The staggering amount of lost wealth over the past year is perhaps the most oppressive development. For sure, much of the lost money was the easily coined spoils of a long bull market. In that sense, all a lot of people really lost was the casino's money. Still, it's causing consumers to pull back somewhat. Retail sales went negative in February, a third drop in five months.
Consumer confidence is at more than a four-year low.
The next dollar lost for many will be money earned at work, not in the market. He's less worried about the stock market, though, believing a rally is imminent. There's also some doubt that Federal Reserve Chairman Alan Greenspan can ride to the rescue with another rate cut. He's a gradualist. Last week the market was begging for an interest-rate cut beyond the half percentage point already factored in.