Tuesday, February 23, 2010
Lack of jobs throws consumer confidence in the crapper
And with it probably any chance of ending the Great Bush Depression anytime soon, unless you trade "funny money" on Wall St.
Confidence among U.S. consumers fell in February to the lowest level in 10 months, a sign that concern about job prospects may hold back the spending needed to sustain the recovery.With major industrial companies like Ford predicting no new hiring for another two years, and the Senate moving a jobs bill that is $5 Billion less than the bonus total for Wall St in 2009, it is hard to picture any return of confidence or demand in the foreseeable future.
The Conference Board’s confidence index slumped to 46, below the lowest forecast in a Bloomberg News survey of economists, from 56.5 in January, a report from the New York- based private research group showed today. A separate report showed home prices rose for a seventh month.
Stocks fell and Treasuries gained after the confidence report also showed attitudes about current conditions fell to the lowest level in 27 years and the outlook for wages dimmed. The survey reinforces expectations Federal Reserve Chairman Ben S. Bernanke will repeat the central bank’s pledge to keep interest rates low for “an extended period” in testimony to Congress tomorrow.
“Consumer spending is going to disappoint throughout most of the year,” said Steven Ricchiuto, chief economist at Mizuho Securities USA Inc. in New York. The economy “may not be out of the woods.”
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