Tuesday, February 23, 2010

Consumer confidence dropped in February - to its lowest level in over 20 years - and I can't say I'm surprised.

What happened last month that would have led consumers to think that better times were ahead? Did Congress and Obama back off their efforts to mess up health insurance? Did they indicate they were going to lower taxes? Did they indicate that they had any thought of, if not scaling back, at least not imposing any more job-sapping regulations on business?

Consumer confidence is a reflection of what consumers see happening around them. When they see things that are good, they gain confidence. And when they see the likes of what Obama and the Democrats in Congress are doing, they understandably get nervous... very nervous indeed.