Consumer Expectations Are Always Erratic

Floyd Norris is worried about a sharp drop in consumer confidence. He shouldn't be.

The cause of the drop is a fall in consumer expectations about the future. Expectations jump around because most people aren't in the business of sitting down and thinking about where the economy will be in 6 months. For the most part, people answer this question based on what they hear in the news. Since news reporting on the economy is very fickle, people's views about the future are very fickle.

Fortunate...