Consumer Confidence at Record Low

From the AP:

"The New York-based Conference Board said Tuesday that its Consumer Confidence Index, which was down slightly in January, plummeted more than 12 points in February to 25, from the revised 37.4 last month. That was well below the 35.5 level that economists surveyed by Thomson Reuters expected. The index, which had hovered in the high 30s over the past few months, broke new lows since it began in 1967. A year ago, the consumer confidence reading stood at 76.4."

Subtext:
Economists are still too optimistic - it's systemic, it's problematic, and it is a direct result of many of them being beat over the head with 'classical' models that emphasize efficient markets and the short-lived nature of downturns. These same models add no emphasis on how market psychology can create a downward spiral....