Confidence among U.S. consumers plunged in August to the lowest level since May 1980, adding to concern that weak employment gains and volatility in the stock market will prompt households to retrench.
The Thomson Reuters/University of Michigan preliminary index of consumer sentiment slumped to 54.9 from 63.7 the prior month. The gauge was projected to decline to 62, according to the median forecast in a Bloomberg News survey.
The biggest one-week slump in stocks since 2008 and the threat of default on the nation’s debt may have exacerbated consumers’ concerns as unemployment hovers above 9 percent and companies are hesitant to hire. Rising pessimism poses a risk household spending will cool further, hindering a recovery that Federal Reserve policy makers said this week was already advancing “considerably slower” than projected.
First of all, I never believed we were in a recovery. The lapdog media said we were because their number one job is to make sure Obama succeeds.
Secondly, it's hard to be upbeat about an economy when the President shows no leadership, and stymies job growth by threatening people who create jobs with more taxes and regulation.
So now, since we have a President who is arguably worse than Carter (Karl Rove compared Obama to James Buchanan the other night....interesting comparison), what is missing is the Ronald Reagan of our era. Someone who can articulate and lead with conservative principles, not water it down.