Consumer Confidence Falls on Job Worries

AMERICAN CONSUMERS ARE IN A CRISIS OF CONFIDENCE ABOUT THE FUTURE OF THE ECONOMY.
WORRIES ABOUT JOB SECURITY FLARED UP THIS MONTH...AND THAT CAUSED A CLOSELY WATCHED MEASURE OF CONSUMER CONFIDENCE TO DROP UNEXPECTEDLY. THAT COULD SIGNAL TROUBLE FOR THE HOLIDAY SHOPPING SEASON, IF CONSUMERS ARE MORE CONCERNED WITH SAVING MONEY THAN SPENDING IT.
IN FACT, A POLL BY CONSUMER REPORTS FOUND...71-PERCENT OF AMERICANS PURCHASED ONLY WHAT THEY ABSOLUTELY NEEDED OVER THE LAST YEAR. THAT'S A TREND THAT WORRIES WALL STREET. THE DOW DROPPED 47 POINTS AND THE NASDAQ GAVE BACK 6.
THE DROP IN CONSUMER CONFIDENCE COMES JUST AS SHOPPERS ARE STARTING TO BRING NEW LIFE TO THE SAGGING HOUSING INDUSTRY.
HOME PRICES EDGED HIGHER BETWEEN JUNE AND JULY...THE THIRD INCREASE IN A ROW. ACCORDING TO THE STANDARD AND POORS CASE SHILLER INDEX, JUST TWO OUT OF 20 CITIES SHOWED PRICES GOING DOWN - LAS VEGAS AND SEATTLE.
AND IN ANOTHER STRUGGLING INDUSTRY... BECAUSE OF HUNDREDS OF BANK FAILURES, THE AGENCY THAT INSURES DEPOSITS IS ALL BUT BROKE.
REGULATORS SAID TODAY...BANK LOSSES WILL COST THE FDIC ABOUT 100-BILLION DOLLARS. SO THE AGENCY IS NOW REQUIRING THAT BANKS PRE-PAY THREE YEARS OF INSURANCE PREMIUMS. THE MOVE WILL RAISE ABOUT 45-BILLION DOLLARS FOR THE FDIC BY THE END OF THE YEAR.
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