With earnings season just about over, the numbers for the S&P should average about 12%. With consumers on the hook with their heavy debt loads, expect earnings estimates to be revised downward in the months ahead.

After President Bush signed into law the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, more than 600,000 cases were filed in the bankruptcy courts 16 days before the act became law.

As my friend Louis Navellier recently said, "if a consumer has a dollar in their pocket, they will spend it.' I can't necessarily disagree with him.

Today, as I was taking my son to school, I saw a guy who is a physician's assistant, driving a large Mercedes. His wife, who is a school teacher, drives a large Lexus. These people either hit the lottery, inherited a fortune, or are living way above their means. I must add that the husband is a little more uptight than he used to be. My mentor used to call this "form over substance".

Consumers who are now experiencing financial difficulties because of overspending, job loss, divorce, etc... are now facing two choices;