fearlessrick - 1:43 am on Mar 1, 2007 (gmt 0)

Yesterday's market movement was a well-orchestrated and much anticipated event. Lots of insiders made a killing selling short. It was telegraphed by Greenspan's comments the day before to a Hong Kong economic forum in which he said the US may be headed for a recession later this year.

It was natural for China to react in that manner as a recession in the US would hurt them, but the degree of their reaction was a little severe. Wall Street's response was overkill and it didn't necessarily follow any logic. I track and report on the market and have for years. My headline on Monday was - and this is exact - The Correction Has Begun. Not everybody was taken by surprise, and we are headed still lower overall for about the next two months and that may be bad for AdSensers for the short term. US stocks have been on a helluva run (52 month bull market) and this was pretty much overdue.

One thing about AdSense and Wall St.: Up or down, those ads still pay well. (Wish I had more of them) Other sectors are seasonal and suffer cyclical slumps but those high-finance types just keep churning. It's the nature of the beast.

I don't see a recession coming, but the economy is definitely cooling off and shaking out some of the excess.