Consumer Confidence Dips To New Low

Unemployment, Home Foreclosures, Credit Crunch Are All Factors Driving Down Spending

(AP)  Americans' confidence in the economy fell to a new low, dragged down by worries about mounting job losses, record-high home foreclosures and zooming energy prices.

According to the RBC Cash Index, confidence dropped to a mark of 29.5 in April, down from 33.1 in March. The new reading was the worst since the index began in 2002. It marked the fourth month in a row where confidence has fallen to an all-time low.

"Consumers are very pessimistic," said Mark Vitner, economist at Wachovia. "There are not a lot of happy campers out there."

Over the past year, consumer confidence has deteriorated significantly. Worsening problems in housing, harder-to-get credit, financial turmoil on Wall Street and lofty energy prices have put people in a much more gloomy mind-set. Last April, confidence stood at 85.4. The index is based on results from the international polling firm Ipsos.

All the economy's problems are taking a toll on President Bush's approval ratings, too. The public's approval rating on his economic stewardship fell to a low of 27 percent, according to a separate Associated Press-Ipsos poll. Bush's overall job-approval rating dipped to 28 percent, also an all-time low, the poll said.

Many economists believe the country has tipped into its first recession since 2001. Federal Reserve Chairman Ben Bernanke for the first time acknowledged last week that a recession was possible. It was a rare public utterance of the "r" word by a Fed chief.

"Consumer sentiment is tracking at levels we think are consistent with a mild recession at this point," said Brian Bethune, economist at Global Insight.

A measure looking at consumer's feelings about current economic conditions slipped to a 54.6 in April, from 54.7 in March. The new reading was the lowest in six years of records.

Rising unemployment and job losses are making people more uneasy.

The government reported last week, that employers slashed 80,000 jobs in March, the most in five years and the third straight month where the nation's payrolls were cut. The unemployment rate jumped from 4.8 percent to 5.1 percent, the highest since the aftermath of the devastating Gulf Coast hurricanes.

Another factor blamed for eroding consumer confidence is high gasoline prices, which are socking people's wallets and pocketbooks. That's squeezing already strained budgets and leaving people with less money to spend on other things.

"Much of the angst we're seeing from consumers is `Gosh, I'm working harder and harder, and all I'm doing is paying for my basic necessities. I don't have anything left to have any fun,"' Vitner said.

Gasoline prices, which have set a string of records in recent weeks, climbed to a new record of $3.357 a gallon on Thursday, according to AAA and the Oil Price Information Service.

Anxiety also has grown as people wonder if there is any relief in sight for the troubled housing market. With the housing collapse, many people have watched their single-biggest asset — their home — drop in value. That has made them feel less wealthy and less inclined to spend.

Against the backdrop of all these concerns, another measure tracking individuals' sentiments about the economy and their own financial standing over the next six months fell deeper into negative territory. This gauge dropped to a negative 48.3 in April, down from a negative 41.6 in March. The new reading was the worst on record.

A measure on consumers feelings about employment conditions fell to 97 in April, from 99.2 in March. The new reading was the lowest since early October 2003. Another gauge of attitudes about investing, including comfort in making major purchases, declined to 56.4 in April, from 56.7 in March. The new figure was the lowest on records going back to 2002.

Economists keep close tabs on confidence barometers for clues about consumer spending, a major shaper of overall economic activity.

Cautious shoppers gave most retailers their most dismal March in 13 years, according to sales figures reported by major retailers on Thursday. J.C. Penney Co., Gap Inc., and Limited Brands Inc. were among the merchants hit by a sharp drop in sales.

The RBC consumer confidence index was based on the responses from 1,005 adults surveyed Monday through Wednesday about their attitudes on personal finance and the economy. Results of the survey had a margin of sampling error of plus or minus 3 percentage points. The overall confidence index is benchmarked to a reading of 100 in January 2002, when Ipsos started the survey.

Pointing to the overall confidence reading of 29.5 in April, T.J. Marta, a fixed-income strategist at RBC Capital Markets, said: "What confidence? There is no confidence. It's like 1929."

[naucoming4u]

"...now they stand back cluelessly and throw $600 scraps at the corpse and pray to their golden idols to please bring it back to life."


Great quote vetran72!!!

[veteran72]

"Oh, the wells fargo wagon''s comin'' down the street,
Oh please let it be for me"!!!

The Ruling Elite Neocon Fascist Nazis have really done it this time. As if Ronnie Raygun didn''t teach them enough of a lesson by chocking off the middle class, the Bush/Cheney Crime Cartel has not only starved it to death, now they stand back cluelessly and throw $600 scraps at the corpse and pray to their golden idols to please bring it back to life.
And the Bushies go down with everyone else, still singing the praises of trickle-down and tax cuts for billionaires.......retardds.....

[bgwinnett]

Unemployment, Home Foreclosures, Credit Crunch Are All Factors Driving Down Spending

********************

However those Tw@''s From Wall Street will still be able to have a jolly at our expense this Summer in the Hamptons. Dying days crooks, enjoy.

[sgtrds]

Sumarongi

Absolutely. A good economy builds from the bottom up and not the top down. That said Bush and his minions never had any intention of making this a good economy for all Americans, just for the rich. He succeeded at what he intended to do.

[sumarongi]

Once again, we need to scrap trickle down economics and go to trickle up economics. If they had given the billions of dollars spent bailing out the rich to the poor of our nation, I guarantee the poor would have spent it immediately. Billions of dollars would have been put into the local economies instead of saving a financial giants bottom line and being spent on bonuses and severance packages for doing a lousy job.

[forthepeopl1]

TIME TO COWBOY UP AND LETS RIDE IN ON WASHINTON

[naucoming4u]

My problem with this whole recent movement is the same people who are trying to tell us about Christian morals are the ones trying to tell us to support greed. Why is greed the only sin these people are willing to not only accept but also promote?

Posted by whatithink at 05:09 PM : Apr 11, 2008
...........

Also, the "seven deadly sins"... along with many other teachings in the Bible... do not apply to these people (neo-cons), or so they think.

But at the end of their time on this planet...

...they will be packed to go somewhere they think they will go, but sent to someplace completely different!

[sumarongi]

The problem is that most of these people think of themselves as moral, ethical and in a lot of cases religious role models. I worked for a man, prominent in the Southern Baptist heirarchy, who bought some office equipment at auction. When his stuff was delivered there was more than he had purchased. The owner of the extra equipment called, explained the delivery mistake and asked if the could get his merchandise. My boss, a wealthy individual, told the owner he would have me load the stuff in a truck and bring it over to him. Now I was not going to be paid anything for "donating" my time to make the delivery
because I was salaried and worked on the road. No problem with me, but my boss wanted this guy to pay him one hundred dollars to get his stuff delivered to him. Good business some say. If my boss was poor or struggling I could have seen it. He''s not and he didn''t send the goods back with the delivery personnel. If no one had called I have no doubt he would have kept it. I delivered the goods and told the man to keep his money. I got my buns chewed when I came back without the money, but at least I felt better about myself. So much for the moral,ethical christian behavior. It''s ok to rip off others, but don''t you dare try to rip me off. Guilty concience?
Those who spend time worrying how someone is ripping them off, are usually rip offs themselves.

[naucoming4u]

Why is greed the only sin these people are willing to not only accept but also promote?

Posted by whatithink at 05:09 PM : Apr 11, 2008

That''''s because the stone cold truth is that most of the more famous christian "leaders" are nothing more then con men fleecing their flocks. They''''re in it for the money and the money alone. It''''s all a big con game and scam.

Posted by SgtRDS at 05:26 PM : Apr 11, 2008
..............

Benny Hinn, Cresto Dollar, James Baker... and on, and on, and on. Some call it "tithing", others call it "offerings"...

...the reality is a huge shift of money and resources from the poor to the select wealthy few who are (as SgtRDS said) con/scam artists. And it''s been going on for centuries and centuries... long before the "televangelist" craze.

[sgtrds]

Why is greed the only sin these people are willing to not only accept but also promote?

Posted by whatithink at 05:09 PM : Apr 11, 2008

That''s because the stone cold truth is that most of the more famous christian "leaders" are nothing more then con men fleecing their flocks. They''re in it for the money and the money alone. It''s all a big con game and scam.

[whatithink-2009]

My problem with this whole recent movement is the same people who are trying to tell us about Christian morals are the ones trying to tell us to support greed. Why is greed the only sin these people are willing to not only accept but also promote?

[whatithink-2009]

Oscarez,

Unemployement rates only measure people still looking for a job. Many people have given up that goal all together. If you included all, you''d have a rate much higher than 10%.

[whatithink-2009]

Oscarez,

Unemployement rates only measure people still looking for a job. Many people have given up that goal all together. If you included all, you''d have a rate much higher than 10%.

[oscarez]

No one is going to do anything until the unemployment rate hits 10%. So there is a good chance that things will get better before we all will need to carry a gun.

[whatithink-2009]

Sumarongi,

Unfortunately, many in the middle have made their enemies the poor and their friends the rich. Some people are realizing now that their foot was always more on the side of being poor than ever being rich.

[sgtrds]

I''m a consumer and I''m confident. Confident that Bush, Cheney and company have sucked this nation dry like the blood filled ticks that they are. Every move they have ever made has been with one thought in mind, will it make the rich richer.

[naucoming4u]

If the middle class are becoming the working poor, where do you think the poor are at now. Desperate times breed desperate actions. Look out folks, it''''s going to be a rough ride. There are too many people out there who feel they have nothing more to lose. The sad thing is that they are fairly certain it''''s your fault. They will strike out at you and you will wonder why. Don''''t be naive. You know what you''''ve done and you thought you could avoid the consequences.
You are wrong. Better get that gun and start carrying it. You are going to need it when the sh it hits the fan.

Posted by Sumarongi at 04:38 PM : Apr 11, 2008
................

Reported statistics show that violent crime is on the rise. In some cities, a lot more than others. Workplace violence is on the rise. As people "lose it", they will most likely take it out on their employer and anyone in the office that gets in the way.

[sumarongi]

7) DECENTRALIZE ! - the global economy is nothing more than a ploy to centralize power, control and wealth into the hands of an elite few - blinded by misinformation, the American people are buying right into it - the rich get richer and the middle class is quickly becoming the working poor.

If the middle class are becoming the working poor, where do you think the poor are at now. Desperate times breed desperate actions. Look out folks, it''s going to be a rough ride. There are too many people out there who feel they have nothing more to lose. The sad thing is that they are fairly certain it''s your fault. They will strike out at you and you will wonder why. Don''t be naive. You know what you''ve done and you thought you could avoid the consequences.
You are wrong. Better get that gun and start carrying it. You are going to need it when the sh it hits the fan.

[singingrick]

Modern conservatism is a morally and economically bankrupting philosophy that pushes the insane belief that the answer to all the nations problems is to simply move more money into the hands of the super wealthy and the equally insane belief that the nation can simply borrow it''s way to prosperity. America, you''ve been to eager to buy the bumper sticker slogans and too lazy to look behind the curtain to see how "conservatives" have been running your government. Now you will pay dearly with the lives of your children in endless war, in higher taxes which will be need to service the 9.5 trillion dollar debt, in skyrocketing inflation, job loss, spiraling economic prospects, and it''s only just beginning.

You elected Bush twice. Now live with the consequences.

[sumarongi]

The alternative is killing all the rich and overthrowing the corrupt government they own.
The choice is yours.