Corporate earnings are not knocking the cover off the ball but housing numbers are keeping the market relatively positive. Consumer confidence is down but not slowing the market down too bad today. A 0.5% increase may not look huge but considering this number has not been positive in 3 years we should be receptive about it. Job security is the main reason for the bearish result of the Consumer Confidence Index number. People are very nervous about job security and if the White House is going to secure jobs for the American people. We can look at Obama’s healthcare project in a couple of ways. One, if Americans keep losing job they will need healthcare, so consumer sentiment may change if unemployment rises over 12%. People may not care who pays for health care even if the wealthy get taxed more. Why work hard, get an education, work up the corporate ladder if you can sit home collect unemployment and get free healthcare? We can see this happening already with people that are disgruntled from being laid off.

This entry was posted on Tuesday, July 28th, 2009 at 2:41 pm and is filed under Financials. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.