Well so much for liquidity

Am I missing something or just days ago, as the Dow hit 14000, wasn't everyone calling this a Goldilocks economy. We had international growth, especially in China. We had deals left and right because there was so much liquidity and private equity was king. I know all this because I watch CNBC and everyone who came on said this except for the occasional bear who was usually ridiculed. Fortune told us "Business is Back." Now there's talk of a credit crisis. Suddenly, all those hot shot deals are harder to finance, private equity doesn't look as fun, and Henry Paulson got to put out his first fire, coming out today to reassure the markets. (I don't think he's quite got Bob Rubin's touch yet.)

Maybe the Fed will decide to loosen up a bit. By now, if you've been reading this blog, you know I think they could be looser without the risk of inflation. But my guess is that you have to see the market go a lot lower and the economy slow down significantly before we get the rate cut we need from Uncle Ben. In any event, I love how the rah-rah culture of so much business journalism can turn on a dime. The fundamentals of the economy are still what they were on Monday.