The stock market got it wrong today. The stock market fell sharply when S&P announced their downgrade of GM and Ford bonds to junk status. Should have gone the other way. I have been through enough of these crises to know that any event of this size which threatens to impair liquidity will make the Fed significantly more accomodative. (Bank Herstatt or LTCM) A benign Fed and the huge profit growth being posted for Q1 are very positive for the stock market.