$1.38 .vs. $1.33, sales light a touch at $6.95 billion.
The problem is in expectations -- they are talking about January comps coming in negative, which is not something that usually happens with The Mickey D.
It seems that The Squeeze is indeed on; again, what I think everyone needs to be thinking about is forward guidance, not necessarily results.
What we keep seeing in the forward indicators are numbers that strongly imply at best flat economic conditions. The regional Fed surveys point to this repeatedly, yet nobody thinks this is a big deal, and of course this means that prices should go up for stocks.
But contemplate this: If The Fed is standing on the gas pedal and yet there is no traction of materiality being gained, what is really happening?
That's not hard to figure out -- all of this deficit spending, which is what The Fed is enabling and shoving into the economy, is in fact false demand that doesn't exist in the economy as a whole.
The idea that one should "jump start" the economy is a common chestnut, but we should be instead contemplating whether the previous 30+ years of economic patterns are reasonable -- and sustainable. The answer is "No" -- this "economic progress" has in fact come through debt accumulation that has surpassed improvements in economic output.
This is by definition a pyramid scheme since a percentage change on an ongoing basis must become evermore larger as time goes on.
The basic exponential curve is a mathematical expression that you can't change.
Even if you're McDonalds'.
Where We Are, Where We're Heading (2013) - The annual 2013 Ticker
The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.
NO MATERIAL HERE CONSTITUTES "INVESTMENT ADVICE" NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, BONDS OR FUTURES.
The author may have a position in any company or security mentioned herein. Actions you undertake as a consequence of any analysis, opinion or advertisement on this site are your sole responsibility.
Looking for "The Best of Market Ticker"? Check out Ticker Classics.
Market charts, when present, used with permission of TD Ameritrade/ThinkOrSwim Inc. Neither TD Ameritrade or ThinkOrSwim have reviewed, approved or disapproved any content herein.
Market Ticker content may be reproduced or excerpted online provided full attribution is given and the original article source is linked to. Please contact Karl Denninger for reprint permission in other media.
Submissions may be sent "over the transom" to The Editor at any time. To be considered for publication your submission must include full and correct contact information and be related to an economic or political matter of the day. All submissions become the property of The Market Ticker.
Leads on stories of current economic and political interest are always welcome. Our fax tip line is 850-897-9364; please include contact information with your transmission.