Credit Mess Is Dashing Hope

The crisis in the credit markets is derailing the usual year-end optimism for stocks.

The day after Thanksgiving brings shopping, and with Christmas, even more shopping. The holiday spirit typically makes for positive months in the markets, even in challenging times. But this holiday season may be different.

Investors in both bond and stock markets are giving up on trying to find bottoms even in the most beleaguered sectors like financials, opting instead for protective measures like shifting to cash. ...