I think the economy has now moved beyond the "end of the beginning" of the Rich Man's Panic of 2007 to the "Beginning of the End."
The Fed did what it needed to do, to redress its mistake in not stopping at 5% in May 2006 and not cutting earlier this summer.
The vultures are raising big money to buy foreclosed homes at bargains. This will re-price housing in many speculative neighborhoods in California, Nevada, Florida and other places. That's how the commercial real estate recession of the early 1990s was cleared. Lenders should renegotiate loans to reduce their losses. Will they be that smart? Maybe, there is talk about that.
Per a recent WSJ, the peak in home mortgage ARM resets is on us. They fall in coming months.
Talk on Babblevision about "Asian decoupling" from the US is correct. I've need writing about the new "Asian Co-Prosperity Zone" for many months - years actually. It's becoming more and more evident. Self-reinforcing consumer and business demand can drive that zone much, much higher and the world economy, too. Exports to the US sparked it, no doubt. But the follow-thru is now intra-zone trade.
The GM strike is over. Futures are up. The markets were up on bad retail news yesterday. The Charts look fine - the Nazz 100 printed a second close over the old high, confirming the move.
It's a bull market. Buy dips.