USA Consumer Sentiment Plunges to 1-Year Low!

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USA Consumer Sentiment: Thomson Reuters / University of Michigan

(Reuters) - Consumer sentiment unexpectedly deteriorated for a second straight month to its lowest in over a year in January, with many consumers citing fallout from the recent "fiscal cliff" debate in Washington. The sharp drop in sentiment over the last two months coincides with rancorous federal budget negotiations that have led to higher taxes for many Americans.

USA Consumer Sentiment by Month



USA Consumer Sentiment by Year



"The most unique aspect of the early January data was that an all-time record number of consumers - 35 percent - negatively referred to the fiscal cliff negotiations," survey director Richard Curtin said in a statement. "Importantly, the debt ceiling debate is still upcoming and could further weaken confidence," he said.

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USA CEO Confidence: "Remains pessimistic by historical standards"

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Measure of CEO Confidence = 46%

Economic Conditions Have Improved Compared to Six Months Ago = 15%

Economic Conditions Expected to Improve Over the Next Six Months = 23%

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Peter Schiff: Congress Sells America Down the River to Avoid the Fiscal Cliff

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Peter Schiff

Congress Sells America Down the River to Avoid the Fiscal Cliff

In a disgraceful show of political expediency, Congress put its own political self-interest ahead of the national interest. They "saved" us from a contrived crisis of their own making, only to condemn us to far more horrific fate when the real crisis arrives. This one will come not because we went over the fiscal cliff, but because we avoided doing so. Going over the fiscal cliff merely represented a small down payment on the solution. By failing to make it, the ultimate price we will inevitably pay will be that much higher.

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