Long period of frugality needed for the U.S. economy

Looking for the foundations for the next bull market in U.S. stocks? Wait until you see consumers who save much more, have a lighter debt load and can actually sell their houses. In other words, bring a book: it may be a bit of a wait.

The S&P 500 is down about 12 percent this year and is at levels seen in both 2001 and 1999, leaving many investors sitting on paltry gains or losses for the past decade.

On top of that, the United States is arguably in recession, a state of affairs that won't be helped by the rapid deterioration of economies in Europe and Japan.

Fair enough, you say, but that information is a heck of a lot less useful than telling us when we might expect an improvement.

If the Fed can't save us by printing more money, then we must be doomed! But, maybe not. If we let the market take it's natural self-correcting course, we will spend less, save more and maneuver our way out of this crisis. That is, unless Congress decides to help us by creating new rules and otherwise interfering with the process. Then we will really be doomed!