Stratfor says that cash from overseas will come flooding into the US stock market looking for safe havens in the wake of the global panic that hit overseas on Monday.

That presumes there is confidence in the US economy. The Federal Reserve today cut interest rates the biggest one day cut since October 1984 when rates came down 175 basis points. The Fed is doing a lot very quickly to try and get on top of the deteriorating financial crisis. Here is part of the the Fed statement:

"The Federal Open Market Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth.
While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households."Moreover, incoming information indicates a deepening of the housing contraction as well as some softening in labour markets."

Clearly the Fed see dangerous rapids ahead and is trying to take steps to turn things around. It should be an interesting week in the markets.