American consumer confidence runs out of gas

[Judi Lynn]

American consumer confidence runs out of gas
Aug 29

Consumer confidence fell for the first time in three months in the United States as Americans paid record prices at the petrol pump in August.

The University of Michigan's index of consumer sentiment declined more than forecast to 89.1 in August, from 96.5 the previous month - the first drop since May and the largest decline since February 2004.

A preliminary estimate of the survey on August 12 put it at 92.7.

"Up until now we haven't seen any backlash to record prices at the pump from consumers, but now the story is changing," said Richard Yamarone, chief economist at Argus Research in New York. "We've passed the complaining stage and entered the actionable phase."

The current-conditions index, which reflects Americans' perception of their financial situation and whether it's a good time to buy big-ticket items, fell to 108.2 in August from 113.5 in July.
(snip/...)

http://afr.com/articles/2005/08/28/1125167547873.html

[opihimoimoi]

1. Select a Fufus and get Dufus results, What to do::: Vote DEM....

Clinton had 8 great Years, 8 and 0 :::: Bush, Pubs, ZERO and 5

[ayeshahaqqiqa]

2. well duh

they can keep fuel out of the consumer price index to make people think that everything is hunky dory, but when folks realize that it comes down to deciding whether to fill up the tank or fill up the grocery cart, confidence in the economy tends to take a nose dive.

[devinsgram]

3. And wait till folks have to heat their homes.

It will be either eating or staying warm. Somethings got to give.

[Conservativesux]

7. self delete

[Conservativesux]

8. Crime could go up as people run out of options to pay the bills.

[RUMMYisFROSTED]

9. People will break into homes to tear the legs off of couches and tables.

I hope they see a good chimneysweep first, though.

[ace2u_in_MD]

19. That has already started...

The number of gas pump drive-off's has jumped at stations that do not collect cash or a credit card prior to turning on the pump...

[Deja Q]

17. Funny how they treat oil as a commodity for so many things...

yet leave it out of the CPI.

Ever see the Chris Rock reality-tv parody show "Damn Fool"? :think:

[aint_no_life_nowhere]

4. This administration continues to say there's no inflation

And yet, housing prices have leaped into the stratosphere and so has the price of gasoline. I don't understand how they get away with that mantra.

[tom_paine]

6. Their Propaganda Machine is by far the largest & most successful

in human history.

They now have virtual control over the media, of course the political system stopped properly functioning long ago, though that particular boil didn't truly brust until December 2000 and Sept. 2001.

Now, a significant ortion of our population is enslaved to Party Propaganda, and are as immune from reason as the German populace was in 1938.

And much MUCH more!

Finally, the entire regulatory apparatus has been turned into what is essentially a Soviet-style mouthpiece and all Bushevik Rerports are as trustworthy as a 1978 Soviet Toilet paper Production Report.

In other words, the Bushes get away with it using the time-tested methods of Goebbels and Molotov, except the Bushes have advanced that Evil Cause to levels those amatuers could never have dreamed.

[cliss]

16. Well, Reality has arrived as a New

News Source. It's going to walk right up to the people who supported Bush. It's going to come up to them, tap them on the shoulder and say, "Hi. I'm reality. I'm going to show you what's really going on. For starters, you don't have enough money to fill up your SUV today. You're about to lose your house because energy prices have gone through the roof."

"Forget about Bush. Forget about everything else, except ME. From here on out, I'm going to be trailing you".

[AndyTiedye]

5. Unless the Big-Ticket Item is a Bicycle

[FourStarDemocrat]

10. This doesn't take in acct the interest rate rise for home equity loans.

Because Alan Greenspan decided to carry out a series of psychotic consumer interest rate hikes during the last 15 months, the average person who has a home equity loan on their house has suffered.

A typical loan of say $38,000. for a new kitchen has gone up from an approximate monthly interest charge of $145. to $245. per month. That's $100 dollars less per month to spend on principal to repay the loan, or on anything else.

[shadowknows69]

11. Wait until Christmas buying season tanks completely

I don't know about anyone else but I won't be able to afford the gas to the mall much less be able to shop there.

[Conservativesux]

26. Gonna be a white Christmas for lots of people......NOT!!!!!

Thanks * !!!

[JNelson6563]

12. heh Good headline

oh the irony!

[tanyev]

13. It's been running on fumes for longer than I ever thought it could.

[NeoConsSuck]

14. If Walmart thought their earnings were bad last quarter..

they're in for a *big* surprise this quarter.

and the last quarter, watch out!! Americans will be giving gasoline and heating oil gift certificates as Christmas gifts. LOL!!

[BiggJawn]

15. "OOOOOH! 150 Therms's worth of Natural Gas! THANKS! "

"What a GREAT gift! That means we can Do It on TOP of the covers tonight! With ALL our clothes off!"

"Wow! 10 gallons of Gasoline! You SHOULDN't have! Why, this must have cost you almost a hundred bucks! What a great gift!"

Yeah, Wally-World better put in some gas pumps and sell petro gift cards if they want any income this hell-of-a-day season....

[PassingFair]

18. Stores will report huge uptick

...back to school, you know.
Ticker-tape parade for *co.

[The_Casual_Observer]

20. Did I hear the "R" word? Naaaa, can happen in the bush economy!

They would never report it, particularly the wsj.

[MellowOne]

21. We should stage a protest

Is it possible?

[AX10]

22. The debt load is horrible.

[VegasWolf]

23. and the Consumer should have confidence exactly why???? nt

[NVMojo]

24. wait til the cost of fuel hits food, produce, consumer products, shipping

then Bush will get his asswhooping...

[Conservativesux]

25. It will take some commodities a few more weeks or months until the prices

hit home for just about everything.

I can still buy name brand motor oil for what I did last year, for instance.