Another Blow To Krugman: Consumer Confidence At 8 Month High

The Conference Board reports that its Consumer Confidence Index rose almost 10 points to 64.5, up from a revised 55.2 in November.

The surge builds on another big increase in November, when the index rose almost 15 points from the month before.

Krugman-like Keynesian analysts were scorched again. They had expected the index would come in at 59.

Consumer confidence isn't my favorite indicator because it will be slow in detecting tops in the business cycle. But strong confidence at the beginning of an upturn in the Fed created boom-bust cycle suggests that individuals will be lowering their desire to hold cash balances, which points to accelerating price inflation.

Thus this is a double-whammy to NYT Keynesian economist Paul Krugman, who only weeks ago said we remain under depression coniditions and who believes that inflation is under control.

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