The Conference Board issued an index of consumer confidence this morning. The data is reflected on this chart published today on ZeroHedge, a financial blog site.
The consumer confidence index, published by a Nielsen Company affiliate, is closely watched by Wall Street, and the information in the index is discouraging. The data cut-off was August 18. Maybe things have improved since then. The stock market certainly has improved since mid-August.
Lynn Franco, the Director Consumer Research Center, issued a statement that accompanied the report: "Consumer confidence deteriorated sharply in August, as consumers grew significantly more pessimistic about the short-term outlook. The index is now at its lowest level in more than two years (April 2009, 40.8)." Franco went on to speculate the deterioration was likely related to acrimonious debt ceiling negotiations.
Franco's hypothesis suggests we ought to blame Republican House Members for their principled opposition to the debt ceiling deal. Her theory seems flawed in that the Obama Administration was touting an allegedly historic debt ceiling deal with Republicans at the end of July. That deal came on a bipartisan vote.
I'm not going along with the Franco theory.
It seems more likely that the Index suggests that the American people are smarter than the national media. The people know that the debt ceiling deal was mere Kabuki theater for politicians. They are aware that the "historic deal" amounted to nothing more than lipstick on a pig. The people know that the debt anchor is still dragging the economy down.
The consumer confidence index, published by a Nielsen Company affiliate, is closely watched by Wall Street, and the information in the index is discouraging. The data cut-off was August 18. Maybe things have improved since then. The stock market certainly has improved since mid-August.
Lynn Franco, the Director Consumer Research Center, issued a statement that accompanied the report: "Consumer confidence deteriorated sharply in August, as consumers grew significantly more pessimistic about the short-term outlook. The index is now at its lowest level in more than two years (April 2009, 40.8)." Franco went on to speculate the deterioration was likely related to acrimonious debt ceiling negotiations.
Franco's hypothesis suggests we ought to blame Republican House Members for their principled opposition to the debt ceiling deal. Her theory seems flawed in that the Obama Administration was touting an allegedly historic debt ceiling deal with Republicans at the end of July. That deal came on a bipartisan vote.
I'm not going along with the Franco theory.
It seems more likely that the Index suggests that the American people are smarter than the national media. The people know that the debt ceiling deal was mere Kabuki theater for politicians. They are aware that the "historic deal" amounted to nothing more than lipstick on a pig. The people know that the debt anchor is still dragging the economy down.
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