Caffeine Fix for Market Jitters
Seems like there’s no end to the indigestion-inducing economic news. Recently I woke up to the news that the S&P/Case-Shiller Home Price index had fallen by 17.4 percent from a year earlier. Even worse, was the indication that things were accelerating—with home prices having decreased 1.8% in September from prior months. This is the biggest drop since the Shiller index first started reporting.
Then on the way into the kitchen I heard the Commerce department announce that the gross domestic product had dropped an annual 0.5%, as the household spending was at the lowest level since 1980. I needed a shot of caffeine and some better news to lift my spirits.
I got what I needed half way through my first cup of coffee—consumer confidence had gone up to 44.9, not including cost of food and gas. Sure, it was the second worst reading since 1974, but at least it was an improvement from October’s record low of 38.8.
