It appears the burden of hope for the future of the American consumer, based on this morning's confidence survey data [3], is based on a surge in incomes. In fact, the income 'hope' index is at its highest since February 2008... which is odd given the utter stagnation of real wages. Perhaps the survey respondents have been listening to a little too much 'hope-and-change' TV promises of minimum wage hikes and fair livable wages and not enough paying attention to the layoffs, "M&A synergies", restructurings, and buybacks firms are actually undertaking, or as some call it, reality.
Shown on the chart below: the largest decoupling between reality and hope in the history of income reality vs expectations.
[4]
Peak Delusion indeed.
Chart: Bloomberg
