Job loses are a lagging indicator, the stock market is a leading indicator. Market is up temporarily but there's at least one more big bank (probably either Citi or BoA) that's going to get broken up and nationalized, which will turn the market back down. People are sitting on pins and needles because they don't know where things are headed which make it where no one's going to hire or take on any new debt. Business will get used to the insecurity, but they'll hedge their bets much more than they would if the market were more stable. We're looking at the 70's again where the market, for virtually 10 years, went up a little and went back down a little, but stayed relatively flat. It didn't really take off until around 1982, and then more earnestly around 1986.
But when inflation hits, that'll mess everyone up. That's one thing I noted that people who have 401K's don't understand. Even with the downturned market, many are looking at their accounts and seeing they still have $100K and they'll be alright. They really haven't come to understand that when infaltion hits, that $100k will only buy what maybe $75K will buy now.
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