Stay in the School of What Works Now

This column was originally published on RealMoney on Sept. 8 at 12:00 p.m. EDT. It's being republished as a bonus for TheStreet.com readers.

Don't expect a routine fourth quarter in the financial markets. The aftermath of Katrina will impact the American economy for months or years to come.

And don't assume this week's rally is the final response to the growing tragedy. As I discussed Tuesday, there are mechanical reasons we're seeing the market move higher right now.

But this is a short-term reaction that may end soon. The long-term effects of this storm eventually could end the bull market. ...