With the Conference Boards' Consumer confidence plummeting this morning, 90 and change versus 95 and change, a rate cut is looks cooked into the books for tomorrow.  Given the fall in confidence, a 50 bp cut is more likely.  I fully expect that the Fed will see Friday's employment numbers before their decision is made public tomorrow and that could be a key to how big the rate cut will be.

Yesterday the Canadian dollar reached a high relative to the US dollar that has not been seen since 1960, before I was born and when everyone was on the gold standard.  I bring this up only because if the Fed does go 50 bps, the US dollar is going to tank and it will not be orderly.

So when investors and analysts turn their attention away from company news and look at the economy, I don't think they will like what they see.  The first words out of their mouths will be to write off this Christmas season.  When Wall Street workers fill their oil tanks for winter, any hope of Christmas spending will be eliminated.  Oil at $93 per barrel just how long can the US commuter consume? 

Tomorrow will be a red letter day for the markets and will set the stage for the next 12 months.  I am scared for the US dollar and the economic impacts it will have on Americans standard of living.