by Mish

There is a strong correlation, but it isn’t spending habits. John Hussman provides the answer below.

Thanks, John!

Mike “Mish” Shedlock

Consumer Confidence: Decidedly Lagging Indicator

Consumers have not been this confident since October 2000. Hooray?

Consumer Confidence Strongest Since December 2000: A Strong Contrarian Indicator?

Consumer Sentiment and Consumer Confidence are similar measures by two different organizations. The former is from the University of Michigan, the latter is by the Conference Board.

Consumer Sentiment is Down, But What Does That Really Mean?

"One of the worst readings ever” and a big recession signal said bond guru Jeffrey Gundlach. David Rosenberg agrees.

Consumer Confidence Down 4th Time in 5 Months

Consumer confidence unexpectedly dropped in December, but from elevated levels.

Australia "Cash Back" Government Scheme Fails to Inspire Consumer Confidence

Australia gave "cash back" in July to those making up to $126,000. The move failed to inspire consumer confidence.

Syria Spotlight: US Suspends Talks with Russia – What’s Really Going On?

There is a lot of finger-pointing in both directions between the US and Russia regarding events in Syria.

Margin Debt Hits Record High Coinciding With Extreme Consumer Confidence: Analysts Say “Don’t Worry”

The Wall Street Journal reports Margin Debt Hit an All-Time High in February. Given that Margin debt has a history of peaking right before financial collapses this seems like a warning to me but analysts say it’s different this time.

Inventory to Sales Ratios: What’s Really Going On?

On November 15, the Census Bureau released its monthly report on Manufacturing and Trade Inventories and Sales. Despite the fact that is it mid-November, we are just now getting data for September.

Illinois Budget: What it Does and Doesn’t Do (Surprise Giveaway to Muni Bondholders?)

Illinois now has a budget, the first in three fiscal years. An excellent writeup on The Stump entitled Illinois Financial Disaster: Even More Reactions to the Budget explains what passage of the budget does and does not do.