Were you surprised the markets didn’t respond more strongly to the one-half point cut in interest rates by the Fed? With the economic reports showing the economy at a virtual standstill in the fourth quarter, things are worse than many thought and the strong medicine from the Fed is confirming those fears.

The betting now is that the Fed is prepared (and perhaps planning) another cut when it meets in March. However, inflation hawks are growing very nervous that lower interest rates are going to fan the fires of inflation.

The mother of all economic nightmares is stagflation – when the economy is stalled and inflation is rising.

Where will the Dow be at the end of 2008? Take the Poll

The road ahead for stocks looks rocky, but could this be the big correction before the renewed bull market - or the dark before the storm of recession? Register your vote on where you think the Dow will be at the end of 2008 by visiting this page.

Post your short comments about 2008 on this blog and I'll publish representative samples.