Friday, April 17, 2009

We're looking up, even if our finances aren't

U.S. confidence is at its highest point since September, when the collapse of Lehman Brothers sent Wall Street and the economy reeling.

The Reuters/University of Michigan Surveys of Consumers said its preliminary April reading of consumer sentiment rose to a level of 61.9, up from 57.3 in March and was the highest since 70.3 recorded in September.

Rasmussen's daily consumer confidence index also has spent the past week at levels not seen since last fall.

That optimism is coated with realism, however. Reuters respondents believe things will get better very slowly, said Richard Curtin, the survey's director. Curtin also noted that the positive outlook comes despite most respondents reporting their current financial status worsening.

Most any economist will tell you what small business owners already know - that the country won't begin its recovery until consumers believe it's not foolish to start spending a little money.

"Everything hinges on confidence," economic guru Mark Zandi of Moody's told reporters last month. "And it's possible that the policy response (bank rescues and stimulus spending) shows some progress by the summer.''

Meanwhile, despite being buffeted by both positive and negative financial news, we seem to be looking up, proving another Zandi notion correct: "It won't take a lot to make people feel a lot better."

At this point, that's not a bad thing.


Anonymous said...

According to Goldman Sachs, recessions historically end six to ten weeks after the peak in unemployment. As a nation, unemployment seems to have peaked last month. That puts us at recovery within the next two months and just in time for the summer travel and home buying season. Get ready people!

Anonymous said...

When they built the worlds biggest ship Titanic of White Star Line in Belfast 3 football fields long it was unsinkable yet on its maiden voyage only 5 days into the trip on 4/15/1912 it sideswiped an iceberg and sank killing over 1600 of the 2300 on board.
Capt Smith was so confident that when told he refused to believe and went back to sleep, eternally.

Figs show a local 82% drop in home construction 2 million foreclosures and 2.5 quadrillion debt worldwide with 1.5 in America and the highest unemployment rate ever counting the 30% in the military.

Texas is trying to seceed again since it already seceeded in 1861.

As the USA becomes the new USSR communist empire the breakup of the nation is a certainty as the old USSR did splitting into 15 nations in 1999 but after much violence and bloodshed.

Its only a matter of time now. Hopefully Obama dosent force the 50state marriage at tank point and dosent kill too many that would only antagonizes the situation.

With Texas leaving and Alaska we could see 15-30 new nations depending...

Vincent said...

I still think the economy is stronger than it should be considering the meddling of the current administration.

We just sold a house we built last year, two actually, the remodeling business is good, and the closing repair business is stronger.

Every time I go to Lowes, Home Depot, HT, or Lowes Foods the store is pretty busy. Mickey and Mooches still has a wait.

The only bad, stagnant effect that remains to be seen is that the current administration will garner credit for what is obvious to any non-blinded individual as a typical, market roller coaster ride, ill timed.

Anon 3:09

They still have, according to Al Gores internet, two for one coupons at Burger King for Donkey Sandwiches.