Suddenly everyone is talking recession, from New Economy guru James Cramer to hardheaded Alan Abelson, editor of Barron's . The Nasdaq is in the tank. They're on the downside.
Oil prices remain high, threatening Asian economies, which are disproportionate importers.
Geo-political troublespots from the Middle East to Colombia are heating up. Alan Greenspan remains the Great White Hope for continuing growth in America and a new leg up in the decade-old bull market. Since rate increases take a year or more to work their way through the system, it appears that corporate borrowers and New Economy stocks alike face more financial root canals ahead. In Europe, where the European Central Bank, concerned about inflation caused by high oil prices and a weak Euro, has presided over far more rate hikes than Greenspan during the last year, statistics released over Thanksgiving reveal that the British, Dutch, French, Italian, and German economies report slower growth and higher inflation than expected. Consumer and business confidence is eroding rapidly.