Former Reagan Adviser Lindsey: Real Shock to US Confidence Still to Come

Friday, 14 Oct 2011 09:18 AM
By Greg Brown

Former Reagan adviser and Clinton-era Fed official Lawrence Lindsey believes that the real shock to American consumer confidence could still be ahead, a dire warning for the economy if proven true.

Recent U.S. spending data show that we seem to be unfazed by the discussions in Washington about the state of federal debt, Lindsey writes in The Weekly Standard.

While personal incomes have been steadily falling, so has the household savings rate, Lindsey points out.

“The data suggest that households have responded to their troubles so far by digging deeper into savings to maintain their spending levels,â€