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The subprime/mortgage mess has accelerated this week and today the Fed stepped in to shore up the market. Many believe that a rate cut is inevitable to further shore up the market. In the meantime, the market gyrates up and down as more banks freeze credit and try to assess their positions.

I had a discussion with the owner of the best bagel shop in New York, and I am convinced that the inflation is out of sight.

I've noticed that advertising on CNBC changes dramatically on days when the market is down big.

It is hard to believe, by this time, that anyone is in favor of the war in Iraq. Much attention is given to Bush's low approval numbers. But fully one third of Americans remain in favor of the war. We know they are mostly Republicans (but certainly not all Republicans are for the war), but what else do we know about them?

Netflix is and was a great idea and a great company. It changed the way we think about video and about home movies. It changed and enriched our lives. But, sadly, Netflix will in time become a footnote in history. Blockbuster just has too much money and is too aggressive a competitor and will increasingly beat Netflix out. A new acquisition undercuts Netflix still further and may be the final blow.

Some try to make private equity out to be the noble knight, who frees the damsel from distress and ensures a bright future. I think it's more like the hormone raging gigolo who is looking to love 'em and dump 'em.

The musical chairs continue at Fidelity and the latest to get caught without a chair is Ellyn McColgan. The media seem to think Ned Johnson is letting go of his key people, but I think Ned knows exactly what he is going - revitalizing a rather stagnant giant.

In Massachusetts even borrowers with good credit are having trouble getting a jumbo mortgage. The credit crisis seems to have spread beyond just the sub prime market.

New York City has been in the lead in lots of initiatives that are models for other cities and that are both bold and imaginative. Working to come up with a system -- following London's model -- to restrict traffic is an excellent example. But following Mexico's experience (funded I think by the World Bank) of providing the poor with money for doing everything from passing school tests, to holding a job, to visiting a doctor is a step or two in a very foolish direction. A direction, indeed, guaranteed to be abused and to create more problems than it solves. And, what positive outcomes were to come from this will be very short term.

The democrats are the ones talking most about healthcare reform. Clinton, Edwards and Obama all have their "plans." Each is banking on huge savings to be reaped by preventive care -- testing, screening, non-smoking campaigns, check-ups and the like. They say all of these programs will keep many people from getting seriously ill and will save, in return, the huge costs of treating them. Lower health expenditures on the seriously ill will reduce costs generally, so the thinking goes, and make healthcare available to larger numbers. Sounds good, but misses a whole lot of costs and realities associated with preventive care. They need to go back and rethink all this.

The plot thickens as Patty Hewes continues to spin her web, and Fobisher spins his. Poor first year law associate Ellen Parsons is caught in the middle.

Cisco looks like a massive winner here. Look at their 4th quarter results and guidance.