Congress and the President have come up with a band-aide approach to stimulate the economy with the tax rebate plan. Their hopes are you will receive your rebate check and go out to buy a TV or some other big ticket item to increase spending. The people I see in my office plan on using their rebate on necessities such as gas and groceries. Others are thinking about using their refund to pay for their Bankruptcy filing. No matter what the refund is used for, if it is used at all, more is needed to get this economy back on track. Hopefully, someone will come up with some real solutions that will actually help struggling families and this struggling economy.
The Associated Press reports consumer confidence sank to a five-year low in March as tight credit markets, rising prices and worsening job prospects made many worry that the economy has fallen into recession.
The Conference Board, a business-backed research group, said Tuesday that its Consumer Confidence Index plunged to 64.5 in March from a revised 76.4 in February. That was far below the 73.0 expected by analysts surveyed by Thomson/IFR.
The index has been weakening since July, and is watched because lower consumer confidence tends to result in lower consumer buying, which is a drag on the economy.
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