Consumer confidence up

August figures from The Conference Board showed an increase in the consumer confidence index, the first month of positive figures following 6 consecutive monthly declines since January. Falling gas prices was the main reason consumers felt less pessimistic. Economists say they can't underestimate the relief felt that gas prices are coming down, but there is still worry about a weak job market, tight credit conditions, and the housing slump. People who said jobs are "hard to get" rose to 32% from 30.2% in July. That figure means 1 in 3 persons are struggling to find jobs.

Inflation Spiking

U.S. Gov't figures for July showed inflation rose at highest monthly level since 1991.Private home foreclosures continue at record pace.Mortgage lenders continue to absorb billions in losses from ill-advised sub-prime mortgages that millions of homeowners are defaulting on.The Federal deficit grows as more taxpayers are laid off,banks are bailed out,and the cost of fighting in and the rebuilding of Iraq.Billions leave the US daily destined to the oil sheikhs.Retailers predict consumer spending will stay weak until late 2009.Americans on fixed incomes and with savings are getting anemic returns on savings accounts because the Federal Reserve is stubbornly keeping the prime rate low in the futile hope people will buy homes.Inflation is higher than a savings account return.Many Americans are paying bills with credit cards,further sinking in debt.