Americans’ Economic Outlook Plunges: Rosy scenario gets tangled up in reality

[marmar]

Americans’ Economic Outlook Plunges
by Wolf Richter • August 25, 2015

[font color="blue"]Rosy scenario gets tangled up in reality.[/font]


The rout in Chinese stocks, the deteriorating Chinese economy, the subsequent rout in US stocks, and nagging questions about the US economy – they all got blamed for the unceremonious collapse of the confidence Americans have in our rosy scenario.

It’s sinking in. Even NPR has been talking about it. Whatever you do, “don’t sell,” was their admonition today. Those kind of shows first thing in the morning don’t fit into our rosy scenario.

That scenario looked a lot rosier in early January, when after a long hard climb the economic confidence of Americans reached the highest level in the Index since Gallup started collecting the data on a weekly basis in 2008. At the time, Gallup credited lower gas prices for the miracle.

At +5 in January, the index wasn’t exactly wallowing in exuberance, given its theoretical range of +100 to -100 (it hit -65 during the Financial Crisis). But these folks don’t live in the Wall-Street economy. They struggle with their daily challenges in the real economy. And it’s tough out there.

Yet, even at that level in January, lousy as it was, it was practically exuberant compared to what it is today. ................(more)

http://wolfstreet.com/2015/08/25/americans-economic-outlook-plunges-since-july-2014-gallup/

[daleanime]

1. K&R....

This next bubble is going to be a doozy.

[dixiegrrrrl]

2. Excellent summary here, also:

The Crash of 2015: Now Arriving at Gates 3,7,12,19…..

Excerpt from a long list of examples at the site

From North Dakota and Texas: America’s zombie shale-oil frackers are finally running out of gas, so to speak, after being propped up despite the crash of oil prices by 1) an avalanche of investment and credit from money handlers convinced the dip was only temporary, and 2) hedge contracts that meant they were still getting some $90 a barrel when the market was around $50.
The avalanche is now going the other way and the hedge contracts are running out.
Investopedia lists seven major players on the verge of bankruptcy. According to Bloomberg Business News, North American oil producers have seen a stunning $1.3 trillion of their equity valuation vanish in one year as a result of the crash in oil prices. The sudden loss in value has hit a multitude of pension funds and insurance companies hard.

http://www.dailyimpact.net/2015/08/10/the-crash-of-2015-now-arriving-at-gates-371219/#more-3007

[StoneCarver]

3. Thanks a million Dixiegrrrrl!

Ah, you have no idea how glad I was to see your post. Someone who helps us little people understand it all. I hope folks appreciate it.
Stonecarver

[dixiegrrrrl]

4. The information is out there, but not to be found on MSM, that's for sure. n/t