Consumers May Fake it to Make it
You gotta hand it to us consumers. Per Flow of Funds data, we’re about $14 trillion in the hole on household net worth from where we were before this whole thing came undone, starting in 2007.
Caculated Risk also observes, homeowner net equity is “Cliff Diving,” far below 41% when you account for the fact that 31% of homeowners have no mortgage to pay.
Still, consumer sentiment, according to the University of Michigan’s monthly survey, is inching up.
Not to where anyone should get excited, but up vs. the other direction.
Here’s a video clip from CNBC, with experts on the latest consumer sentiment data.
Calculated Risk says take it with a grain of salt.
Consumer sentiment is a coincident indicator – it tells you what you pretty much already know.
June 12, 2009 | Filed Under Consumer Spending, Financial Crisis
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