces brought the working-class, inland Southern California city of San Bernardino to insolvency: a burst housing bubble and lethargic economic growth; high police and firefighter salaries mandated by the city’s charter; and compounding pension obligations. Bankruptcy should give San Bernardino leverage to deal with the last two, but the big, structural changes required will not be easy or pleasant. Absent such changes, though, salaries and pensions will continue to grow faster than the city’s revenues, crowding out most other government functions and services. San Bernardino offers a telling illustration of austerity’s causes and effects: a tragic failure to think beyond the short term eventually necessitates painful reforms.
We already know something of what San Bernardino’s government will look like in the age of austerity. The city, with a poverty rate equivalent to Detroit’s and a homicide rate that has quietly surpassed Chicago’s, declared a fiscal emergency in early July and officially filed for bankruptcy on August 1. Deferring payments to bondholders just to make payroll, the city has been forced to trim its budget radically.
As a bridge to the bankruptcy proceedings, interim city manager Andrea Miller attempted to reduce the deficit by proposing a new budget called a pre-pendency plan. Her austerity budget, which passed with only a few changes after much haggling, will form the basis of the plan submitted to the bankruptcy court. The city projects a $45.8 million budget deficit, which the pre-pendency plan would reduce to $7.5 million by making “draconian” and “catastrophic” cuts, in the words of some city council members. Even then, the budget wouldn’t be balanced, and the plan doesn’t address an $18 million cash deficit from the previous fiscal year. Approximately $7 million in deficit reduction comes from transfers, either from special funds—for, say, road work or sewer repair—to the city’s general fund or from the federal government. The city would save another $9.4 million by continuing a 10 percent pay reduction for some municipal workers. The remaining $21.9 million in reductions comes from drastic cutbacks to services or deferred payments, mostly to the pension fund.
In cutting overall expenditures nearly 25 percent, the city leaves virtually no department untouched—including city hall, which will operate with a skeleton crew. Since 2006, the mayor’s office has gone from ten employees to three, counting the mayor. The city eliminated six positions from its information-technology department, cutting to the point at which “core” functions would be threatened. The city has combined departments, contracted out services, and even closed down its successful Operation Phoenix program, an anti-crime initiative Mayor Pat Morris launched shortly after taking office in 2005. San Bernardino’s community-policing effort will thus lose its two headquarters, which also served as community centers. Three of the city’s four libraries will close, while layoffs will hit 32 parks department employees and one-third of the city’s code-enforcement officers.
These savings, however, won’t be enough to erase the deficit. San Bernardino spends about three-quarters of its budget on public safety—meaning police and firefighters. Very little in the police budget is devoted to non-personnel expenses, so the cuts inevitably affect staffing levels. The new budget leaves the department with 320 employees, down from 379. Most of the reductions were to civilian support staff, not sworn officers. But the police will have a great deal more work, especially now that the department will pick up the slack from laid-off code-enforcement officers. Residents can assume that crime rates will continue to climb, especially given the demise of Operation Phoenix.
The firefighters’ union has been the most stubborn and transparently self-interested in San Bernardino. The average firefighter earns about $150,000 per year, and the union has resisted making any salary concessions. The city manager’s initial proposal would have eliminated 20 positions and either closed down a battalion or implemented rotating brownouts (that is, temporary shutdowns) of stations. City council members, some elected with help from the firefighters’ union and many worried about angry constituents facing slower response times, postponed a decision to explore alternative proposals. According to the city, the San Bernardino Fire Department has among the highest call loads in the country for a department its size.
San Bernardino’s austerity plan leaves an atrophied city government, but essential functions remain in place. Crime will likely go up, but it won’t necessarily skyrocket. Greek-style looting and arson appear unlikely. Closing three of four libraries isn’t ideal, but it isn’t the end of civilization, either. At the same time, however, the deep cuts do make San Bernardino an even less hospitable place. Businesses will be even more skeptical about moving to a city where the government can’t afford to fill potholes or respond quickly to crimes because it has been compromised by decades of poor decision-making. Much of the city’s deficit reduction is in deferred payments that have recently earned the ire of the California Public Employees’ Retirement System and the Securities and Exchange Commission; under a “best-case scenario,” the budget is unlikely to be balanced even with these cuts and deferrals. San Bernardino can balance its budget only by boosting revenues, which requires more businesses, not fewer. It’s not clear how long the city can continue on this unsustainable path.
Perhaps bankruptcy will prove the ultimate salve, cutting away the structural inefficiencies (from pensions to high municipal salaries) that went unaddressed for years. The city’s options are now limited, because it waited too long to address these problems. The United States has many structural problems of its own—most notably Medicare—and, as San Bernardino shows, myopia is never recommended. San Bernardino is a tragedy—and a warning to the rest of the country.”

Jeremy Rozansky is an assistant editor at National Affairs.

# II "Kondratieff" Death Grip Is Tightening

This is a reissuance and reiteration of our July 8^th Blog, below, with late breaking confirming economic reporting data from the September Quarter from the real economy that can not be manipulated, obfuscated, lied about or denied.

As, the truth of all things in this economy is not hidden nor difficult to understand, because “Its ALL In The Real Numbers, Man!”

Sunday, July 8, 2012

"Kondratieff" Death Grip is Tightening!

Despite all the MSM hoopla to the contrary, the following articles do prove that ALL the world’s economies are still contracting under the onslaught of only the First of Three waves of the Super Tsunami “Kondratieff” Long-Waves that hit all the world in 2007/08. ..."

For some additional predictions of the horrific economic landscape directly ahead  of all of us, go read this Blog, because all the information quoted there from our website, written two years ago and posted last year, is right now coming true and nobody can do anything about it, including Bernanke!  

And remember, and don't get fooled as the Sheeple are all the time, despite these especially frightening series of data from the real economy, the Dow Jones is going to go through the ever-loving roof (roughly 18,500 in Spring 2015), as the banks buy stocks and commodities to speculate and gamble with yours and my money that they are getting from the FED's endless supply of electronic entry dollars from their FMMM (FED's Magic Money Machine) that will now be given to all the banks in the everlasting QE's until the S__T does HIT the Fan in the coming "Bond Bubble' EXPLOSION!!

Caterpillar Cuts Outlook, Citing Slowing Global Economy

By REUTERS

New York Times; Published: October 22, 2012 at 9:35 AM ET

“Caterpillar Inc, the world's largest maker of tractors and excavators, slashed its 2012 forecast for the second time this year and warned the global economy was slowing faster than it had expected.
The cautionary note was the latest in a string of comments from multinational manufacturers, including General Electric Co and Honeywell International Inc, that the economic recovery remains tenuous and tepid at best. …
"As we've moved through the year, we've seen continued economic weakening and uncertainty," Chief Executive Doug Oberhelman said in a statement.
The statement also noted that sales in China, the world's largest user of construction equipment, had also declined in the quarter and had yet to improve …”

DuPont Takes It On The Chin As It Misses Everything And Cuts Guidance

Forbes; 10/23/2012 @ 11:51AM |1,277 views

“DuPont delivered an ugly looking earnings report for its third quarter, making it one of day’s worst performers amid heavy volume.  As U.S. stock markets completely broke down, DuPont missed profit and revenue estimates, announced it was laying off 1,500 workers globally, and cut its guidance below estimates; shares were off nearly 9% in early trading in New York.
In what has been a relatively weak earnings season, DuPont revealed an awful third quarter on Tuesday.  The Dow Component saw operating income drop a staggering 48% to $302 million excluding items, which translates to an EPS of 44 cents; Wall Street had forecast earnings of 45 cents per share.
DuPont’s revenues took a hit on all fronts.  Sales were down 9% to $7.4 billion, as volume declined 5% while currency effects helped shave off an additional 4%...”

DuPont, UTX, 3M Sales Miss On Global Economic Woes

By GILLIAN RICH, INVESTOR'S BUSINESS DAILY

 Posted 11:48 AM ET

“DuPont (DD), 3M (MMM) and UTX (UTX), all Dow component companies, fell after their quarterly sales missed forecasts and they issued disappointing outlooks Tuesday, citing weak global economic conditions.
DuPont, the maker of Kevlar bulletproof vests and paints and coatings, said third-quarter profit dropped 36% to 44 cents a share, missing analyst estimates by 2 cents. Revenue fell 9% to $7.39 billion, below estimates of $8.1 billion.
The company lowered its 2012 EPS guidance to $3.25-$3.30 vs. prior estimates of $3.55.
"Weaker than expected demand in titanium dioxide and photovoltaic markets contributed to the decline from last year's record third-quarter earnings. We are addressing these challenges now to position ourselves for improved performance," said CEO Ellen Kullman.
The company is initiating a restructuring plan to save money by laying off 1,500 workers in the next 12-18 months….”

UPS earnings miss; outlook is cut

Philadelphia Inquirer; July 24, 2012|By Linda Loyd, INQUIRER STAFF WRITER

“United Parcel Service Inc., with a large airfreight hub in Philadelphia, missed second-quarter earnings estimates Tuesday and cut its full-year outlook, citing broad economic uncertainty.
The world's largest package-delivery company, a bellwether for transportation companies globally, expects the U.S. economy to grow just 1 percent this year, below projections of some economists.
The delivery giant said export volumes from Asia fell more than expected in the three months ended June 30.
"Economies around the world are showing signs of weakening," chief executive officer Scott Davis said on an earnings call. "Our customers are increasingly nervous."

'Great Deception of 2012' is HERE!!!!

OK Folks.  IF you’ve subscribed to our services or read our many Blogs on the coming MSM ‘Cheerleading’ and ‘Rooting’ and ‘Tooting’ for the ‘Great Deception of 2012,’ then the following article needs no introduction.
DOW Jones 18,500 here we come, despite the fact the US and World’s economies are now firmly mired in the worst Inflationary / Depression that will only get much worse from here on out to the 'Mother of ALL Stock Market Crashes' in Spring to Fall of 2015.


We are in for one ‘Helluva’ ride folks!

Are you and your company ready with vastly expanded inventory loads to meet the hyped up demands of the stupid Sheeple who will be buying everything on the shelves this Christmas and next, because they will see the markets going up every day and will be told that that means that everything is 'ALL Clear?'  

 And the poor Sheeple will be led to slaughter once again, as we just expostulated on back in September:

Friday, September 14, 2012

# II All Our Predictions Coming True!!

Unfortunately, this day was clearly seen and predicted by us back in March 16, 2009, when we first predicted on that day the Dow Jones would rocket to 15,000 and not collapse to 3,000, as so many predicted then.  We then were talking to only our clients and friends.  

Since then, at their insistence, we have started to release these things to the public on these Blogs; so that, a very few companies and individuals may see the truth of the economic Horrors soon to engulf all the world - and possibly take actions to survive and to prosper. 

Why do we see these things?

Because we have access to the ultimate source on all things - stay tuned folks!

 

Swings Seen Ending After 15 Years for S&P 500: Chart of the Day

Bloomberg; By David Wilson - Oct 12, 2012 12:00 AM ET

“Fifteen years of up-and-down swings in U.S. stocks may finally come to an end, according to Jeffrey Kleintop, LPL Financial Corp.’s chief market strategist.
The CHART OF THE DAY highlights one of four reasons for Kleintop’s outlook, presented this week in a report: stocks are cheap by historical standards even though the Standard & Poor’s 500 Index is approaching its past highs.
Within the past two weeks, the S&P 500 has closed less than 7 percent below its record of 1,565.15, set in October 2007. … Along with valuation, growth since 2000 in earnings, dividends and the economy will lend support to stocks, the Boston-based strategist wrote. The combination may limit the effects of a sluggish global economy, European financial stress and U.S. budget battles, the report said.
“Stocks are likely to weather nearly any outcome” better than they would have at other times, Kleintop wrote. Individual investors may be too cautious, he added, citing data from the Investment Company Institute that showed money flowed out of equity mutual funds in the second half of September. “

Update to past predictions of DOW 14,500 - right now

We have received some inquiries from first time readers of our Blogs, concerning what they believe are very significant errors in our past predictions.

IMPORTANT NOTE TO ALL READERS:

ALL of our original predictions were significantly extended by the insane extensions of the FED’s ZIRP (Zero Interest Rate Policy) by over 2 YEARS!!

Bernanke and his merry band of idiots have now extended the FED’s ZIRP by over five huge leaps of time, as I have counted them:

#1 Their first indications were merely of an unknown period and then    to a clearly stated end-point of late 2013;

#2 and then to a clearly stated end-point of early 2014;

#3 and then to a clearly stated end-point of mid to late 2014;

#4 and then to a clearly stated end-point of late 2014 to early 2015;   

#5 and then to a clearly stated end-point of early 2015;  

#6 and now to an implied end-point of mid 2015;  

Therefore, our earlier prognostications of all things were made before these insane extensions, when we originally predicted a rally starting in the Spring to Summer of 2012 and ending with a HUGE Stock Market Crash in mid to late 2013!

Now with Bernanke’s insanely extended ZIRP into at least mid 2015, we still predicted a rally for 2012 (but starting later in the Summer of 2012).  But the insane - ABOVE NOTED - extensions of the FED's ZIRP  have pushed the end-point for these 'Mother of ALL Stock Market Rallies' to market highs of 18,500 in late 2014 to mid 2015 and then the ‘Mother of ALL Stock Market Crashes’ sometime in late 2015.  

All of these extensions of our predictions were made necessary by the extended FED ZIRP's, pure and simple!!

So Folks, that is why the following Blog looks wrong.  But, of course, all this would have been clear, IF you, the doubters of what we say and predict, would have READ ALL OUR BLOGS between November of 2011 and July of 2012.

Or better yet, all these things would have been very clear to you, IF you  had subscribed to our Market Review and Quarterly Updates.

 

But, of course, you can’t do that because you are too cheap or simply don’t have the money.

Relevant Warning to readers of our FREE Blogs:  When we finally approach the ‘Event horizon’ of the ‘BOND BUBBLE EXPLOSION’ that will suck all worthless debt and ALL Fiat Currencies into a 'Black Hole' and end all things economic in the world for three years, these BLOGS will STOP!  

By the by, when these predictions were originally made of DOW 14,500 in September of last year for September of this year, nearly everyone else was predicting a crash!  

So, you doubters had better think of how right we were back then.

And, then think about our predictions yet to come!!  

Friday, November 18, 2011

Prediction: DOW 14,500 by May-Sept 2012

After you have watched very intently and examined very discretely the flow of what passes for economic news in this country for several decades, while at the same time cataloging the accuracy of the mainstream economic pundit’s prognostications that are made from their review of that very same news, then you can very easily see what lies ahead in the economy and the markets by simply reviewing their ‘professional review’ of the streaming nonsense that passes for economic data and econometric based 'pontifications' that are fed daily to the masses by the MSM, so as to move them to always be in the wrong investment at the wrong time. 

Today’s example of the above phenomena is especially revealing as to how thoroughly deceitful or economically naïve or simply stupid the economic pundits are, that are trotted out by the MSM.  Whether or not these things are true, it does become quite entertaining to watch their prognostications flow as they effusively comment on the 'patently false' and misleading economic data that they are fed.  

Once, you have mastered the very essential skill-set of 'reading their scripts,' then you too will see that the masses are being – right now – set up for a DOW rally to roughly the 14,500 level in the May to September time-frame of 2013.

From an analysis of the 'real' economic data flow and our very own econometric models, we are quite certain that AFTER the DOW reaches roughly the 14.500 area, then a crash of truly monumental proportions and devastating consequences and with cataclysmic effect for all the country will ensue, because ALL the data points that are even now being fabricated are specious – beyond comprehension.

Doubt us?

Just watch!