U.S. consumer confidence index falls to lowest level on record

October 28, 2008 by · Leave a Comment
Filed under: Economic News 

My confidence is spent as well until I see some fundamental change in how our economy is run.  In a debt based monetary system, your answer can not be issue more money for every company that gets in trouble after a huge asset bubble bursts.  

As I have stated since I started this website, we need to let the market do what it does best and that is let good companies prosper and bad ones fail.   Nothing goes up forever and you can not panic in a decline either.  We are making things worse in the long-term, for short-term gains that will evaporate over time.

Article:

US consumer confidence has fallen to a record low in October, as global stock markets fall, homes are repossessed and firms lay off workers.

The Conference Board said the monthly consumer confidence index fell to 38, down from a revised 61.4 in September and below analysts’ expectations of 52.

 It is the lowest since the board began tracking consumer sentiment in 1967.

The survey of 5,000 US households is a gauge of consumer spending – which makes up two-thirds of the US economy.

It comes as the US government starts its cash-for-equity scheme to provide liquidity to financial institutions as part of a $700bn bank bailout

“Consumers are extremely pessimistic,” said Lynn Franco, director of the Conference Board’s research centre.

“This news does not bode well for retailers who are already bracing for what is shaping up to be a very challenging holiday season.”

The fall in consumer confidence followed three consecutive months of modest gains.

But Ms Franco said: “In assessing current conditions, consumers rated the labour market and business conditions much less favourably, suggesting that the fourth quarter is off to a weaker start than the third quarter.

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