The stock markets around the globe have been absolutely battered. While the US is down over 43%, most foreign markets are off over 50-80% from their highs….just brutal…and amazingly fast. We’re looking at something like $10 trillion in global market losses in just the last couple of months. As I’ve been saying…this is once in a lifetime stuff…and it’s not nearly over yet.

However, we are about to get what could be a significant and sharp bear market rally. This move higher could even take us back to 9500-10,000 on the Dow Jones, so if you are playing the market on the short side be careful for a while.

The FED will reduce rates to 1% tomorrow, and there is a coordinated global rate cut coming along with it. In addition, the TARP is beginning to fund banks now so there will be plenty of short term positives for the talking heads on CNBC.

Here’s the medium term problem: This recession is just getting started and has at least another year to go. Once defaults begin in the corporate d...