The Recession Is Over, but Pessimism Still Reigns

The NY Times reports on the persistent pessimism among consumers, even as economic recovery gains strength and markets rise.

AMERICANS became more pessimistic about their chances for higher incomes during the Great Recession than at any time in the past 45 years. That pessimism has eased, but still remains high.

The consumer confidence index fell in September, according to preliminary figures released this week by the Conference Board. That decline was largely because of lower expectations.

A rise in consumer confidence, and/or a resurgance in business investment (calling all animal spirits!), would turn an anemic recovery into a robust one overnight.  FDR was speaking pure economics when he said, “The only thing we have to fear is fear itself.”