Crisis of Confidence

American consumers are more worried about the economy now than at any other time since the recession of 1990-91. A new Gallup poll reports that 59 percent of the respondents believe the nation's economy is getting worse (rather than staying the same or getting better).

And 53 percent, implying deep distrust of the stock market, said that if they had $1000 to spend it would be “a bad idea” to use it to buy stocks. Only 42 percent said the stock market would be “a good idea.” In February 1990, when Gallup asked the same question, 26 percent said the stock market would be a good idea. The market reached its high-water mark for this poll in early January, when 67 percent said “good idea.” It has slipped continuously since.

However, while confidence seems low and forecasts seem grim, 67 percent of the more than 1000 respondents said current conditions are “good” or “excellent;.” 70 percent said they were doing as well as or better than a year ago, financially; and 76 percent said they expect to be as well off or better a year from now.