Posted on 02/25/2010 9:42:04 PM PST by Lorianne
Todays bleak consumer confidence number is undoubtedly bad news for the economy. The bigger than expected drop suggests that consumers have lost confidence in the recovery, which will drive down home prices and consumer spending.
Consumer confidence is typically our first look at the state of the economy. While most government aggregated data come out with a two-month lag, or more, consumer confidence hits with just a one month lag. Studies have shown that consumer confidence is a good predictor of consumer spending numbers. Basically, people surveyed seem to be good at accurately reading their own economic situation, and those surveyed accurately reflect the broader economy. When consumer confidence drops to such deep unexpected levelstodays were the worst in 27 yearsthen it is a flashing red-light about the economy.
The expectation that we would have a textbook end to the recession informed many of the expectations that were blown away by todays drop in consumer confidence. Weve have a historical record of 31 previous recessions in the United States, most of which indicate that the end of the inventory cycle boosts production and therefore employment and incomes. More importantly, the workers who kept their jobs become more confident about their future job and income prospects and begin to spend a larger fraction of their incomes. Deferred spending during a recession usually creates pent-up demand by consumers and businesses that then boosts spending once the recession ends.
(Excerpt) Read more at blogs.reuters.com ...
What so-called “recovery” are they talking about? We are losing 400-500,000 jobs per week, every week! If the U6 number is used, we are already in Great Depression territory, and some groups (youth, black males, etc.) are at historic levels.
IMPOSSIBLE! People can't do this on their own. They need government to tell them how they are doing. Why, are people not listening to all the economists who are surprised each month at all the unexpected economic bad news?
He managed to throw in some Bush blame today...
That's what I was wondering. That phrase was surprising.
You don't have that exactly right. What I think you mean is that...
People cant spend any more money they don't have because their credit card limits are tapped out or the interest rate on those cards is now so high they can barely afford the minimum payment much less speding more money that they dont have.
In other words, Americans are natorious for spending money they dont have. Their credit limits are just maxed out now.
Welcome to
Obamaville
Gettn a head fake,
watchin’ msns take;
All of their pundits oozing foul oil.
Cleann my six gun on my front porch swing.
Felling my blood—
Its beginnin’ to boil.
Wasted away again in Obamaville,
Searchin’ for a job so I can earn my salt.
Some people claim that Bush is to blame,
But I know it’s Obamas fault.
Theres no rhyme or reason,
They are all commitin treason
With nothing to show but a brand new tax or two.
But they are real beauties,
Despotic duties, how they got passed
I haven’t a clue.
Wasted away again in Obamaville,
Searchin’ for a job so I can earn my salt.
Some people claim that its Bush we should blame,
Now I think,— hell with them its Obamas fault.
I blew out my flip flop,
Stepped on a pop top;
Cut my heel, but I just cruise on back home.
Because no medical care will the doctors render
They say theres little service I can tender
And theres no need for me to hang on.
Wasted away again in Obamaville
Searchin’ for a job so I can earn my salt.
Some people claim that Bush is to blame,
But I know, it’s my own damn fault.
Yes, and some people claim that Bush is to blame,
And I know because of my vote it’s my own damn fault damn fault.
The answer is : K-winter
the recovery never happened.. <<<<<
And that really is the truth in all of this.
The left has been desperatly trying to put a positive spin on the news because they know what the bad numbers are going to do to them in November! The disparity between reality and the what they would like us to believe is unexpectedly unbelievable!
Exactly right.
People cant spend money they dont have. So that slows down the movement of money which grinds the economy to a halt.
This is economics 101, folks.
And the solution is real tax cuts for all businesses and individuals, not government spending.
When GW was President my CD’s were making 5%...under 0 they are making 1.78%...see my finance man Wed and moving them to something more secure...keep seeing FDIC going broke articles posted...I’m 63 hubby 70 we don’t have much, but would like to have a nest egg should something happen to either one of us. We received NO COLAS in our SS or his Navy retirement, in fact his retirement check was $10.80 LIGHTER due to the tax fiddling 0 did. An now they want to up or Medicare premiums, and Tricare for Life, leaving us less and less money to live on.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.