Bear Market, Recession Loom Large

The 733-point drop in the Dow Jones Industrials on Wednesday is a sign the global credit crunch is hitting home -- and hitting retailers and businesses across America.

We've just entered the second phase of the bear market in stocks. We're past the panic about bad news in the banking sector. Now, we've moved into the stage where investors accept that stocks are falling because business is going to be bad in the months ahead.

Many thought the headlines about falling home prices were a unique situation, the bursting of the housing bubble. Now we have proof that the slowdown has spread through the economy. ...