Above this post you will find shots of the front page of Saturday's The New York Times and the latest cover of The Economist magazine.
The stock market's break finally made it to the headline position in the Times. The cover of The Economist advertises the supposed "credit crunch" and boldly suggests that this medicine will be good for what ails us.
Both stories emphasize the bearish state off the credit markets, which is a little surprising given that the bond market has been rallying for 2 months since its June lows and that the Fed has been on a "steady as she goes" course for quite some time now. This makes me think that most of this "credit crunch" story has arisen largely because of the meltdown of a couple of hedge funds sponsored by Bear Stearns. This makes the headlines a post hoc explanation of the stock market drop rather than a reliable prognosis of what lies ahead.
In any case I believe that the Main Stream Media is in the business of telling people what they want to hear. I take these headlines as evidence that the correction which began from the July highs in the averages is nearly over. New bull market highs lie ahead.