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Tuesday, June 24, 2008

Consumer Confidence Rightfully Low

U.S. consumer confidence fell unexpectedly sharply in June, sinking to the fifth-lowest level ever. In addition, consumers' expectations hit an all-time low as home prices tumbled while gasoline and food prices rose. A separate index of home prices saw the largest drop since its inception in 2000.

The Conference Board's consumer confidence index fell to 50.4 this month, down from 58.1 in May. The reading is far lower than economists expected; the consensus estimate of economists surveyed by Thomson/IFR was 56.5.

Why is this such a surprise? Are the economist totally oblivious to what rising transportation cost and falling home investment does to the psyche of the everyday worker? Do they not think we feel every penny of increase caused by oil prices increases to every commodity we depend on? Do they think we could care less about the tax increases by state and local governments to help offset their needs for balanced budgets?

It doesn’t help that the current administration does nothing to help and can be blamed for sleeping at the wheel when it comes to the banking industries’ blind eye to home loans. Nor does it help that congress is trying to blame speculators for rising energy cost totally ignoring the laws of supply and demand as well as the demand increase to that formula caused by rising needs in China and India.

The economist think our economy “remains stuck in low gear." Duh!!! And we don’t have the power to get going to shift up either bozos. Have you not read that demand for corn for fuel is now creating a world food shortage?

This problem has been foreseen for at least a decade now, but surprise, surprise it’s happening as predicted. What are we going to do? Clearly those in power now, by their own admission, haven’t a clue.

May I suggest that we look to real investments in education and alternative energy sources that don’t tax the food supply. How about ditching trickle down economics once and for all and realize that it’s the work and spending of the middle class that makes this nation great. Having lots of money may seem like a great way to obtain power but if all you did was lie, cheat and dodge responsibilities to get there, are you really an answer? I think you are as much of the problem as anything else.


Numinous Lady said...

I agree. The middle class is dwindling and it makes one wonder if that is the 'idea' of the upper class that is in power now, or not. Seems so, doesn't it?!
We are combating some of the woes, just a little, by planting an organic veggie garden this year. We have already harvested green beans, wax beans, a variety of peppers, and the tomatoes are starting. We are going to can these as spaghetti sauce and ketchup.
It's not much but it helps. It's also the first year we've had a real garden and we are learning a lot. It's something to get back in touch with nature...if only for a few minutes a day.

Chet Dailey said...

Hey that sounds great. You can'b be farmer Brown over night. Keep it up and you'll be wanting a few acres to expand your canning. LOL

Hope all is going well for y'all. Haven't seen you post much to your blog these days. I know, I'm a fine one to talk.