Monday, 29 December 2008
Consumer Confidence Collapsing
"Consumers' confidence in the economy weakened further in December. The consumer confidence indicator stood at -6.5 in December whereas in November it was -4.5 and in October -0.2. Prior to the past few months, confidence in the economy was last negative during the years of the recession of the early 1990s."
"The already gloomy view of the development of unemployment continued to worsen clearly. Expectations concerning unemployment and Finland's economy were at their lowest in the history of the Consumer Survey, in other words since 1987." - from Statistics Finland
Strange enough, although the consumer confidence is plunging to level not seen since the "Finnish great depression" of the 90's, The "Uusimaa" region seems to ignore those signal: More SUV on the road, unable to get a parking place in "shopping malls", people consuming as if tomorrow will be the end of the world.
Or is it the fact, that people are now hunting bargain, sales more than ever, in order to save few euro as their indebtedness is reaching record high (how crazy is to have allowed (FSA, regulators, Bankers, Central Bankers) people to get debt for 30 years +, and allowed them to purchase big items at levels not seen in human history).
I'm not sure how this is going to end, but be sure that politicians will do all they have in power to first preserve their position and second to allow the economy to keep some momentum even if artificial measures have to be committed (i.e it's not the current generation that will pay but the next).
In Iceland, they did the same thing. In order to get reelected, they allowed the system to over expand. The party lasted until an "Armageddon" collapse. At the end people have to pay a very heavy price for the foolishness of bankers and politicians. Now,about 2-3 generations are condemned to pay for something they didn't do, wanted or even see the color of it.