HOME | CONTACT US | DONATE LoginLOGIN Ask the RabbiASK THE RABBI
Chabad.org - Torah, Judaism and Jewish Info News & Current Events
 
Chabad.org » Community & Family » News & Current Events » Views on the News » Consumer Confidence








Views on the News
PrintSend this page to a friendShare this
Comment4 Comments

Consumer Confidence

As I've stated before on this forum, I'm not an economist. I regularly tune out when in it's time for the Wall Street report. I'm still waiting for the day when my large stock portfolio will cause me to be interested in the NASDAQ...

In fact, on those few occasions that I do pay attention to the market analysts, I don't understand much of what is being said. Take the current financial crisis as an example. The financial markets and the US dollar are plummeting because of the "sub-prime mortgage" catastrophe. Having no clue what a sub-prime mortgage is, I'm reduced to imagining an evil cabal plotting to destroy the American Dream by seducing naïve citizens to sign on the dotted line that will spell their eventual doom. These would be the same people who put poison in the candies they give to trick-or-treaters...

But a recent financial news story caught my attention. The Consumer Confidence Index has sunk to an all time low. The goal of the CCI is to gauge the mindset of the public vis-à-vis the current and short term future financial outlook. The results of their monthly survey are a reliable indicator of future spending habits, which has a huge effect on the state of the economy.

This month's reading was 64.5. Considering that any reading below 100 is viewed as negative, and that we have currently sunk to a five-year low, this is disturbing news, indeed.

There are many variables that affect the economy, many of which are beyond our control. But it turns out that our mindset – our optimism or pessimism, our saving or spending habits – plays a pivotal role in determining whether we will descend into recession or catapult back into economic expansion.

This principle is true in our personal lives as well. Our lives and wellbeing seem to be manipulated by a variety of influences. But in truth, our mindset and choice of reaction is more powerful than all these external forces combined.

If we fall into the trap of pessimism, then it becomes a self-fulfilling prophecy. But if we can muster the strength to think positively and remain optimistic, we can weather anything.


Reader Comments
Latest Comments:
Posted: Apr 6, 2008
consumer confidence
Perhaps if our credit card companies could be restricted to numbers and compelled not to issue cards to people unable to pay their debts--then our consumer credit which is so over used-could possibly pull back enuff to help those overextended and overbought to get back to normalcy?? This also goes for the money who loan to those unable to repay and the cycle grows intolerable.
Posted By Anonymous, owings mills, md.
via chabadneworleans.com

Posted: Apr 4, 2008
I agree too
The only recession is within the individual. If more people found G-d in the little every day things it world reflect in the big every day things.
Too many believers with no substance.
Posted By Patricia
via chabadpasadena.com

Posted: Apr 4, 2008
dont totally agree
I do agree that falling into a "trap of pessimism" may lead to more of a recession, but sometimes you have to face the reality:they did something wrong, and now the economy at large is paying the consequences. You can look at that similarly to Judaism and to Jews in general: when the Jewish People have made a sin you can not expect all joyous times in the future. For example, after the sin of the golden calf the jews had to pay the price. The best thing to do, in my opinion, is to tryo to prelude from making those "sins" or mistakes in the first place (easier said than done). However, after the act is already done, pretending is not going to help anything.
Posted By Jonathan Cohen, Belle Harbor, NY
via belleharbortorah.com

Posted: Apr 2, 2008
I completely agree
The media is also doing this country a disservice by sensationalizing and harping on the "recession." You can hardly turn on the news without hearing the doomsday predictions. For those of us who don't understand much about the causes, hearing the "experts" going on and on instills fear. It makes us close our pockets and brace ourselves for what's coming. As you pointed out, this is precisely what is causing this downturn in the economy to occur! Mind over matter is a powerful thing and cuts both ways. I prefer to think positively. Thanks for this article!
Posted By Alana Brooks, Kew Gardens, NY


 



By Naftali Silberberg   More by this authors...  |   RSS Listing of Newest Articles by this Author
Rabbi Naftali Silberberg resides in Brooklyn, NY, with his wife Chaya Mushka and their three children.

The content on this page is copyrighted by the author, publisher and/or Chabad.org, and is produced by Chabad.org. If you enjoyed this article, we encourage you to distribute it further, provided that you comply with the copyright policy.