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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Consumer Confidence Hits Another Record Low

Consumer confidence in February hit another all-time low, as Americans struggled with layoffs and a recession.

It's not surprising that Fed Chairman Ben Bernanke, testifying before Congress right now, said the economy is "in a severe contraction."

The Conference Board said moments ago that its Consumer Confidence Index, which was down slightly in January, plunged more than 12 points in February to 25, far below the 35.5 level that surveyed economists predicted.

This time last year, the index stood at 76.4 and has hung in the 30s over the past several months.

The index is broken down into two parts: the Present Situation Index and the Expectations Index. Essentially: How do you think things are now and how do you think things are going to be?

The Present Situation Index sank from 29.7 in January to 21.2 in February. The Expectations Index dropped from 42.5 to 27.5, meaning that consumers think the worst is yet to come.

-- Frank Ahrens
The Ticker is Twittering!

By Frank Ahrens  |  February 24, 2009; 10:27 AM ET
Categories:  The Ticker  | Tags: consumer confidence  
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Next: Feb. 24, 2009

Comments

This is worse than anticipated. How accurate is this indicator? Does this suggest a lack of confidence in government policies or the inability of our financial system to get on top of the problem?

Posted by: leehwenke | February 24, 2009 10:50 AM | Report abuse

Gee..maybe if Rush Limbaugh or Sean Hannity or Fox news or Niel Bort would shut there traps for a month, maybe all this negativity would go away. And that goes for all republicans as well. There goal and only goal is to turn this recession into a depression so they can win back the White House.

Posted by: kubrickstan | February 24, 2009 11:11 AM | Report abuse

Strange.

On the articles related to nationalization of banks, you can't put up comments.

The people who control our news really want to limit that to dictate the news to you. No discussion on that subject.

Very Strange. The banks are being taken over by a small group and no one is questioning this?

Nationalize a bank that needs $100 billion (or even $200 billion)? A bank with $2 trillion dollar in assets? A bank that was paying $11 billion in annual dividends to shareholders two years ago ($8 billion last year)? When the economy turns they could pay off a loan in no time at all. So why nationalization?

Because doing so will lead to complete control of that industry by a very few mega rich people who would reap billions on their "private equity investment."

A massive rip off, the biggest in US history. All of a sudden republicans and the right have jump on and are promoting the nationalization action.

GEE, what is up with this? We are being absolutely raped again.
Our economy continues to be place in the hands of corrupt people with evil interests and plans. This is outrageous.

Why aren't any of these people who passed the laws over the last 27 years that allowed this mess to develop being arrested? What about the Wall St. executives, the mortgage bankers and others? No one is being brought in on the larges scam of all time? A scam that has bankrupted the whole world wide system of finance, and completed discredited the US.

No one is going to jail? Instead, they will place the whole finance system in their hands.

Get mad, folks.

Posted by: morenews1 | February 24, 2009 11:34 AM | Report abuse

Who's surprised by this plunge?? If the dow is trading at 1997 levels the writing was already on the wall. Didn't take rocket science to see this coming. Even for us Washingtonians, the day of reckoning will be upon us in 2011/2012. Defense spending will be decreased along with discretionary spending, in order to right the federal budget in preparation for funding long-term SS & medicare costs, and not to mention servicing our rediculous debt load. So ask yourself, how optimistic should you really be?? Its time for all of us to wake up to reality. Everyone will lose skin in this game.

Posted by: kiboo | February 24, 2009 11:37 AM | Report abuse

Strange.

On the articles related to nationalization of banks, you can't put up comments.

The people who control our news really want to limit that to dictate the news to you. No discussion on that subject.

Very Strange. The banks are being taken over by a small group and no one is questioning this?

Nationalize a bank that needs $100 billion (or even $200 billion)? A bank with $2 trillion dollar in assets? A bank that was paying $11 billion in annual dividends to shareholders two years ago ($8 billion last year)? When the economy turns they could pay off a loan in no time at all. So why nationalization?

Because doing so will lead to complete control of that industry by a very few mega rich people who would reap billions on their "private equity investment."

A massive rip off, the biggest in US history. All of a sudden republicans and the right have jump on and are promoting the nationalization action.

GEE, what is up with this? We are being absolutely raped again.
Our economy continues to be place in the hands of corrupt people with evil interests and plans. This is outrageous.

Why aren't any of these people who passed the laws over the last 27 years that allowed this mess to develop being arrested? What about the Wall St. executives, the mortgage bankers and others? No one is being brought in on the larges scam of all time? A scam that has bankrupted the whole world wide system of finance, and completed discredited the US.

No one is going to jail? Instead, they will place the whole finance system in their hands.

Get mad, folks.

Posted by: morenews1 | February 24, 2009 11:40 AM | Report abuse

TEAM OBAMA: TRY TAX RELIEF, STUPID

Immediate banking relief would occur if TEAM OBAMA would just:

1. Cut the bank reserve requirement in half this would immediately DOUBLE the amount of loans banks could make.

2. Proclaim a 1 year 100% tax holiday on all profits banks make from NEW loans or renewals of existing loans.

TEAM OBAMA--Stupid yes, but he's still our President, so we will leave ideas littered all over the Wash Po...maybe they will pick them up, steal them and claim authorship--which is fine with us as America will benefit

Posted by: JaxMax | February 24, 2009 11:58 AM | Report abuse

I hope those of you who voted for Obama are happy so far.

After having a leading role in the stellar performance in using the Fannie Mae, and Fredie Mac to sell fraudulent paper all over the world and cause the worst financial crisis since the great depression, our wonderful new President, in just one month in office, has just destroyed the automobile industry by permitting each state to have its own regulations on automobile construction and emission standards, he ordered Guantanamo Bay prison closed with no resolution on what to do with the prisoners now there, and he then reversed the policy on Israel and embraced the Arab league's position, he, in effect, raised the status of Hamas from a terrorist organization by recognizing them as a negotiating entity.

And now he is embarking on the radical expenditure of trillions of dollars (which we must borrow) making the deficit higher than it has ever been in order to solve a problem which he and the Democrats caused by forcing unsound practices on the banks with stupid legislation. And, can we believe it will work -- considering the idiocy of their past policies?

He did succeed in putting millions of people in their own homes which they cannot afford, paid by you and me out of the Federal deficit, and all we can foresee is more income redistribution paid for with inflated dollars. What a wizard! He must think this is a great achievement. What damage will he do next month? I don't even want to read the news: this is a disaster.

Is it any wonder consumer confidence is in the pits?

Posted by: aelemay | February 24, 2009 2:37 PM | Report abuse

...and I am all for spreading confidence and I just want to be confident that the OVERLORDS of WALL STREET are doing the best they can and doing their part to help America...

...so I was just wondering if someone here could post some links to stories of some of these poor poor banker CEO's or Wall Street executives having to sell some of their properties or automobiles...

...or eat at the soup kitchen or maybe cut back on the golf...

...or perhaps cancel a few acne treatments...

...or just a link to show some sort of hard times because I feel so badly for these wealthy executives and I thought I might bake a batch of preacher cookies to carry to them...

...but I haven't really seen any news where any of them have been suffering any...

...like it seems they are cause they be beggin so hard for somebody to help them lately, just beggin and beggin and beggin brother can you spare a dime for me...

...and no links to Donald Trump please because I know he has already declared Chapter 11 and I am saving all my loose change every day to help him...

...so can someone post a link to a story of a CitiBank or Bank of America exec who has had to sell off one of his beach houses so they can get some preacher cookies...

Posted by: moon-base-alpha | February 24, 2009 7:38 PM | Report abuse

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