Slowdown extending into economy

In September, the slowdown looked isolated to housing and consumer finance.

Since then, weakness has spread into commercial finance, autos, consumer retail, transports- truck and rail, domestic manufacturing, drug companies, and discretionary purchasing such as elective surgeries, designer goods, and travel.

Weakness looks like it will spread. Already 2008 earnings expectations are being reduced across the board for many companies. This bodes poorly for the stock market.

Long-term investments should weather the storm fine.

Short-term investments can expect continued weakness and volatility.