Shaken by housing and credit woes, peoples' confidence in the economy sank to its lowest point in nearly 1 1/2 years, raising fresh worries about their appetite to spend in the months ahead.Consumers are finally realizing that the debt they have accumulated and their inability to save are a very dangerous combination in an economic downturn.
The RBC Cash Index showed consumer confidence clocking in at 71.1 in September, a sharp drop from August's reading of 89.3. It marked the worst showing since May 2006. The index is based on the results of international polling firm Ipsos.
''Consumers are rattled to the bone, '' Richard Yamarone, economist at Argus Research, said of the latest confidence reading.
The deterioration comes as Wall Street has been suffering through a mood swing of its own, sending stock prices careering wildly. The deeper consumer angst also comes after troubling news last week that the economy lost jobs for the first time in four years.
Against this backdrop, analysts say the chance the economy might fall into a recession is growing.
I have said since I started this site that a recession was looming. I am standing by that prediction and with reports like this coming out, its a safe prediction to make. The lower and middle classes will be especially hard hit since they lack the savings that sustained them through the last recession.
The next President will inherit a mess on nearly every front. Why anyone would want the job after this moron has basically destroyed the country is beyond me.