Consumer Sentiment is Down and Milwaukee Rates Pause
Posted by Douglas Lenski on Fri, Aug 12, 2011 @ 09:06 AM
A report was released by the University of Michigan that said the US Consumer is less confident. The equity markets are selling off as I write this article. That tells you how much you can not trust these swings in the market and why the equity markets will recovery quickly.
How do I say this delicately for the people on Wall Street. DUH!!!! The consumer has seen gridlock in Washington that resulted in an 11th hour negotiation just to beat the deadline. We saw our credit rating drop from AAA to AA+. That resulted in losses on the Dow of 700,600,500 and 400 in just over a week of trading. The consumer saw their 401k get smashed for the 2nd time in 3 years. This makes the consumer a little unsettled. The surprise is that anyone on Wall Street found this as newsworthy and started a sell off. The report before consumer confidence was retail sales and that came in better than expected.
With all the data that the US consumer has had to digest over the last 30 days they were still shopping and keeping the economy moving. Wall Street only looked at the fact that consumers were concerned that Washington and Wall Street are hurting the American consumer's bottom line.
I really can not believe that these are the brilliant minds that run Wall Street. The markets are starting to come back as I get to the end of the article. Remember that fear and greed drive the markets. The more fear they import to the public the more money they can make on the rebound.
Milwaukee Mortgage rates are unchanged.
