It looks like it's beginning to sink in to most people what a mess the Bush administration has made of our economy. The Consumer Confidence Index fell for June to a lowly 50.4. This was even more than the analysts' had predicted. It was expected to fall from May's figure of 57.2 to around 56.5.
Last July, the CCI stood at a healthy 111.9, but now it is at the lowest point in the last sixteen years. With the perception that we're in a recession, the freefall of home valuations, the record number of foreclosures of homes, the rapidly growing inflation of food and gasoline prices and the growth of unemployment numbers (officially 5.5%, but probably higher), it's easy to see why consumers have little confidence in the economy.
Even the Federal Reserve is unsure of how to handle the economy. Normally, an economy in recession will have falling prices, and the "Fed" would lower interest rates to stimulate economic activity. To handle inflation, the "Fed" would raise interest rates to slow economic activity.
But we're in a rather unique economic mess. We're being hit with recession and inflation at the same time. Because of this, the "Fed" is expected to neither raise nor lower interest rates when it meets this week. After all, if you fight the inflation then you make the recession worse, and vice versa.
There doesn't seem to be much hope of either situation getting better in the near future. It's become very clear that we must vote the Republicans and their disastrous economic policies out of office this coming November.
