Consumer Confidence in U.S. Plunges as Job Losses Mount, Home Values Fall

[Purveyor]

Source: Bloomberg

By Courtney Schlisserman

Feb. 13 (Bloomberg) -- Confidence among U.S. consumers fell in February as job losses and declining prices for stocks and homes undermined Americans’ view of their financial well-being.

The Reuters/University of Michigan preliminary index of consumer sentiment fell to 56.2, from 61.2 in January. The drop is the first in three months and puts the index near a 28-year low of 55.3 reached in November.

The longest recession since 1982, including the loss of 3.57 million jobs, is damping Americans’ spirits, prompting them to curtail spending. Congress yesterday moved toward passage by the end of this week of a $789 billion economic stimulus plan that would cut taxes, extend unemployment benefits and expand federal spending on roads and other infrastructure.

“There is no imminent upturn in consumer spending on the horizon,” Michael Darda, chief economist at MKM Partners LP in Greenwich, Connecticut, said today in a Bloomberg Television interview. “It’s going to be rough sledding for at least the next two quarters.”

Economists forecast the sentiment gauge would drop to 60.2, according to the median of 58 economists in a Bloomberg News survey. Projections ranged from 56.5 to 64.

Read more: http://www.bloomberg.com/apps/news?pid=20601087&sid=ahM2dbtAi_Ps&refer=home

[No Elephants]

1. This mess has been in the making since Reagan took office. We are not getting rid of it in five

minutes, even with several bailouts. That is the sad reality.

[byeya]

3. Nationalize the failed banks; help the ones who have played

by the rules; institute a new WPA; add two members to the Supreme Court<11>; statehood for DC; begin an annual 10% cut of the military/spy budget. Along with the extended unemployment benefits and additional money for food stamps, this depression can be a short one.
Socialized health care for all....say to Congress: "We want what you've voted yourselves all these years. That and no more or less."
Or: just listen to Dennis K and heed his words...it's as good or better than the above.

[kestrel91316]

2. My clients are all a lot MORE optimistic. The fear and dread are gone.

We know we will have a long slow climb back out of the pit, but my feeling is that we have hit bottom, and there is nowhere left to go but up.

[CLANG]

5. I sadly feel the opposite

I think unemployment will keep rising, foreclosures will increase, and more people will become homeless and destitute. I hope I'm wrong, but I think the fundamental fallacies of our economic system and lifestyles has been exposed. There is no following the same path if we are to remain the United States of America. :cry:

[LovableScamp]

6. Seems to be the same here Kestrel

Being in the industry of supplying commercial building materials to contractors, I talk to architects all the time and in the fall of last year there was a bit of doom and gloom in the conversations with looking at certain recession type building projects but...the job listings on the builders exchanges seem to be up about 8% for Jan / Feb this year compared to 2008. Part of it is that there is some private capital coming in for commercial retail projects (which I thought there'd be none) and federal, state, county and city public projects are looking good as far as retro-fitting schools and updating services, re-roofs and even expansions. The architects are a bit more optimistic now... especially if this stimulus money gets to the states. The company I work for had a pretty good year last year... and its looking a bit better now. I understand this all may regional but hopefully, like grass fires... you get it started in certain areas of the country it should take off... Hopefully.

[Coyote_Bandit]

4. I'll be damned - who'd a thunk it?

My tax assessor has raised the assed value on my home twice in the last 6 months. My property taxes increased over 25% last year without the hgher assessment. Millage rates are expected to increase significantly again this year and now add the higher assessed value. I figure my tax liability has ncreased nearly 200%.

I'm using this new assessment as a motivational tool to get the hell out of this frickin' town. I have it posted on the door into the garage so I can get pissed off about it several times a day.

It is clear that owning a home here is a liability. I can move 15 miles away have sixteen times the acreage, a new home (as compared to my 60 year old home) over 30% larger and have a property tax liability less than half of what I currently have before the pending tax increases. With that kind of tax savings I can easily afford to take less money for the house (thus driving down market prices) because I will recoup the lost sales revenue rather quickly in property tax savings.