Consumer Comfort Plummets Most Since Feb 2008 As Personal Finance Confidence Crashes

Tyler Durden's picture

Having staggered along the bottom, mired in misery and reality, for over 3 years, the Bloomberg Consumer Comfort Index finally signaled depression-fatigue in January of this year and started to break out - albeit to historically still low levels. This was then heralded in self-fulfilling style as an indication that everything was good again in the world, money would come off the sidelines, consumers would buy more iPads and American cars, and all would be well in the world. Well the sad reality is that the last 3 weeks - as stocks have begun to lag, economic data has begun to reflect an un-warmed winter reality, and Europe's conflagration reignites - have seen the largest collapse in consumer comfort in over 3 years and has fallen to 3-month lows. Digging into the detail is even more worrisome as in the last 3 weeks the comfort with personal finances has fallen by the most ever and back to six-month lows.

The lower pane shows the percentage change in Bloomberg's Consumer Comfort (a drop on a negative number there BBG's chart assigns it a positive) - which has not fallen this much since Feb 2008!


and stunningly - comfort with personal finances has crashed in the last 3 weeks...


Chart: Bloomberg

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Sudden Debt's picture


Tyler should add midi files to his texts :)


Here's the best national enthem in the world:



nobusiness's picture

QE3 must be needed now

vmromk's picture

FUCKHEAD Bernanke says BUY, BUY BUY.

Jason T's picture

OT: Finished motor gasoline now record low stocks... at this rate, we'll be out of gasoline in about 24 months ... can't stock this shit either because its got ethonal in it and it degrades + there is winter blend and summer blend..

.. future's not looking so bright for us here in the US.

Chuck Walla's picture

Stock winter blend. More butane it makes it last a little longer.

DosZap's picture

OT: Finished motor gasoline now record low stocks

Dont see this as possible, as we are IMPORTING 28% of our finished gasoline, and we have ZERO shortages.

We have a surplus of crude, and we are being SCREWED.

Additives to gasoline can add months of life to extend it's efficiency.....................ethanol, or not.

roadhazard's picture

Ethanol = the most stupid idea in my life time and that's saying something. And Congress may add to the stupidity by raising it from 10 to 15%. You can't leave that gas in a small engine now without the seal in the carb wrinkling up in two months. 

Nobody For President's picture

Amen to that - ethanol is not an additive, it is an adulterant, that takes more energy to create and ship to refineries than it adds to the displaced real gas.

Also can no longer burn it in my Cub once it is over 5%, and the stations don't have to label it until it hits 10%, so I have to test it myself, and it is hitting 10 and not being labeled.

But it's good for the fucking corn farmers, so all is well, right? Really, really stupid idea, too bad the bankers ride in chauferred vehicles and don't have to notice this shit.

Son of Loki's picture
Will the FHA require a bailout? – 12,000,000 underwater mortgages 3,000,000 are FHA insured loans. 1 million underwater mortgages originated in last two years.


Historically FHA insured loans made up roughly 8 to 12 percent of all mortgage originations but in 2009 they hit 30 percent.  For first time home buyers it was a stunning 50 percent showing that most people can only purchase a home today with a very small down payment.  Yet small down payments create instant negative equity positions if the market moves sideways or pops lower (aka our current market).  For example, the 3.5 percent standard FHA down payment is wiped away by the 5 to 6 percent selling costs.  What is interesting with this is that the FHA insured loan market is fully backed by the government (i.e., you) so any losses will be completely shouldered by the public.

Dr. Engali's picture

I'm confident....confident we are all screwed.

semperfi's picture

Not me. I refuse to participate in the depression.

Dr. Engali's picture

You're not going to have a choice. There is a Fema cot with your name on it. Did you change your user name? Weren't you Robotraders mom? Or am I mixing you up with some other ugly shemale?

vmromk's picture

Someone hand me a rope, I am ready to climb the wall of worry and buy up some overpriced pieces of paper called stocks.

fuu's picture

Assisted suicide is not legal where I live, someone else will have to help you out.

Dr. Engali's picture

Don't do it man! Life is too precious to waste it on some over priced pieces of paper. Buy some silver instead.

ZeroPoint's picture

I would buy dehydrated food with a 30 year shelf life instead.

carguym14's picture

We could all use some rope.

Nothing to do with suicide though.....

the not so mighty maximiza's picture

Thats why CC debt increased people having difficulty getting by.

alfred b.'s picture


   ....but, but bernanke just said that all is good and rosy, (well at least for the banking cartel) that he's in his comfort zone.

   Don't trust this mf; buy physical gold and silver!



slaughterer's picture

When does reality catch up with fantasy?

Sudden Debt's picture

when we're at the end of the rainbow

semperfi's picture

Long after you have become insolvent betting short-term against The System.  Bet long-term: gold & guns.

DormRoom's picture

As a youth, how are we suppose to consume when we have 50K+ in student debt exiting college.  Just to be able to enter the lower middle class costs us atleast 50K+. 

Dr. Engali's picture

I'm sure there will be some debt forgiveness incentive if you enlist in the military for the upcoming wars. Otherwise you are pretty much screwed.

Shizzmoney's picture

Debt forgiveness in exchange of enlisting in the military to fight the sand people will be the new GI Bill

Boy, will they be in shock when they find out that arts majors aren't really good at aiming and firing M-16s.

sof_hannibal's picture

Shiz$$$, you know in actuality, the arts majors are much easier to break down (to a clean slate) and build up (brain wash) into drone killers-- then the engineers-- those are the ones who tend to be more logical...

"Obi-Wan: "I think we better get indoors. The Sand People are easily startled but they'll soon be back, and in greater numbers." R2-D2: "Beeping whistling and bliping." Luke: "3PO." 

haha, sand people...

Gunnery Sergeant Hartman: If you ladies leave my island, if you survive recruit training, you will be a weapon. You will be a minister of death praying for war. But until that day you are pukes. You are the lowest form of life on Earth. You are not even human fucking beings. You are nothing but unorganized grabastic pieces of amphibian shit! Because I am hard, you will not like me. But the more you hate me, the more you will learn. I am hard but I am fair. There is no racial bigotry here. I do not look down on niggers, kikes, wops or greasers. Here you are all equally worthless. And my orders are to weed out all non-hackers who do not pack the gear to serve in my beloved Corps. Do you maggots understand that?

GolfHatesMe's picture

Can we just get rid of all of these Stupid Consumer Comfort reports and any of this touchy-feely bullshit.  Or at least change the name to the Ass-Hat report.  We interviewed 15 Ass-Hats who feel better about some bullshit meaningless statistic than they did last week.  Or maybe the BFD report, not to be confused with the Highly accurate BTFD report.

BudFox2012's picture

But Cramer said the other day that the Panera Bread in his neighborhood was packed?  How can this be?

BLACK_DOG's picture

Thats why this..

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now that cover'in your ass!
Sokhmate's picture

ass holes are like opinions, everyone's born with countless ones.

LaLiLuLeLo's picture

because no one knows how to cook for themselves anymore which will add jet fuel to the fire when the drive-thru menu lights go out...

Shizzmoney's picture

Panera Bread is delicious (only place I eat when I go to Foxwoods), and it is usually packed.......

.....but what happens when coffee and bagels go up in price (I used to analyze restaurant pricing, so I'm very familiar with it)?

What happens when coffee goes to $3/cup?  $4?  Or a bagel and coffee, which usually topped off at around $3.50-$4.50 for the combo, goes to $7-$9?

People start to make their own fucking bagels and coffee. 

Something that the investor class doesnt quite understand.  Yes, you can have a great business, great products, and even great service....but if costs are rising and no one is getting good, solid pay......they WILL go galt. 

The consumer isn't a prime number; he/she won't consume forever. 

It's a mathematical problem.   

roadhazard's picture

I'd up arrow you more if I could. If Americans have to work for half the wages they used to get then consumer prices have to match or NO SALE.

semperfi's picture

As Biderman said earlier today: European mess will not resolve itself until the fundamental belief that we all deserve to be taken care of from cradle-to-grave dissolves.   Same with the U.S.  Personally I'm doing great and am highly confident because I am not afraid to do alot of hard long work and I know that I will always be able to do alot of long hard work until I don't want to any more - I'm in total control of that.  I work almost all the time either for my employer, at home around the house, or doing volunteer work in my 'spare time'.  "Comfort Level" - what a crock of shit!  Americans need to get off their fat lazy disablity sucking asses and get back to work - ANY work.  And don't give me the lame-ass loser excuse that "there's no jobs" out there. Bullshit!  Maybe not your "Comfort Job".  If I get laid off today I will not file for unemployment benefits - I will go get ANY job (or 2) that I can and keep looking continually for a better job just like I do all the time anyway.  I admire my landscapers - I don't like illegal migrants any more than the next guy mainly because alot of them are sucking from the system and not putting much back into it - but I got a way to fix that.  Alot of them are hard-ass workers - so for every able-bodied American citizen on unemployment or welfare, trade citizenship status for them one-for-one with the hard-ass working illegals - the productive illegals then become legal contributors and make American stronger, and likewise kicking out the lazy-ass able-bodied parasites makes America stronger. Win-win.  Consumer Comfort - what a bunch of pussys we've become. Pisses me off! 

blunderdog's picture

The question for you, Mr. Angry Guy, is what good does it do for all the people who have expenses (like mortgages, heating, electrical bills) to start working jobs which won't pay the bills?

I have a friend in a house she bought recently, mortgage around $1100/month, this is in AZ, and she was working a "comfortable" office job (which I'm sure pisses you off), and now she's not.  Previously earning in the $60K range.

She can go start working at an $8/hr job tomorrow if she chooses.  That would leave her an expense deficit of about $450/month. 

What would be your approach to that problem?  Start trying to sell the house and live in a van?  Run up debt on credit cards to bridge the gap until "conditions improve"?  Stop paying nonessential bills?

She's on unemployment, which is providing ALMOST enough to make expenses, so if she can find another well-paid gig, she should be OK.  Personally, I don't think she's got a chance, as she doesn't have the kind of skills that are difficult to train, and she's over 50. 

But what's the Pissed Off Solution to her problem, you think?

blunderdog's picture

A simple answer that doesn't work, because the additional expenses involved aren't covered by the additional income.  It'd require child-care, which is expensive.

That's the problem a lot of folks are having.  Working a bullshit job just won't pay for itself in many circumstances.  If people are supposed to be rational consumers, that means they don't perform work that involves a financial loss.

Nice try, though.

bnbdnb's picture

Oh I missed the part about having kids. Yeah thats tough.

Short sale the house.

justsayin2u's picture

The solution is she needs to take 2 jobs and rent out a room in her house.   She can also put the house on the market and accept the hit.

blunderdog's picture

It's a thought, although I don't see that as a better option than foreclosure, myself.  What's the ADVANTAGE over not paying the mortgage?

You should look at this economically, not morally.  This is a business decision.

gnomon's picture

She should have NEVER bought a house at this time.  She should have rented.  This is your typical blunder by a clueless grass-eating/smoking consumer in the midst of the never-ending Greater Depression.  Her only excuse is that she listened to the MSM.  And if she did listen to them, she is probably a dumbass, all-in-for-Obummer idiot who is getting her just desserts.  

NO pity here.  What a DUMBASS!!!

blunderdog's picture

Glad to see you're enjoying her distress and all, but it's not about justice, man, it's about a solution to the problem.  I think she's already had her "come to Jesus" moment.

Maybe someday you'll get to have one too, and someone else will get to laugh at you about it.  For sure no one wants your pity.

gnomon's picture


What our politicians have done to this country has made me very unforgiving from top to bottom, from the Destroyers of Liberty to their fucking Enablers.

Let the Sword of Justice swing far and wide.  Fuck Fair.  Fuck Social Justice.  I want some real JUSTICE all around, (even if it takes off my head as well).