Housing Decline Spillin’ Over on Consumers!
Ouch!
Today, the latest release of the Reuters/University of Michigan Survey of Consumers showed in unequivocal terms that the US consumer is feeling the burn from declining home values.
In fact, 28% of respondents reported that their own homes had declined in value, well above the record peak result of 24% recorded during the last housing slump in 1992.
Furthermore, the Index of Consumer Sentiment fell 13.56% as compared to October 2006 mostly as a result of consumers’ expectations of future economic prospects.
The Index of Consumer Expectations (a component of the Index of Leading Economic Indicators) fell a whopping 17.33% below the result seen in October 2006 with 22% of respondents anticipating further declines to their homes value.
As for the current circumstances, the Current Economic Conditions Index fell 9.04% as compared to the result seen in October 2006.
Interestingly, the survey reported that the most respondents in 50 years perceived BOTH a high availability of discounted homes AND unfavorable home selling conditions.
Labels: consumer, economy recession, Federal Reserve, housing bubble, housing decline, reator
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posted by SoldAtTheTop at
11:33 AM
2 Comments:
Wow, I am surprised it's not more than that!
By
Sean Remington, at 11:55 PM
It is fortunate that the Consumers do not understand the real meaning of money other wise their confident will really fall.
http://www.abelard.org/
inflation.htm
Economics, or the understanding of money, is one of the fundamental skills that are essential for any citizen who is to aspire to freedom.
Once the public understands money, the manipulative power of government is greatly reduced.
Money is objects which people tend to aspire to; just as is dinner, a coat, a car or a fancy bauble.
There is a limited assigned amount of ‘money’ in any society, just as there are a limited number of dinners or cars.
In most modern states, the supply of money is in the monopoly control of governments. Governments use this monopoly position as a means of control and manipulation.
Governments change the amount of money available according to their own purposes.
Any person who sets up to produce more money, governments label ‘forgers’, then attack those people viciously.
However, the real forgers are the governments. They produce more money at will and with that money, they buy goods for the mere price of the printed paper or an edict to their controlled banks.
The paper they issue has no intrinsic value beyond the paper upon which it is printed.
In the past the paper could be exchanged for gold or other substantial assets—government monetary monopoly has stopped that.
Despite myths to the contrary, there is no good reason why any person should not produce a more reliable money backed by gold or by a basket of commodities.
The only factor standing in the way of such honest money is the power of the state, a power that the state is most reluctant to yield.
The reality of inflation is that governments steal money from their citizens with absolutely no intention of repaying that money.
They can do this to a great extent because most people cannot add up and because governments can project draconian force.
You might note that economics is not taught in schools.
By
Anonymous, at 4:00 PM
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