Remember that there are two things going on with the economy: the credit market freeze up and the coming recession. (Which looks to be worldwide in nature, now that capitalism is a global phenomenon–emerging markets are still more coupled to the core markets than some had predicted/hoped).
So with stocks bouncing up today having regained a litlte more than a third of what had been lost last week some things to keep in mind. The question is really about the credit issue not the stock market per se. Calculated Risk has other data points to peruse on that front (esp. TED).
Of course the rally comes as Cernig at Newshoggers points out:
Wow, amazing how everyone loves creeping socialism when it’s their own asses on the line.
On the other point, Calculated Risk again (separate post):
However, the economic data will continue to be negative as the recession deepens.
But I’m with Fareed Zakaria and the crew over at Newshoggers, put the stimulus into infrastructure not consumption tax rebates.
Update I: To use a Canadianism I think I pulled a double-double in this post. Twice linked to two separate posts by the same site (2 each for Calculated Risk & Newshoggers).