Consumers are losing confidence

The University of Michigan consumer sentiment index fell to 79.0 in May from April's 87.4, the lowest since October's 74.2. The 10+ fall has only taken place a few times since the the survery began in 1978 associated with events like Katrina, 1991 recession, Saddam Hussein's capture of Kuwait and when the hostages were taken at the US Embassy in Tehran in 1980. What else is in store if consumers are so distressed? Well, think about how much income is now going to higher gasoline prices, higher mortgage payments, increased costs for everything made from petroleum . . . yes, I think we had better plan on a real slowdown in the economy.