Warnings from Intel and Motorola that quarterly sales and earnings would be down were only one sign that Asia's troubles will have a greater effect on U.S. business than is generally acknowledged on Wall Street.
Housing markets are vigorous, incomes are rising and inflation remains low.
Stock prices rebounded Friday, as if to underline that the U.S. economy is fundamentally strong. Yet with good reason, international economists and financial experts are calling this the lull before the storm. Courtis believes that Asia's troubles will stall even the U.S. bull market by summer or fall. But the end of this market has been predicted before, and yet it keeps going like the Energizer Bunny. That equilibrium is under strain right now because many Asian economies, having been allowed to borrow too much for their own good by careless banks, are in severe distress.