Stocks retreat after disappointing consumer report

The stock market pulled back Tuesday after a surprising drop in consumer confidence reminded investors of the fragility of the economic recovery.

The Dow Jones industrials were off about 70 points. Interest rates also fell as investors moved money out of stocks and into the safety of Treasurys.

This could have been rewritten as stocks stocks tank, again, during treasury auction week. Coincidence? Beat the grass to startle the snakes.

We need to save more, but doing so causes current consumption to drop. Any drop in consumption is a big deal when it accounts for more than 70% of GDP. Maybe we can save and consume more simultaneously, thereby, proving that pesky little economic axiom -"there is no such thing as a free lunch" wrong.

Source: finance.yahoo.com