The consumer confidence index was 61 in September 2008 as the country was about to experience the greatest economic collapse since the Great Depression. This morning it plunged to 58.6 as people realized that taxing the rich meant them. They also realized they are stuck with Obama as President for the next four years. They also realized that Obamacare is going to cost them a shitload of money and decrease their level of medical care. They also realize that gas prices aren’t dropping and food prices keep rising. They also realize that $1 trillion of deficits per year will eventually destroy the country. Anyone who is confident about the direction of this country is either on drugs or thinks Paul Krugman is brilliant.
The housing recovery storyline keeps taking hits as new home sales fell, pending home sales fell and now prices have fallen two months in a row.
Reality is a bitch. But don’t worry. The talking head bimbos and shysters say it’s the best time to buy stocks and houses.
Consumer confidence drops in January
WASHINGTON (MarketWatch) — A gauge of consumer confidence dropped in January to the lowest level since November 2011 on lower expectations and gloomier views of the present situation, according to data released Tuesday. The Conference Board said its consumer-confidence index dropped to 58.6 in January, missing analysts’ estimates of 64.3, from an upwardly revised 66.7 in December. A prior December estimate pegged the level at 65.1. “Consumers are more pessimistic about the economic outlook and, in particular, their financial situation,” said Lynn Franco, economic indicators director at the Conference Board. “The increase in the payroll tax has undoubtedly dampened consumers’ spirits and it may take a while for confidence to rebound and consumers to recover from their initial paycheck shock.” Generally when the economy is growing at a good clip, confidence readings are at least 90. The Conference Board’s barometer of consumers’ expectations fell to 59.5 in January from 68.1 in December. The expectations gauge has dropped 30% in the last few months, with protracted fiscal negotiations among U.S. lawmakers taking a toll, among other factors. Meanwhile, the Conference Board’s gauge of views on the present situation dropped to 57.3 in January from 64.6 December.
Home prices decline in November, Case-Shiller says
WASHINGTON (MarketWatch) — U.S. home prices declined in November on seasonal weakness, with 10 of 20 cities seeing lower prices in the month, according to the S&P/Case-Shiller home-price index released Tuesday. The S&P/Case-Shiller 20-city composite posted a non-seasonally adjusted 0.1% decrease in November following a 0.2% decline in October. “Winter is usually a weak period for housing which explains why we now see about half the cities with falling month-to-month prices compared to 20 out of 20 seeing rising prices last summer,” said David Blitzer, chairman of the index committee at S&P Dow Jones Indices.
Administrator says:
Consumer Confidence Crashes To 2011 Levels After Biggest Plunge Since August 2011 Debt Ceiling Debacle
Submitted by Tyler Durden on 01/29/2013 10:13 -0500
It would appear that the hike in taxes on 77% of Americans that was heralded as a success, has dented confidence just a little. As the efficient stock market moves to all-time nominal highs in many cases, Consumer Confidence just fell off a cliff. The conference board printed at the worst level in 13 months – so all those 2012 gains are gone – and fell month-over-month by the most since the August 2011 fiscal cliff debacle. For every income levels (except those earning under $15k) confidence plunged with the $35k-$50k bracket crashing the most. It would appear that the driver of 70% of the US economy is not buying the new normal being fed to us daily by any and every media outlet possible. No matter how much the market is held up by mysterious runs in FX markets or volatility compression, it would appear that – just as we have been noting – the underlying macro fundamentals will eventually be priced in, as this does not bode well for retail sales.
Worst print in 13 months, biggest drop in 17 months…
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29th January 2013 at 10:37 am
Administrator says:
I wonder what happens to retail sales when consumer confidence plunges?
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29th January 2013 at 10:52 am
sangell says:
Detroit is the new normal
http://www.reuters.com/article/2013/01/28/us-usa-detroit-bankruptcy-idUSBRE90R13O20130128
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29th January 2013 at 10:55 am
Bostonbob says:
Admin,
I continue to dee this in the news.
http://www.bloomberg.com/news/2013-01-29/home-prices-in-u-s-rise-by-most-in-six-years-as-market-firms.html
Thank you,
Bob.
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29th January 2013 at 10:58 am
Bostonbob says:
Sorry no dee, but see.
Bob.
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29th January 2013 at 10:59 am
Thinker says:
Admin @ 10:52am: an inverse relationship, clearly. And starting in 2001… perhaps Americans took the whole, “best thing you can do it go shopping” thing a little too seriously?
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29th January 2013 at 11:24 am
Anonymous says:
From State Run Reuters: Home Prices See Best Yearly Gain Since 2006!
An excerpt: Prices in the 20 cities rose 5.5 percent year over year, making for the strongest yearly price increase since August 2006 when prices were on their way down.
“This is continuing a trend in place for the better part of a year,” said Omair Sharif, U.S. economist at RBS Securities in New York. “This is another indication that the housing rebound is fairly entrenched at this point.”
The housing market became a bright spot for the economy last year as prices rose and inventory tightened. The sector is expected to contribute to economic growth in 2013, though a number of challenges remain, including tight access to mortgages and on-going foreclosures.
It was the 10th month in a row that prices have increased, the longest string of gains since before 2006. Last year’s rise in prices beat a nine-month consecutive run in 2009 and 2010, when the market was boosted by a homebuyer tax credit.
BUY STOCKS!!!
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29th January 2013 at 11:51 am
Maddie's Mom says:
Bostonbob,
Say it with me…..
PROP-a-gan-DUH!
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29th January 2013 at 2:42 pm
Administrator says:
More great news for the average American.
Oil end above $97 at highest since September
SAN FRANCISCO (MarketWatch) — Oil futures rose above $97 a barrel Tuesday, marking the highest settlement for a front-month contract since mid-September. Ongoing tensions in the Middle East fed global supply concerns and oil traders awaited U.S. updates on petroleum supplies. March crude (NMN:CLH3) rose $1.13, or 1.2%, to settle at $97.57 a barrel on the New York Mercantile Exchange. While the settlement “represents a four-month high for crude, [West Texas Intermediate crude] prices are likely retreat back to $95 on Friday should U.S. monthly employment data for January fail to meet market expectations,” said Alan Herbst, a principal at Utilis Advisory Group. February natural gas, which expired at the Nymex session’s close, ended 6 cents, or 1.9%, lower at $3.23 per million British thermal units.
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29th January 2013 at 2:55 pm
Llpoh says:
I doubt they survey the 30 blocks, Detroit, or the Chicago slums. Dem folk think things are great and want Obama appointed king. And a lot of those fuckers vote. So, it matters not what consumers think, it matters that there are more takers than makers.
Bend over, here comes the big black one. Just the first of many.
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29th January 2013 at 3:31 pm
Administrator says:
US Consumer Confidence Plunges
What is wrong with the little people, these takers and fakers? Confidence has never been better on Wall Street.
Look at the VIX and the SP 500, and booming home prices in the Hamptons. Get with the program.
Lloyd Blankfein just had a $21 million pay day. He’s filled with confidence. And Jamie Dimon is walking on water.
Fraud and deceit will continue until confidence and trust improve.
JESSE
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29th January 2013 at 3:52 pm
Thinker says:
I feel like I’ve fallen through the rabbit hole…
January 29, 2013
U.S. Economic Confidence Surges to Five-Year Weekly High
Gallup’s Economic Confidence Index highest since Gallup Daily tracking began
by Lymari Morales
WASHINGTON, D.C. — Americans were more positive about the economy last week than they have been at any time since Gallup began tracking economic confidence daily in January 2008. Gallup’s Economic Confidence Index improved to -9, from -13 the prior week and -22 during the last week of December. This just beats the previous weekly high of -10 set during the week ending Nov. 4, just before the U.S. presidential election.
http://www.gallup.com/poll/160151/economic-confidence-surges-five-year-weekly-high.aspx
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29th January 2013 at 4:26 pm
card802 says:
Consumer confidence.
What a joke. The average dipshit doesn’t know any more than what they are told to believe and what they want to believe.
This is all so damn frustrating, you just can’t explain facts to people that don’t want to listen. Fuck em.
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29th January 2013 at 8:36 pm
Makati1 says:
I think that the Chicago of today may look good before this is all over. I wonder when China is going to pull the plug?
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29th January 2013 at 9:32 pm