That will cause short term dips in the stock market, and panic in the news media (because they are obsessed with bad news. They want to believe bad news. They MUST HAVE bad news). In the meantime, The fed stops raising rates at 4.75-5.00% and then rates begin to fall back to current "nuetral levels".

GDP growth slows but the US does not slip into a recession until 2008 at the earliest...2006 and 2007 will prove to be a banner years for the stock market overall, with Mergers and Aquisitions reaching all time highs. Many publicly traded companies will also go private giving a further boost to the stock market. This will be caused in large part by Sarbanes Oxley, and the fact that companied are just flush with cash that they must put somewhere (why not in their own stock?)

Before the stock market goes south again (2009 or 2010), you will begin to see and hear talk of "a second great technology bull market" that will "rival and even surpass the 1st". The news media will do all it can to paint that Bull market as a 2nd bubble going into the 2008 Presidential Campaign. At which time the Democrats and media will really pour on the negative news and economic horror stories of an oncomming bursting of the economic bubble. They will tell us that the pain we will feel will be "the likes of which we haven't see since the Great Depression". They may even be able to talk the market into a short-term cyclical bear market...But once the 2008 election is over, the market will explode upward.

If you are so pessimistic that you are short the market right now, you will lose your arse waiting for Democrat/media predicted "the Great Depression".

Invest at your own risk!