Is Economic Pessimism Already Worse Than The Worst Of Last Summer?

TBI ^ | 6-2-2011 | Joe Weisenthal

[blam]

CHART OF THE DAY: Is Economic Pessimism Already Worse Than The Worst Of Last Summer?

Joe Weisenthal
Jun. 2, 2011, 12:28 PM

How fast things can change: Suddenly everyone is bearish, and in the matter of days the talk of "double dip" and "QE2" has come roaring back.

In fact, by some measure, pessimism may already be worse than it was last August, right before QEII and the re-acceleration of positive data.

This chart from JPMorgan's Thomas Lee -- as part of his big calls to buy cyclicals -- shows that the relative PE of cyclicals vs. defensives is well lower than its historical average AND well below where it was at the market nadir last year.

[lucky american]

Ive been saying for the last 5 years, we are in serious trouble. If we don’t take a stand and fight for what is right we WILL go down hard.

[Jim from C-Town]

It is in my house!

[RobRoy]

I thought the riots would probably happen last summer. I was wrong. However, we are much more ripe for it this year. I could be wrong about the timing again though.

One thing I have noticed is that my wife is noticing a lot of pessimistic articles, and she mostly focuses on MSM as her source. It has ramped up so considerably that we consciously noticed and talked about it just yesterday.

[RS_Rider]

“I thought the riots would probably happen last summer. I was wrong. However, we are much more ripe for it this year.”

I read yesterday that Florida was going to start drug testing welfare recipients in July. That may be the catalyst to ignite the riots.

[HOYA97]

It would just take one major event and I think we would then see the melt-down that many have been predicting for years. The USA looks like one big firecracker waiting to be lit!!!

[OrangeHoof]

I'm not happy about all the bearish talk in the media because they have been propping up Obama so badly that, to see this, makes me fear it's already much worse than we are being told - sort of like the Japanese citizens around the nuke plant.

If the media is bailing on Obama's happy smoke, it tell me they are now busy trying to save whatever credibility they think they still have after a decade of pure propaganda to get this guy in office.

[RobRoy]

>>That may be the catalyst to ignite the riots.<<

The fuel which will ignite and power the riots will be people with an entitlement mentality not getting their “entitlements”.

[tiki]

I agree with you. We’ve known it was bad but the sheeple who haven’t lost their jobs are going to be shocked.

It has only been recent that people who aren’t poor have started complaining about food prices on top of gas prices.

[ex-snook]

JOB TRADE SUCKING SOUND DO YOU HEAR IT NOW?

[blam]

A flash mob could go south in a hurry when an exasperated owner starts shooting:

War Zones: As The Economy Dies, Murders, Shootings, Robberies And Looting Erupt All Over America

[RS_Rider]

“The fuel which will ignite and power the riots will be people with an entitlement mentality not getting their “entitlements”.”

That’s my point. How many welfare recipients do you think will fail a drug test and then be denied their entitlement?