The Reuters/University of Michigan Surveys of Consumers said that consumer confidence rose to 70.8 in June, the highest reading since February of 2008.
This of course begs the question, why?
As I wrote about last month, it appears that the tail is wagging the dog with these numbers.
There are three major "economic" concerns that people have, their home, their job, and their investments (stocks).
Home values are still falling like a rock as is evidence by the latest numbers published by the NAR showing a -16.8% decline. There are very good indications that home values will continue to fall for the next two to three years.
The advertised unemployment rate is likely to hit 10% in June and the "real" unemployment rate is currently at 16.4%.
The only bright spot has been the recent rally in the stock market which itself has proven that it is no longer an economic indicator. In other words, the stock market has surged over the past couple of months as a result of pent-up optimism more than anything else.
Even Warren Buffet has recently come out and said that the economy is in "shambles" and he does not see any "green shoots."
While Warren is not perfect, I am guessing the man that owns several businesses has a different pulse on the economy than most consumers do.