The falling rents, empty restaurants and unused limos in San Francisco are a glimpse of things to come for the rest of America. Unemployment is going to suddenly shoot up, consumer confidence will hit a ten-year low, and retailers will start missing their projections. Suddenly the recession will be all too clear. The Fed will scramble, and if George W. doesn't have his tax cut by then, the Dems will take credit for it and ram the bill through. Meanwhile, as the economy slips, the markets will perversely begin their long climb.
Marriage is in the air.
Watch for a sudden burst of mergers and acquisitions. But that doesn't mean there isn't a lot of talking and mutual sniffing going on right now. The companies that are flush right now are also smart enough to know that downturns are the time to build market share. That's why they're eyeing competitors, complementary firms, suppliers and distributors with the hopes of gobbling up a few at the right moment. At that moment, say May or June, all hell is going to break loose.