"We are certainly in the midst of a once-in-a-lifetime set of economic conditions," Microsoft Chief Executive Steve Ballmer said during a conference call with analysts. "The economy is resetting to a lower level of business and consumer spending."

Give that man bone or a prize or a pat on the back or whatever you do when someone makes such a profound, insightful and CORRECT statement. Kudos (a term I hate) to him!!!!

Super smart and honest Steve states the core problem haunting asset prices....falling demand that isn't going to magically reappear. And falling demand means falling revenue which means falling profits which means falling asset prices and on and on the merry go round goes. This is a serious problem that's not going away anytime soon.

As far as the markets go, extreme volatility has re-appeared and I don't like that. To me that's more of an indication of a potential breakdown than anything, so stay alert if you're long equities. It feels like a break out in one direction or the other is upon us, I'm just not sure which direction that'll be. Perhaps tomorrows action will spill the beans.