Consumer Confidence in U.S. Climbs for Second Month

[jpak]

http://www.businessweek.com/news/2009-12-29/consumer-confidence-in-u-s-climbs-for-second-month-update2-.html

Dec. 29 (Bloomberg) -- Confidence among U.S. consumers rose in December for a second month as pessimism over the outlook for jobs diminished.

The report showed consumer attitudes about current conditions decreased to the lowest level in 26 years and expectations over wages also fell, a reminder that spending may be slow to recover with government assistance. A jobless rate that is forecast to exceed 10 percent through the first half of next year may prompt policy makers and retailers to maintain tax breaks and incentives to entice buyers.

“Americans are reading that a recovery is underway but, looking at the unemployment rate, not many of them are feeling it where it really counts just yet,” said Avery Shenfeld, chief economist at CIBC World Markets in Toronto.

Stocks trimmed earlier gains following the report. The Standard & Poor’s 500 Index was up 0.1 percent to 1,129.17 at 10:14 a.m. in New York.

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[Kahuna]

1. Aw hell...DU's doom and gloomers won't like this one bit...

:applause:

[TwilightGardener]

2. Someone will be along shortly to rob us of any optimism derived from your post.

[LeftHandPath]

3. It has nothing to do with optimism...

It is called reality and mathematics, you cant escape either despite the occasional uptick.

What has been fixed? Are the banks now solvent? Are they through writing fraudulent Credit Default Swaps without reserves?

Are home prices affordable? Are incomes rising? Is healthcare fixed?

Have we stopped blowing $5 billion a week in Iraq? Or $3 billion a week in Afghanistan?

The game is afoot to blow a new bubble. They are trying to pump the housing bubble back up, but have instead created another bubble in the stock market.

Dont mean to rain on your parade, but instead of blaming those of us who see this house of cards for what it is, why not try and understand the problem better so that you'll know what it will take to fix it.

Last point, you cannot re-inflate a debt bubble with more debt.

[jpak]

4. the DOW at 10,500 - for weeks - is a "bubble" ????

:rofl:

[LeftHandPath]

5. Yes, its a bubble.

The PE (price to earnings ratio) on the S&P right now is in the 140 range, which is a record by about a 200% margin.

The DOW has gone up 67% since March when the Fed began printing money to purchase toxic MBS's from the banks.

Where did the money come from for a 67% increase in 8 months?

Anxiously awaiting your answer, but not holding my breath.

[jpak]

6. "The DOW has gone up 67% since March" - no the S&P is up 67% since March from a 12 year low

but still waaayy below the highs of 2007.

Sorry - no bubble for you....

[LeftHandPath]

8. Right...

So I'll assume you're a buyer here then? And you would recommend others go long on the DOW and S&P?

[TwilightGardener]

7. And as I was saying...

[Scurrilous]

9. K & R

:thumbsup: