SOMETHING WICKED THIS WAY COMES

I stopped trying to predict markets back in 2008 when the Federal Reserve, Treasury Department, Wall Street bankers, and their propaganda peddling media mouthpieces colluded to rig the markets to benefit the elite establishment players while screwing average Americans. I haven’t owned any stocks to speak of since 2006. I missed the the final blow-off, the 50% crash, and the subsequent engineered new bubble. But that doesn’t stop me from assessing our true economic situation, market valuations, and historical comparisons in order to prove the irrationality and idiocy of the current narrative.

The proof of this market being rigged and not based upon valuations, corporate earnings, discounted cash flows, or anything related to free market capitalism, was the reaction to Trump’s upset victory. The narrative was status quo Hillary was good for markets and Trump’s anti-establishment rhetoric would unnerve the markets. When the Dow futures plummeted by 800 points on election night, left wingers like Krugman cackled and predicted imminent collapse. The collapse lasted about 30 minutes, as the Dow recovered all 800 points and has subsequently advanced another 1,500 points since election day. Krugman’s predictive abilities proven stellar once again.

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LOBSTER IN A COAL MINE

I saw the headline this morning that Darden’s earnings declined, but THEY BEAT ESTIMATES!!!!

WOW!!! If they beat the estimates that have been dramatically decreased over the last three months than all must be well. What a fucking joke Wall Street and the MSM are.

Their earnings plunged by 18% over last year. Their comparable store sales are spiraling downward. These idiots took on $1 billion of debt in the last year as they have bought back $400 million of their own stock and have added 150 new restaurants.

Below is a chart from their earning release. Sales in February were rapidly deteriorating. The Obama tax increases, Obamacare health insurance premium increases, gasoline price increases, and “strong” jobs recovery are working their magic on the middle class.

Darden is the lobster in the coal mine. When the obese middle class are doing OK, they head out to Olive Garden for unlimited breadsticks or Red Lobster for unlimited crab legs. The middle class is not feeling OK. Ignore the MSM bullshit and look at the facts. The recession began last year and it’s getting worse. The proof is in the breadsticks. 

http://finance.yahoo.com/news/darden-restaurants-reports-third-quarter-110000313.html

Fiscal 2013 December, January and February U.S. Same-Restaurant Sales Results

Darden reported U.S. same-restaurant sales for the fiscal months of December, January and February as follows:

           
Olive Garden December   January   February
Same-Restaurant Sales -2.5%   -0.6%   -9.1%
Same-Restaurant Traffic       -3.7%   -0.9%   -7.0%
Pricing 2.3%   2.1%   1.2%
Menu-mix -1.2%   -1.7%   -3.4%
           
Red Lobster December   January   February
Same-Restaurant Sales -7.1%   -5.2%   -7.5%
Same-Restaurant Traffic           -5.5%   -1.7%   -6.0%
Pricing 1.2%   1.3%   1.2%
Menu-mix -2.8%   -4.8%   -2.7%
           
LongHorn Steakhouse December   January   February
Same-Restaurant Sales -3.6%   2.5%   -3.0%
Same-Restaurant Traffic       -4.4%   0.1%   -2.9%
Pricing 2.0%   2.0%   2.0%
Menu-mix -1.3%   0.4%   -2.2%