University of Michigan consumer index tells the real story – people are losing confidence in the economy especially with higher mortgage rates
Sondra Johnson
Jun. 15, 2007

The mortgage rates are rising. The gasoline prices are at its highs. The home prices are falling. There is not much sign of any movement of inventory of old homes. The stock market is in the process of making long-term tops.

University of Michigan consumer index tells the real story. Common people are losing confidence in the economy especially with higher mortgage rates, gas prices. Falling home prices, higher health care costs, and higher food prices.

The consumer confidence has formed a long-term top. The analytic model when applied on the consumer index data from University of Michigan shows probable sharp drop in the index in the next several months.

The econometric models point to deep recession triggered by consumers’ inability to pay for the purchases and the falling leveraged real estate.

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