Good morning all from a soaked Dartmoor. The stock markets took a pounding yesterday with the Dow down 370 points. Yen carry trade (which looks mortally wounded from it's highs last year) fell in unison. I have a feeling that we are watching the early days of a bear market in equities, but another leg up might be needed before a bigger fall confirms. Highly unusual to have a bear market start in a US election year. I guess the tax handouts and panic cuts in interest rates are trying to keep Bush's successor in the White House. It's the economy, stupid, I think was the phrase. Like trying to keep all the spinning plates in the air; unfortunately someone keeps adding more plates. There's a limit before something crashes.

Today's economics: US non-farm productivity at 1:30pm.