The crisis in financial markets, which arose as an offshoot of subprime mortgage foreclosures in the U.S., is now having an impact on equities. Major stock market indexes are down by double digit percentages versus their peaks. Strains in the U.S. economy have become evident in several other sectors as well, beyond housing. Weaker labor markets are a prime concern. There is little doubt that the Federal Reserve will lower interest rates, maybe by as much as 50 basis points, at the end of January.