Tuesday, October 28, 2008

Consumer confidence shows lowest number in history



The Conference Board consumer confidence shows the lowest number ever recorded at 38. This is worse than the end of the go-go 60's, the inflation shock in '74, the Fed rate shock in the early '80's, the savings and loan recession of 1990, tech bubble, and the 9/11 scare. The pessimism is across the board for all age groups and all income groups. A decline in expectations for consumers will translate into slower growth; however, the number show that these lows are often short-lived and will usually see a quick bounce.

Expect the Fed to lower rates to provide some support to offset this gloom.

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