Markets are amazing discounting machines — they just don’t always discount anything useful or important. Case in point: Their belated discovery today that not only are we in a consumer-led recession, but that said recession is going to continue and deepen into 2009.
As an aside, the carnage in commodities is also impressive, with copper off big, oil touching $70, etc. Turns out that during recessions people buy less raw materials. Gosh.