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How Times Haven't Changed
-- November 27, 2001
The drop in consumer confidence in November underscores the fact that Americans are still wary of the economy's outlook. Wall Street may have decided that there's nowhere to go but up. However, many Americans are still fearful of rising unemployment and a continued economic slowdown.
Back in late 1929 and early 1930, the pattern was similar: On Wall Street, the stock market staged an impressive rally, generating hopes for a new bull market. But on Main Street and among millions of consumers, confidence continued to sink, driving the economy into a tailspin, and setting the stage for a far-deeper stock market decline. The same thing is happening today.
Wall Street soon will be forced to recognize that the economy is not recovering as quickly as they have predicted. And investors will get creamed once again.
Americans Still Worry About Jobs, Spending