A new massacre is about to begin

S&P has downgraded a whole host of mortgage backed securities and CDOs. I have the sinking feeling that we are about to see the replay of the events in Nov and January, both of which were preceded by downgrades by S&P. Plus it seems like MBIA might be downgraded anyday. This time, asset price declines will hit fundamentals, because it will hit sentiment really hard. Normally, earnings determine stock prices. But now, stock prices will determine earnings. Lets see.