And the Hits Just Keep Comin'

Cuomo is demanding AIG to recover bonuses paid out to former executives.

Car Dealers Say Credit Crunch Will Crush Them; see Fox News article

You know it's tough out there when strippers aren't buying houses and NASCAR is hurtin'.

DOW 8979 +401; S&P 946 +39; NAZTY 1718 +89
Today's market action may be considered fairly constructive, DOW down 400 and reversing to gain 400 on the day. I would have preferred to see 7800-7900 (down around 700) followed by the reversal to the upside, but for the most part, pretty constructive.

OK, so now we know there's going to be a recession. The only question is how severe and how prolonged? I doubt we'll see terrible GDP numbers for the 3rd qtr. but certainly for Q4 and Q1 2009. With that said we'll likely set up quite nicely for the 2008 Santa Claus Rally, January Effect and ensuing run into April. Lighten up on equities thereafter and cash coast through the Summer 2009 doldrums. Is a double dip possible?

Selectively picking away at favorites:

• Urban Outfitters (URBN): Spec stake at $22.25, underweighted.
• Broadcom (BRCM): Added at $13.96, equal weight