The first and last story has to do with resolving the crisis in Iraq. Any forecast we do for next year has embedded in it some judgment about how things will go there.

Iraq is now undergoing a security crisis.

It's all a question of when do you want to try and temper things. At this point, there's no immediate danger and I don't think the Fed's actions are meant to slow the economy.

Unless you are the sort of investor who likes to chase every wiggle, which is probably not an optimal strategy anyway, you should stay where you are. Anything the Fed does here ultimately has the purpose of providing for greater stability.

This readiness crisis didn't come out of nowhere. You and your predecessors presided over it.

They can use the bombings to again push Tony Blair on the issue of Iraq.