Stock Market Down - Oil Is Up

Yesterday, the New York Stock Exchange dropped a 360 points as investors found themselves confronted by two big negative reports. Oil prices shot up to $96 per barrel. Citigroup Inc. and Bank of America Corp., the two biggest U.S. banks, were downgraded for being a credit risk.

Investors pulling money out of stocks turned to the safe haven of the Treasury market. Bloomberg is reporting a darker picture of our nations financial health. Asian and European stock markets are down following what has happen in New York.

The stock markets have built in a suppose crash protection. In light of what has been happening in the housing market and oil, that crash protection has just delayed a major crash. You only can delay a bad thing only so long.

This Christmas/Holiday shopping season is going to be very weak. Don't expect any bail out sales numbers. High oil prices will raise prices and reduce sales. The housing mortgage issue will only reduce sales. I don't see any major turn around this year. Maybe after the election next November?