Just paid over $70 to fill up my Porsche 911 Carrera ... enough said

US consumer sentiment fell again amid rising rates, war and inflation

Consumer sentiment slumped again in March, hitting its lowest level since August 2011, the University of Michigan reported Friday. High inflation, volatile oil prices, geopolitical unrest and now rising interest rates, have left consumers with a bitter taste about the state of the US economy. The March index was revised down to 59.4 from a preliminary reading of 59.7 released two weeks ago, when rising prices and the Russia-Ukraine conflict were already spurring unease among consumers. In March 2021, the consumer sentiment index was 84.9.

Consumers are battling the highest inflation since 1982 and with it, a barrage of rising costs: Mortgage rates increased again this week, bringing the traditional 30-year fixed rate to 4.42%, adding an average of $300 a month for homebuyers. Gas prices are still at record highs in parts of the country, and the latest Consumer Price Index showed most essential goods are up by 7.9% year on year.

It's hard that when you go to the store things are still missing and the things that are there are more expensive. You almost need a loan to fill up your gas tank. Here in Seattle the cost of rent has increased 30% over the past 6 months or so. We are routinely looking at houses in our neighborhood selling for two and half times what my wife bought this house for.  Even a 4% raise at work turns out to be a pay decrease when you factor inflation into the equation. 

The solution to inflation seems to be to raise rates, which will then increase everyone's credit card bills and payments, and make things harder to buy, likely pushing the GDP down and possibly even push us into a recession. Imagine how many people believe we are in a recession already? How will they feel it we actually end up in one?