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Originally posted by ironweed
I know what you mean. I have always believed that if my mental discipline had been better I really would have been able to fly after I took all that acid and jumped off the roof of the garage. It was my last minute doubts that sabotaged me.
Isn't the "consumer confidence" number a measure of how likely it is Americans will continue to spend money they don't have? What's the national savings rate these days? Negative two percent or something? My understanding of what's killing the Dow, et al, this week is the fear that unexpectedly high inflation numbers will lead the Fed to raise interest rates again. Which means it will be harder for consumers to borrow money to spend on cheeseburgers, SUVs and videogames. I have vowed not to look at my 401k balances until after the 30th of the month.
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The consumer confidence index is based on more than just how consumers feel about the economy in a general sense. It is based on a poll asking five specific questions ceoncerning the respondents' feelings about income and employment prospects as well. If you don't think you're going to get a raise, or you don't think your kid, who is graduating this year, will be able to get a job and go off the tit, then you will have a negative impact on consumer confidence. It is not diirectly tied to whether or not you plan to buy a new Xbox.
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