Wait and see how the problems last due to these rate cuts, these are the same rate cuts that they gave the US economy back in 2000-2001 that brought you the problems you see today.....stocks are going to fall further, see you when the dow is under 12k again....
This is 2008 and your analogy of 1929, 1987 is bullshit. The world has changed and we are a global economy. If we go down the whole world's stock markets will crash and the Feds are in no mood to let that happen, neither the politicians in an election year. That brings me to my original thesis- recessions do not happen in election years. Smudge your dreams and go spank your monkey into a drywall..
Day, what is the use in having such strong convictions? Let the market decide. Believing in the power of rogue speculators to push the market one way or the other is as old as wall street itself. It is a chimera. Yes, small moves for short durations, perhaps. Scarcely would it be possible over a whole month. Moreover, a top down macro analysis provides ZERO justification for bullish forecasts for U.S. equities in 2008. The capacity of the U.S. consumer to consume has little to do with courage/emotion -- it is about reality. No one saves a nickel anymore -- if paper wealth deflates (housing), we could see a serious retrenchment.