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Professor’s Corner

Why is consumer confidence so important?

The preliminary confidence survey for April done by the University of Michigan fell to 63.2 from 69.5.  This is the lowest consumer confidence since 1982!

Consumer confidence is important, because, if people feel less confident about their future, jobs, and economy, they will want to spend less money and less buy goods. When people do not buy goods, then businesses cannot sell what they make.  Businesses soon start to reduce the number of people they need. Soon unemployment starts to increase. When people lose their jobs it makes it difficult to pay for the mortgages, and therefore, it would make the housing problem worse. This starts a cycle that is not good for the people, the housing market, and the economy.  Many experts believe that the US economy is now nearing recession.

Why is consumer confidence important?

Learn more about…

What is Credit History?  Why is it important to have a good credit history? Volume 12.    

What is Economy, Business, Workers, Goods,  Services,  Stock, DOW, S&P500, and NASDAQ in Volume 16. 

Does it pay to study hard? Volume 17.    

What is the Currency and Foreign Currency Exchange rate? Volume 14.  What is a stronger or weaker currency? Volume 20. What does the dollar slide mean? Volume 32.

How does money grow in a bank? Volume 21. 

What are the Fed Funds rate and Discount rate? Volume 22

What does the interest rate cut mean for you? Volume 23. 

How to read stock information? Volume 25.

What is “Black Monday”…Crash of 87”? Volume 31.

Who are the CEO, CFO, Shareholders, and the Board of Directors? What is SOX? Volume 33

What does “$4.95 + Tax” mean?  Volume 47.

What is a Recession?  What is a Depression? Volume 48.

What is Mergers & Acquisition (M&A)?  What is a Merger?  Volume 49.