Santa May Get Sacked by Grumpy Consumer

But even if a reversal of recent employment statistics alone could turn around consumer sentiment, such a reversal still hinges upon businesses' ability to expand, which in turn hinges on the financial sector's willingness to lend. Credit markets have shown signs of thawing and the White House is pressuring banks to use their government-issued capital to make loans, but many economists say an economic upswing is not likely to come until well into 2009. "Anybody who's reading tea leaves," says Gelb, "will find the tea leaves are damp and brown."

Gallup research indicates that the bailout plan for the U.S. financial sector -- and political bickering over the bill -- made matters worse. But, ultimately, the unprecedented federal intervention had "a marginally positive impact," according to Chief Economist Dennis Jacobe. Positive signs on several economic fronts are helping to soften recent blows to the battered consumer psyche - from notable increases in home sales, to a thawing in the credit markets, to the government putting pressure on banks to start lending to consumers and businesses again.

"Hopefully, these positive trends should help to mitigate -- at least to some degree -- the severity of the full-fledged recession as it rolls out," Jacobe says in a recent blog post.

Uncertainty surrounding the country's economic future will be further eliminated once the November elections have passed, says Greg Daugherty, executive editor of Consumer Reports. Indeed, most Americans -- 80% according to Gallup -- do not believe the Bush administration can adequately handle the economic mess.